Conduit expects $50m hit from large loss events in Q3

Reinsurance business Conduit said on Wednesday that the industry had experienced "a significant level of natural catastrophe and large loss activity" in FY24, with activity across smaller and mid-size natural catastrophes and large risk events elevated in Q3.

In aggregate, Conduit said its estimated undiscounted net loss, after reinsurance and reinstatement premiums, for large loss events recorded in Q3 was approximately $50.0m but noted that while reserves have been recorded for these events, "significant uncertainty" still exists concerning the ultimate losses.

Chief underwriting officer Gregory Roberts said: "With two months remaining in the year, the reinsurance industry has already experienced a significant level of natural catastrophe and large loss activity. Pricing conditions remain broadly stable and benefit from several years of compounding rate increases."

Gross written premiums were up 25.2% at $957.3m, while reinsurance revenue was 30.3% higher at $588.2m.

Looking forward, Conduit said market conditions remained stable across the business classes it targets, with its property and specialty lines, in particular, providing "continued opportunities" for growth.

As of 0940 GMT, Conduit shares had sunk 9.58% to 491.00p.

Reporting by Iain Gilbert at Sharecast.com