Bermuda-based reinsurer Conduit Holdings Limited (Conduit Re) reported a comprehensive income of $80.3 million for the first half of 2026, reversing a comprehensive loss of $13.5 million in the same period last year. The improvement was attributed to a more benign catastrophe environment.
Undiscounted combined ratio, improved from 122.1% a year earlier
Gross premiums written declined 1.8% year-over-year to $789 million, reflecting Conduit's decision to reduce business in areas where rates no longer met return requirements while expanding in casualty lines. CEO Neil Eckert noted that the reinsurer generated a 7.8% return on equity under its amended methodology.
"We continue to grow in areas where we believe pricing remains attractive."
Management said market conditions became increasingly competitive during the first half, with risk-adjusted rates across the portfolio declining about 6%. Conduit responded by prioritizing underwriting margins over premium volume, reducing certain quota-share treaties and repositioning property and specialty portfolios toward excess-of-loss business.
Segment Performance
Property gross premiums written fell 9% to $454.8 million. Chief Underwriting Officer Stephen Postlewhite said the reduction was expected and reflected withdrawal from quota-share participations. Risk-adjusted property pricing declined approximately 10%, while property catastrophe excess-of-loss rates fell 15% to 20% at midyear. The property segment's undiscounted combined ratio improved to 72.8% from 130.5%.
Casualty premiums increased 21% to $217 million, with risk-adjusted pricing down about 1%. The casualty undiscounted combined ratio was 102.9%, broadly in line with the prior-year period. Specialty premiums declined 5% to $117.2 million and rates fell 7%. The specialty segment's combined ratio was 104.8%, including losses associated with the Middle East conflict.
Capital Management and Outlook
Conduit increased retrocessional protection during 2026, adding coverage for peak and secondary peril exposures, raising limits and lowering retentions. CFO Elaine Whelan said ceded reinsurance expenses rose to $73.3 million from $53.4 million. The undiscounted net loss ratio was 80.7%, compared with 109.6% a year earlier. The discounted combined ratio improved to 80.4% from 108.3%.
Conduit's managed investment portfolio expanded by about $375 million to $2.3 billion. Net investment income rose more than 20% to $46.7 million. The overall investment return was 0.9%, compared with 3.9% a year earlier. The portfolio had a duration of 2.7 years and maintained an average credit quality of AA.
Tangible net assets per share increased by 8.4% in the first half and 23.2% over the past 12 months to £5.70. The company repurchased 6.8 million shares for $38.9 million and paid $28.7 million in dividends, returning about $68 million to shareholders.
Management expects gross premiums written for the full year to be modestly below 2025 levels, with reinsurance revenue less affected due to the earning profile of prior underwriting years and faster earning pattern of excess-of-loss business. CEO Neil Eckert said Conduit expects competition and price softening to persist across many lines.