Conduit Re, the Bermudian-based global multi-line reinsurance business, has reported comprehensive income of $125.6 million for the 2024 fiscal year.

That compares with comprehensive income of $190.8 million in the prior year, a drop of 34.2 per cent.

Announcing preliminary results for 2024, the company reported a discounted combined ratio of 86 per cent (2023: 72.1 per cent), including the impact of hurricanes Helene and Milton as well as a series of elevated risk losses.

Chief executive Trevor Carvey said: “From a standing start four years ago, we have delivered a business which produced $1.16 billion of gross premiums written in 2024, an increase of 24.8 per cent on 2023.

“In a high catastrophe year, the business produced a 12.7 per cent ROE [return on equity], after having delivered a 22 per cent ROE in 2023.”

He added: “While the business is still exhibiting substantial growth, we now have a demonstrated platform, generating profitable returns even in high industry loss years.

“Our results also illustrate the continued and growing cost efficiency of our business model and an increasing contribution to profitability from investment returns as our asset base grows.

“The company is well capitalised and we expect to continue to build on these achievements as the business grows and matures. We had a solid January 2025 renewal period with extensive support from our existing clients across our multi-line profile.

“Selective additions of attractive business led to double-digit growth over the 2024 renewal season on an ultimate basis.”

Addressing the impact of last month’s California wildfires, the company said: “While there is still considerable uncertainty due to the complicated nature of the losses and recency of the event, our preliminary undiscounted ultimate loss estimate across all divisions is between $100 and $140 million, net of reinsurance recoveries and reinstatement premiums.

“Our current preliminary estimate is based on an analysis of in-force contracts with exposure within the Los Angeles area, evaluating all the initial information we have received from brokers, cedants and other industry sources, along with a review of the latest modelled losses for our portfolio at various return periods.

“As additional information emerges our ultimate loss may vary from this preliminary estimate. The financial impact on Conduit of this event will be reflected in the interim results for the six months ended June 30.”