Conduit Holdings Limited

Good morning and good afternoon, everyone. Welcome to the Conduitree first quarter of 2022 trading update call. Please note the disclaimer on page two. And with this, I give the floor to Neil Eckert, chairman of Conduitree, who is joining this call by Trevor Carvey, chief executive officer, Elaine Whelan, chief financial officer, and Greg Roberts, chief underwriting officer of Conduitree.

Thanks, Antonio. During the first quarter, the team have continued to do a great job. It's been a very, very busy quarter. The thing I really want to stress here is the support we continue to get from both our brokers and our clients, we punch above our weight. Gross premiums have more than doubled. More importantly, we've maintained the same sort of focused approach on selective underwriting. Elaine will then present key financials for the quarter, including the investment portfolio. This quarter has been affected by Ukraine and Trevor will cover that, hopefully highlighting the comprehensive and transparent approach that I think we have brought to investors. The market does remain attractive. We've faced a fascinating renewal season coming up, which the underwriters will talk about. And with this, I'll pass on to Trevor to update us.

Thanks, Neil. Yeah, just before moving on to the events of the Ukraine conflict, just want to point out as regards the... series of natural perils, cat events occurring during the quarter. We had a relatively low exposure to these loss events occurring predominantly in the international space, i.e. outside of the USA. Three of these industry events were Australian floods, Euro storms, and the Japanese earthquake. And all of these events currently look to be around or less than the $5 billion market loss apiece. So it's probably worth pointing out that Our current low risk profile to these events effectively makes us underweight and is largely driven by our view of general premium and rating levels in these regions. Greg can touch on that more in the underwriting section. Just so moving on to the Ukraine-Russia crisis, I think it's fair to say the team here at Condor has spent considerable time and effort over the last few weeks in evaluating the exposures. and the potential ultimate claims position for the somewhat limited number of treaties that we write and which are exposed to the event. We estimate our ultimate exposure in Ukraine and Russia to be between $15 million and $30 million, and that's net reinsurance and reinstatement premiums. And we put to net impact of 24.6, circa 25 million for the quarter. And that's across the classes, including those of aviation, war on land, sometimes referred to as political violence, and marine war. We just point out that this does reflect our ultimate estimate. of the loss to conduit and it should be remembered that given the typical structure of the reinsurance treaty contracts that we write here, which typically have event and or aggregate limitations in place, it's put us in the position of being able to arrive at the ultimate loss estimate for, as I've said, the relatively small number of contracts exposed to the crisis. In formulating the reserve estimates, they've been derived from a combination of metrics, predominantly one being updated exposure reports that you've had from clients on their insured values at risk in the region, market data, some ground-up loss assumptions, and then to a lesser degree, model loss projections. But we've been able to some significant updated information from our underlying clients, as I say, on the insured values at risk. I finally would remind the market that we're not a writer of trade credit or political risks, nor are we active in the cyber insurance space. And I think we'd be the first to admit that makes the task here more manageable in establishing the ultimate reserve position. I'm happy, obviously, to take further questions on this at the end of the presentation and pass it on to Greg for the underwriting update.