Pembroke, Bermuda - 31 July
2024
Pembroke,
Bermuda - 31 July 2024
Conduit Holdings Limited
("CHL" LSE ticker: CRE)
Interim results for the six months
ended 30 June 2024
Comprehensive income of $98.1
million; RoE of 9.9%
Strong year-on-year growth in gross
premiums written of 36.1%; Combined ratio of 75.1%
Interim dividend of $0.18
(approximately £0.14) per common share declared
CHL, the ultimate parent company of Conduit Re, a
Bermuda-based reinsurance business, today presents its interim
results for the six months ended 30 June 2024.
Trevor Carvey, Chief Executive
Officer, commented: "In another active period for industry
loss events we are pleased to have produced an RoE of 9.9% for the
half year. Our 36.1% premium growth reflects our well-established
distribution channels and our maintenance of underwriting
discipline. Property and specialty, in particular the
non-catastrophe exposed lines, again attracted our attention and
capital deployment. In casualty, while industry underwriting
margins are tighter in our view, our casualty book is continuing to
support our balanced underwriting portfolio."
|
Key
financials ($m)
|
Six months
ended 30 June 2024
|
Six months
ended 30 June 2023
|
Change
|
|
Gross premiums written
|
737.8
|
542.2
|
36.1%
|
|
Reinsurance revenue
|
382.0
|
278.7
|
37.1%
|
|
Net reinsurance revenue
|
338.2
|
242.8
|
39.3%
|
|
Reinsurance service
result
|
99.7
|
80.7
|
23.5%
|
|
Net investment result
|
23.0
|
22.6
|
1.8%
|
|
Comprehensive income
|
98.1
|
78.6
|
24.8%
|
|
|
|
|
|
|
Financial
ratios (%)
|
Six months
ended 30 June 2024
|
Six months
ended 30 June 2023
|
Change
(pps)
|
|
Return on equity
|
9.9
|
9.1
|
0.8
|
|
Net loss ratio
|
62.4
|
57.5
|
4.9
|
|
Reinsurance operating
expense ratio
|
8.1
|
9.3
|
(1.2)
|
|
Other operating expense
ratio
|
4.6
|
5.7
|
(1.1)
|
|
Combined ratio
(discounted)
|
75.1
|
72.5
|
2.6
|
|
Combined ratio
(undiscounted)
|
85.7
|
83.1
|
2.6
|
|
Total net investment
return
|
1.5
|
2.1
|
(0.6)
|
|
|
|
|
|
|
Per share
data ($)
|
Six months
ended 30 June 2024
|
Six months
ended 30 June 2023
|
Change
|
|
Tangible net assets per
share, as at
|
6.69
|
5.72
|
0.97
|
|
Dividends per common
share
|
0.18
|
0.18
|
-
|
|
Diluted earnings per
share
|
0.62
|
0.49
|
0.13
|
Outlook
|
·
|
Market conditions remain favourable across the
business classes we target. Property and specialty lines in
particular providing continued opportunities for growth
|
|
·
|
Specialty lines - some potential for re-rating post
Baltimore bridge collapse 1 and other
large market loss events
|
|
·
|
Casualty lines - certain classes are showing pricing
pressure - rates generally are adequate
|
|
·
|
Inflationary factors underpin both pricing and demand
for coverage.
|
|
·
|
Conduit Re's established distribution channels
continue to deliver a healthy pipeline of new and repeat
business
|
|
·
|
Natural catastrophe accumulations remain in balance
relative to the overall portfolio and our net exposures to such
events remain within our tolerances
|
|
·
|
Long-term success lies in building a resilient and
diversified book of business and the non-catastrophe lines continue
to present areas of interest for increased capital deployment.
|
|
·
|
Conduit continues to see an attractive underwriting
environment into which it remains well capitalised to continue to
grow its premium base and deliver attractive shareholder
returns
|
Neil Eckert, Executive Chairman,
commented: "Our results represent the
team's continued ability to grow our underwriting business
successfully. Progression across earnings, premium and assets under
management has been substantial and supports the delivery of
increasing shareholder value."
Underwriting update
Premiums
Gross premiums written for the six months ended 30
June:
|
|
2024
|
2023
|
Change
|
Change
|
|
Segment
|
$m
|
$m
|
$m
|
%
|
|
Property
|
441.8
|
308.4
|
133.4
|
43.3%
|
|
Casualty
|
148.2
|
140.6
|
7.6
|
5.4%
|
|
Specialty
|
147.8
|
93.2
|
54.6
|
58.6%
|
|
Total
|
737.8
|
542.2
|
195.6
|
36.1%
|
Pricing
Pricing levels and terms and conditions generally
continued to be attractive in the six months ended 30 June
2024.
Conduit Re is seeing an increasing number of
opportunities to deploy its capital into the areas and products
that it targets. The non-catastrophe elements of both property and
specialty in particular are providing good opportunities for
selective growth.
Conduit Re's overall risk-adjusted rate change for
the six months ended 30 June 2024 net of claims inflation, was 1%,
and by segment was:
|
Property
|
Casualty
|
Specialty
|
|
3%
|
(2%)
|
1%
|
|
|
|
|
Greg Roberts, Chief Underwriting
Officer, commented: "Our ability to grow our portfolio is
underpinned by the continual drive of the underwriting team to work
with our partners to deliver solutions in a dynamic market place.
While rate increases have tempered, current rating levels benefit
from several years of compounding and the robust pricing levels
achieved across the lines of business in which we operate."
Net reinsurance revenue
For the six months ended 30 June 2024:
|
|
Property
|
Casualty
|
Specialty
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
|
Reinsurance revenue
|
210.1
|
96.9
|
75.0
|
382.0
|
|
Ceded reinsurance expenses
|
(37.8)
|
(0.7)
|
(5.3)
|
(43.8)
|
|
Net reinsurance revenue
|
172.3
|
96.2
|
69.7
|
338.2
|
For the six months ended 30 June 2023:
|
|
Property
|
Casualty
|
Specialty
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
|
Reinsurance revenue
|
152.3
|
77.7
|
48.7
|
278.7
|
|
Ceded reinsurance expenses
|
(31.2)
|
(0.6)
|
(4.1)
|
(35.9)
|
|
Net reinsurance revenue
|
121.1
|
77.1
|
44.6
|
242.8
|
Reinsurance revenue for the six months ended 30 June
2024 was $382.0 million compared to $278.7 million for the same
period in 2023. The increase in reinsurance revenue relative to the
prior period was due to continued growth in the business plus the
earn-out of premiums from prior underwriting years.
Ceded reinsurance expenses for the six months ended
30 June 2024 were $43.8 million compared to $35.9 million for the
same period in 2023. The increase in cost relative to the prior
period reflected additional limits purchased due to the growth of
the inwards portfolio.
Net reinsurance service
expenses
For the six months ended 30 June 2024:
|
|
Property
|
Casualty
|
Specialty
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
|
Reinsurance losses and loss related amounts
|
(86.6)
|
(71.6)
|
(56.4)
|
(214.6)
|
|
Reinsurance operating expenses
|
(16.8)
|
(6.2)
|
(4.4)
|
(27.4)
|
|
Ceded reinsurance recoveries
|
0.1
|
-
|
3.4
|
3.5
|
|
Net reinsurance service
expenses
|
(103.3)
|
(77.8)
|
(57.4)
|
(238.5)
|
For the six months ended 30 June 2023:
|
|
Property
|
Casualty
|
Specialty
|
Total
|
|
|
$m
|
$m
|
$m
|
$m
|
|
Reinsurance losses and loss related amounts
|
(63.2)
|
(56.5)
|
(27.6)
|
(147.3)
|
|
Reinsurance operating expenses
|
(13.6)
|
(5.7)
|
(3.2)
|
(22.5)
|
|
Ceded reinsurance recoveries
|
7.6
|
-
|
0.1
|
7.7
|
|
Net reinsurance service
expenses
|
(69.2)
|
(62.2)
|
(30.7)
|
(162.1)
|
Net reinsurance losses and loss
related amounts
For the first six months of 2024, despite an active
loss period for the industry, no event loss, individually or in the
aggregate, had a material impact on Conduit Re.
Our discounted net loss ratio for the six months
ended 30 June 2024 was 62.4% compared with 57.5% for the same
period in 2023, while our undiscounted net loss ratio was 73.0% and
68.1% respectively.
Our undiscounted ultimate loss estimates, net of
ceded reinsurance and reinstatement premiums, for previously
reported loss events remained stable.
Our loss and reserve estimates have been derived from
a combination of reports and statements from brokers and cedants,
modelled loss projections, pricing loss ratio expectations and
reporting patterns, all supplemented with market data and
assumptions. We will continue to review these estimates as more
information becomes available.
Reinsurance operating expenses and
other operating expenses
For the six months ended 30 June:
|
|
2024
|
2023
|
Change
|
Change
|
|
|
$m
|
$m
|
$m
|
%
|
|
Reinsurance operating expenses
|
27.4
|
22.5
|
4.9
|
21.8%
|
|
Other operating expenses
|
15.4
|
13.9
|
1.5
|
10.8%
|
|
Total reinsurance and other
operating expenses
|
42.8
|
36.4
|
6.4
|
17.6%
|
|
|
2024
|
2023
|
Change
|
|
|
%
|
%
|
(pps)
|
|
Reinsurance operating expense ratio
|
8.1
|
9.3
|
(1.2)
|
|
Other operating expense ratio
|
4.6
|
5.7
|
(1.1)
|
|
Total reinsurance and other
operating expense ratio
|
12.7
|
15.0
|
(2.3)
|
Reinsurance operating expenses includes brokerage and
operating expenses deemed attributable to reinsurance
contracts.
Total reinsurance and other operating expenses were
$42.8 million for the six months ended 30 June 2024 compared with
$36.4 million for the prior year with the corresponding ratios
being 12.7% and 15.0% respectively. The decrease in ratios was
mainly due to increasing net reinsurance revenue growth outpacing
the growth in expenses due to improving economies of scale.
Net reinsurance finance
expense
For the six months ended 30 June:
|
|
2024
|
2023
|
Change
|
|
|
$m
|
$m
|
$m
|
|
Net interest accretion
|
(14.2)
|
(10.0)
|
(4.2)
|
|
Net change in discount rates
|
9.5
|
(0.1)
|
9.6
|
|
Net reinsurance finance
expense
|
(4.7)
|
(10.1)
|
5.4
|
The net reinsurance finance expense was $4.7 million
for the six months ended 30 June 2024 compared with $10.1 million
for the same period in the prior year. The unwind of discount
during the first six months of 2024 was partly offset by income due
to updating to current discount rates, while the same period in
2023 was mainly impacted by the unwind of discount.
Investments
In line with our stated strategy, we continue to
maintain our conservative approach to managing our invested assets
with a strong emphasis on preserving capital and liquidity. Our
strategy remains maintaining a short duration, highly-rated
portfolio, with due consideration of the duration of our
liabilities. Our investment portfolio does not hold any
derivatives, equities, alternatives or emerging market debt.
The investment return for the first six months of
2024 was 1.5% driven primarily by investment income given a
generally higher yielding portfolio. In the first six months of
2023 the portfolio returned 2.1% due to a higher yielding portfolio
supported by narrowing credit spreads.
Net investment income, excluding realised and
unrealised gains and losses, was $29.9 million for the six months
ended 30 June 2024 (30 June 2023 - $17.2 million). Total investment
return, including net investment income, net realised gains and
losses, and net change in unrealised gains and losses, was a gain
of $23.0 million for the six months ended 30 June 2024 (30 June
2023 - $22.6 million).
The breakdown of the managed
investment portfolio was as follows:
|
|
As at 30 June 2024
|
As at 30 June 2023
|
As at 31 December 2023
|
|
Fixed maturity securities
|
85.5%
|
91.8%
|
87.7%
|
|
Cash and cash equivalents
|
14.5%
|
8.2%
|
12.3%
|
|
Total
|
100.0%
|
100.0%
|
100.0%
|
Key investment portfolio statistics for our fixed
maturities and managed cash were:
|
|
As at 30 June 2024
|
As at 30 June 2023
|
As at 31 December 2023
|
|
Duration
|
2.5 years
|
2.4 years
|
2.4 years
|
|
Credit Quality
|
AA
|
AA
|
AA
|
|
Book yield
|
4.1%
|
3.2%
|
3.7%
|
|
Market yield
|
5.3%
|
5.5%
|
5.1%
|
Capital & dividends
Total capital and tangible capital available was
$1.05 billion as at 30 June 2024 (30 June 2023 - $0.92 billion; 31
December 2023 - $0.99 billion).
Tangible net assets per share as at 30 June 2024 was
$6.69 or £5.28 (30 June 2023 - $5.72 or £4.50; 31 December 2023 -
$6.25 or £4.91).
Shares purchased by CHL's employee benefit trust
during the first six months of 2024 amounted to $9.4 million (30
June 2023: nil) and will be held in trust to meet future
obligations under CHL's variable incentive schemes.
On 30 July 2024, Conduit's Board of Directors
declared an interim dividend of $0.18 (approximately 14 pence) per
common share, resulting in an aggregate payment of $29.7 million.
The dividend will be paid in pounds sterling on 5 September 2024 to
shareholders of record on 16 August 2024 (the "Record Date") using
the pound sterling / US dollar spot exchange rate at 12 noon BST on
the Record Date.
Financial information
The unaudited condensed interim consolidated
financial statements for the six months ended 30 June 2024 are
published on Conduit Re's website at
www.conduitreinsurance.com.
Presentation for Analysts and
Investors at 12:00 noon UK time
Conduit Re's management will host a virtual meeting
for analysts and investors via a webcast and conference call on
Wednesday 31 July 2024 at 12.00 noon UK time / 08.00 am Bermuda
time.
To access the webcast, please
register in advance here:
https://www.lsegissuerservices.com/spark/ConduitHoldingsLtd/events/ee446ff6-9e9b-4e7e-b334-46f87c707c7c
To access the conference call,
please register to receive unique dial-in details here:
https://registrations.events/direct/LON4510529
A recording of the conference call will be made
available later in the day on the Investors section of Conduit Re's
website at www.conduitreinsurance.com.
Investor Presentation via Investor
Meet Company on Wednesday 31 July 2024 at 16:15 UK time
Trevor Carvey, Chief Executive Officer, and Elaine
Whelan, Chief Financial Officer, will provide a separate live
presentation aimed at retail investors, relating to the interim
results for the six months ended 30 June 2024 via the Investor Meet
Company platform, on Wednesday 31 July 2024 at 16:15 UK time.
The presentation is open to all existing and
potential shareholders. No new material, including trading or
financial information, will be disclosed during the
presentation.
There will be an opportunity for questions and
answers at the end of the meeting. Questions can be submitted
pre-event via the Investor Meet Company dashboard up until 09:00 am
UK time the day before the meeting or at any time during the live
presentation.
Investors can sign up to Investor
Meet Company for free, or if signed up, can add to meet Conduit
Holdings Limited via:
https://www.investormeetcompany.com/conduit-holdings-limited/register-investor
Investors who are already registered on the Investor
Meet Company platform and follow Conduit Re on the Investor Meet
Company platform will automatically be invited.
Media contacts
H/Advisors Maitland - Vikki Kosmalska / Genevieve
Ryan
+44 (0) 207 379 5151
conduitre@h-advisors.global
Investor relations and other
enquiries
info@conduitreinsurance.com
Panmure Gordon (UK) Limited (Joint
Corporate Broker)
+44 (0) 207 886 2500
Berenberg (Joint Corporate
Broker)
+44 (0) 203 207 7800
Peel Hunt (Joint Corporate Broker)
+44 (0) 207 418 8900
About Conduit Re
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). References to "Conduit" include Conduit
Holdings Limited and all of its subsidiary companies.
Learn more about Conduit
Re:
Website: https://conduitreinsurance.com/
LinkedIn: https://www.linkedin.com/company/conduit-re
Important information
(disclaimers)
This announcement includes 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", "goals", "objective", "rewards",
"expectations", "projects", "anticipates", "expects", "achieve",
"intends", "tends", "on track", "well placed", "estimated",
"projected", "may", "will", "aims", "could" or "should" or, in each
case, their negative or other variations or comparable terminology,
or by discussions of strategy, plans, objectives, goals, targets,
future events or intentions. Forward-looking statements include
statements relating to the following: (i) future capital
expenditures, expenses, revenues, unearned premiums pricing rate
changes, terms and conditions, earnings, synergies, economic
performance, indebtedness, financial condition, dividend policy,
claims development, losses and loss estimates and future business
prospects; and (ii) business and management strategies and the
expansion and growth of Conduit's operations.
Forward-looking statements may and often do differ
materially from actual results. 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 Conduit's business,
results of operations, financial position, liquidity, prospects,
growth and strategies. These risks, uncertainties and assumptions
include, but are not limited to: the possibility of greater
frequency or severity of claims and loss activity than Conduit's
underwriting, reserving or investment practices have anticipated;
the reliability of catastrophe pricing, accumulation and estimated
loss models; the actual development of losses and expenses
impacting estimates for claims which arose as a result of recent
loss activity including but not limited to the Ukraine crisis,
Atlantic Hurricanes, European storms and floods, earthquakes,
wildfires in North America and Europe; the impact of complex
causation and coverage issues associated with attribution of losses
to wind or flood damage; unusual loss frequency or losses that are
not modelled; the effectiveness of Conduit's risk management and
loss limitation methods, including to manage volatility; the
recovery of losses and reinstatement premiums from our own
reinsurance providers; the development of Conduit's technology
platforms; the impact of cyber attacks (including as exacerbated by
geopolitical tensions) on technology, data and network security; a
decline in Conduit's ratings with A.M. Best or other rating
agencies; the impact that Conduit's future operating results,
capital position and ratings may have on the execution of Conduit's
business plan, capital management initiatives or dividends;
Conduit's ability to implement successfully its business plan and
strategy during 'soft' as well as 'hard' markets; the premium rates
which are available at the time of renewals within Conduit's
targeted business lines; increased competition on the basis of
pricing, capacity or coverage terms and the related demand and
supply dynamics as contracts come up for renewal; the successful
recruitment, retention and motivation of Conduit's key management
and the potential loss of key personnel; the credit environment for
issuers of fixed maturity investments in Conduit's portfolio; the
impact of swings in market interest rates, currency exchange rates
and securities prices; changes by central banks regarding the level
of interest rates and the timing and extent of any such changes;
the impact of inflation or deflation in relevant economies in which
Conduit operates; Conduit becoming subject to income taxes in the
United States or in the United Kingdom; and changes in insurance or
tax laws or regulations in jurisdictions where Conduit conducts
business. Forward-looking statements contained in this interim
update may be impacted by the escalation or expansion of the
Ukraine conflict or conflicts in the Middle East on Conduit's
clients, the volatility in global financial markets and
governmental, regulatory and judicial actions, including coverage
issues.
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. 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 law or regulation.
All subsequent written and oral forward-looking statements
attributable to Conduit and/or the group or to persons acting on
its behalf are expressly qualified in their entirety by the
cautionary statements referred to above.
The Conduit renewal indicative rate change measure is
an internal methodology that management intends to use to track
risk-adjusted trends in premium rates of a portfolio of reinsurance
contracts. The change measure reflects management's assessment of
relative changes in price, exposure and terms and conditions. It is
also net of the estimated impact of claims inflation. The
calculation involves a degree of judgement in relation to
comparability of contracts and the assessment noted above,
particularly in Conduit's initial years of underwriting. To enhance
the methodology, management may revise the methodology and
assumptions underlying the change measure, so the trends in premium
rates reflected in the change measure may not be comparable over
time. Consideration is only given to renewals of a comparable
nature so it does not reflect every contract in the portfolio of
Conduit contracts. The future profitability of the portfolio of
contracts within the change measure is dependent upon many factors
besides the trends in premium rates.
Additional Performance Measures
(APMs)
Conduit presents certain APMs to evaluate, monitor
and manage the business and to aid readers' understanding of
Conduit's financial statements and methodologies used. These are
common measures used across the (re)insurance industry and allow
the reader of Conduit's financial reports to compare those with
other companies in the (re)insurance industry. The APMs should be
viewed as complementary to, rather than a substitute for, the
figures prepared in accordance with IFRS. Conduit's Audit Committee
has evaluated the use of these APMs and reviewed their overall
presentation to ensure that they were not given undue prominence.
This information has not been audited.
Management believes the APMs included in the
condensed interim consolidated financial statements are important
for understanding Conduit's overall results of operations and may
be helpful to investors and other interested parties who may
benefit from having a consistent basis for comparison with other
companies within the (re)insurance industry. However, these
measures may not be comparable to similarly labelled measures used
by companies inside or outside the (re)insurance industry. In
addition, the information contained herein should not be viewed as
superior to, or a substitute for, the measures determined in
accordance with the accounting principles used by Conduit for its
condensed interim consolidated financial statements or in
accordance with IAS 34.
Below are explanations, and associated calculations,
of the APMs presented by Conduit:
|
APM
|
Explanation
|
Calculation
|
|
Gross premiums written (KPI)
|
For the majority of excess of loss contracts,
premiums written are recorded based on the minimum and deposit or
flat premium, as defined in the contract. Premiums written for
proportional contracts on a risks attaching basis are written over
the term of the contract in line with the underlying exposures.
Subsequent adjustments, based on reports of actual premium by the
ceding company, or revisions in estimates, are recorded in the
period in which they are determined. Reinstatement premiums are
excluded.
|
Amounts payable by the cedant before any deductions,
which may include taxes, brokerage and commission.
|
|
Net loss ratio (discounted and undiscounted)
|
Ratio of net losses and loss related amounts
expressed as a percentage of net reinsurance revenue in a period.
This can be calculated using discounted or undiscounted net losses
and loss related amounts.
|
Net losses and loss related amounts / Net reinsurance
revenue
Undiscounted net losses and loss related amounts /
Net reinsurance revenue
|
|
Reinsurance operating expense ratio
|
Ratio of reinsurance operating expenses, which
includes acquisition expenses charged by insurance brokers and
other insurance intermediaries to Conduit, and operating expenses
paid that are attributable to the fulfilment of reinsurance
contracts, expressed as a percentage of net reinsurance revenue in
a period.
|
Reinsurance operating expenses/Net reinsurance
revenue
|
|
Other operating expense ratio
|
Ratio of other operating expenses expressed as a
percentage of net reinsurance revenue in a period.
|
Other operating expenses / Net reinsurance
revenue
|
|
Combined ratio (KPI)
|
The sum of the net loss ratio, reinsurance operating
expense ratio and other operating expense ratio. Other operating
expenses are not allocated to the segment combined ratio.
|
Net loss ratio + Net reinsurance operating expense
ratio + Other operating expense ratio
|
|
Combined ratio (undiscounted)
|
The sum of the net loss ratio (undiscounted),
reinsurance operating expense ratio and other operating expense
ratio. Other operating expenses are not allocated to the segment
combined ratio.
|
Net loss ratio (undiscounted) + Net reinsurance
operating expense ratio + Other operating expense ratio
|
|
Accident year loss ratio
|
Ratio of the net losses and loss related amounts of
an accident year (or calendar year) revalued at the current balance
sheet date expressed as a percentage of net reinsurance revenue in
a period.
|
Accident year net losses and loss related amounts /
Net reinsurance revenue
|
|
Total net investment return (KPI)
|
Conduit's principal investment objective is to
preserve capital and provide adequate liquidity to support the
payment of losses and other liabilities. In light of this, Conduit
looks to generate an appropriate total net investment return.
Conduit bases its total net investment return on the sum of
non-operating cash and cash equivalents and fixed maturity
securities. Total net investment return is calculated daily and
expressed as a percentage.
|
Net investment income + Net unrealised gains (losses)
on investments + Net realised gains (losses) on investments /
Non-operating cash and cash equivalents + Fixed maturity
securities, at beginning of period
|
|
Return on equity (KPI)
|
RoE enables Conduit to compare itself against other
peer companies in the immediate industry. It is also a key measure
internally and is integral in the performance-related pay
determinations. RoE is calculated as the profit for the period
divided by the opening total shareholders' equity.
|
Profit (loss) after tax for the period / Total
shareholders' equity, at beginning of period
|
|
Total shareholder return (KPI)
|
Total shareholder return allows Conduit to compare
itself against other public peer companies. Total shareholder
return is calculated as the percentage change in Common Share price
over a period, after adjustment for Common Share dividends.
|
Closing Common Share price, at end of period -
Opening Common Share price, at beginning of period + Common Share
dividends during the period / Opening Common Share price, at
beginning of period
|
|
Dividend yield
|
Calculated by dividing the annual dividends per
Common Share by the Common Share price on the last day of the given
year and expressed as a percentage.
|
Annual dividends per Common Share / Closing Common
Share price
|
|
Net tangible assets per share (KPI)
|
This provides a measure of book value per share for
all shares in issue less own shares held in treasury or the EBT
trust.
|
Total shareholders' equity less intangible assets, at
the end of the period / Total common shares in issue less own
shares held The GBP equivalent of NTAVS is calculated using the end
of period exchange rate between USD and GBP.
|
Condensed interim consolidated statement of
comprehensive income (unaudited)
|
|
Six
months
ended
30
June 2024
|
Six
months
ended
30 June
2023
|
Twelve months
ended
31 Dec
2023
|
|
|
$m
|
$m
|
$m
|
|
Reinsurance revenue
|
382.0
|
278.7
|
633.0
|
|
Reinsurance service expenses
|
(242.0)
|
(169.8)
|
(377.0)
|
|
Ceded reinsurance expenses
|
(43.8)
|
(35.9)
|
(76.7)
|
|
Ceded reinsurance recoveries
|
3.5
|
7.7
|
4.3
|
|
Reinsurance service
result
|
99.7
|
80.7
|
183.6
|
|
|
|
|
|
|
Net investment income
|
29.9
|
17.2
|
41.3
|
|
Net realised losses on investments
|
(0.4)
|
(0.3)
|
(1.3)
|
|
Net unrealised (losses) gains on investments
|
(6.5)
|
5.7
|
30.6
|
|
Net investment result
|
23.0
|
22.6
|
70.6
|
|
Net reinsurance finance expense
|
(4.7)
|
(10.1)
|
(32.8)
|
|
Net foreign exchange (losses) gains
|
(0.7)
|
0.9
|
1.4
|
|
Net reinsurance and financial
result
|
117.3
|
94.1
|
222.8
|
|
|
|
|
|
|
Equity-based incentive expense
|
(3.2)
|
(1.0)
|
(2.5)
|
|
Other operating expenses
|
(15.4)
|
(13.9)
|
(28.3)
|
|
Results of operating
activities
|
98.7
|
79.2
|
192.0
|
|
|
|
|
|
|
Financing costs
|
(0.6)
|
(0.6)
|
(1.2)
|
|
Total comprehensive income for the
period
|
98.1
|
78.6
|
190.8
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
Basic and diluted
|
$0.62
|
$0.49
|
$1.19
|
Condensed interim consolidated balance sheet
(unaudited)
|
|
As at 30
June 2024
|
As at 30
June 2023
|
As at 31
Dec 2023
|
|
|
$m
|
$m
|
$m
|
|
Assets
|
|
|
|
|
Cash and cash equivalents
|
260.2
|
118.1
|
199.8
|
|
Accrued interest receivable
|
10.6
|
6.7
|
8.5
|
|
Investments
|
1,321.6
|
1,118.7
|
1,238.4
|
|
Ceded reinsurance contract assets
|
73.5
|
72.6
|
42.7
|
|
Other assets
|
6.6
|
3.0
|
4.7
|
|
Right-of-use lease assets
|
1.7
|
1.9
|
2.1
|
|
Total assets
|
1,674.2
|
1,321.0
|
1,496.2
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Reinsurance contract liabilities
|
608.1
|
394.8
|
494.5
|
|
Other payables
|
14.6
|
7.0
|
12.0
|
|
Lease liabilities
|
1.9
|
2.1
|
2.3
|
|
Total liabilities
|
624.6
|
403.9
|
508.8
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
Share capital
|
1.7
|
1.7
|
1.7
|
|
Own shares
|
(40.6)
|
(19.2)
|
(32.9)
|
|
Other reserves
|
1,061.1
|
1,058.1
|
1,059.6
|
|
Retained earnings (loss)
|
27.4
|
(123.5)
|
(41.0)
|
|
Total shareholders'
equity
|
1,049.6
|
917.1
|
987.4
|
|
|
|
|
|
|
Total liabilities and shareholders'
equity
|
1,674.2
|
1,321.0
|
1,496.2
|
Condensed interim statement of consolidated cash
flows (unaudited)
|
|
Six
months
ended
30
June 2024
|
Six
months
ended
30 June
2023
|
Twelve months
ended
31 Dec
2023
|
|
|
$m
|
$m
|
$m
|
|
Cash flows from operating
activities
|
|
|
|
|
Comprehensive income
|
98.1
|
78.6
|
190.8
|
|
Depreciation
|
0.6
|
0.3
|
0.7
|
|
Write-off of intangible asset
|
-
|
1.4
|
1.4
|
|
Interest expense on lease liabilities
|
-
|
-
|
0.1
|
|
Net investment income
|
(30.2)
|
(17.8)
|
(42.4)
|
|
Net realised losses on investments
|
0.4
|
0.3
|
1.3
|
|
Net unrealised losses (gains) on investments
|
6.5
|
(5.7)
|
(30.6)
|
|
Net unrealised foreign exchange losses (gains)
|
0.2
|
(0.9)
|
(1.2)
|
|
Equity-based incentive expense
|
3.2
|
1.0
|
2.5
|
|
Change in operational assets and liabilities
|
|
|
|
|
- Reinsurance assets and liabilities
|
83.8
|
53.7
|
184.0
|
|
- Other assets and liabilities
|
(4.9)
|
(1.1)
|
2.8
|
|
Net cash flows from operating
activities
|
157.7
|
109.8
|
309.4
|
|
|
|
|
|
|
Cash flows used in investing
activities
|
|
|
|
|
Purchase of investments
|
(323.1)
|
(279.2)
|
(541.5)
|
|
Proceeds on sale and maturity of investments
|
241.9
|
187.8
|
356.5
|
|
Interest received
|
24.9
|
16.4
|
37.0
|
|
Purchase of property, plant and equipment
|
(0.6)
|
-
|
(0.7)
|
|
Net cash flows used in investing
activities
|
(56.9)
|
(75.0)
|
(148.7)
|
|
|
|
|
|
|
Cash flows used in financing
activities
|
|
|
|
|
Lease liabilities paid
|
(0.4)
|
(0.3)
|
(0.7)
|
|
Dividends paid
|
(29.7)
|
(29.6)
|
(59.3)
|
|
Purchase of own shares
|
(9.4)
|
-
|
(13.7)
|
|
Distributions from EBT
|
-
|
(0.1)
|
(0.1)
|
|
Net cash flows used in financing
activities
|
(39.5)
|
(30.0)
|
(73.8)
|
|
|
|
|
|
|
Net increase in cash and cash
equivalents
|
61.3
|
4.8
|
86.9
|
|
Cash and cash equivalents at the beginning of the
year
|
199.8
|
112.9
|
112.9
|
|
Effect of exchange rate fluctuations on cash and cash
equivalents
|
(0.9)
|
0.4
|
-
|
|
Cash and cash equivalents at end of
period
|
260.2
|
118.1
|
199.8
|