Conduit CEO steps down as it reiterated Cali wildfires loss estimate

(Sharecast News) - Conduit Holdings announced the retirement of chief executive officer Trevor Carvey on Monday, effective 11 April, citing personal circumstances requiring his return to the UK. The London-listed firm, which is the ultimate parent company of Conduit Re, said executive chairman Neil Eckert had assumed the role of interim CEO, while the board initiated a search for a permanent successor.

Carvey, who had led the Bermuda-based reinsurer since its inception, would step down from both the CEO role and the board.

The company's remuneration committee had reportedly designated him a 'good leaver' under its incentive plans, with final terms to be disclosed in the 2025 annual report in accordance with the company's remuneration policy.

Alongside the leadership announcement, Conduit reiterated its preliminary loss estimate of between $100m and $140m related to the California wildfires, net of reinsurance and reinstatement premiums.

The company said it was planning to purchase additional reinsurance to mitigate earnings volatility for the remainder of the year, particularly in relation to secondary perils.

As a result of those actions, Conduit said it now expected its return on equity for 2025 to fall within a revised range of high single digits to low double digits, down from earlier expectations.

Despite the adjustment, it reaffirmed its cross-cycle target of a mid-teens return on equity.

Further updates, including progress on the leadership transition, were expected in Conduit's first-quarter trading update scheduled for 14 May.

"The board of directors is grateful to Trevor for his dedication and contribution - he led the business through its start-up phase and significant premium growth, and we wish him well in the future," said executive chairman Neil Eckert.

"Since its formation in 2020, Conduit Re has become a quality business with a sizable and growing income stream.

"The balance sheet is strong, with ample capacity for further growth; we look forward to driving Conduit forward into the next phase of its development."

At 1142 BST, shares in Conduit Holdings were down 6.51% at 330.48p.

Reporting by Josh White for Sharecast.com.