Conduit reinsurance pricing softens, investment assets and income continue to grow

(Sharecast News) - Reinsurance firm Conduit Holdings reported modest growth in reinsurance revenues during the first nine months of 2026 and said it remained on track with its strategy to shift its portfolio towards higher-margin excess-of-loss business, despite increasingly competitive market conditions. Conduit said on Wednesday that reinsurance revenues rose 1.6% year-on-year to $673.2m, while total managed investments and cash increased 14% compared with the same period a year ago to $2.3bn.

Gross premiums written declined slightly as Conduit continued to reduce exposure to lower-margin property business in a softening market, although casualty premiums increased 8.9% as the group expanded relationships with preferred clients.

Conduit said overall risk-adjusted pricing fell 6% during the period as record levels of reinsurance capital and strong industry returns continued to put pressure on rates, particularly in property and specialty lines, but noted casualty market conditions remained more stable.

Investment performance was impacted by sharply higher treasury yields, resulting in a 0.4% negative investment return for the first nine months of the year due to unrealised losses. However, net investment income continued to increase, with portfolio yield rising to 4.3%.

Conduit said insured natural catastrophe losses remained relatively benign during the period, although the market experienced elevated specialty claims activity.

The London-listed group reiterated its commitment to returning excess capital to shareholders after repurchasing $38.9m of shares during the period, while maintaining its quarterly dividend. It also noted rising reinvestment rates should support investment income growth going forward.

As of 1130 GMT, Conduit shares were down 4.94% at 423.50p.







Reporting by Iain Gilbert at Sharecast.com

See latest RNS on Sharecast