CHL, the parent company of Conduit Re, has provided a trading update for the January 1, 2024 renewal season, highlighting an increase in business with estimated ultimate premiums written rising by 38% year-on-year.
The company reported that estimated ultimate premiums written for the January renewals amounted to $582.4 million, a surge from the $421.2 million recorded in the same period in 2023. This growth is attributed to strong renewal business with key partners and the addition of high-quality new business.
Conduit Re also observed an increased focus on property and specialty segments, leading to a higher weighting in these areas. Despite this shift, the company maintained a selective approach to casualty lines to ensure stable combined ratio expectations year-over-year. A 3% risk-adjusted rate change, net of inflation, was also reported, indicating a further hardening of the portfolio rate.
The company also announced that it secured its outwards retrocession program, with no significant changes in net Probable Maximum Losses (PMLs) on January 1. In terms of underwriting activities, the breakdown of estimated ultimate premiums written by class of business was as follows:
The renewal business January 1 showed an overall risk-adjusted rate change, net of inflation, of 3%. The property segment experienced a 5% rate change, the casualty segment saw a -2% change, and the specialty segment had a 2% change.
Gregory Roberts, chief underwriting officer at Conduit Re, noted the 2024 renewals season was marked by high renewing business levels and positive rates in the property and specialty books.
“We continue to see high submission levels of attractive business and, being selective around lines, rates and structure, we continue to grow the portfolio significantly without sacrificing quality. We saw more attractive risk versus reward in the property and specialty segments and therefore we focused growth in these classes over casualty,” Roberts said.
Conduit Re is set to announce its 2023 year-end financial results on February 21, 2024.
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