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, Interim CUO, and Interim Non-Exec Chair, with a search underway for a permanent Chair.

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

• Board approved a $50 million share buyback program, aligning with capital management priorities.

• Portfolio delivered a 2.1% investment return for the quarter.

Financial highlights

• Gross premiums written rose 15% year-over-year to $410.2 million in Q1 2025.

• Reinsurance revenue increased 17.6% to $213 million compared to Q1 2024.

• Investment return was 2.1% in Q1 2025, up from 0.5% in Q1 2024, with managed assets totaling over $1.9 billion.

• Book yield stood at 4.1% as of March 31, 2025.

• Net loss estimate for California wildfires remains at $100–$140 million, net of reinsurance and reinstatement premiums.

Outlook and guidance

• Full-year 2025 return on equity expected in the high-single to low-double digits; long-term cross-cycle target remains mid-teens.

• Guidance remains unchanged despite additional reinsurance purchases and portfolio adjustments.

• Growth rate expected to moderate in the second half of the year but healthy growth anticipated.

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

• Combined ratio guidance remains unchanged.