Conduit Holdings gross written premiums fall 3.8% in third quarter

(Alliance News) - Conduit Holdings Ltd on Wednesday reported a more pronounced decline in gross written premiums in the third quarter, and it said investment performance was hurt by rising Treasury yields and unrealised losses during the year so far.

In response, shares in Conduit Holdings, the parent company of Bermuda-based reinsurer Conduit Re, were down 6.2% to 418.00 pence each in London midday Wednesday. The fell as low as 399.50p in early trade.

Conduit said gross written premiums for the nine months ended September 30 were USD999.9 million, down 3.8% from USD1.04 billion a year prior. The pace of decline accelerated from 1.8% in the first six months of the year.

Casualty insurance continued to grow, although the rate of growth versus the prior year slowed as the year progressed, Conduit said, reflecting the writing profile of the underlying business and strong growth in the second half of 2025.

Property and Specialty premiums declined as Conduit continued to rebalance towards excess of loss business and said it maintained a disciplined approach to new and renewal business.

Chief Executive Neil Eckert said: "Our investment performance has been impacted by rising Treasury yields and unrealised losses during the year, but our asset portfolio remains high quality and our investment income will benefit from higher reinvestment rates over time."

Reinsurance revenue was USD673.2 million for the nine month period, up 1.6% from USD662.4 million the year before.

"Following significant pricing increases over the past several years, pricing levels softened during the first nine months of 2026 with some expansion in terms and conditions. Strong industry returns and record global reinsurance capital levels have contributed to softening rates, primarily in Property and Specialty lines. In Casualty, pricing remains more stable, although some moderate increases in competition have been observed," the company said in a statement.

Conduit said the first nine months of 2026 was a "relatively benign" period for insured natural catastrophes with an elevated frequency of Specialty losses.

"However, no individual event loss had a material impact on Conduit Re, including losses related to the Middle East conflict. Initial loss estimates associated with the Middle East conflict were recognised in prior quarters, with no changes to those estimates in the third quarter. As the conflict is ongoing, there remains uncertainty in estimating the ultimate losses," the company said.

Conduit said it intends to "continue to distribute excess capital to shareholders through dividends, on-market share repurchases, tender offers or a combination of methods, in line with the company's capital management strategy."

By Jeremy Cutler, Alliance News reporter

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