More work to evidence returns in retro, but market vibrant and healthy: Conduit Re execs

Senior executives from pure-play Bermuda reinsurance company Conduit Re held a media briefing this morning at the 2024 Monte Carlo Rendez-Vous and explained that retrocession market conditions are vibrant, but said that ILS and third-party capital providers still need to see returns evidenced.

Answering a question posed by Artemis, Gregory Roberts, Chief Underwriting Officer (CUO) noted that there is still some time to go to year-end, but capital providers are looking for retrocession to prove itself out as an investment proposition.

“A big impact to that will be what happens between now and the remainder of the year. I think a lot of the capacity in the retro market, particularly from the ILS and third-party side is looking forward to a better year.

“Last year was a good year for the retro market in general, but one year does not make a trend. So, there’s more work to evidence that,” Roberts explained.

He continued, “I think the confidence in that market and understanding of all the work that’s been done in the insurance markets and reinsurance markets, will be further evidenced.

“Even with loss activity, I think the understanding of how much of the loss permeates from what industry attachment point and loss trends, there’s a lot of discipline in that market.

“The market talks about hurdle rates a lot, but there is actually quite a bit of capacity available at the right terms and conditions. The word we’re hearing is stable.

“There is more and more evidence that underlying exposure adjustments have flowed through, clearly they’re not going anywhere. So that market is probably growing.”

Trevor Carvey, CEO, Conduit Re, added, “The additional capacity that came in at mid-year looking to find a home was deployed. It’s a fairly vibrant market in that respect.

“There’s increased demand. But overall, a pretty vibrant, healthy market.”