Conduit reports premium and revenue growth despite softer market pricing

(Sharecast News) - Reinsurance business Conduit Holdings reported higher Q1 premiums and revenue on Wednesday, with the firm also noting that early estimates of its exposure to the Middle East conflict had no material impact on results.

Conduit wrote $430.3m of gross premiums in the three months ended 31 March, up 4.9% on the prior year, driven by growth in Casualty. Reinsurance revenue rose 12.8% to $240.3m, while managed investments increased to $2.3bn.

The London-listed firm said its overall portfolio saw a risk‑adjusted rate change of -5% in the quarter, net of claims inflation, adding that pricing remained at adequate levels following several years of improvements in rates and terms.

It also said its investment portfolio delivered a 0.3% return despite recent market volatility, with underlying yields offset by the impact of rising Treasury yields and wider credit spreads.

Conduit added that while it had booked an initial estimate related to the Middle East conflict, no individual or aggregate event loss had a material effect on the quarter's performance.

Looking ahead, Conduit said record global reinsurance capital and relatively low catastrophe losses continued to contribute to softening rates, particularly in property and specialty lines, a trend it expects to persist.

As of 0945 BST, Conduit shares were untraded at 443p.

Reporting by Iain Gilbert at Sharecast.com

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