Pembroke, Bermuda - 30 July 2025

Conduit Holdings Limited

("Conduit Holdings" LSE ticker: CRE)

Interim results for the six months ended 30 June 2025

Growth in gross premiums written of 8.9%

Strong net investment income with total return of 3.9%

Interim dividend of $0.18 (approximately 13 pence) per common share declared

Conduit Holdings, the ultimate parent company of Conduit Re, a multi-line Bermuda-based reinsurance business, today presents its interim results for the six months ended 30 June 2025.

Neil Eckert, Chief Executive Officer, commented: "We are in a period of transition as we begin positioning the business to be more resilient. We have started initiatives to manage net exposures better, including enhancing our outwards reinsurance programme and refining our portfolio. The process of rationalising our quota share exposure is underway and will lead to less premium in this area, while we have an increased appetite for excess of loss business. These adjustments are intended to reduce attritional loss exposure and improve diversification, which we believe will help drive more consistent returns in the future. The actions are further supported by targeted senior hires across key functions bringing valuable expertise and fresh perspectives to the team.

We have delivered 8.9% growth in gross premiums written and continue to see adequate pricing across many of our target classes, though market dynamics are shifting due to increased capacity. Our high-quality and growing investment portfolio continued to deliver strong results, with 29.8% growth in net investment income and a 3.9% return through 30 June.

The first half was marked by elevated loss activity above our normal plan, including wildfires, severe convective storms and aviation events. Further, the recent UK High Court judgement regarding the 2022 Ukraine loss has significantly increased the industry's insured loss from the event. The actions to rebalance our portfolio, together with increased losses during the second quarter and an increase in our reserves related to Ukraine, have resulted in a further reduction to our RoE expectations to the mid single digits for 2025. However, we believe Conduit has a strong foundation from which to build upon, and we are taking steps to advance the business and drive resilience to support long-term value creation across market cycles."

Key highlights:

Outlook

Underwriting update

Premiums

Gross premiums written for the six months ended 30 June:

During the six months ended 30 June 2025, all three of our segments delivered growth in gross premiums written, driven by Property and Casualty. We have experienced a number of new business opportunities and increased demand in Property, and in Casualty we have selectively expanded partnerships with existing cedants that have demonstrated disciplined behaviour. The growth rate in Specialty slowed compared to recent periods as we have reduced our growth in lines experiencing more pressure on pricing and terms.

Pricing

Despite some moderation, pricing levels and terms and conditions continued to be attractive in the first six months of 2025, benefiting from multiple years of compounding rate increases.

Certain Casualty lines continued to benefit from market correction driven by reserve deterioration and loss emergence, primarily from pre-2020 years. Market conditions across Property and Specialty segments reflected some increased competition following significant pricing increases over the past several years.

Conduit Re's overall risk-adjusted rate change for the six months ended 30 June 2025, net of claims inflation, was (3)% and by segment was:

Net reinsurance revenue

For the six months ended 30 June 2025:

For the six months ended 30 June 2024:

Reinsurance revenue for the six months ended 30 June 2025 was $433.3 million compared to $382.0 million for the same period in 2024. The increase in reinsurance revenue relative to the prior period was due to continued growth in the business plus the earn-out of premiums from prior underwriting years.

Ceded reinsurance expenses for the six months ended 30 June 2025 were $53.4 million compared to $43.8 million for the same period in 2024. The increase in cost relative to the prior period reflected additional limits purchased due to the growth of the inwards portfolio plus additional secondary perils coverage purchased following the California wildfires in early 2025.

Net reinsurance service expenses

For the six months ended 30 June 2025:

For the six months ended 30 June 2024:

Net reinsurance losses and loss related amounts

Our discounted net loss ratio for the six months ended 30 June 2025 was 95.8% compared with 62.4% for the same period in 2024, while our undiscounted net loss ratio was 109.6% and 73.0% respectively.

The first six months of 2025 was another highly active period of natural catastrophe events and risk losses for the industry, including the California wildfires, severe convective storms in the United States and several aviation losses, amongst others. The California wildfires were the most significant event, causing widespread damage in the Los Angeles area. Our undiscounted net loss attributed to the wildfires, net of reinsurance and reinstatement premiums, was $118.3 million, which is within our previously disclosed range of between $100.0 and $140.0 million. The California wildfires contributed 31.6% to our undiscounted net loss ratio. Absent this event our undiscounted net loss ratio would have been 78.0%, which is more in line with the prior year undiscounted loss ratio of 73.0%.

For the first six months of 2024, despite an active loss period for the industry, no event loss, individually or in the aggregate, had a material impact on Conduit.

The inherent uncertainty in estimating the net liability for incurred claims gives rise to favourable or adverse development. During the six months ended 30 June 2025 the favourable development in the discounted net liability for incurred claims for prior accident years was $3.8 million (30 June 2024: $0.6 million). While development is favourable across the portfolio, we experienced some adverse development on prior year reserves, primarily as a result of the UK High Court ruling on the aviation losses in connection with the Russian invasion of Ukraine. Other than Ukraine, our undiscounted ultimate loss estimates, net of ceded reinsurance and reinstatement premiums, for previously reported significant events remained stable.

Our loss and reserve estimates have been derived from a combination of reports and statements from brokers and cedants, modelled loss projections, pricing loss ratio expectations and reporting patterns, all supplemented with market data and assumptions. We continue to review these estimates as additional information becomes available.

Reinsurance operating expenses and other operating expenses

For the six months ended 30 June:

Reinsurance operating expenses includes brokerage and operating expenses deemed attributable to reinsurance contracts.

Net reinsurance finance expense

For the six months ended 30 June:

The net reinsurance finance expense was $40.9 million for the six months ended 30 June 2025 compared with $4.7 million for the same period in the prior year. The unwind of discount increased during the first six months of 2025 due to the growth in discount available to unwind while there was also an additional expense due to updating to current discount rates due to the reduction in yields during the first six months of 2025. The same period in 2024 saw the net interest accretion partially offset by updating to current discount rates due to the increase in yields in that period.

Investments

In line with our stated strategy, we continue to maintain our conservative approach to managing our invested assets with a strong emphasis on preserving capital and liquidity. Our strategy remains maintaining a short duration, highly-rated portfolio, with due consideration of the duration of our liabilities. Our investment portfolio does not hold any derivatives, equities or alternatives.

The investment return for the first six months of 2025 was 3.9% driven by net investment income, in addition to net unrealised gains due to the reduction in treasury yields in the period. In the first six months of 2024 the portfolio returned 1.5% as net investment income was partially offset by a net unrealised loss due to the increase in yields in that period.

Net investment income, excluding realised and unrealised gains and losses, was $38.8 million for the six months ended 30 June 2025 (30 June 2024: $29.9 million). Total investment return, including net investment income, net realised gains and losses, and net change in unrealised gains and losses, was a gain of $63.8 million for the six months ended 30 June 2025 (30 June 2024: $23.0 million).

The breakdown of the managed investment portfolio was as follows:

Key investment portfolio statistics for our fixed maturities and managed cash were:

Capital & dividends

Total capital and tangible capital available to Conduit was $1.01 billion at 30 June 2025 (30 June 2024: $1.05 billion; 31 December 2024: $1.05 billion).

Tangible net assets per share as at 30 June 2025 was $6.43 or £4.683 (30 June 2024: $6.69 or £5.28; 31 December 2024: $6.70 or £5.35).

During the first six months of 2025 the Conduit Board of Directors approved a share buyback programme of up to $50.0 million. Shares purchased under this programme amounted to $2.5 million for the six months ended 30 June 2025.

Shares purchased by Conduit's EBT during the first six months of 2025 amounted to $3.0 million (30 June 2024: $9.4 million: 31 December 2024: $9.4 million) and will be held in trust to meet future obligations under Conduit's variable incentive schemes.

On 29 July 2025 Conduit's Board of Directors declared an interim dividend of $0.18 (approximately 13 pence) per Common Share, resulting in an aggregate payment of $29.7 million. The dividend will be paid in pounds sterling on 11 September 2025 to shareholders of record on 15 August 2025 (the Record Date) using the pound sterling/US dollar spot exchange rate at 12 noon BST on the Record Date.

Financial information

The unaudited condensed interim consolidated financial statements for the six months ended 30 June 2025 are published on Conduit Re's website at www.conduitreinsurance.com.

Presentation for Analysts and Investors at 12:00 noon UK time

Conduit's management will host a virtual meeting for analysts and investors via a webcast and conference call on Wednesday 30 July 2025 at 12:00 noon UK time. There will be an opportunity for questions & answers at the end of the presentation. To ask a question, please join via the conference call.

To access the webcast, please register in advance here:

https://sparklive.lseg.com/ConduitHoldingsLtd/events/92f31944-968a-4743-a923-b5180cfc268a/conduit-holdings-limited-h1-results-2025

To access the conference call, please register to receive unique dial-in details here:

https://registrations.events/direct/LON6204532

A recording of the presentation will be made available later in the day on the Investors section of Conduit's website at www.conduitreinsurance.com.

Investor Presentation via Investor Meet Company

Conduit's management will provide a separate presentation aimed at retail investors, relating to the 2025 Interim Results, via the Investor Meet Company platform, on Wednesday, 30 July 2025 at 4:00 pm UK time.

The presentation is open to all existing and potential shareholders. No new material, including trading or financial information, will be disclosed during the presentation.

There will be an opportunity for questions and answers at the end of the presentation. Questions can be submitted pre-event via the Investor Meet Company dashboard up until 09:00 am UK time the day before the meeting or at any time during the live presentation.

Investors can sign up to Investor Meet Company for free, or if signed up, can add to meet Conduit Holdings Limited via:

https://www.investormeetcompany.com/conduit-holdings-limited/register-investor

Investors who are already registered on the Investor Meet Company platform and follow Conduit Holdings will automatically be invited to the call.

Media contacts

Haggie Partners - David Haggie / Peter Rigby / Caroline Klein

+44 (0) 207 562 4444

[email protected]

Investor relations and other enquiries

[email protected]

Panmure Liberum (Joint Corporate Broker)

+44 (0) 207 886 2500

Berenberg (Joint Corporate Broker)

+44 (0) 203 207 7800

Peel Hunt (Joint Corporate Broker)

+44 (0) 207 418 8900

This announcement contains information, which may be of a price sensitive nature, that Conduit is making public in a manner consistent with the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended, and other regulatory obligations. The information was submitted for publication, through the agency of the contact persons set out above, at 7:00 am UK time on 30 July 2025.

About Conduit Re

Conduit Re is a Bermuda-based multi-line reinsurance business with global reach. Conduit Reinsurance Limited is licensed by the Bermuda Monetary Authority as a Class 4 insurer. A.M. Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of a- (Excellent) to Conduit Reinsurance Limited. The outlook assigned to these ratings is positive.

Conduit Holdings Limited is the ultimate parent of Conduit Reinsurance Limited and is listed on the London Stock Exchange (ticker: CRE). References to "Conduit" include Conduit Holdings Limited and all of its subsidiary companies.

Learn more about Conduit Re:

Website: https://conduitreinsurance.com/

LinkedIn: https://www.linkedin.com/company/conduit-re

Important information (disclaimers)

This announcement contains inside information for the purpose of the Market Abuse Regulation (EU) No 596/2014 (which forms part of UK domestic law pursuant to the European Union (Withdrawal) Act 2018, as amended).

This announcement includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "goals", "objective", "rewards", "expectations", "signals", "projects", "anticipates", "expects", "achieve", "intends", "tends", "on track", "well placed", "continued", "estimated", "projected", "preliminary", "upcoming", "may", "will", "aims", "could" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, targets, future events or intentions or loss estimates. Forward-looking statements include statements relating to the following: (i) future capital requirements, capital expenditures, expenses, revenues, unearned premiums pricing rate changes, terms and conditions, earnings, synergies, economic performance, indebtedness, financial condition, dividend policy, claims development, losses and loss estimates and future business prospects; and (ii) business and management strategies and the expansion and growth of Conduit's operations.

Forward-looking statements may and often do differ materially from actual results. Forward-looking statements reflect Conduit's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to Conduit's business, results of operations, financial position, liquidity, prospects, growth and strategies. These risks, uncertainties and assumptions include, but are not limited to: the possibility of greater frequency or severity of claims and loss activity than Conduit's underwriting, reserving or investment practices have anticipated; the reliability of catastrophe pricing, accumulation and estimated loss models; the actual development of losses and expenses impacting estimates for claims which arose as a result of recent loss activity such as hurricanes, storms, floods and wildfires; the impact of complex causation and coverage issues associated with attribution of losses to wildfires, wind or flood damage; the impact of increased costs and inflation to settle claims in high density areas and emerging information as losses develop; unusual loss frequency or losses that are not modelled; the effectiveness of Conduit's risk management and loss limitation methods, including to manage volatility; the recovery of losses and reinstatement premiums from our own reinsurance providers; the development of Conduit's technology platforms; a decline in Conduit's ratings with A.M. Best or other rating agencies; the impact that Conduit's future operating results, capital position and ratings may have on the execution of Conduit's business plan, capital management initiatives or dividends; Conduit's ability to implement successfully its business plan and strategy during 'soft' as well as 'hard' markets; the premium rates which are available at the time of renewals within Conduit's targeted business lines and at policy inception; the pattern and development of premiums as they are earned; increased competition on the basis of pricing, capacity or coverage terms and the related demand and supply dynamics as contracts come up for renewal; the successful recruitment, retention and motivation of Conduit's key management and the potential loss of key personnel; the credit environment for issuers of fixed maturity investments in Conduit's portfolio; the impact of the ongoing conflicts in Ukraine and the Middle East, the impact of swings in market interest rates, currency exchange rates and securities prices; changes by central banks regarding the level of interest rates and the timing and extent of any such changes; the impact of inflation or deflation in relevant economies in which Conduit operates; Conduit becoming subject to income taxes in Bermuda, the United States or in the United Kingdom; and changes in insurance or tax laws or regulations in jurisdictions where Conduit conducts business.

Forward-looking statements contained in this trading update may be impacted by emerging information regarding losses from the California wildfires, the escalation or expansion of the Ukraine conflict or Middle East conflict, the volatility in global financial markets and governmental, regulatory and judicial actions, including related policy coverage issues. Forward-looking statements speak only as of the date they are made. No representation or warranty is made that any forward-looking statement will come to pass. Conduit disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect actual results or any change in the assumptions, conditions or circumstances on which any such statements are based unless required to do so by law or regulation. All subsequent written and oral forward-looking statements attributable to Conduit and/or the group or to persons acting on its behalf are expressly qualified in their entirety by the cautionary statements referred to above.

The Conduit renewal year on year indicative risk-adjusted rate change measure is an internal methodology that management uses to track trends in premium rates of a portfolio of reinsurance contracts. The change measure is specific for our portfolio and reflects management's assessment of relative changes in price, exposure and terms and conditions. It is also net of the estimated impact of claims inflation. It is not intended to be commentary on wider market conditions. The calculation involves a degree of judgement in relation to comparability of contracts and the assessment noted above, particularly in Conduit's initial years of underwriting. To enhance the methodology, management may revise the methodology and assumptions underlying the change measure, so the trends in premium rates reflected in the change measure may not be comparable over time. Consideration is only given to renewals of a comparable nature so it does not reflect every contract in the portfolio of Conduit contracts. The future profitability of the portfolio of contracts within the change measure is dependent upon many factors besides the trends in premium rates.

Additional Performance Measures (APMs)

Conduit presents certain APMs to evaluate, monitor and manage the business and to aid readers' understanding of Conduit's financial statements and methodologies used. These are common measures used across the (re)insurance industry and allow the reader of Conduit's financial reports to compare those with other companies in the (re)insurance industry. The APMs should be viewed as complementary to, rather than a substitute for, the figures prepared in accordance with IFRS. Conduit's Audit Committee has evaluated the use of these APMs and reviewed their overall presentation to ensure that they were not given undue prominence. This information has not been audited.

Management believes the APMs included in the condensed interim consolidated financial statements are important for understanding Conduit's overall results of operations and may be helpful to investors and other interested parties who may benefit from having a consistent basis for comparison with other companies within the (re)insurance industry. However, these measures may not be comparable to similarly labelled measures used by companies inside or outside the (re)insurance industry. In addition, the information contained herein should not be viewed as superior to, or a substitute for, the measures determined in accordance with the accounting principles used by Conduit for its condensed interim consolidated financial statements or in accordance with IAS 34.

Below are explanations, and associated calculations, of the APMs presented by Conduit:

Condensed interim consolidated statement of comprehensive income (loss) - (unaudited)

Condensed interim consolidated balance sheet (unaudited)

Condensed interim statement of consolidated cash flows (unaudited)