Conduit Holdings stock surges on strong first quarter growth

Published 14/05/2025, 09:12
© Reuters

Investing.com -- Shares of Conduit Holdings Ltd (LON:CRE) climbed 8.5% on Wednesday following the release of their first quarter financial results, which showcased a solid performance with an 18% YoY increase in reinsurance revenue.

The company reported reinsurance revenue of $213 million, which, despite falling slightly short of the $231 million expected by RBC Capital Markets, still represents a robust year-on-year growth.

Gross written premiums also saw a significant uptick, reporting a 15% YoY growth with $410 million, surpassing the RBC estimate of $385 million.

Conduit’s growth in the first quarter is largely in line with the full-year 2025 consensus growth rate of 16%, with a portfolio increasingly focused on Specialty.

However, the company did experience a risk-adjusted rate change of -4%, net of claims inflation, a decrease from the +1% in 2024. Despite this moderation, Conduit noted that pricing levels and terms and conditions remain attractive, benefiting from multiple years of compounding rate increases.

In addition to the financial growth, Conduit Holdings announced a share buyback program of $50 million, which is approximately 7% of its market cap and equates to roughly 30 cents per share.

Conduit has reiterated its targets for the fiscal year 2025, aiming for a high-single to low-double digits return on equity (ROE), which reflects the impact of the California wildfires and additional reinsurance purchases and portfolio adjustments.

 

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