January 2023 Renewals Trading Update
Significant premium growth through new business and renewals, with year-on-year change of circa 60%; higher pricing and improved terms and conditions secured; entering 2023 from a position of strength and well placed to continue to take advantage of further anticipated momentum in rates.
CHL, the parent company of Conduit Re, a pure-play global reinsurance business based in Bermuda, today provides a trading update in relation to the key 1 January 2023 renewal season where it has seen a strong start to the year.
Trevor Carvey, Chief Executive Officer, said:
"This has been an exceptional renewal season. 60% premium growth is the true indication of the underwriting conditions we have experienced. This is manifesting itself across pricing and rates, terms and deductibles, and the strong increase in new business that we have enjoyed. From a capital perspective, we have plenty of room to execute our plan and the growth we anticipate."
Key highlights of 1 January renewals:
• Estimated ultimate premiums written of $421.4 million:
• Increase of circa 60% on 2022 ($262.6 million)
• Extremely strong Property and Specialty market conditions provided the opportunity to grow those classes more
• Continued selective growth in Casualty lines which continue to provide attractive underwriting opportunities
• Business continues to trend towards a mid-80's combined ratio in the medium term, further supported by:
• Significantly enhanced terms and conditions
• Reduced acquisition costs on renewed business
• Exceptional pricing environment
• 19% risk-adjusted rate change net of inflation across the portfolio, comprising:
• 39% risk-adjusted rate change on Property
• 1% risk-adjusted rate change on Casualty
• 14% risk-adjusted rate change on Specialty
• Conduit Re continues to have a strong, legacy-free balance sheet and is well placed to continue to grow in the current market conditions.