Conduit Re secures enhanced retro coverage in 2026, for both peak and secondary perils

Conduit Re continued to evolve its retrocession strategy into 2026, with the pure-play reinsurance company securing enhanced protection for both peak and secondary perils, the company explained this morning.

Conduit Re has been strengthening its retrocessional reinsurance protections since the impacts of the California wildfires last year.

After the Los Angeles wildfires, Conduit Re explained that it planned to acquire more retrocession to protect its earnings from volatility due to secondary peril loss impacts.

The reinsurer stayed true to its word, purchasing catastrophe hedging for US and global secondary perils, as well as more aggregate retrocession.

This was seen as an evolution of the retro strategy, to complement the peak peril protection the reinsurer already had in place.

That evolution has continued into 2026, as Conduit Re had planned.

CEO Neil Eckert said in late July that for 2026 the retro strategy would see Conduit Re looking to embed secondary peril protection more structurally into the core programme, to lower its our net exposure to large secondary peril events.

It appears that goal has been achieved, with the reinsurer reporting an enhanced retro renewal purchase at 1/1 this year.

Conduit Re said in its results that the reinsurer “renewed and enhanced our core retrocession programme.”

The company further explained that this included “a reduced net retention for peak and secondary perils compared to the initial programme in the prior year.”

These reduced retentions should help to moderate Conduit Re’s catastrophe and severe weather loss costs over the year ahead, while it’s ability to collect on its retro coverage should be easier with recoveries earlier than before.

Neil Eckert, Chief Executive Officer, stated, “After a difficult start to 2025, we are pleased to have delivered an 11.1% RoE for the year. The result reflects our loss exposure to the California wildfires, the largest absorbed loss in Conduit’s history, and our post-event retrocession purchases. Our earnings were supported by strong investment performance, with a 6.7% net return and 24.2% growth in net investment income over 2024, and benign claims activity during the second half of 2025.

“We have renewed our core retrocession programme for 2026 with enhanced coverage for peak and secondary perils, such as the California wildfires, to improve our portfolio resilience and better manage earnings volatility. This has been a critical body of work, alongside the strengthening of our team.

“Conduit has had a successful January renewal season. We attracted select new business while continuing to support our key partners in a more meaningful way. At the same time, underwriting discipline remains our priority. As markets softened in 2025 and into 2026, our growth rate has moderated as we have reduced or exited business that did not meet our pricing or performance standards. Against the backdrop of more competitive market conditions, we are pleased with the start to 2026.

“Moving forward, we will carefully deploy our capital or return it to shareholders as appropriate. Our balance sheet remains strong and we continue to have appetite for share repurchases.”