Conduit Holdings, parent company of Bermuda-based Conduit Re, reported its interim financial results for the six months ending June 30, 2025, showing an increase in written premiums alongside significant natural catastrophe losses during the period.
Gross premiums written reached US$803.3 million, up 8.9% compared with the same period in 2024. Rates remained at historically high levels despite some market softening, with a risk-adjusted rate change of (3)% net of claims inflation for premiums written during the first half of the year.
Natural catastrophes and other major risk events heavily affected results, with Conduit Re’s undiscounted combined ratio at 122.1%. The California wildfires accounted for 31.6% of that figure. The company reported a net investment result of US$63.8 million for a return of 3.9%, reflecting growth in its investment portfolio.
The half-year ended with a comprehensive loss of US$13.5 million, translating to a (1.3)% return on equity. Tangible net assets per share stood at US$6.43, approximately £4.68, compared to US$6.69 or £5.28 in June 2024 and US$6.70 or £5.35 in December 2024. The GBP:USD exchange rate as of June 30, 2025, was 1.373.
Looking ahead, Conduit said it is progressing with its plan to shift the portfolio toward a greater share of excess of loss (XoL) business to improve diversification and margins. The company is adding outwards protections, particularly for secondary perils, and plans to strengthen underwriting, risk, and claims teams with targeted hires.
The outlook for 2025 has been revised downward to a mid-single-digit return on equity, reflecting above-normal loss activity and reserve developments related to the 2022 Ukraine event. Despite the loss for the first half, the board declared an interim dividend of US$0.18 per common share, around 13 pence, maintaining its dividend policy.
Chief executive officer Neil Eckert (pictured above) said the company is in a period of transition as it takes steps to reduce attritional loss exposure, refine its portfolio, and increase its focus on excess of loss business.
“These adjustments are intended to reduce attritional loss exposure and improve diversification, which we believe will help drive more consistent returns in the future,” Eckert said. “The actions are further supported by targeted senior hires across key functions bringing valuable expertise and fresh perspectives to the team.”
Earlier in the year, Conduit reported a strong start to 2025, with first-quarter gross premiums written rising 15% year over year to US$410.2 million and reinsurance revenue growing 17.6% to US$213 million. The quarter saw a (4)% risk-adjusted rate change, reflecting competitive market conditions even as demand for certain reinsurance programs remained robust.
This growth provided momentum going into the second quarter, although elevated loss activity later in the half offset much of this early progress.
This month also saw Conduit appointing William Randolph as chief risk officer, strengthening its leadership team amid ongoing portfolio realignment. Randolph, who has over 20 years of industry experience in enterprise risk management and underwriting oversight, is tasked with enhancing Conduit’s risk governance framework.
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