Conduit (CRE) Q1 2025 TU earnings summary

Executive summary

• Gross premiums written rose 15% year-over-year to $410.2 million in Q1 2025, with growth across all segments.

• Leadership changes include Neil Eckert's appointment as CEO, with interim CUO and Non-Exec Chair, and a search for a permanent Chair.

• Strategic reinsurance adjustments were made to reduce earnings volatility, especially after California wildfire losses.

• Board approved a $50 million share buyback program to enhance shareholder value.

• California wildfires resulted in an estimated net loss of $100–$140 million, net of reinsurance.

Financial highlights

• Reinsurance revenue increased 17.6% year-over-year to $213 million in Q1 2025.

• Investment return was 2.1% in Q1 2025, up from 0.5% in Q1 2024, with a book yield of 4.1%.

• Cash and investments totaled $1.9 billion at March 31, 2025.

• Property segment premiums up 9.6% to $237.9 million; Casualty up 21.9% to $84.1 million; Specialty up 24.8% to $88.2 million.

• Risk-adjusted rate change for the portfolio was (4)% year-over-year.

Outlook and guidance

• Full-year 2025 return on equity expected in the high-single to low-double digits, reflecting wildfire losses and reinsurance changes.

• Long-term cross-cycle ROE target remains mid-teens.

• Combined ratio guidance remains unchanged.

• Growth expected to moderate in the second half but remain healthy for the year.

• 2026 business refinement will further align risk appetite and reinsurance programs.