In the News
Startup Reinsurer Aims for $1.1 Billion London Listing
Conduit targets an excess-of-loss and quota share book of treaty reinsurance business across P/C lines.
- David Pilla
- December 2020
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Startup reinsurer Conduit Holdings Ltd. said it is aiming to list through a $1.1 billion initial public offering on the London Stock Exchange.
The reinsurer's registration document has been submitted for approval to the U.K. Financial Conduct Authority, Conduit said in a statement.
The company said it intends to apply for admission of its shares to trade on the London Stock Exchange's main market for listed securities.
Conduit said it is a newly established reinsurance underwriting business with a focus on “producing strong risk-adjusted returns from a diversified and focused business plan.”
We are excited by a market where there is so much price improvement across so many classes. For the first time in a long while we think a well-capitalized new entrant can come into the market and successfully target quality business in scale and at historically attractive rates.
Trevor Carvey
Conduit
Company founders Neil Eckert and Trevor Carvey said they formed the business to take advantage of the current market.
Eckert said in a statement that he and Carvey “traded in hard markets before, but we believe these are exceptional times by any standards and a really opportunistic time to launch a new reinsurance company bringing fresh capital and a very focused business plan to the market.”
The company will target an excess-of-loss and quota share book of treaty reinsurance business across property, specialty and casualty lines, said Carvey.
“We are excited by a market where there is so much price improvement across so many classes,” Carvey added. “For the first time in a long while we think a well-capitalized new entrant can come into the market and successfully target quality business in scale and at historically attractive rates.”
Severe capacity shortages in certain classes of insurance and reinsurance caused by years of high insured losses, diminished reserves and the more recent losses and industry strain caused by COVID-19 have produced major corrections in reinsurance pricing and policy terms and conditions, Conduit said.
“Against the industry background of losses, litigation and capacity constraint, as a new business Conduit has no legacy exposure and, following the offer, its strong and unencumbered balance sheet will be fully available to write new business in what the founders believe to be an attractive market environment,” the company said in a statement.
Conduit said it intends to operate as a Bermuda reinsurer with a Class IV license issued by the Bermuda Monetary Authority.
