Trading update and further key hires

RNS Number : 6293L

Conduit Holdings Limited

14 January 2021

 

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This announcement contains inside information for the purpose of Article 7 of the Market Abuse Regulation (EU) No 596/2014 (the "Market Abuse Regulation").

Conduit Holdings   Limited ("Conduit Holdings")

and

Conduit Reinsurance   Limited ("Conduit Re")

Hamilton, Bermuda - 14 January 2021

T rading update and   further key hires

Conduit Holdings today announces the following shareholder update:

1st January renewal season

The highlights of the 1st January 2021 renewal season for Conduit Holdings' main operating subsidiary Conduit Re are as follows:

•	GrossWrittenPremiumofc$160millionbeinginlinewithourplanandconsistingofatargetedseries of January attaching contracts;
•	Specific focus on key quota sharecontracts to deliver a balanced startto our trading;
•	Pricing and terms and conditions inline with management expectations;
•	ConduitRebenefitedfrommanagement'srelationshipswithleadingreinsurancebrokingintermediaries, delivering on the intended mix ofbusiness and diversification;
•	Brokersandclientswelcomedanew,professionalreinsurancecarrierwithastrongandunencumbered balance sheet;
•	Formal trading agreements now establishedwith 12 of the world's leading reinsurance broking firms;
•	ConduitRe'sowninitialcatastrophereinsuranceprogrammehasbeensuccessfullyplacedwithinplan with further purchases expected duringthe year as the account develops.

2021 financial year

•	Following a strong start, wego into the 2021 financial yearwith confidence:
	•	Senior underwriting team now complete;
	•	Quotasharecontractsareexpectedtorepresentoverhalfourwrittenpremiumin2021,allowingus to access ground-up rate rises in thedirect insurance market in our targetedclasses;
	•	Marketconditionscontinuetoshowimprovementsacrossourtargetedproperty,specialtyand casualty lines;
•	InitsIPOprospectus,ConduitHoldingsstatedthatitwouldbetargetingadividendasearlyasduring the2021financialyearofapproximately5to6percentofequitycapital,allocatedbetweenaninterim andfinaldistribution.Conduit Holdings reaffirmsitsintentiontopayadividendattheselevelsforthe2021 financial year;
•	Afurtherupdateandthe2020year-endfinancialstatementswillbereleasedinlateFebruary2021.Our 2021 interim results are due for publicationin late July 2021.

Further key hires

W e are also delighted to announce that Elaine Whelan has joined as Chief Financial Officer and director, a significant hire which broadens and adds a depth of experience to the finance function of Conduit. Elaine replaces Mark Heintzman, who has left the company.

Also, Angus Hampton will be joining as Head of International Casualty, which completes our senior underwriting team as set out in our Prospectus.

Neil Eckert, Executive Chairman, said, "Conduit Re is off to a strong start and we are on track to deliver on the business plan we set out to our IPO investors in December. The hiring of Elaine is obviously a major step for the business and she brings enormous experience from her previous role at Lancashire where she was CFO for nine years. She replaces Mark Heintzman, who has done a very good job in helping take Conduit Re through all of the milestones in its start-up phase. We would like to extend our deepest thanks to Mark for his contribution."

T revor Carvey, CEO and Chief Underwriting Officer, said, "We are very pleased with our first renewal season's trading which has met our expectations and we believe addresses any concerns that may have been raised over our ability to gain traction in the market in a responsible manner. We have been extremely well supported by brokers, clients and our reinsurers and we look forward to continuing to execute on our business plan through the rest of the year. In addition, I'm delighted to welcome Angus Hampton to Conduit Re to lead our International Casualty business which completes our senior underwriting team."

Contacts

Media: David Haggie, Caroline Klein, Haggie Partners

[phone]

[e-mail]

Other: [e-mail]

W ebsite

Further details of the Conduit Group can be found at its website: https://conduitreinsurance.com/

Notes to Editors

Elaine Whelan

Elaine is a highly accomplished and experienced public company CFO who has worked in the insurance industry for over 20 years. She is a member of The Institute of Chartered Accountants of Scotland, a member of The Institute of Chartered Accountants of Bermuda and a member of The Institute of Directors.

Elaine joined PwC in Bermuda in 1997. From 2001 to 2006 she held a number of positions at Zurich Insurance Company, Bermuda Branch, ending up as Chief Accounting Officer. In 2006 she joined the Lancashire Group as Financial Controller. She subsequently performed various financial and management roles for the Lancashire Group, including as CEO, Lancashire Insurance Company Limited. From January 2011 to February 2020 Elaine was Group CFO, Lancashire Holdings Limited, and she was also a main board director from 2013 to February 2020.

Elaine will be responsible for all aspects of Conduit Re's financial management and reporting and will sit as an executive director on the boards of Conduit Holdings Limited and Conduit Reinsurance Limited.

Angus Hampton*

Angus is a highly regarded international casualty and specialty treaty reinsurance specialist with a successful underwriting track record. He started his career in 2012 as a graduate trainee at Ascot Underwriting where he learned his trade as an assistant casualty treaty underwriter with some of the best in the business. He then joined Liberty Mutual as a senior casualty treaty underwriter. At Conduit Re, Angus will be responsible for building and managing our international casualty and long tail specialty underwriting activities where he will work alongside Erik Soria and Marc Bearman in building and managing our overall risk portfolio.

*Application has been made to the Bermuda Government for work permit approval

About Conduit Re

•	ConduitReisanewlyestablishedreinsuranceunderwritingbusinessfocusingonproducingstrong risk-adjustedreturnsfromadiversifiedandfocusedbusinessplan.Thebusinesshasbeenformedto capitaliseonwhattheCompany'sfounders,NeilEckertandTrevorCarvey(the"Founders")believeto be an exceptional market opportunity.
•	ConduitRewritesreinsuranceintheproperty,casualtyandspecialtyclasses.Yearsofhighinsured losses,diminishedreservesandthemorerecentlossesandindustrystraincausedbyCovid-19 andseverecapacityshortagesincertainclassesofinsuranceandreinsurancehaveproducedmajor corrections in reinsurance pricing and policy Terms & Conditions.
•	Againsttheindustrybackgroundoflosses,litigationandcapacityconstraint,asanewbusiness, Conduithasnolegacyexposureanditsstrongandunencumberedbalancesheetisavailabletowrite new business in what the Foundersbelieve to be an attractive marketenvironment.
•	ConduitReisledbytwohighlysuccessful,experiencedandnetworkedindustryexecutives,NeilEckert and Trevor Carvey.
•	ConduitRehasbeenestablishedtobuildastrongunderwritingfranchisewhichwilltargetstrongcross-cyclereturnsonequityinthemid-teens.Thebusinessplanhasabalancedapproachtocatastrophe riskexposures,generatingprofitandfranchisevaluethroughthequalityofitsunderwritinganditsselect portfolio of high quality business.
•	ConduitReexpectstogeneratesignificantreturnsforitsshareholdersandtoprovideanongoingand progressivedividend.TheCompanyistargetingadividendassoonasduringthe2021financialyear ofapproximately5%-6%ofequitycapital,allocatedbetweenaninterimandfinaldistribution.Conduit willmanageitsbalancesheetefficientlyandinthelongtermmayreturnexcesscapitalthroughspecial dividends or share buybacks where appropriate.
•	Followingyearsofde-listings,inweakindustryconditionsanduponindustryconsolidation,Conduit Reoffersinvestorstheopportunitytotakeadvantageofprevailing,highlypositiveindustryconditions through investment in a listedbusiness which is legacy free and focusedonly on reinsurance.
•	ConduitRebelievesthatsoundESGprinciplesshouldbestronglyembeddedacrossthebusiness andthatthispromotesbetterriskmanagement,innovation,sustainableoutperformanceandpositive communityengagement.ConduitReintendstobeacarbonneutralbusiness.ConduitRewilltarget aNet-Zeropositionthroughacombinationofsoundbusinesspracticesandstrategicallychosenoffset initiatives.
•	A.M. Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of "a-" to Conduit Reinsurance Limited. The outlook assigned to these Credit Ratings (ratings) is stable.

Learn more:

W eb: https://conduitreinsurance.com/

LinkedIn: https://ww w .linkedin.com/company/conduit-re

T witter: https://twitte r .com/Conduit_Re

Important Information

This announcement may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. Forward looking statements may and often do differ materially from actual results. Any forward-looking statements reflect Conduit's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Conduit Group's business, results of operations, financial position, liquidity, prospects, growth and strategies. Forward looking statements speak only as of the date they are made. No representation or warranty is made that any forward-looking statement will come to pass. These forward-looking statements speak only as at the date of this announcement. Conduit disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect actual results or any change in the assumptions, conditions or circumstances on which any such statements are based unless required to do so by the Financial Services and Markets Act 2000, the Listing Rules or Prospectus Regulation Rules of the Financial Conduct Authority or other applicable laws, regulations or rules.

 

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