Trading Update for Q1 2026

Managed investments continued to grow to $2.3 billion

Board approves new buyback programme of up to $50 million

Conduit Holdings, the ultimate parent company of Conduit Re, a Bermuda-based multi-line reinsurance business, today presents its trading update for the three months ended 31 March 2026.

Neil Eckert, Chief Executive Officer, commented: "We have made a solid start to 2026, continuing to execute on the priorities we set out last year to stabilise the business and strengthen the Board, leadership and our underwriting team. Although market conditions are softening, we identified select growth opportunities, successfully enhanced our retrocession programme with more comprehensive peak and secondary peril coverage, and substantially completed our previously announced share buyback programme. On top of this, strong cash flow has increased our managed investments by approximately $400 million over the past year. In the current environment we remain focused on selectively deploying our capacity into attractive underwriting opportunities and returning excess capital to shareholders in line with Conduit's capital management strategy.

We are pleased with how our underwriting portfolio and invested assets have performed during recent geopolitical developments in the Middle East. This reinforces our confidence in the resilience of the business and strength of our balance sheet. Against this backdrop, subject to shareholder approval at the AGM today, the Board has approved another buyback programme of up to $50 million, which we intend to execute according to our capital management strategy.

I am pleased that we have continued to advance the business and we remain confident in the execution of our strategy. While market conditions are more competitive, we will continue to adjust in response to changing conditions and emerging opportunities as they develop.

During the quarter, we continued with Board succession planning, appointing Nicholas Shott as Chair, and welcoming Richard Lightowler, Peter Mullen and Penny Shaw as Independent Non-Executive Directors, each of whom brings extensive financial services expertise to the Board.

In closing, I would like to thank Elizabeth Murphy who has retired from the Board. Elizabeth was a founding director and has provided valuable guidance and insight as audit committee chair during her tenure. I wish to also formally acknowledge the profound sense of loss from the untimely passing of Stephen Redmond. Stephen was a highly dedicated and respected Non-Executive Director, and his significant contributions and exemplary character are sincerely missed."

Key highlights:

• Gross premiums written of $430.3 million, a 4.9% increase over the first three months of 2025, with growth being driven by Casualty.
• Reinsurance revenue of $240.3 million, a 12.8% increase over the first three months of 2025.
• Overall portfolio risk-adjusted rate change for the three months ended 31 March 2026 was (5)%, net of claims inflation. Pricing generally remains at adequate levels following improvements in rates and terms and conditions during recent years.
• While we have recorded an initial estimate related to exposure to the conflict in the Middle East, no event loss, individually or in the aggregate, had a material impact on Conduit in the quarter.
• Our high-quality investment portfolio produced a return of 0.3% for the three months ended 31 March 2026 despite recent market volatility, where portfolio yield was offset by the negative impact of rising treasury yields and widening credit spreads.

Outlook:

• Record global reinsurance capital levels, combined with relatively low catastrophe losses, continue to contribute to softening rates, particularly in property and specialty lines, which is expected to continue.
• We continue to work with long-standing supportive cedants and brokers to target attractive areas of the market that align with our risk appetite and strategic objectives.
• Continued growth in our managed investments to $2.3 billion.

Underwriting update

Premiums

Gross premiums written for the three months ended 31 March 2026:

During the first quarter of 2026, we identified select growth opportunities for our portfolio, primarily driven by continued growth in targeted Casualty classes. We also marginally increased gross premiums written within our Property segment and chose to moderately reduce volume within our Specialty segment. This approach reflects our active cycle management amid softening market conditions, particularly in property and specialty markets.

Reinsurance revenue

Reinsurance revenue for the three months ended 31 March 2026:

Pricing

Following significant pricing increases over the past several years, record global reinsurance capital levels combined with relatively low catastrophe losses have contributed to softening rates in property and specialty lines. In casualty, pricing remains more stable, although some moderate increases in competition have been observed. Overall, most classes of business remain adequately priced.

Conduit's overall risk-adjusted rate change for the three months ended 31 March 2026, net of claims inflation, was (5)%, and by segment was:

Net reinsurance losses and loss related amounts

For the first three months of 2026, no event loss, individually or in the aggregate, had a material impact on Conduit Re. Conduit has exposure to the Middle East conflict, and we have recorded an initial loss estimate based on the latest information. As the conflict is ongoing, there is significant uncertainty in estimating the associated losses.

Our loss reserve estimates have been derived from a combination of reports from brokers and cedants, realistic disaster scenario analysis, pricing loss ratio expectations and reporting patterns, supplemented with market data and assumptions. We will continue to monitor the Middle East conflict and update our loss estimates as the conflict develops.

Our undiscounted ultimate loss estimates, net of ceded reinsurance and reinstatement premiums, for previously reported loss events remain stable.

Investments

In line with our stated strategy, we continue to maintain a relatively 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 three months of 2026 was 0.3% where portfolio yield was offset by the negative impact of rising treasury yields and widening credit spreads. In the first three months of 2025 the portfolio returned 2.1% due to investment income, combined with a reduction in treasury yields in the quarter.

The breakdown of the managed investment portfolio is as follows:

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

Capital & dividends

During the first quarter of 2026, CHL's Board of Directors declared a final dividend of $0.18 (£0.1344) per common share in respect of 2025, which was paid in pounds sterling on 16 April 2026 to shareholders of record on 20 March 2026, resulting in an aggregate payment of $28.7 million.

Share repurchases under the authorised buyback programme totalled $22.9 million during the three months ended 31 March 2026.

Presentation for analysts and investors on Wednesday, 13 May 2026 at 12:00 pm UK time

Conduit's management will host a virtual meeting for analysts and investors via a webcast and conference call on Wednesday 13 May 2026 at 12:00 noon UK time. There will be an opportunity for questions & answers at the end of the update. To ask a question, please join via the conference call.

To access the webcast, please register in advance here:

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

Investor Presentation via Investor Meet Company at 4:00 pm UK time

Conduit's management will provide a separate presentation aimed at retail investors, relating to the Q1 2026 trading update via the Investor Meet Company platform, on Wednesday, 13 May 2026 at 4:00 pm UK time.

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