Neil Eckert, Chief Executive Officer, commented: “We have made a solid start to 2026, continuing to execute on the priorities we set out last year to stabilise the business and strengthen the Board, leadership and our underwriting team. Although market conditions are softening, we identified select growth opportunities, successfully enhanced our retrocession programme with more comprehensive peak and secondary peril coverage, and substantially completed our previously announced share buyback programme. On top of this, strong cash flow has increased our managed investments by approximately $400 million over the past year. In the current environment we remain focused on selectively deploying our capacity into attractive underwriting opportunities and returning excess capital to shareholders in line with Conduit’s capital management strategy.
We are pleased with how our underwriting portfolio and invested assets have performed during recent geopolitical developments in the Middle East. This reinforces our confidence in the resilience of the business and strength of our balance sheet. Against this backdrop, subject to shareholder approval at the AGM today, the Board has approved another buyback programme of up to $50 million, which we intend to execute according to our capital management strategy.
I am pleased that we have continued to advance the business and we remain confident in the execution of our strategy. While market conditions are more competitive, we will continue to adjust in response to changing conditions and emerging opportunities as they develop.
During the quarter, we continued with Board succession planning, appointing Nicholas Shott as Chair, and welcoming Richard Lightowler, Peter Mullen and Penny Shaw as Independent Non-Executive Directors, each of whom brings extensive financial services expertise to the Board.
In closing, I would like to thank Elizabeth Murphy who has retired from the Board. Elizabeth was a founding director and has provided valuable guidance and insight as audit committee chair during her tenure. I wish to also formally acknowledge the profound sense of loss from the untimely passing of Stephen Redmond. Stephen was a highly dedicated and respected Non-Executive Director, and his significant contributions and exemplary character are sincerely missed.”
Key highlights:
- Gross premiums written of $430.3 million, a 4.9% increase over the first three months of 2025, with growth being driven by Casualty.
- Reinsurance revenue of $240.3 million, a 12.8% increase over the first three months of 2025.
- Overall portfolio risk-adjusted rate change for the three months ended 31 March 2026 was (5)%, net of claims inflation. Pricing generally remains at adequate levels following improvements in rates and terms and conditions during recent years.
- While we have recorded an initial estimate related to exposure to the conflict in the Middle East, no event loss, individually or in the aggregate, had a material impact on Conduit in the quarter.
- Our high-quality investment portfolio produced a return of 0.3% for the three months ended 31 March 2026 despite recent market volatility, where portfolio yield was offset by the negative impact of rising treasury yields and widening credit spreads.
Outlook:
- Record global reinsurance capital levels, combined with relatively low catastrophe losses, continue to contribute to softening rates, particularly in property and specialty lines, which is expected to continue.
- We continue to work with long-standing supportive cedants and brokers to target attractive areas of the market that align with our risk appetite and strategic objectives.
- Continued growth in our managed investments to $2.3 billion.