Conduit (LON:CRE) reported lower gross premiums written for the first nine months of 2026 as the reinsurer reduced property and specialty business in a softening market, while expanding its casualty portfolio.
Gross premiums written were nearly $1 billion, down 3.8% from a year earlier, while reinsurance revenue rose 1.6% to $673.2 million. Chief Executive Officer Neil Eckert said the revenue increase reflected the earnings pattern of previously written premiums and a shift toward more excess-of-loss business.
Risk-adjusted pricing across the portfolio fell 6% in the nine-month period, net of inflation, although rates remained approximately 11% above 2021 levels, Eckert said. He expects market conditions to remain broadly competitive in 2027 and said Conduit would prioritize margins and limit volatility rather than pursue premium growth.
Property Rebalancing Continues
Property gross premiums written declined approximately 10% to $532.9 million as Conduit reduced quota-share business with more marginal expected returns. Chief Underwriting Officer Stephen Postlewhite said the company was increasing its participation in higher-margin excess-of-loss business.
Conduit expects excess-of-loss coverage to account for approximately 40% of its property premiums in 2026, with further progress planned for 2027. Postlewhite said property excess-of-loss gross premiums were expected to rise by approximately $50 million this year.
Property risk-adjusted rates fell 10% over the first nine months. Postlewhite said competition from traditional and alternative capital remained strong and that he expected softening to continue through the January renewals.
Despite writing more excess-of-loss business, Conduit has reduced its modeled probable maximum losses by strengthening its retrocession program, Eckert said. Retrocession is reinsurance purchased by reinsurers to transfer some of their own risk.
Casualty Growth Offsets Specialty Decline
Casualty gross premiums written rose 8.9% to $309.1 million, supported by increased shares with preferred clients. Risk-adjusted casualty rates declined approximately 1%, with general third-party liability driving much of the segment’s growth, Postlewhite said.
The pace of casualty growth slowed during the year after stronger writings in late 2025 and the first half of 2026. Eckert said he still expected the segment to grow for the full year.
Specialty gross premiums fell 3% to $157.9 million, and risk-adjusted rates declined 7%. Conduit reduced participation in areas that did not meet its return objectives while expanding in aviation, where Postlewhite said conditions had been more stable.
Management said large losses affecting marine, aviation and some war-related classes could eventually support pricing in parts of the specialty market. Eckert said Conduit’s estimates for previously reported events, including the Baltimore Bridge and Middle East losses, remained stable.
During the question-and-answer session, Eckert said the estimated market loss from the Baltimore Bridge had risen substantially, but the increase had not affected Conduit because it had reinsurance in place. Other specialty losses had not individually or in aggregate reached a level that warranted reporting, he said.
Investment Losses and Capital Returns
Conduit’s investment performance for the year was slightly negative as rising Treasury yields produced unrealized losses, despite growth in investment income. Eckert said the company generally holds investments to maturity and expects to recover unrealized losses in its high-quality portfolio over time.
Managed investments and cash totaled $2.3 billion at the end of September, up approximately $280 million, or 14%, from a year earlier. The portfolio’s book yield was 4.3%, with an average AA rating and a duration of 2.9 years, Eckert said.
Conduit paid an interim dividend of $0.18 per share during the third quarter, totaling $28 million. Its current share buyback program had approximately $46 million remaining and runs until May 2027. Eckert said the board intends to distribute excess capital in line with its existing strategy, but did not forecast future distributions.
Conduit also reiterated its leadership succession plans. Christian Dunleavy is due to become CEO on March 1, 2027, and Mark Pickering is scheduled to join as chief financial officer on November 30, 2026. Eckert said the company expects to report its full-year results in the third week of February.
About Conduit (LON:CRE)
Conduit Re is a Bermuda-based multi-line reinsurance business with global reach. Conduit Reinsurance Limited is licensed by the Bermuda Monetary Authority as a Class 4 insurer. A.M. Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of a- (Excellent) to Conduit Reinsurance Limited. The outlook assigned to these ratings is stable. Conduit Holdings Limited is the ultimate parent of Conduit Reinsurance Limited and is listed on the London Stock Exchange (ticker: CRE).
