Conduit Holdings Limited, the parent company of Conduit Re, the pure-play global reinsurer based in Bermuda, has reported a strong start to the reinsurer’s renewal season including a huge growth to its premium writings.

The company took advantage of extremely strong property and specialty market conditions to grow premium during the January 1 reinsurance renewals.

Estimated ultimate premiums written are up to $421.4 million, an increase of about 60 per cent on $262.6 million in 2022.

An outlook from Conduit included this assessment: “The significant movement in pricing and terms and conditions is evidence of a structural shift in the marketplace caused by a fundamental re-pricing of risk and an imbalance in the supply and demand of capital.

“We see this as an enduring environment creating the opportunity for improved margins in our business across the rest of 2023 and beyond.”

Other key highlights of the company’s 1/1 renewals include the continued selective growth in casualty lines which continue to provide attractive underwriting opportunities, the company said.

Business continues to trend towards a mid-80s combined ratio in the medium term, further supported by: significantly enhanced terms and conditions; reduced acquisition costs on renewed business; and, an exceptional pricing environment.

Further CHL said there was a 19 per cent risk-adjusted rate change net of inflation across the portfolio, comprising: a 39 per cent risk-adjusted rate change on property; a one per cent risk-adjusted rate change on casualty; and, a 14 per cent risk-adjusted rate change on specialty.

Conduit Re also continues to have a strong, legacy-free balance sheet and is well placed to continue to grow in the current market conditions.

Trevor Carvey, the chief executive officer was upbeat: "This has been an exceptional renewal season. Sixty per cent premium growth is the true indication of the underwriting conditions we have experienced.

“This is manifesting itself across pricing and rates, terms and deductibles, and the strong increase in new business that we have enjoyed. From a capital perspective, we have plenty of room to execute our plan and the growth we anticipate."

Gregory Roberts, chief underwriting officer, commented: "We experienced a busy and rewarding start to the year.

“In the 1 January renewals we increased our weighting towards property and specialty business, capitalising on an exceptional shift in pricing, while balancing it against our casualty book, which is still attractively priced.

“A highlight was that we successfully secured our retrocession programme in line with our objectives. As a team, we are absolutely delighted in the way that we executed the renewals period and feel that we have developed a reputation as being a responsive, reliable and disciplined counterparty.

“We expect market conditions to continue to offer opportunities for further growth as the year develops."

Neil Eckert, executive chairman, added: "This has been an exciting January renewals. Premium up, conditions improving, and our team has had a really good start to 2023. We are continuing to see reserve strengthening across the reinsurance industry, which gives Conduit Re with its legacy-free balance sheet, a competitive edge. Conduit Re is now, truly through its start-up phase."