Bermuda-based reinsurer Conduit Re’s gross written premiums (GPW) increased 4.9% year-on-year to $430.3 million in the first quarter of 2026, as strong casualty growth and marginal growth in property offset a decline in professional premiums during the quarter.
In the first three months of the year, Conduit Re identified select growth opportunities, driven primarily by further targeted growth in the casualty category.
Total gross profit margin for casualty insurance increased by 23.1%, or US$20.6 million to US$109.7 million. In real estate, gross margin increased 1%, or $2.5 million, year over year to $248.8 million, while Conduit Re chose to reduce professional gross margin 4%, or $3.0 million, to $71.8 million amid softer market conditions.
Conduit Re’s overall risk-adjusted rate change, net of claims inflation, was -5% for the three months to March 31, 2026, driven primarily by -9% and -7% in property, casualty and professional lines. Despite the softer trend, the reinsurer said pricing generally remained adequate after improvements in rates and terms and conditions in recent years.
Group-wide reinsurance revenue increased by 12.8%, or $27.3 million, to $240.3 million in the first quarter of 2026, compared with $213 million in the same period last year. Casualty revenue increased strongly by 20.8% to $68.6 million, while property revenue increased by 13.4% to $133.4 million, partially offset by a 0.8% decline in Professional segment revenue to $38.3 million.
There were no loss events that had a material impact on Conduit Re in terms of net reinsurance losses and loss-related amounts in Q1’26. The company recorded preliminary estimates related to the ongoing conflict it faces in the Middle East based on the latest information, but noted that there is significant uncertainty in estimating related losses as the war continues.
Conduit Re’s Q1’26 results were helped by its “high-quality” portfolio, which returned 0.3% in the period, with portfolio returns offset by the negative impact of rising Treasury yields and wider credit spreads.
Chief Executive Officer Neil Eckert commented: “We are off to a strong start in 2026, continuing to execute on the priorities we established last year to stabilize the business and strengthen our Board, leadership and underwriting teams. Although market conditions are softening, we have identified select growth opportunities, successfully strengthened our retrocession program with more comprehensive peak and secondary risk insurance, and substantially completed our previously announced share repurchase program. In addition, strong cash flow positions our management to invest in 2026.” Increased by approximately $400 million during the year. In the current environment, we remain focused on selectively deploying our capabilities to attractive underwriting opportunities and returning excess capital to shareholders consistent with Conduit’s capital management strategy.
“We are pleased with the performance of our underwriting portfolio and investment assets amid recent geopolitical developments in the Middle East. This has strengthened our confidence in the resilience of the business and the strength of our balance sheet. Against this backdrop, and subject to shareholder approval at the AGM today, the Board has approved another buyback program of up to $50 million, which we intend to execute in line with our capital management strategy.
“I am pleased that we continue to advance the business and are confident in the execution of our strategy. While market conditions have become more competitive, we will continue to adjust to changing conditions and new opportunities as they emerge.
“This quarter we continued our board succession planning with the appointment of Nicholas Shot as Chairman and the welcome of Richard Lightowler, Peter Mullen and Penny Shaw as independent non-executive directors, who bring a wealth of financial services expertise to the Board.
“Finally, I would like to thank Elizabeth Murphy, who has retired from the Board. Elizabeth was a founding director and provided valuable guidance and insight during her tenure as Chair of the Audit Committee. I would also like to formally acknowledge the profound sense of loss caused by the untimely death of Stephen Raymond. Stephen was a highly dedicated and respected non-executive director whose significant contributions and exemplary character are truly missed.”
