Conduit Re trims hurricane risk exposure
Conduit Re has made further enhancements to its retrocession program, resulting in a lower North Atlantic hurricane probable maximum loss at July 1st, with an increased core retro limit and aggregate cover.
Conduit Re has been building out its retrocessional reinsurance protection against major catastrophes and secondary peril events since early 2025, following losses from the California wildfires.
Conduit Re explained that it planned to buy more retrocession to protect its earnings from volatility due to secondary peril loss impacts, and has made good on that, purchasing catastrophe hedging for US and global secondary perils.
They continued to evolve their retro strategy to complement the peak peril protection they already had in place, and this evolution continued into 2026, with Conduit Re securing enhanced protection for both peak and secondary perils at the January renewals.
It now appears Conduit Re has further bolstered its retrocession around the mid-year 2026 renewal season, resulting in a further lowering of its PML exposure to North Atlantic hurricane risk.
In announcing its first-half results, Neil Eckert, Chief Executive Officer, said, “These results represent a solid first half, demonstrating the considerable progress we have made in advancing the business.
Conduit Re’s focus has been on reducing net exposure to both peak catastrophe and secondary peril loss events, with the company buying increased core retro limit this year and aggregate coverage as well.
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For North Atlantic windstorms, the retrocession buying first reduced the 100 year PML to 10% as a percentage of TNAV at January 1st, but has now reduced that metric further to 8% after July 1st.
On a 250 year PML basis, the percentage of TNAV figure fell from 19% at the start of 2025, to 17% at January 1st 2026 and now has fallen further again to 13% as of July 1st 2026.
Conduit Re has also slightly reduced its exposure to a 100-year European windstorm event and to 250-year US and Canadian earthquakes through its retro purchases.
Conduit Re stated that, “The market outlook suggests that price softening and increased competition is likely to continue in most lines of business, highlighting the importance of active cycle management.”
While the global reinsurance market continues to soften, Conduit Re remains focused on risk selection, portfolio optimisation and managing its underwriting volatility through an effective retrocession programme.
They will continue to manage growth and capital deployment for these competitive conditions, including a reduction of quota shares and writing more excess of loss business.
Conduit Re.
