Conduit (CRE) H2 2025 earnings summary

Executive summary

• Gross premiums written increased 6.9% year-on-year to $1.24 billion, with strong growth in casualty and stable property and specialty performance.

• 2025 was a transitional year with significant management changes, including a strengthened executive team and new board chair.

• The company absorbed the largest catastrophe loss in its history from California wildfires, impacting the combined ratio by 15.3 points.

• Delivered comprehensive income of $116.8 million and an ROE of 11.1%, marking the third consecutive year of double-digit ROE.

• Focused on portfolio rebalancing, reducing volatility, and maintaining capital discipline through share buybacks and dividends.

Financial highlights

• Gross premiums written rose to $1.24 billion, up 6.9% year-on-year.

• Comprehensive income was $116.8 million, with an ROE of 11.1%, down from $125.6 million and 12.7% in the prior year.

• Net tangible assets per share increased 11.9% to $7.14, including dividends.

• Investment return was 6.7%, generating $119.5 million of income; book yield at 4.2%.

• Diluted EPS was $0.74, down from $0.79 in 2024.

Outlook and guidance

• Growth expected to moderate in 2026 as the market softens, but pricing remains broadly adequate.

• Entering 2026 with a more resilient portfolio and enhanced retrocession program to reduce volatility.

• Focus remains on profitability and underwriting quality over top-line growth amid competitive market conditions.

• Ongoing share buyback program and commitment to returning capital to shareholders.