Conduit (CRE) Q3 2024 TU earnings summary

Executive summary

• Gross premiums written reached $957.3 million for the nine months ended 30 September 2024, up 25.2% year-over-year, led by Property (+32.9%) and Specialty (+39.3%), with Casualty up 2.0%.

• Reinsurance revenue rose 30.3% to $588.2 million, reflecting strong demand and high retention.

• Q3 saw elevated natural catastrophe and risk event activity, with estimated net losses of $50 million, and Hurricane Milton in October expected to add $30–50 million in net losses.

• Combined ratio was in the mid-90s year-to-date, impacted by loss events but reflecting portfolio resilience.

• Investment return for the year-to-date was 4.9%, with a book yield of 4.2% and a high-quality, liquid portfolio.

Financial highlights

• Gross premiums written: $957.3m (2024 YTD) vs $764.4m (2023 YTD), +25.2%.

• Reinsurance revenue: $588.2m (2024 YTD) vs $451.3m (2023 YTD), +30.3%.

• Combined ratio (undiscounted) in the mid-90s YTD through Q3 2024.

• Investment portfolio generated a 3.4% return in Q3 and 4.9% year-to-date, with book yield at 4.2%.

• Total capital and tangible capital available: $1.05bn as of 30 September 2024, up from $0.92bn a year earlier.

Outlook and guidance

• Market conditions remain attractive and stable, supporting further capacity deployment and continued growth into 2025, especially in Property and Specialty.

• Technical rates are broadly stable; risk-adjusted rate change YTD is +1% overall, with Property +3%, Casualty -1%, Specialty +1%.

• Recent catastrophe activity and industry reserve development expected to support resilient pricing.

• Early start to renewal season anticipated, with strong client engagement and a focus on maintaining strong terms and conditions.

• No specific full-year combined ratio guidance, but cross-cycle ROE target remains mid-teens.