REG - Conduit Holdings Ltd - Trading Update for Q1 2026

Conduit HoldingsAnnouncement

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RNS Number : 0606E  Conduit Holdings Limited  13 May 2026

Pembroke, Bermuda - 13 May 2026

Conduit Holdings Limited

("Conduit Holdings"; LSE ticker: CRE)

Trading update for Q1 2026

Growth in gross premiums written of 4.9%

Managed investments continued to grow to $2.3 billion

Board approves new buyback programme of up to $50 million

Conduit Holdings, the ultimate parent company of Conduit Re, a Bermuda-based
multi-line reinsurance business, today presents its trading update for the
three months ended 31 March 2026.

Neil Eckert, Chief Executive Officer, commented: "We have made a solid start
to 2026, continuing to execute on the priorities we set out last year to
stabilise the business and strengthen the Board, leadership and our
underwriting team. Although market conditions are softening, we identified
select growth opportunities, successfully enhanced our retrocession programme
with more comprehensive peak and secondary peril coverage, and substantially
completed our previously announced share buyback programme. On top of this,
strong cash flow has increased our managed investments by approximately $400
million over the past year. In the current environment we remain focused on
selectively deploying our capacity into attractive underwriting opportunities
and returning excess capital to shareholders in line with Conduit's capital
management strategy.

We are pleased with how our underwriting portfolio and invested assets have
performed during recent geopolitical developments in the Middle East. This
reinforces our confidence in the resilience of the business and strength of
our balance sheet. Against this backdrop, subject to shareholder approval at
the AGM today, the Board has approved another buyback programme of up to $50
million, which we intend to execute according to our capital management
strategy.

I am pleased that we have continued to advance the business and we remain
confident in the execution of our strategy. While market conditions are more
competitive, we will continue to adjust in response to changing conditions and
emerging opportunities as they develop.

During the quarter, we continued with Board succession planning, appointing
Nicholas Shott as Chair, and welcoming Richard Lightowler, Peter Mullen and
Penny Shaw as Independent Non-Executive Directors, each of whom brings
extensive financial services expertise to the Board.

In closing, I would like to thank Elizabeth Murphy who has retired from the
Board. Elizabeth was a founding director and has provided valuable guidance
and insight as audit committee chair during her tenure. I wish to also
formally acknowledge the profound sense of loss from the untimely passing of
Stephen Redmond. Stephen was a highly dedicated and respected Non-Executive
Director, and his significant contributions and exemplary character are
sincerely missed."

 

Key highlights:

•   Gross premiums written of $430.3 million, a 4.9% increase over the
first three months of 2025, with growth being driven by Casualty.

•   Reinsurance revenue of $240.3 million, a 12.8% increase over the first
three months of 2025.

•   Overall portfolio risk-adjusted rate change for the three months ended
31 March 2026 was (5)%, net of claims inflation. Pricing generally remains at
adequate levels following improvements in rates and terms and conditions
during recent years.

•   While we have recorded an initial estimate related to exposure to the
conflict in the Middle East, no event loss, individually or in the aggregate,
had a material impact on Conduit in the quarter.

•   Our high-quality investment portfolio produced a return of 0.3% for
the three months ended 31 March 2026 despite recent market volatility, where
portfolio yield was offset by the negative impact of rising treasury yields
and widening credit spreads.

Outlook:

•   Record global reinsurance capital levels, combined with relatively low
catastrophe losses, continue to contribute to softening rates, particularly in
property and specialty lines, which is expected to continue.

•   We continue to work with long-standing supportive cedants and brokers
to target attractive areas of the market that align with our risk appetite and
strategic objectives.

•   Continued growth in our managed investments to $2.3 billion.

Underwriting update
Premiums

Gross premiums written for the three months ended 31 March 2026:

            2026   20251 (#_ftn1)  Change  Change
 Segment    $m     $m              $m      %
 Property   248.8  246.3           2.5     1.0%
 Casualty   109.7  89.1            20.6    23.1%
 Specialty  71.8   74.8            (3.0)   (4.0)%
 Total      430.3  410.2           20.1    4.9%

During the first quarter of 2026, we identified select growth opportunities
for our portfolio, primarily driven by continued growth in targeted Casualty
classes. We also marginally increased gross premiums written within our
Property segment and chose to moderately reduce volume within our Specialty
segment. This approach reflects our active cycle management amid softening
market conditions, particularly in property and specialty markets.

Reinsurance revenue

Reinsurance revenue for the three months ended 31 March 2026:

            2026   2025   Change  Change
 Segment    $m     $m     $m      %
 Property   133.4  117.6  15.8    13.4%
 Casualty   68.6   56.8   11.8    20.8%
 Specialty  38.3   38.6   (0.3)   (0.8)%
 Total      240.3  213.0  27.3    12.8%

Pricing

Following significant pricing increases over the past several years, record
global reinsurance capital levels combined with relatively low catastrophe
losses have contributed to softening rates in property and specialty lines. In
casualty, pricing remains more stable, although some moderate increases in
competition have been observed. Overall, most classes of business remain
adequately priced.

Conduit's overall risk-adjusted rate change for the three months ended 31
March 2026, net of claims inflation, was (5)%, and by segment was:

 Property  Casualty  Specialty
 (9)%      (1)%      (7)%

Net reinsurance losses and loss related amounts

For the first three months of 2026, no event loss, individually or in the
aggregate, had a material impact on Conduit Re. Conduit has exposure to the
Middle East conflict, and we have recorded an initial loss estimate based on
the latest information. As the conflict is ongoing, there is significant
uncertainty in estimating the associated losses.

Our loss reserve estimates have been derived from a combination of reports
from brokers and cedants, realistic disaster scenario analysis, pricing loss
ratio expectations and reporting patterns, supplemented with market data and
assumptions. We will continue to monitor the Middle East conflict and update
our loss estimates as the conflict develops.

Our undiscounted ultimate loss estimates, net of ceded reinsurance and
reinstatement premiums, for previously reported loss events remain stable.

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 first three months of 2026 was 0.3% where
portfolio yield was offset by the negative impact of rising treasury yields
and widening credit spreads. In the first three months of 2025 the portfolio
returned 2.1% due to investment income, combined with a reduction in treasury
yields in the quarter.

The breakdown of the managed investment portfolio is as follows:
                            As at 31 March 2026  As at 31 March 2025
 Fixed maturity securities  87.8%                87.9%
 Cash and cash equivalents  12.2%                12.1%
 Total                      100.0%               100.0%

Key investment portfolio statistics for our fixed maturity securities and
managed cash were:

                 As at 31 March 2026  As at 31 March 2025
 Duration        2.8 years            2.7 years
 Credit quality  AA                   AA
 Book yield      4.2%                 4.1%
 Market yield    4.4%                 4.6%

Capital & dividends

During the first quarter of 2026, CHL's Board of Directors declared a final
dividend of $0.18 (£0.1344) per common share in respect of 2025, which was
paid in pounds sterling on 16 April 2026 to shareholders of record on 20 March
2026, resulting in an aggregate payment of $28.7 million.

Share repurchases under the authorised buyback programme totalled $22.9
million during the three months ended 31 March 2026.

Presentation for analysts and investors on Wednesday, 13 May 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 13 May 2026 at 12:00 noon UK
time. There will be an opportunity for questions & answers at the end of
the update. 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/1ad60db7-f6e4-4d14-a07f-14db9b3b3913/conduit-holdings-limited-q1-2026-trading-update

To access the conference call, please register to receive unique dial-in
details here:

https://registrations.events/direct/LON9811681

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 at 4:00 pm UK time

Conduit's management will provide a separate presentation aimed at retail
investors, relating to the Q1 2026 trading update via the Investor Meet
Company platform, on Wednesday, 13 May 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; (ii) business and management
strategies; and (iii) 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, including in relation to
potential losses; changes in the political environment of countries in which
we underwrite business, as well as acts of terrorism, political unrest or
hostilities or other unforecasted and unpredictable events caused by humans;
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.

 

 

1 (#_ftnref1)  The prior year comparatives have been represented to ensure
consistency with the 2025 full year result disclosures.

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