Conduit (CRE) H1 2025 earnings summary

Executive summary

• Gross premiums written grew 8.9% year-over-year to $803.3 million for H1 2025, led by Property and Casualty segments, despite some market softening.

• Comprehensive loss of $13.5 million for H1 2025, mainly due to elevated catastrophe and risk losses, especially California wildfires.

• Strategic portfolio adjustments underway, shifting toward excess of loss business and reducing quota share exposure to improve diversification and margins.

• Leadership team strengthened with key hires in risk, claims, and specialty underwriting, including a new Chief Risk Officer.

• Balance sheet remains strong, with $1.9 billion in managed cash and investments as of June 30, 2025.

Financial highlights

• Gross premiums written up 8.9% year-over-year to $803.3 million; reinsurance revenue up 13.4% to $433.3 million.

• Net investment return of 3.9% for H1, generating $63.8 million; net investment income up 29.8% year-over-year.

• Undiscounted combined ratio at 122.1% (vs. 85.7% prior year); discounted combined ratio at 108.3%.

• Net loss ratio (discounted) at 95.8% (H1 2025) vs. 62.4% (H1 2024); ROE for H1 at -1.3%.

• Tangible net assets per share at $6.43 as of June 30, 2025.

Outlook and guidance

• ROE for 2025 now expected in mid single digits, revised down due to H1 loss activity and reserve increases related to Ukraine.

• Premium growth expected to moderate in H2; focus remains on underwriting discipline and margin.

• Portfolio realignment and increased reinsurance purchases expected to lower premium growth and returns in 2025.

• Long-term cross-cycle ROE target of mid-teens remains, but near-term returns will be challenged.

• Ongoing investment in talent and operational capabilities to support long-term growth.