REG - Conduit Holdings Ltd - Preliminary results for year end 31 December 2025
Today 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260218:nRSR4083Ta&default-theme=true
RNS Number : 4083T Conduit Holdings Limited 18 February 2026
Pembroke, Bermuda - 18 February 2026
Conduit Holdings Limited
("Conduit Holdings"; LSE ticker: CRE)
Preliminary results for the year ended 31 December 2025
Growth in gross premiums written of 6.9%
Strong net investment return of 6.7%
Return on equity of 11.1%
Conduit Holdings, the ultimate parent company of Conduit Re, a multi-line
Bermuda-based reinsurance business, today presents its preliminary results for
the year ended 31 December 2025.
Neil Eckert, Chief Executive Officer, commented: "After a difficult start to
2025, we are pleased to have delivered an 11.1% RoE for the year. The result
reflects our loss exposure to the California wildfires, the largest absorbed
loss in Conduit's history, and our post‑event retrocession purchases. Our
earnings were supported by strong investment performance, with a 6.7% net
return and 24.2% growth in net investment income over 2024, and benign claims
activity during the second half of 2025.
We have renewed our core retrocession programme for 2026 with enhanced
coverage for peak and secondary perils, such as the California wildfires, to
improve our portfolio resilience and better manage earnings volatility. This
has been a critical body of work, alongside the strengthening of our team.
Conduit has had a successful January renewal season. We attracted select new
business while continuing to support our key partners in a more meaningful
way. At the same time, underwriting discipline remains our priority. As
markets softened in 2025 and into 2026, our growth rate has moderated as we
have reduced or exited business that did not meet our pricing or performance
standards. Against the backdrop of more competitive market conditions, we are
pleased with the start to 2026.
Moving forward, we will carefully deploy our capital or return it to
shareholders as appropriate. Our balance sheet remains strong and we continue
to have appetite for share repurchases."
Year ended 31 December
Key financials ($m) 2025 2024 Change
Gross premiums written1 (#_ftn1) 1,243.0 1,162.4 6.9%
Reinsurance revenue 897.1 813.7 10.2%
Net reinsurance revenue 778.0 720.0 8.1%
Reinsurance service result 109.9 131.6 (16.5)%
Net investment result 119.5 66.1 80.8%
Comprehensive income 116.8 125.6 (7.0)%
Financial ratios (%) 2025 2024 Change (pps)
Return on equity 11.1 12.7 (1.6)
Net loss ratio (discounted) 77.5 73.3 4.2
Reinsurance operating expense ratio 8.4 8.4 -
Other operating expense ratio 3.2 4.3 (1.1)
Combined ratio (discounted) 89.1 86.0 3.1
Combined ratio (undiscounted) 101.5 97.1 4.4
Total net investment return 6.7 4.0 2.7
Per share data ($) 2025 2024 Change
Tangible net assets per share 7.14 6.70 0.44
Dividends per common share for financial year 0.36 0.36 -
Diluted earnings per share 0.74 0.79 (0.05)
Key highlights:
• Gross premiums written for the year ended 31 December 2025 of
$1,243.0 million, a 6.9% increase over the year ended 31 December 2024, with
growth driven by the Casualty segment
• Overall portfolio risk adjusted rate change of (3)%, net of claims
inflation, reflects stable conditions in Casualty, balanced with softening
prices in Property and Specialty
• Our undiscounted combined ratio of 101.5% for the year ended 31
December 2025 reflects a highly active period of natural catastrophe events
and risk losses for the industry during the first half of the year, with a
15.3% contribution from the California wildfires
• Net investment result of $119.5 million for the year ended 31
December 2025 for a return of 6.7%, including a strong increase in net
investment income due to a growing investment portfolio and unrealised gains
• Comprehensive income of $116.8 million, resulting in an 11.1% return
on equity in a high catastrophe year
• Final dividend of $0.18 (approximately 13 pence) per common share,
taking the full 2025 dividend to $0.36 (approximately 26 pence) per common
share
• Share repurchases under the authorised buyback programme totalled
$12.5 million during the year ended 31 December 2025, with an additional $5.4
million completed through 17 February 2026
• Tangible net assets per share of $7.14 (£5.30) as at 31 December
2025 increased 11.9%, including dividends paid during the year (31 December
2024: $6.70 or £5.35); the small decline in tangible net assets per share in
GBP is due to the change in GBP:USD exchange rates during the period
Outlook:
• Successful January renewal season where we experienced a strong flow
of new excess of loss and quota share opportunities, while we also exited or
reduced treaties that did not meet our pricing requirements
• Market conditions remain adequate in most lines of business, although
continued softening could lead to moderating premium growth rates over the
course of the year, particularly in Property and Specialty segments
• In January we renewed and enhanced our core retrocession programme,
with a reduced net retention for peak and secondary perils compared to the
initial programme in the prior year
• Continued growth in our managed investments is expected to support
strong net investment income
• Our balance sheet remains strong with an estimated BSCR ratio of 252%
as at 31 December 2025; we continue to have flexibility to deploy or return
capital depending on the opportunities we see in the market
Underwriting update
Premiums
Gross premiums written for the year ended 31 December 2025:
2025 20242 (#_ftn2) Change Change
Segment $m $m $m %
Property 659.4 645.1 14.3 2.2%
Casualty 392.3 318.9 73.4 23.0%
Specialty 191.3 198.4 (7.1) (3.6)%
Total 1,243.0 1,162.4 80.6 6.9%
During the year ended 31 December 2025, gross premiums written were $1,243.0
million compared to $1,162.4 million for 2024. We delivered strong growth in
Casualty, modest growth in Property and a slight decline in Specialty gross
premiums written. The growth in Casualty primarily reflects increases in
general third-party liability business with preferred partners. Property
growth has slowed throughout the year, reflecting softening prices and more
competitive conditions. Specialty experienced a slight decline as we have
reduced our growth in lines experiencing more pressure on pricing and terms.
Pricing
Following multiple years of compounding rate increases, pricing levels and
terms and conditions softened in most classes of business. Certain Casualty
lines continued to benefit from market correction driven by reserve
deterioration and loss emergence, primarily from pre-2020 years before Conduit
commenced business. Market conditions across the Property and Specialty
segments reflected increased competition following significant pricing
increases and strong profitability for the industry over the past several
years.
Conduit Re's overall risk-adjusted rate change for the year ended 31 December
2025, net of claims inflation, was (3)% and by segment was:
Property Casualty Specialty
(5)% 1% (5)%
Net reinsurance revenue
For the year ended 31 December 2025:
Property Casualty Specialty Total
$m $m $m $m
Reinsurance revenue 494.5 256.6 146.0 897.1
Ceded reinsurance expenses (107.9) (1.2) (10.0) (119.1)
Net reinsurance revenue 386.6 255.4 136.0 778.0
For the year ended 31 December 20243 (#_ftn3) :
Property Casualty Specialty Total
$m $m $m $m
Reinsurance revenue 461.1 217.4 135.2 813.7
Ceded reinsurance expenses (81.7) (1.4) (10.6) (93.7)
Net reinsurance revenue 379.4 216.0 124.6 720.0
Reinsurance revenue for the year ended 31 December 2025 was $897.1 million
compared to $813.7 million for 2024. The increase in reinsurance revenue
relative to the prior year was due to continued growth in the business plus
the earn-out of premiums from prior underwriting years.
Ceded reinsurance expenses for the year ended 31 December 2025 were $119.1
million compared to $93.7 million for 2024. The increase in cost relative to
the prior year reflected additional limits purchased due to the growth of the
inwards portfolio exposures, as well as broader outwards protections bought
during the year related to secondary perils.
Net reinsurance service expenses
For the year ended 31 December 2025:
Property Casualty Specialty Total
$m $m $m $m
Reinsurance losses and loss related amounts (305.9) (187.3) (130.0) (623.2)
Reinsurance operating expenses (41.3) (15.5) (8.4) (65.2)
Ceded reinsurance recoveries 2.3 - 18.0 20.3
Net reinsurance service expenses (344.9) (202.8) (120.4) (668.1)
For the year ended 31 December 20244 (#_ftn4) :
Property Casualty Specialty Total
$m $m $m $m
Reinsurance losses and loss related amounts (274.0) (156.7) (100.2) (530.9)
Reinsurance operating expenses (39.3) (14.0) (7.2) (60.5)
Ceded reinsurance recoveries (0.4) - 3.4 3.0
Net reinsurance service expenses (313.7) (170.7) (104.0) (588.4)
Net reinsurance losses and loss related amounts
2025 was another highly active period of natural catastrophe events and risk
losses for the reinsurance industry, including the California wildfires,
severe convective storms in the United States and several aviation losses,
among others. The most significant event was the California wildfires which
impacted the Los Angeles area in January 2025. Our undiscounted net loss
attributed to the wildfires, net of reinsurance and reinstatement premiums,
was $119.1 million. The California wildfires contributed 15.3% to our
undiscounted net loss ratio. Absent this event our undiscounted net loss ratio
would have been 74.6%.
2024 was also an above average year of loss activity for the industry.
Hurricanes Helene and Milton made landfall in the United States, and there was
also elevated activity across smaller and mid-size natural catastrophe and
large risk events, such as the Baltimore Bridge.
Our discounted net loss ratio for the year ended 31 December 2025 was 77.5%
compared with 73.3% for the 2024 year, while our undiscounted net loss ratio
was 89.9% and 84.4% respectively. The increase for the year ended 31 December
2025 was primarily related to the California wildfires.
Our undiscounted ultimate loss estimates, net of ceded reinsurance and
reinstatement premiums, for previously reported loss events remained broadly
stable. The inherent uncertainty in estimating the net liability for incurred
claims gives rise to favourable or adverse development. During the year ended
31 December 2025 the favourable development in the discounted net liability
for incurred claims for prior accident years was $14.1 million (31 December
2024: $4.3 million).
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 more
information becomes available.
Reinsurance operating expenses and other operating expenses
For the year ended 31 December 2025:
2025 2024 Change Change
$m $m $m %
Reinsurance operating expenses 65.2 60.5 4.7 7.8%
Other operating expenses 24.8 30.8 (6.0) (19.5)%
Total reinsurance and other operating expenses 90.0 91.3 (1.3) (1.4)%
2025 2024 Change
% % (pps)
Reinsurance operating expense ratio 8.4 8.4 -
Other operating expense ratio 3.2 4.3 (1.1)
Total reinsurance and other operating expense ratio 11.6 12.7 (1.1)
Reinsurance operating expenses includes brokerage and operating expenses
deemed attributable to reinsurance contracts.
Total reinsurance and other operating expenses were $90.0 million for the year
ended 31 December 2025 compared with $91.3 million for the prior year. The
reinsurance operating expense ratio was in line with the prior year, while the
decrease in the other operating expense ratio was mainly due to the
substance-based tax credits resulting from the Bermuda Tax Credit Act 2025,
enacted during December 2025. Conduit has recognised tax credits of $6.9
million (2024: nil) in the statement of comprehensive income with these
credits treated as a reduction in reinsurance and other operating expenses.
Net reinsurance finance income (expense)
For the year ended 31 December 2025:
2025 2024 Change
$m $m $m
Net interest accretion (61.1) (37.6) (23.5)
Net change in discount rates (16.1) 6.8 (22.9)
Net reinsurance finance income (expense) (77.2) (30.8) (46.4)
The net reinsurance finance expense was $77.2 million for the year ended 31
December 2025 compared with $30.8 million for the prior year. The unwind of
discount made up most of the expense in both years, increasing in 2025 in line
with growing balance sheet reserves. There was some additional expense in 2025
related to the decrease in discount rates as we re-measured to those lower
rates, while 2024 benefited from an increase in discount rates in the latter
part of 2024.
Investments
In line with our stated strategy, we continue to maintain a relatively
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 year ended 31 December 2025 was 6.7% driven by
net investment income from a growing portfolio, and unrealised gains due to a
decrease in yields. For 2024 the portfolio returned 4.0% driven mainly due to
net investment income.
Net investment income, excluding realised and unrealised gains and losses, was
$80.7 million for the year ended 31 December 2025 (31 December 2024: $65.0
million), or an increase of 24.2%, driven by growth in cash and investment
balances year on year. Total investment return, including net investment
income, net realised gains and losses, and net change in unrealised gains and
losses, was $119.5 million (31 December 2024: $66.1 million).
The breakdown of the managed investment portfolio is as follows:
As at 31 December 2025 As at 31 December 2024
Fixed maturity securities 88.3% 85.8%
Cash and cash equivalents 11.7% 14.2%
Total 100.0% 100.0%
Key investment portfolio statistics for our fixed maturities and managed cash
were:
As at 31 December 2025 As at 31 December 2024
Duration 2.8 years 2.5 years
Credit Quality AA AA
Book yield 4.2% 4.1%
Market yield 4.2% 4.8%
Capital & dividends
Total capital and tangible capital available was $1.10 billion as at 31
December 2025 (31 December 2024: $1.05 billion).
Tangible net assets per share as at 31 December 2025 was $7.14, or £5.30 (31
December 2024: $6.70 or £5.35). Including dividends, tangible net assets per
share increased 11.9% during 2025.
During 2025 the Conduit Board of Directors approved a share buyback programme
of up to $50.0 million. Shares purchased under this programme amounted to
$12.5 million for the year ended 31 December 2025.
Shares purchased by CHL's employee benefit trust during 2025 amounted to $3.0
million (2024: $9.4 million) and will be held in trust to meet future
obligations under CHL's variable incentive schemes.
On 17 February 2026 CHL's Board of Directors declared a final dividend of
$0.18 (approximately 13 pence using the exchange rate on 17 February 2026) per
common share, resulting in an aggregate payment of $29.2 million. The dividend
will be paid in pounds sterling on 16 April 2026 to shareholders of record on
20 March 2026 (the "Record Date") using the GBP:USD spot exchange rate at 12
pm UK time on the Record Date.
CHL previously declared and paid an interim dividend during 2025 of $0.18
(approximately 13 pence) per common share. Consequently, the full 2025
dividend was $0.36 (approximately 26 pence) per common share in line with our
stated dividend policy.
Financial information
The unaudited consolidated financial statements for the year ended 31 December
2025 are published on Conduit's website at www.conduitreinsurance.com.
Conduit's 2025 Annual Report and Accounts are expected to be made available on
Conduit's website by Friday 27 February 2026.
Presentation for analysts and investors on Wednesday, 18 February 2026 at 12:00 pm UK time
Conduit's management will host a virtual meeting for analysts and investors,
via a webcast and conference call, on Wednesday, 18 February 2026 at 12:00 pm
UK time. There will be an opportunity for questions and 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/2d40c207-b667-4cfa-8349-afd3fc30480a/conduit-holdings-ltd-full-year-results-2025
To access the conference call, please register to receive unique dial-in
details here:
https://registrations.events/direct/LON981162546
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.
Results and investor presentation via Investor Meet Company on Wednesday, 18
February 2026 at 4:00 pm UK time
Conduit's management will provide a separate presentation aimed at retail
investors, relating to the full year 2025 financial results via the Investor
Meet Company platform, on Wednesday, 18 February 2026 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 9:00 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 Limited 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
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 stable.
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 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, the expansion and growth of Conduit's operations and
any related changes to lines of business that we underwrite.
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 announcement 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 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 consolidated
financial statements or in accordance with IFRS.
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
return. Conduit bases its total net investment return on the sum of
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.
Consolidated statement of comprehensive income - unaudited
For the year ended 31 December 2025
2025 2024
$m $m
Reinsurance revenue 897.1 813.7
Reinsurance service expenses (688.4) (591.4)
Ceded reinsurance expenses (119.1) (93.7)
Ceded reinsurance recoveries 20.3 3.0
Reinsurance service result 109.9 131.6
Net investment income 80.7 65.0
Net realised gains (losses) on investments (0.4) 0.1
Net unrealised gains (losses) on investments 39.2 1.0
Net investment result 119.5 66.1
Net reinsurance finance income (expense) (77.2) (30.8)
Net foreign exchange gains (losses) (0.1) (2.2)
Net reinsurance and financial result 152.1 164.7
Equity-based incentive expense (9.3) (7.1)
Other operating expenses (24.8) (30.8)
Results of operating activities 118.0 126.8
Financing costs (1.2) (1.2)
Total comprehensive income for the year 116.8 125.6
Earnings per share
Basic $0.75 $0.80
Diluted $0.74 $0.79
Consolidated balance sheet - unaudited
As at 31 December 2025
2025 2024
$m $m
Assets
Cash and cash equivalents 339.2 313.2
Accrued interest receivable 15.6 12.4
Investments 1,907.4 1,526.3
Ceded reinsurance contract assets 51.4 48.9
Other assets 11.1 4.0
Right-of-use lease assets 0.7 1.4
Total assets 2,325.4 1,906.2
Liabilities
Reinsurance contract liabilities 1,210.5 834.5
Other payables 11.7 18.9
Lease liabilities 0.8 1.6
Total liabilities 1,223.0 855.0
Shareholders' equity
Share capital 1.7 1.7
Own shares (52.7) (40.6)
Other reserves 1,070.9 1,065.0
Retained earnings 82.5 25.1
Total shareholders' equity 1,102.4 1,051.2
Total liabilities and shareholders' equity 2,325.4 1,906.2
Statement of consolidated cash flows - unaudited
For the year ended 31 December 2025
2025 2024
$m $m
Cash flows from operating activities
Comprehensive income 116.8 125.6
Depreciation 1.1 1.1
Interest expense on lease liabilities - 0.1
Net investment income (82.1) (65.3)
Net realised (gains) losses on investments 0.4 (0.1)
Net unrealised (gains) losses on investments (39.2) (1.0)
Net unrealised foreign exchange (gains) losses 0.7 1.5
Equity-based incentive expense 9.3 7.1
Change in operational assets and liabilities
- Reinsurance assets and liabilities 363.2 337.1
- Other assets and liabilities (8.6) 1.2
Net cash flows from operating activities 361.6 407.3
Cash flows used in investing activities
Purchase of investments (964.1) (736.3)
Proceeds on sale and maturity of investments 621.4 462.2
Interest received 73.5 55.1
Purchase of property, plant and equipment - (0.7)
Net cash flows used in investing activities (269.2) (219.7)
Cash flows used in financing activities
Lease liabilities paid (0.8) (0.8)
Dividends paid (59.4) (59.5)
Purchase of own shares (15.5) (9.4)
Net cash flows used in financing activities (75.7) (69.7)
Net increase in cash and cash equivalents 16.7 117.9
Cash and cash equivalents at the beginning of the year 313.2 199.8
Effect of exchange rate fluctuations on cash and cash equivalents 9.3 (4.5)
Cash and cash equivalents at end of year 339.2 313.2
1 (#_ftnref1) Refer to the Alternative Performance Measures (APMs) section
for an explanation and description of the calculation
2 (#_ftnref2) Certain reinsurance contracts previously reported within the
Specialty segment are now reported within the Property and Casualty segments
to better align with Conduit's internal view of these contracts. Comparative
periods have been re-presented in order to be consistent with the current
period presentation.
3 (#_ftnref3) Certain reinsurance contracts previously reported within the
Specialty segment are now reported within the Property and Casualty segments
to better align with Conduit's internal view of these contracts. Comparative
periods have been re-presented in order to be consistent with the current
period presentation.
4 (#_ftnref4) Certain reinsurance contracts previously reported within the
Specialty segment are now reported within the Property and Casualty segments
to better align with Conduit's internal view of these contracts. Comparative
periods have been re-presented in order to be consistent with the current
period presentation.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END PREEADAXFAFKEAA
Copyright 2019 Regulatory News Service, all rights reservedRecent news on Conduit Holdings
See all newsREG - Conduit Holdings Ltd - Transaction in Own Shares
AnnouncementREG - Conduit Holdings Ltd - Preliminary results for year end 31 December 2025
AnnouncementREG - Conduit Holdings Ltd - Transaction in Own Shares
AnnouncementREG - Conduit Holdings Ltd - Directorate changes
AnnouncementREG - Conduit Holdings Ltd - Transaction in Own Shares
Announcement