Stabilitas Re Ltd

Having purchased aggregate retrocessional reinsurance and secondary peril protection earlier this year after the California wildfires, reinsurer Conduit Re intends to continue evolving its retrocession strategy in 2026, to better protect against these types of events, its CEO Neil Eckert explained this week.

Conduit Re’s retrocession strategy has evolved to complement its peak peril protections, CEO Neil Eckert explained during the company’s Q1 2025 analyst call today, highlighting recent purchases of catastrophe hedging for US and global secondary perils, as well as increased aggregate cover.

Conduit Re, the pure-play Bermuda reinsurance company, has announced its intention to purchase more retrocession to protect its earnings from volatility due to secondary peril loss impacts, while the company has also announced that CEO Trevor Carvey is stepping down.

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.

There were no major changes to Conduit Re’s retrocession arrangements around the middle of this year, but the company is always keeping other third-party capital partnerships such as sidecars under review, CEO Trevor Carvey has explained.

After a successful foray into the catastrophe bond market in 2023 with the $100 million Stabilitas Re Ltd. (Series 2023-1) transaction, Bermudian reinsurer Conduit Re continues to explore the space, according to CEO Trevor Carvey.

There are benefits to sponsoring a catastrophe bond in the way it allows ceding companies to stagger their reinsurance or retrocession renewals across the year, according to Conduit Re CEO Trevor Carvey.

Speaking with Artemis in Monte Carlo this morning at the annual Rendez-Vous de Septembre event, Trevor Carvey, CEO of Conduit Re, explained that the reinsurer plans to continue its work in the catastrophe bond space.

According to Conduit Re CEO Trevor Carvey, when it came to securing the reinsurers first slice of retrocession from the catastrophe bond market this year, the pricing for the firm’s debut $100 million Stabilitas Re Ltd. (Series 2023-1) was “in our sweet spot.”

Conduit Re has now secured its debut catastrophe bond deal, with the company achieving the $100 million target for the Stabilitas Re Ltd. (Series 2023-1) retro reinsurance cat bond, while the notes have now been priced some 9% below the initial guidance mid-point.