REG - Conduit Holdings Ltd - CEO Retirement

Conduit HoldingsAnnouncement

31/03/2025 07:15

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RNS Number : 8626C  Conduit Holdings Limited  31 March 2025

Pembroke, Bermuda - 31 March 2025

Conduit Holdings Limited

("CHL"; LSE ticker: CRE)

CEO Retirement

CEO Retirement

CHL, the ultimate parent company of Conduit Re, a multi-line Bermuda-based
reinsurance business, today announces that Trevor Carvey, CHL's Chief
Executive Officer, has notified the Board of CHL of his decision to step down
as Chief Executive Officer and director and retire with effect from 11 April
2025. His retirement is a result of a change in personal circumstances
requiring his return to the UK. Neil Eckert, Executive Chairman, will assume
the responsibilities of interim Chief Executive Officer with immediate effect.

CHL has commenced a search to identify a new Chief Executive Officer.

Neil Eckert, Executive Chairman, said: "The Board of Directors is grateful to
Trevor for his dedication and contribution. He led the business through its
start-up phase and significant premium growth, and we wish him well in the
future. Since its formation in 2020, Conduit Re has become a quality business
with a sizeable and growing income stream. The balance sheet is strong, with
ample capacity for further growth. We look forward to driving Conduit forward
into the next phase of its development."

Trevor Carvey said: "It has been an honour to lead Conduit Re over the last
four years and I am confident that the company is well-positioned for future
success."

CHL's remuneration committee has exercised its discretion, following standard
process, to treat Trevor as a good leaver pursuant to the terms of its
management incentive plan and deferred share bonus plan. Details of his
remuneration, including bonus and share plan treatment and severance terms,
will be in line with the provisions of the plans, his service agreement and
the Directors' Remuneration Policy approved by shareholders at the AGM in May
2024. Further details will be set out in CHL's 2025 Annual Report.

Trading Update

Ahead of Conduit's first quarter trading update on 14 May, CHL also wishes to
re-iterate its previous preliminary loss estimate in relation to the
California wildfires. Our preliminary undiscounted ultimate loss estimate,
across all divisions, remains between US$100 million and $140 million, net of
reinsurance recoveries and reinstatement premiums. It is, however, our
intention to enter into additional reinsurance purchases to assist in
protecting Conduit from further earnings volatility through this current
financial year, and specifically as regards secondary perils. The cost of the
additional reinsurance cover, plus other adjustments we intend to make to the
portfolio, will reduce our previous guidance of potential forecast RoE for the
year to between high single digits and low double digits. We believe securing
the additional protection in a year with such a significant loss event so
early in the year is a prudent measure. We maintain our cross-cycle mid-teens
RoE guidance target.

CHL will next update shareholders at its trading update on 14 May, including
any updates on the leadership transition.

This announcement contains inside information for the purpose of the Market
Abuse Regulation (EU) No 596/2014 (which forms part of UK domestic law
pursuant to the European Union (Withdrawal) Act 2018, as amended).

Media contacts:

H/Advisors Maitland - Neil Bennett

+44 (0) 790 000 0777

conduitre@h-advisors.global

Haggie Partners - David Haggie

+44 (0) 207 562 4444

Investor relations and other enquiries:

brett.shirreffs@conduitre.bm

Panmure Liberum (Joint Corporate Broker)

+44 (0) 207 886 2500

Berenberg (Joint Corporate Broker)

+44 (0) 203 207 7800

Peel Hunt (Joint Corporate Broker)

+44 (0) 207 418 8900

 

About Conduit Re

Conduit Re is a Bermuda-based multi-line reinsurance business with global
reach. Conduit Reinsurance Limited is licensed by the Bermuda Monetary
Authority as a Class 4 insurer. A.M. Best has assigned a Financial Strength
Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of a-
(Excellent) to Conduit Reinsurance Limited. The outlook assigned to these
ratings is positive.

Conduit Holdings Limited is the ultimate parent of Conduit Reinsurance Limited
and is listed on the London Stock Exchange (ticker: CRE). References to
"Conduit" include Conduit Holdings Limited and all of its subsidiary
companies.

Learn more about Conduit Re:

Website: https://conduitreinsurance.com/

LinkedIn: https://www.linkedin.com/company/conduit-re

Neither the content of Conduit's website, nor the content on any website
accessible from hyperlinks on its website for any other website, is
incorporated into, or forms part of, this announcement nor, unless previously
published by means of a regulated information service, should any such content
be relied upon in reaching a decision as to whether or not to acquire,
continue to hold, or dispose of, securities in Conduit Holdings Limited.

Important information (disclaimers)

This announcement contains inside information for the purpose of the Market
Abuse Regulation (EU) No 596/2014 (which forms part of UK domestic law
pursuant to the European Union (Withdrawal) Act 2018, as amended).

This announcement includes statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements may be
identified by the use of forward-looking terminology, including the terms
"believes", "estimates", "plans", "goals", "objective", "rewards",
"expectations", "signals", "projects", "anticipates", "expects", "achieve",
"intends", "tends", "on track", "well placed", "continued", "estimated",
"projected", "preliminary", "upcoming", "may", "will", "aims", "could" or
"should" or, in each case, their negative or other variations or comparable
terminology, or by discussions of strategy, plans, objectives, goals, targets,
future events or intentions or loss estimates. Forward-looking statements
include statements relating to the following: (i) future capital requirements,
capital expenditures, expenses, revenues, unearned premiums pricing rate
changes, terms and conditions, earnings, synergies, economic performance,
indebtedness, financial condition, dividend policy, claims development, losses
and loss estimates and future business prospects; and (ii) business and
management strategies and the expansion and growth of Conduit's operations.

Forward-looking statements may and often do differ materially from actual
results. Forward-looking statements reflect Conduit's current view with
respect to future events and are subject to risks relating to future events
and other risks, uncertainties and assumptions relating to Conduit's business,
results of operations, financial position, liquidity, prospects, growth and
strategies. These risks, uncertainties and assumptions include, but are not
limited to: the possibility of greater frequency or severity of claims and
loss activity than Conduit's underwriting, reserving or investment practices
have anticipated; the reliability of catastrophe pricing, accumulation and
estimated loss models; the actual development of losses and expenses impacting
estimates for claims which arose as a result of recent loss activity such as
hurricanes, storms, floods and wildfires; the impact of complex causation and
coverage issues associated with attribution of losses to wildfires, wind or
flood damage; the impact of increased costs and inflation to settle claims in
high density areas and emerging information as losses develop; unusual loss
frequency or losses that are not modelled; the effectiveness of Conduit's risk
management and loss limitation methods, including to manage volatility; the
recovery of losses and reinstatement premiums from our own reinsurance
providers; the development of Conduit's technology platforms; a decline in
Conduit's ratings with A.M. Best or other rating agencies; the impact that
Conduit's future operating results, capital position and ratings may have on
the execution of Conduit's business plan, capital management initiatives or
dividends; Conduit's ability to implement successfully its business plan and
strategy during 'soft' as well as 'hard' markets; the premium rates which are
available at the time of renewals within Conduit's targeted business lines and
at policy inception; the pattern and development of premiums as they are
earned; increased competition on the basis of pricing, capacity or coverage
terms and the related demand and supply dynamics as contracts come up for
renewal; the successful recruitment, retention and motivation of Conduit's key
management and the potential loss of key personnel; the credit environment for
issuers of fixed maturity investments in Conduit's portfolio; the impact of
the ongoing conflicts in Ukraine and the Middle East, the impact of swings in
market interest rates, currency exchange rates and securities prices; changes
by central banks regarding the level of interest rates and the timing and
extent of any such changes; the impact of inflation or deflation in relevant
economies in which Conduit operates; Conduit becoming subject to income taxes
in Bermuda, the United States or in the United Kingdom; and changes in
insurance or tax laws or regulations in jurisdictions where Conduit conducts
business. Forward-looking statements contained in this trading update may be
impacted by emerging information regarding losses from the California
wildfires, the escalation or expansion of the Ukraine conflict or Middle East
conflict, the volatility in global financial markets and governmental,
regulatory and judicial actions, including coverage issues.

Forward-looking statements speak only as of the date they are made. No
representation or warranty is made that any forward-looking statement will
come to pass. Conduit disclaims any obligation or undertaking to update or
revise any forward-looking statements contained herein to reflect actual
results or any change in the assumptions, conditions or circumstances on which
any such statements are based unless required to do so by law or regulation.
All subsequent written and oral forward-looking statements attributable to
Conduit and/or the group or to persons acting on its behalf are expressly
qualified in their entirety by the cautionary statements referred to above.

 

 

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