11th May 2022

Conduit reports bullish trading update
Trend

Conduit Holdings has presented its trading update for the first quarter of 2022.
Highlights are:
-Continued build of a high quality reinsurance franchise
-Market conditions remain strong with continuing rate increases and improvements in terms and conditions
-Diversified and balanced portfolio growth with a renewal net rate change of 4.9%
-Net ultimate incurred losses related to the Russian invasion of Ukraine are estimated at between $15m and $30m, with net impact for the first quarter of $24.6m, after reinsurance and reinstatement premiums, predominantly driven by the classes of aviation, war on land and marine war
-Investment return at(2.9)% driven by unrealised losses of $32.6m from increase in yields due to interest rate hike expectations; conservative approach to invested assets maintained
-Final dividend of 18c(approximately 14p) per common share (in respect of the second half of 2021) paid in the second quarter of 2022
Neil Eckert, Group executive chairman, comments "Our position as a pure-play reinsurer, with a strong balance sheet and no legacy, allows the team to take advantage of the best market conditions for a decade. As the discipline in primary markets continues, Trevor and his team are successfully executing the strategy put forward in the IPO plans and our earned premium recognition is building."
Trevor Carvey, Group ceo, added "The first quarter of 2022 has seen significant year-on-year growth as we execute on our plan to selectively grow our diversified portfolio. We continue to enjoy the benefits of strong reinsurance market conditions and the continuing excellent support from our clients and brokers.
Turning to the situation in Ukraine, we have estimated the ultimate potential losses for the first quarter derived primarily from our property and specialty books via classes such as aviation, war on land and marine war. Given the typical structure of the reinsurance treaty contracts that we underwrite, with event and aggregate limitations in place, we have been able to arrive at a loss estimate for the relatively small number of contracts we write across these classes for Ukraine and Russia, and this gives us confidence in our estimate at this time."

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