(Alliance News) - Conduit Holdings Ltd on Wednesday said ultimate written premiums were up by more than half in the first quarter, boosted by a "favourable" market.

The Bermuda-based reinsurer said UD443.2 million in ultimate premiums were written during the first quarter of 2023, up 51% from USD269.9 million a year before.

Meanwhile, gross premiums written during the period were UD278.0 million, up 59% from USD177.5 million in the first quarter last year.

Looking forward, Conduit said market conditions remain "very favourable", with growing demand for reinsurance in property and speciality classes, while supply remains constrained. The company said it has experienced continued momentum in April, ahead of mid-year renewals.

Executive Chair Neil Eckert said: "As the year progresses, the capacity constraint in the market becomes increasingly acute. We see this as an enduring pricing environment, creating the opportunity for improved margins in our business throughout 2023 and beyond. Conduit continues to deliver strong year-on-year growth."

Conduit added that despite industry losses due to natural catastrophes in the quarter, no major event has had a material impact on the company.

"The imbalance between supply and demand continues in the marketplace and Conduit Re has seen a very strong first quarter both in terms of premium growth and the rating levels seen across our target classes. April business renewed through strongly and we continue to dial our book deliberately towards the property and specialty classes where the market environment is considered most favourable.

"The overall signs are that pricing momentum will be maintained into the important mid-year renewals, and our highly scalable and lean operating model has created a platform for strong future growth."

Conduit shares rose 1.1% to 500.00 pence each in London on Wednesday morning.

By Harvey Dorset, Alliance News reporter

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