Retro market softened to a degree at Jan 1 renewals: Carvey, Conduit Re CEO

Similar to the catastrophe excess of loss marketplace, the retrocession market softened to a degree at the January 1st, 2025, reinsurance renewals, and was generally more responsive to Bermuda-based reinsurer Conduit Re’s needs, according to Chief Executive Officer (CEO), Trevor Carvey.

This morning, as reported by our sister publication Reinsurance News, Conduit Re reported a robust set of results for 2024, revealing that gross premiums written, at $1.16 billion, is 30% above the IPO target set four years ago.

In terms of future growth, the reinsurer highlighted continued strong expansion at the 1.1 2025 renewals, as well as the placement of its retrocession programme at improved terms.

This afternoon, in a call with journalists, CEO Carvey confirmed that although the company doesn’t comment specifically on its retro placement, the market at 1.1 was “generally more amenable to us.”

“The scope of cover and the limits, the market was, generally, I think, in line with the catastrophe excess of loss market, softened to a degree,” said Carvey.

When questioned on whether third-party reinsurance capital played a role, the CEO explained that Conduit Re is always alert to that.

“We look at the way that that could fit in around our overall retrocessional strategy. We have been involved with a smaller project on that, and it’s something which we keep under watch and have potential to expand that going forward,” he said.

Back in 2023, Conduit Re sponsored its first catastrophe bond, the $100 million Stabilitas Re Ltd. (Series 2023-1), which provides the firm with US named storm and US earthquake retrocessional protection.

The debut cat bond remains in-force and is scheduled to mature in May 2026, so it will be interesting to see whether Conduit Re returns to the cat bond market in the future to support its retro needs as the business targets continued growth.