Conduit Holdings reported a solid third-quarter performance on Wednesday, with steady underwriting growth and strong investment returns, as the Bermuda-based reinsurer continued to reposition its portfolio for more consistent profitability.
Gross premiums written for the nine months ended 30 September rose 8.5% year-on-year to $1.04bn, with growth across all three business segments.
Reinsurance revenue increased 12.6% to $662.4m, driven by higher contributions from both property and casualty lines.
The company recorded a 5.4% investment return for the period, supported by robust net investment income and falling treasury yields, bringing the value of its investment portfolio to $2bn.
"We continue to move our business forward as we look to reposition certain parts of the portfolio to drive more consistent returns," said chief executive Neil Eckert.
"Building on the improvements made during 2025, we plan to maintain focus on our net position going forward with more effective retrocession coverage for peak and secondary perils to reduce volatility."
He added that the firm's investment portfolio had grown to $2bn and performed well with a 5.4% return through the first nine months of 2025.
"Gross premiums written growth has continued at a steady pace, with all segments reporting increases.
"While we note that the loss environment was more benign during the third quarter, we are reaffirming our mid single digit RoE guidance for 2025."
By segment, property premiums rose 6% to $568.3m, casualty grew 20.2% to $268.7m, and specialty increased 2.2% to $202.1m.
Conduit noted that pricing remained generally attractive despite some market softening, with the overall risk-adjusted rate change at minus 3%, net of claims inflation.
The third quarter saw relatively benign loss activity following a more eventful first half, and loss estimates for earlier events remain stable.
It maintained a conservative investment approach, holding 90.8% of its portfolio in fixed-maturity securities and 9.2% in cash and equivalents, with an average duration of 2.8 years and an AA credit rating.
The firm also resumed its $50m share buyback programme, which had been paused during the Atlantic hurricane season, and paid an interim dividend of $0.18 per share in September.
Eckert said the group had strengthened its underwriting and claims teams, welcoming Stephen Postlewhite as chief underwriting officer, and announced the appointment of Nicholas Shott as an independent non-executive director.
"Nicholas brings a wealth of experience in financial services that will be a valuable resource for Conduit as we continue to advance our strategic priorities," he said.
At 1012 GMT, shares in Conduit Holdings were up 2.15% at 333.51p.
Reporting by Josh White for Sharecast.com.