As the re/insurance market enters into a more competitive phase, it presents Conduit Re with an opportunity to deploy more capacity into casualty risks, Neil Eckert, who was recently appointed as the company’s new CEO, highlighted during the reinsurer’s analyst call following the release of its Q1’25 financial results.
“We are entering a more competitive phase of the cycle and have started to see pricing come off highs, particularly in property and specialty. We have seen additional opportunities in certain areas of the casualty market, and expect to continue to deploy capacity here,” Eckert stated.
This year’s first quarter results revealed year-on-year growth for Conduit’s casualty segment, which increased 21.9% or $15.1 million from Q1 2024.
Interim Chief Underwriting Officer (CUO) Nick Prichard attributed most of this growth primarily to the team’s expanding relationships with existing clients.
Of the total Q1 2025 gross premium written of $410.2 million, the Property segment contributed $237.9 million, while Casualty and Specialty contributed $84.1 million and $88.2 million, respectively.
According to Prichard, the growth seen in casualty is in part due to the market’s continued positive reception to Conduit as the company enters its fifth year of trading.
“Our excellent financial strength has further reinforced our position as a trusted and credible partner that enables the team to support larger shares on preferred programmes,” the interim CUO said.
Through extensive client data analysis, Conduit has observed evidence of positive cycle management, including appropriate management of limits, attachment points and premium rates within desired classes.
The executive also noted that there are some areas of the casualty market that continue to correct for reserve development and loss emergence, such as US excess casualty.
“This follows increased claims and reserve strengthening from the industry, primarily on underwriting years prior to 2020. This correction is driving rate increases, and Conduit is benefiting from these improvements,” Prichard explained.
He continued: “That said, we remain heightened to the elevated loss trends, which show the potential to further offset the rating improvement. We therefore calculate the risk adjusted rate change net of inflation through 31st of March 2025, across the casualty portfolio was minus 1%.”
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