Conduit Holdings Limited
(“Conduit Holdings”; LSE ticker: CRE)
Preliminary results for the year ended 31 December 2025
Growth in gross premiums written of 6.9%
Strong net investment return of 6.7%
Return on equity of 11.1%
Conduit Holdings, the ultimate parent company of Conduit Re, a multi-line Bermuda-based reinsurance business, today presents its preliminary results for the year ended 31 December 2025.
Neil Eckert, Chief Executive Officer, commented: “After a difficult start to 2025, we are pleased to have delivered an 11.1% RoE for the year. The result reflects our loss exposure to the California wildfires, the largest absorbed loss in Conduit’s history, and our post event retrocession purchases. Our earnings were supported by strong investment performance, with a 6.7% net return and 24.2% growth in net investment income over 2024, and benign claims activity during the second half of 2025.
We have renewed our core retrocession programme for 2026 with enhanced coverage for peak and secondary perils, such as the California wildfires, to improve our portfolio resilience and better manage earnings volatility. This has been a critical body of work, alongside the strengthening of our team.
Conduit has had a successful January renewal season. We attracted select new business while continuing to support our key partners in a more meaningful way. At the same time, underwriting discipline remains our priority. As markets softened in 2025 and into 2026, our growth rate has moderated as we have reduced or exited business that did not meet our pricing or performance standards. Against the backdrop of more competitive market conditions, we are pleased with the start to 2026.
Moving forward, we will carefully deploy our capital or return it to shareholders as appropriate. Our balance sheet remains strong and we continue to have appetite for share repurchases.”
Key highlights:
• Gross premiums written for the year ended 31 December 2025 of $1,243.0 million, a 6.9% increase over the year ended 31 December 2024, with growth driven by the Casualty segment
• Overall portfolio risk adjusted rate change of (3)%, net of claims inflation, reflects stable conditions in Casualty, balanced with softening prices in Property and Specialty
• Our undiscounted combined ratio of 101.5% for the year ended 31 December 2025 reflects a highly active period of natural catastrophe events and risk losses for the industry during the first half of the year, with a 15.3% contribution from the California wildfires
• Net investment result of $119.5 million for the year ended 31 December 2025 for a return of 6.7%, including a strong increase in net investment income due to a growing investment portfolio and unrealised gains
• Comprehensive income of $116.8 million, resulting in an 11.1% return on equity in a high catastrophe year
• Final dividend of $0.18 (approximately 13 pence) per common share, taking the full 2025 dividend to $0.36 (approximately 26 pence) per common share
• Share repurchases under the authorised buyback programme totalled $12.5 million during the year ended 31 December 2025, with an additional $5.4 million completed through 17 February 2026
• Tangible net assets per share of $7.14 (£5.30) as at 31 December 2025 increased 11.9%, including dividends paid during the year (31 December 2024: $6.70 or £5.35); the small decline in tangible net assets per share in GBP is due to the change in GBP:USD exchange rates during the period
Outlook:
• Successful January renewal season where we experienced a strong flow of new excess of loss and quota share opportunities, while we also exited or reduced treaties that did not meet our pricing requirements
• Market conditions remain adequate in most lines of business, although continued softening could lead to moderating premium growth rates over the course of the year, particularly in Property and Specialty segments
• In January we renewed and enhanced our core retrocession programme, with a reduced net retention for peak and secondary perils compared to the initial programme in the prior year
• Continued growth in our managed investments is expected to support strong net investment income
• Our balance sheet remains strong with an estimated BSCR ratio of 252% as at 31 December 2025; we continue to have flexibility to deploy or return capital depending on the opportunities we see in the market