REG - Conduit Holdings Ltd - Interim results for the six months ended 30/06/25
Wed 07:02
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RNS Number : 0882T Conduit Holdings Limited 30 July 2025
Pembroke, Bermuda - 30 July 2025
Conduit Holdings Limited
("Conduit Holdings" LSE ticker: CRE)
Interim results for the six months ended 30 June 2025
Growth in gross premiums written of 8.9%
Strong net investment income with total return of 3.9%
Interim dividend of $0.18 (approximately 13 pence) per common share declared
Conduit Holdings, the ultimate parent company of Conduit Re, a multi-line
Bermuda-based reinsurance business, today presents its interim results for the
six months ended 30 June 2025.
Neil Eckert, Chief Executive Officer, commented: "We are in a period of
transition as we begin positioning the business to be more resilient. We have
started initiatives to manage net exposures better, including enhancing our
outwards reinsurance programme and refining our portfolio. The process of
rationalising our quota share exposure is underway and will lead to less
premium in this area, while we have an increased appetite for excess of loss
business. These adjustments are intended to reduce attritional loss exposure
and improve diversification, which we believe will help drive more consistent
returns in the future. The actions are further supported by targeted senior
hires across key functions bringing valuable expertise and fresh perspectives
to the team.
We have delivered 8.9% growth in gross premiums written and continue to see
adequate pricing across many of our target classes, though market dynamics are
shifting due to increased capacity. Our high-quality and growing investment
portfolio continued to deliver strong results, with 29.8% growth in net
investment income and a 3.9% return through 30 June.
The first half was marked by elevated loss activity above our normal plan,
including wildfires, severe convective storms and aviation events. Further,
the recent UK High Court judgement regarding the 2022 Ukraine loss has
significantly increased the industry's insured loss from the event. The
actions to rebalance our portfolio, together with increased losses during the
second quarter and an increase in our reserves related to Ukraine, have
resulted in a further reduction to our RoE expectations to the mid single
digits for 2025. However, we believe Conduit has a strong foundation from
which to build upon, and we are taking steps to advance the business and drive
resilience to support long-term value creation across market cycles."
Key financials ($m) Six months ended 30 June 2025 Six months ended 30 June 2024 Change
Gross premiums written1 (#_ftn1) 803.3 737.8 8.9%
Reinsurance revenue 433.3 382.0 13.4%
Net reinsurance revenue 379.9 338.2 12.3%
Reinsurance service result (15.2) 99.7 (115.2)%
Net investment result 63.8 23.0 177.4%
Comprehensive income (loss) (13.5) 98.1 (113.8)%
Financial ratios (%) Six months ended 30 June 2025 Six months ended 30 June 2024 Change (pps)
Return on equity (1.3) 9.9 (11.2)
Net loss ratio (discounted) 95.8 62.4 33.4
Reinsurance operating expense ratio 8.2 8.1 0.1
Other operating expense ratio 4.3 4.6 (0.3)
Combined ratio (discounted) 108.3 75.1 33.2
Combined ratio (undiscounted) 122.1 85.7 36.4
Total net investment return 3.9 1.5 2.4
Per share data ($) Six months ended 30 June 2025 Six months ended 30 June 2024 Change
Tangible net assets per share, as at 6.43 6.69 (0.26)
Dividends per common share 0.18 0.18 -
Diluted earnings (loss) per share (0.09) 0.62 (0.71)
Key highlights:
· Gross premiums written for the six months ended 30 June 2025 of $803.3
million, an 8.9% increase over the six months ended 30 June 2024, reflecting
targeted growth opportunities
· Rates remain at historically attractive levels despite some softening, with an
overall risk-adjusted rate change of (3)% (net of claims inflation) for
premium written in the first six months of 2025
· The six months ended 30 June 2025 were marked by particularly severe natural
catastrophes and significant risk losses for the industry; our undiscounted
combined ratio of 122.1% for this period reflects this activity, with the
California wildfires accounting for 31.6% of this figure
· Net investment result of $63.8 million for the six months ended 30 June 2025
for a return of 3.9%, including strong growth in net investment income due to
a growing investment portfolio
· Comprehensive loss of $13.5 million, representing a (1.3)% return on equity
for the first six months of the year
· Tangible net assets per share of $6.43, approximately £4.682 (#_ftn2) (30
June 2024: $6.69 or £5.28; 31 December 2024: $6.70 or £5.35).
Outlook
· The process of realigning our portfolio towards a greater share of excess of
loss business is underway; as we work through our 2026 planning process, the
team is actively identifying opportunities that align with our risk appetite
and strategic objectives to improve diversification and margins.
· We are making necessary changes to enhance our portfolio's resilience and
better manage net exposure going forward, including broader outwards
protections, particularly related to secondary perils
· We will continue to strengthen our functional teams with targeted hires in
underwriting, risk and claims, supporting our capabilities over the long term
· The previously mentioned portfolio adjustments, including purchasing
additional reinsurance and reducing certain quota share business, will result
in lower premium growth and net reinsurance revenue; this, along with loss
activity above normal expectations and development on reserves related to
Ukraine, will drive a lower RoE outlook for 2025 in the mid single digits
· Despite a loss for the half year, the Board remains confident in Conduit's
outlook, and has declared an interim dividend of $0.18 (approximately 13
pence) per common share, in line with our dividend policy which remains
unchanged.
· The strategic changes we are actioning are focused on generating more stable
and resilient returns for shareholders, and we continue to target a mid-teens
RoE across the cycle.
Underwriting update
Premiums
Gross premiums written for the six months ended 30 June:
2025 2024 Change Change
Segment $m $m $m %
Property 483.6 441.8 41.8 9.5%
Casualty 169.0 148.2 20.8 14.0%
Specialty 150.7 147.8 2.9 2.0%
Total 803.3 737.8 65.5 8.9%
During the six months ended 30 June 2025, all three of our segments delivered
growth in gross premiums written, driven by Property and Casualty. We have
experienced a number of new business opportunities and increased demand in
Property, and in Casualty we have selectively expanded partnerships with
existing cedants that have demonstrated disciplined behaviour. The growth rate
in Specialty slowed compared to recent periods as we have reduced our growth
in lines experiencing more pressure on pricing and terms.
Pricing
Despite some moderation, pricing levels and terms and conditions continued to
be attractive in the first six months of 2025, benefiting from multiple years
of compounding rate increases.
Certain Casualty lines continued to benefit from market correction driven by
reserve deterioration and loss emergence, primarily from pre-2020 years.
Market conditions across Property and Specialty segments reflected some
increased competition following significant pricing increases over the past
several years.
Conduit Re's overall risk-adjusted rate change for the six months ended 30
June 2025, net of claims inflation, was (3)% and by segment was:
Property Casualty Specialty
(5)% 1% (4)%
Net reinsurance revenue
For the six months ended 30 June 2025:
Property Casualty Specialty Total
$m $m $m $m
Reinsurance revenue 229.7 108.6 95.0 433.3
Ceded reinsurance expenses (47.7) (0.6) (5.1) (53.4)
Net reinsurance revenue 182.0 108.0 89.9 379.9
For the six months ended 30 June 2024:
Property Casualty Specialty Total
$m $m $m $m
Reinsurance revenue 210.1 96.9 75.0 382.0
Ceded reinsurance expenses (37.8) (0.7) (5.3) (43.8)
Net reinsurance revenue 172.3 96.2 69.7 338.2
Reinsurance revenue for the six months ended 30 June 2025 was $433.3 million
compared to $382.0 million for the same period in 2024. The increase in
reinsurance revenue relative to the prior period was due to continued growth
in the business plus the earn-out of premiums from prior underwriting years.
Ceded reinsurance expenses for the six months ended 30 June 2025 were $53.4
million compared to $43.8 million for the same period in 2024. The increase in
cost relative to the prior period reflected additional limits purchased due to
the growth of the inwards portfolio plus additional secondary perils coverage
purchased following the California wildfires in early 2025.
Net reinsurance service expenses
For the six months ended 30 June 2025:
Property Casualty Specialty Total
$m $m $m $m
Reinsurance losses and loss related amounts (204.8) (82.3) (95.9) (383.0)
Reinsurance operating expenses (19.3) (6.8) (5.1) (31.2)
Ceded reinsurance recoveries 1.4 - 17.7 19.1
Net reinsurance service expenses (222.7) (89.1) (83.3) (395.1)
For the six months ended 30 June 2024:
Property Casualty Specialty Total
$m $m $m $m
Reinsurance losses and loss related amounts (86.6) (71.6) (56.4) (214.6)
Reinsurance operating expenses (16.8) (6.2) (4.4) (27.4)
Ceded reinsurance recoveries 0.1 - 3.4 3.5
Net reinsurance service expenses (103.3) (77.8) (57.4) (238.5)
Net reinsurance losses and loss related amounts
Our discounted net loss ratio for the six months ended 30 June 2025 was 95.8%
compared with 62.4% for the same period in 2024, while our undiscounted net
loss ratio was 109.6% and 73.0% respectively.
The first six months of 2025 was another highly active period of natural
catastrophe events and risk losses for the industry, including the California
wildfires, severe convective storms in the United States and several aviation
losses, amongst others. The California wildfires were the most significant
event, causing widespread damage in the Los Angeles area. Our undiscounted net
loss attributed to the wildfires, net of reinsurance and reinstatement
premiums, was $118.3 million, which is within our previously disclosed range
of between $100.0 and $140.0 million. The California wildfires contributed
31.6% to our undiscounted net loss ratio. Absent this event our undiscounted
net loss ratio would have been 78.0%, which is more in line with the prior
year undiscounted loss ratio of 73.0%.
For the first six months of 2024, despite an active loss period for the
industry, no event loss, individually or in the aggregate, had a material
impact on Conduit.
The inherent uncertainty in estimating the net liability for incurred claims
gives rise to favourable or adverse development. During the six months ended
30 June 2025 the favourable development in the discounted net liability for
incurred claims for prior accident years was $3.8 million (30 June 2024: $0.6
million). While development is favourable across the portfolio, we experienced
some adverse development on prior year reserves, primarily as a result of the
UK High Court ruling on the aviation losses in connection with the Russian
invasion of Ukraine. Other than Ukraine, our undiscounted ultimate loss
estimates, net of ceded reinsurance and reinstatement premiums, for previously
reported significant events remained stable.
Our loss and reserve estimates have been derived from a combination of reports
and statements from brokers and cedants, modelled loss projections, pricing
loss ratio expectations and reporting patterns, all supplemented with market
data and assumptions. We continue to review these estimates as additional
information becomes available.
Reinsurance operating expenses and other operating expenses
For the six months ended 30 June:
2025 2024 Change Change
$m $m $m %
Reinsurance operating expenses 31.2 27.4 3.8 13.9%
Other operating expenses 16.4 15.4 1.0 6.5%
Total reinsurance and other operating expenses 47.6 42.8 4.8 11.2%
2025 2024 Change
% % (pps)
Reinsurance operating expense ratio 8.2 8.1 0.1
Other operating expense ratio 4.3 4.6 (0.3)
Total reinsurance and other operating expense ratio 12.5 12.7 (0.2)
Reinsurance operating expenses includes brokerage and operating expenses
deemed attributable to reinsurance contracts.
Net reinsurance finance expense
For the six months ended 30 June:
2025 2024 Change
$m $m $m
Net interest accretion (26.9) (14.2) (12.7)
Net change in discount rates (14.0) 9.5 (23.5)
Net reinsurance finance income (expense) (40.9) (4.7) (36.2)
The net reinsurance finance expense was $40.9 million for the six months ended
30 June 2025 compared with $4.7 million for the same period in the prior year.
The unwind of discount increased during the first six months of 2025 due to
the growth in discount available to unwind while there was also an additional
expense due to updating to current discount rates due to the reduction in
yields during the first six months of 2025. The same period in 2024 saw the
net interest accretion partially offset by updating to current discount rates
due to the increase in yields in that period.
Investments
In line with our stated strategy, we continue to maintain our conservative
approach to managing our invested assets with a strong emphasis on preserving
capital and liquidity. Our strategy remains maintaining a short duration,
highly-rated portfolio, with due consideration of the duration of our
liabilities. Our investment portfolio does not hold any derivatives, equities
or alternatives.
The investment return for the first six months of 2025 was 3.9% driven by net
investment income, in addition to net unrealised gains due to the reduction in
treasury yields in the period. In the first six months of 2024 the portfolio
returned 1.5% as net investment income was partially offset by a net
unrealised loss due to the increase in yields in that period.
Net investment income, excluding realised and unrealised gains and losses, was
$38.8 million for the six months ended 30 June 2025 (30 June 2024: $29.9
million). Total investment return, including net investment income, net
realised gains and losses, and net change in unrealised gains and losses, was
a gain of $63.8 million for the six months ended 30 June 2025 (30 June 2024:
$23.0 million).
The breakdown of the managed investment portfolio was as follows:
As at 30 June 2025 As at 30 June 2024 As at 31December2024
Fixed maturity securities 90.5% 85.5% 85.8%
Cash and cash equivalents 9.5% 14.5% 14.2%
Total 100.0% 100.0% 100.0%
Key investment portfolio statistics for our fixed maturities and managed cash
were:
As at 30 June 2025 As at 30 June 2024 As at 31December2024
Duration 2.8 years 2.5 years 2.5 years
Credit Quality AA AA AA
Book yield 4.2% 4.1% 4.1%
Market yield 4.5% 5.3% 4.8%
Capital & dividends
Total capital and tangible capital available to Conduit was $1.01 billion at
30 June 2025 (30 June 2024: $1.05 billion; 31 December 2024: $1.05 billion).
Tangible net assets per share as at 30 June 2025 was $6.43 or £4.683 (#_ftn3)
(30 June 2024: $6.69 or £5.28; 31 December 2024: $6.70 or £5.35).
During the first six months of 2025 the Conduit Board of Directors approved a
share buyback programme of up to $50.0 million. Shares purchased under this
programme amounted to $2.5 million for the six months ended 30 June 2025.
Shares purchased by Conduit's EBT during the first six months of 2025 amounted
to $3.0 million (30 June 2024: $9.4 million: 31 December 2024: $9.4 million)
and will be held in trust to meet future obligations under Conduit's variable
incentive schemes.
On 29 July 2025 Conduit's Board of Directors declared an interim dividend of
$0.18 (approximately 13 pence) per Common Share, resulting in an aggregate
payment of $29.7 million. The dividend will be paid in pounds sterling on 11
September 2025 to shareholders of record on 15 August 2025 (the Record Date)
using the pound sterling/US dollar spot exchange rate at 12 noon BST on the
Record Date.
Financial information
The unaudited condensed interim consolidated financial statements for the six
months ended 30 June 2025 are published on Conduit Re's website at
www.conduitreinsurance.com.
Presentation for Analysts and Investors at 12:00 noon UK time
Conduit's management will host a virtual meeting for analysts and investors
via a webcast and conference call on Wednesday 30 July 2025 at 12:00 noon UK
time. There will be an opportunity for questions & answers at the end of
the presentation. To ask a question, please join via the conference call.
To access the webcast, please register in advance here:
https://sparklive.lseg.com/ConduitHoldingsLtd/events/92f31944-968a-4743-a923-b5180cfc268a/conduit-holdings-limited-h1-results-2025
To access the conference call, please register to receive unique dial-in
details here:
https://registrations.events/direct/LON6204532
A recording of the presentation will be made available later in the day on the
Investors section of Conduit's website at www.conduitreinsurance.com.
Investor Presentation via Investor Meet Company
Conduit's management will provide a separate presentation aimed at retail
investors, relating to the 2025 Interim Results, via the Investor Meet Company
platform, on Wednesday, 30 July 2025 at 4:00 pm UK time.
The presentation is open to all existing and potential shareholders. No new
material, including trading or financial information, will be disclosed during
the presentation.
There will be an opportunity for questions and answers at the end of the
presentation. Questions can be submitted pre-event via the Investor Meet
Company dashboard up until 09:00 am UK time the day before the meeting or at
any time during the live presentation.
Investors can sign up to Investor Meet Company for free, or if signed up, can
add to meet Conduit Holdings Limited via:
https://www.investormeetcompany.com/conduit-holdings-limited/register-investor
Investors who are already registered on the Investor Meet Company platform and
follow Conduit Holdings will automatically be invited to the call.
Media contacts
Haggie Partners - David Haggie / Peter Rigby / Caroline Klein
+44 (0) 207 562 4444
conduitre@haggiepartners.com
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
This announcement contains information, which may be of a price sensitive
nature, that Conduit is making public in a manner consistent with the Market
Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018, as amended, and other
regulatory obligations. The information was submitted for publication, through
the agency of the contact persons set out above, at 7:00 am UK time on 30 July
2025.
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
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 related policy 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.
The Conduit renewal year on year indicative risk-adjusted rate change measure
is an internal methodology that management uses to track trends in premium
rates of a portfolio of reinsurance contracts. The change measure is specific
for our portfolio and reflects management's assessment of relative changes in
price, exposure and terms and conditions. It is also net of the estimated
impact of claims inflation. It is not intended to be commentary on wider
market conditions. The calculation involves a degree of judgement in relation
to comparability of contracts and the assessment noted above, particularly in
Conduit's initial years of underwriting. To enhance the methodology,
management may revise the methodology and assumptions underlying the change
measure, so the trends in premium rates reflected in the change measure may
not be comparable over time. Consideration is only given to renewals of a
comparable nature so it does not reflect every contract in the portfolio of
Conduit contracts. The future profitability of the portfolio of contracts
within the change measure is dependent upon many factors besides the trends in
premium rates.
Additional Performance Measures (APMs)
Conduit presents certain APMs to evaluate, monitor and manage the business and
to aid readers' understanding of Conduit's financial statements and
methodologies used. These are common measures used across the (re)insurance
industry and allow the reader of Conduit's financial reports to compare those
with other companies in the (re)insurance industry. The APMs should be viewed
as complementary to, rather than a substitute for, the figures prepared in
accordance with IFRS. Conduit's Audit Committee has evaluated the use of these
APMs and reviewed their overall presentation to ensure that they were not
given undue prominence. This information has not been audited.
Management believes the APMs included in the condensed interim consolidated
financial statements are important for understanding Conduit's overall results
of operations and may be helpful to investors and other interested parties who
may benefit from having a consistent basis for comparison with other companies
within the (re)insurance industry. However, these measures may not be
comparable to similarly labelled measures used by companies inside or outside
the (re)insurance industry. In addition, the information contained herein
should not be viewed as superior to, or a substitute for, the measures
determined in accordance with the accounting principles used by Conduit for
its condensed interim consolidated financial statements or in accordance with
IAS 34.
Below are explanations, and associated calculations, of the APMs presented by
Conduit:
APM Explanation Calculation
Gross premiums written (KPI) For the majority of excess of loss contracts, premiums written are recorded Amounts payable by the cedant before any deductions, which may include taxes,
based on the minimum and deposit or flat premium, as defined in the contract. brokerage and commission. Reinstatement premiums are excluded.
Premiums written for proportional contracts on a risks attaching basis are
written over the term of the contract in line with the underlying exposures.
Subsequent adjustments, based on reports of actual premium by the ceding
company, or revisions in estimates, are recorded in the period in which they
are determined. Reinstatement premiums are excluded.
Net loss ratio (discounted and undiscounted) Ratio of net losses and loss related amounts expressed as a percentage of net Net losses and loss related amounts / Net reinsurance revenue
reinsurance revenue in a period. This can be calculated using discounted or
undiscounted net losses and loss related amounts.
Undiscounted net losses and loss related amounts / Net reinsurance revenue
Reinsurance operating expense ratio Ratio of reinsurance operating expenses, which includes acquisition expenses Reinsurance operating expenses / Net reinsurance revenue
charged by insurance brokers and other insurance intermediaries to Conduit,
and operating expenses paid that are attributable to the fulfilment of
reinsurance contracts, expressed as a percentage of net reinsurance revenue in
a period.
Other operating expense ratio Ratio of other operating expenses expressed as a percentage of net reinsurance Other operating expenses / Net reinsurance revenue
revenue in a period.
Combined ratio (discounted) (KPI) The sum of the net loss ratio, reinsurance operating expense ratio and other Net loss ratio + Net reinsurance operating expense ratio + Other operating
operating expense ratio. Other operating expenses are not allocated to the expense ratio
segment combined ratio.
Combined ratio (undiscounted) The sum of the net loss ratio (undiscounted), reinsurance operating expense Net loss ratio (undiscounted) + Net reinsurance operating expense ratio +
ratio and other operating expense ratio. Other operating expenses are not Other operating expense ratio
allocated to the segment combined ratio.
Accident year loss ratio Ratio of the net losses and loss related amounts of an accident year (or Accident year net losses and loss related amounts / Net reinsurance revenue
calendar year) revalued at the current balance sheet date expressed as a
percentage of net reinsurance revenue in a period.
Total net investment return (KPI) Conduit's principal investment objective is to preserve capital and provide Net investment income + Net unrealised gains (losses) on investments + Net
adequate liquidity to support the payment of losses and other liabilities. In realised gains (losses) on investments / Non-operating cash and cash
light of this, Conduit looks to generate an appropriate total net investment equivalents + Fixed maturity securities, at beginning of period, calculated
return. Conduit bases its total net investment return on the sum of daily
non-operating cash and cash equivalents and fixed maturity securities. Total
net investment return is calculated daily and expressed as a percentage.
Return on equity (KPI) RoE enables Conduit to compare itself against other peer companies in the Profit (loss) after tax for the period / Total shareholders' equity, at
immediate industry. It is also a key measure internally and is integral in the beginning of period
performance-related pay determinations. RoE is calculated as the profit for
the period divided by the opening total shareholders' equity.
Total shareholder return (KPI) Total shareholder return allows Conduit to compare itself against other public Closing Common Share price, at end of period - Opening Common Share price, at
peer companies. Total shareholder return is calculated as the percentage beginning of period + Common Share dividends during the period / Opening
change in Common Share price over a period, after adjustment for Common Share Common Share price, at beginning of period
dividends.
Dividend yield Calculated by dividing the annual dividends per Common Share by the Common Annual dividends per Common Share / Closing Common Share price
Share price on the last day of the given year and expressed as a percentage.
Net tangible assets per share (KPI) This provides a measure of book value per share for all shares in issue less Total shareholders' equity less intangible assets, at the end of the period /
own shares held in treasury or the EBT trust. Total common shares in issue less own shares held.
The GBP equivalent of NTAVS is calculated using the end of period exchange
rate between USD and GBP.
Condensed interim consolidated statement of comprehensive income (loss) -
(unaudited)
Sixmonths Six months Twelvemonths
ended ended ended
30June2025 30 June 2024 31 Dec 2024
$m $m $m
Reinsurance revenue 433.3 382.0 813.7
Reinsurance service expenses (414.2) (242.0) (591.4)
Ceded reinsurance expenses (53.4) (43.8) (93.7)
Ceded reinsurance recoveries 19.1 3.5 3.0
Reinsurance service result (15.2) 99.7 131.6
Net investment income 38.8 29.9 65.0
Net realised gains (losses) on investments (0.5) (0.4) 0.1
Net unrealised gains (losses) on investments 25.5 (6.5) 1.0
Net investment result 63.8 23.0 66.1
Net reinsurance finance income (expense) (40.9) (4.7) (30.8)
Net foreign exchange gains (losses) - (0.7) (2.2)
Net reinsurance and financial result 7.7 117.3 164.7
Equity-based incentive expense (4.2) (3.2) (7.1)
Other operating expenses (16.4) (15.4) (30.8)
Results of operating activities (12.9) 98.7 126.8
Financing costs (0.6) (0.6) (1.2)
Total comprehensive income (loss) for the period (13.5) 98.1 125.6
Earnings (loss) per share
Basic $(0.09) $0.62 $0.80
Diluted $(0.09) $0.62 $0.79
Condensed interim consolidated balance sheet (unaudited)
As at 30 June 2025 As at 30 June2024 As at 31 Dec 2024
$m $m $m
Assets
Cash and cash equivalents 227.7 260.2 313.2
Accrued interest receivable 14.5 10.6 12.4
Investments 1,754.2 1,321.6 1,526.3
Ceded reinsurance contract assets 87.1 73.5 48.9
Other assets 4.8 6.6 4.0
Right-of-use lease assets 1.0 1.7 1.4
Total assets 2,089.3 1,674.2 1,906.2
Liabilities
Reinsurance contract liabilities 1,068.7 608.1 834.5
Other payables 12.7 14.6 18.9
Lease liabilities 1.2 1.9 1.6
Total liabilities 1,082.6 624.6 855.0
Shareholders' equity
Share capital 1.7 1.7 1.7
Own shares (42.7) (40.6) (40.6)
Other reserves 1,065.8 1,061.1 1,065.0
Retained earnings (loss) (18.1) 27.4 25.1
Total shareholders' equity 1,006.7 1,049.6 1,051.2
Total liabilities and shareholders' equity 2,089.3 1,674.2 1,906.2
Condensed interim statement of consolidated cash flows (unaudited)
Sixmonths Six months Twelvemonths
ended ended ended
30June2025 30 June 2024 31 Dec 2024
$m $m $m
Cash flows from operating activities
Comprehensive income (loss) (13.5) 98.1 125.6
Depreciation 0.6 0.6 1.1
Interest expense on lease liabilities - - 0.1
Net investment income (39.3) (30.2) (65.3)
Net realised (gains) losses on investments 0.5 0.4 (0.1)
Net unrealised (gains) losses on investments (25.5) 6.5 (1.0)
Net unrealised foreign exchange (gains) losses 0.7 0.2 1.5
Equity-based incentive expense 4.2 3.2 7.1
Change in operational assets and liabilities
- Reinsurance assets and liabilities 184.0 83.8 337.1
- Other assets and liabilities (4.9) (4.9) 1.2
Net cash flows from operating activities 106.8 157.7 407.3
Cash flows used in investing activities
Purchase of investments (478.8) (323.1) (736.3)
Proceeds on sale and maturity of investments 276.9 241.9 462.2
Interest received 34.0 24.9 55.1
Purchase of property, plant and equipment - (0.6) (0.7)
Net cash flows used in investing activities (167.9) (56.9) (219.7)
Cash flows used in financing activities
Lease liabilities paid (0.4) (0.4) (0.8)
Dividends paid (29.7) (29.7) (59.5)
Purchase of own shares (5.5) (9.4) (9.4)
Net cash flows used in financing activities (35.6) (39.5) (69.7)
Net (decrease) increase in cash and cash equivalents (96.7) 61.3 117.9
Cash and cash equivalents at the beginning of the period 313.2 199.8 199.8
Effect of exchange rate fluctuations on cash and cash equivalents 11.2 (0.9) (4.5)
Cash and cash equivalents at end of period 227.7 260.2 313.2
1 Refer to the Alternative Performance Measures (APMs) section for an
explanation and description of the calculation
2 The GBP:USD exchange rate as at 30 June 2025 was 1.373 (30 June 2024:
1.266; 31 December 2024: 1.251)
3 The GBP:USD exchange rate as at 30 June 2025 was 1.373 (30 June 2024:
1.266; 31 December 2024: 1.251)
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