Conduit reports strong premium growth, appoints permanent CEO

(Sharecast News) - Shares in Conduit surged on Wednesday after the company delivered a solid first-quarter update, approved a $50m share buyback and announced the appointment of founder and chairman Neil Eckert as its permanent chief executive. Conduit Holdings Limited, the parent company of Conduit Re, said that Eckert, who has been serving as interim boss since the retirement of Trevor Carvey in March, has been appointed as CEO with immediate effect.

Rebecca Shelley, a senior independent director who has now stepped into the non-executive chair role on an interim basis, said Eckert's "wealth of experience, strong leadership and intimate knowledge of the business and team make him the right leader to guide Conduit through its next phase of growth and maturity".

The appointment came as Conduit reported a 15% increase in gross written premiums in the first quarter to $410.2m, with growth registered across all three business segments of property, casualty and specialty.

Importantly for investors, the company said it has made no changes to its estimates for undiscounted ultimate net losses relating to the California wildfires, budgeting between $100m and $140m net of reinsurance and reinstatement premiums.

"Looking ahead, we continue to have confidence in our ability to deliver a target return on equity in the mid-teens across the insurance cycle," Eckert said.

"The board's decision to approve a share buyback programme further demonstrates its confidence in the value of Conduit's franchise and our commitment to deliver shareholder value."

Shares were up 8.3% at 377.5p by 0855 BST.