REG - Conduit Holdings Ltd - Year ended 31 December 2022 Preliminary Results
22/02/2023 07:00
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RNS Number : 6857Q Conduit Holdings Limited 22 February 2023
Pembroke, Bermuda - 22 February 2023
Conduit Holdings Limited
("CHL" LSE ticker: CRE)
Year ended 31 December 2022 Preliminary Results
Strong year-on-year growth: Gross premiums written increased by 68.3% and net
premiums earned increased by 148.4%
Efficient underwriting model, strong capital base, ideally positioned for
continued growth into exceptional market conditions
CHL, the parent company of Conduit Re, a pure-play reinsurance business based
in Bermuda, today presents its preliminary results for the year ended 31
December 2022.
Trevor Carvey, Chief Executive Officer, commented: "Our planned growth path
has continued over the last 12 months while all the time we have maintained
our same disciplined approach to risk selection. We have seen exceptional
growth, supported by our legacy-free balance sheet and a strong capital base.
In a year where the industry has experienced extreme natural and man-made
losses, the resilience of our results validates our business model.
Looking forward, we are perfectly positioned to take advantage of the current
exceptional market conditions. As the business grows, we will see the benefit
from increasing efficiencies of scale and the significant pipeline of revenue
we have in place which will continue to flow through to earnings. We are
excited by our business prospects for 2023."
Key financials ($m) 2022 2021
Estimated ultimate premiums written 659.9 458.5
Gross premiums written 637.5 378.8
Net premiums written 580.9 346.2
Net premiums earned 482.3 194.2
Underwriting profit (loss) 0.3 (7.0)
Investment loss (52.8) (3.1)
Comprehensive loss (89.7) (42.0)
Financial ratios (%) 2022 2021
Return on equity (9.1) (4.0)
Net loss ratio 71.7 73.2
Net acquisition expense ratio 28.2 30.4
Other operating expense ratio 7.1 15.8
Combined ratio 107.0 119.4
Total net investment return (5.0) (0.3)
Key highlights:
2022 Results
• Gross premiums written for the twelve months ended 31 December 2022 of
$637.5 million, up 68.3% from the prior year
• Net premiums earned increased by 148.4% to $482.3 million reflecting
strong renewals and significant new business, plus continued recognition of
quota share premiums from the prior year
• In our second year of operation, in a year with extreme natural
catastrophe and man-made losses for the industry, Conduit Re's balanced and
diversified portfolio recorded a small underwriting profit of $0.3 million
• Conduit Re's estimated ultimate losses, net of reinsurance recoveries
and reinstatement premiums, from Hurricane Ian and from the Ukraine crisis
remain in line with previous announcements
• Net acquisition expense ratio reduced by 2.2 percentage points versus
the prior year to 28.2% (from 30.4% in 2021)
• Other operating expense ratio of 7.1% on a continued downwards path
due to increasing economies of scale and maturity of earnings
• High quality investment portfolio with average credit quality of AA;
book yield 2.4%, market yield 5.2%
• Net investment loss of $52.8 million which includes net unrealised
losses of $67.8 million
• Short 2.2-year duration of portfolio; opportunity to reinvest at
higher interest rates
• Final dividend of $0.18 (approximately 15 pence) per common share (in
respect of H2 2022). This takes the full 2022 dividend to $0.36 (approximately
30 pence) per common share in line with our stated dividend policy
Capacity for growth into a hard market
• $1.1 billion of estimated ultimate premiums written from launch in
December 2020 up to 31 December 2022
• Significant pipeline of unearned premium of approximately $355 million
which will flow through in subsequent years
• Single office location enables dynamic decision making in response to
market opportunity
• Experienced team has rapidly developed a reputation for being a
responsive, reliable and relevant counterparty
• Legacy-free balance sheet with ample capacity to support the growth we
anticipate; AM Best A- (Excellent) rating affirmed, with "very strong" balance
sheet strength
Outlook
• 1 January 2023 renewal season exhibited significant hardening of
pricing and terms and conditions and Conduit Re's focused and disciplined
approach delivered exceptional 1 January renewals
- Estimated ultimate premiums written at 1 January 2023 of approximately
$421.4 million (2022: $262.6 million), an annual increase of 60.5%
- Overall portfolio year-on-year risk-adjusted rate change, net of
claims inflation, increased by 19% at 1 January 2023
- Reduced acquisition costs on new and renewed business
- Continued high renewal retention ratio
- Successful placement of planned retrocession coverage
• The significant movement in pricing and terms and conditions is
evidence of a structural shift in the marketplace caused by a fundamental
re-pricing of risk and an imbalance in the supply and demand of capital
• We see this as an enduring environment creating the opportunity for
improved margins in our business throughout 2023 and beyond
• Exceptional pricing environment and continued focus on optimising our
portfolio supports acceleration towards a mid-80's combined ratio in the
medium-term, to deliver a mid-teens ROE across the cycle
Neil Eckert, Executive Chairman, commented: "We have delivered outstanding
premium growth in 2022 and have continued that trajectory at the 1 January
2023 renewals.
More importantly, we have delivered our first underwriting profit in a year
notable for its elevated catastrophe activity. Our business has capital to
continue its planned growth and to take advantage of the opportunities that we
see."
Underwriting update
During 2022, Conduit Re continued to show growth across all segments,
benefiting from new business, high retention of renewal business and improving
rates. Client count and submission numbers have increased in line with Conduit
Re's growth strategy. Rate change continues to be positive, outpacing
inflation.
Premiums
Estimated ultimate premiums written
Year ended 31 December
2022 2021 Change Change
Segment $m $m $m %
Property 319.3 205.0 114.3 55.8%
Casualty 234.4 182.4 52.0 28.5%
Specialty 106.2 71.1 35.1 49.4%
Total 659.9 458.5 201.4 43.9%
Gross premiums written
Year ended 31 December
2022 2021 Change Change
Segment $m $m $m %
Property 299.6 183.4 116.2 63.4%
Casualty 236.7 129.0 107.7 83.5%
Specialty 101.2 66.4 34.8 52.4%
Total 637.5 378.8 258.7 68.3%
As Conduit Re concludes its second year of operations, and as its earnings
mature, the ratio of net premiums earned to net premiums written was 83.0% for
the year ended 31 December 2022 compared with 56.1% for the prior year.
Pricing
Pricing and terms and conditions continued to improve in the markets we
targeted. We were presented with an increasing number of opportunities to
deploy our capital into the areas and products which we know well, and where
both renewal and new prospects met our profitability requirements.
Conduit Re's overall risk-adjusted rate change, net of claims inflation, in
2022 was 4%, and by segment was:
Property Casualty Specialty
7% 1% 2%
Ceded reinsurance premiums
Ceded reinsurance premiums for the year ended 31 December 2022 were $56.6
million compared to $32.6 million for the year ended 31 December 2021. The
increase in cost relative to the prior period reflects additional limits
purchased as the inwards portfolio and exposures grew over the period.
Losses
Both 2021 and 2022 were characterised by higher than average natural
catastrophe losses for the industry, with 2022 also experiencing losses from
the crisis in Ukraine. The Group's net loss ratio was 71.7% compared with
73.2% for 2021. The accident year loss ratio for 2022, including the impact of
foreign exchange revaluations, was 72.9% compared to 73.2% for 2021.
Hurricane Ian made landfall in Florida as a strong Category 4 hurricane on 28
September 2022, resulting in estimated industry losses of approximately $55
billion. It continued its path north-east across Florida before making a
second landfall in South Carolina. Our ultimate loss estimate, net of
reinsurance recoveries and reinstatement premiums, for Hurricane Ian is $40.9
million, which is in line with previously reported estimates, and contributed
8.8% to the net loss ratio. Our net loss ratio for the year, absent the impact
of Hurricane Ian, was 62.9%.
As regards the ongoing conflict in Ukraine resulting from the Russian invasion
commencing on 24 February 2022, Conduit Re has potential exposure across its
property and specialty reinsurance books, via classes such as aviation, war on
land and marine war. There is significant uncertainty in estimating losses
emanating from the conflict, not least as it is an ongoing event. Based on
current information, Conduit Re's previously announced estimated ultimate
loss, net of reinsurance recoveries and reinstatement premiums, in relation to
the conflict is unchanged at $24.6 million, which represented 5.1% of the net
loss ratio. Our net loss ratio for 2022, absent the impact of the Ukraine
conflict, would have been 66.6%.
While there were a number of other smaller catastrophe events, such as
European storms Eunice and Dudley, hailstorms in France, floods in Australia
and South Africa, and winter storm Elliott in the United States, none of these
had a material impact on our 2022 results.
During 2021, we experienced net losses from the significant events of
Hurricane Ida and the European floods of $27.1 million, net of reinsurance
recoveries and reinstatement premiums. Absent these events our loss ratio
would have been 58.8%.
Our ultimate loss estimates, net of reinsurance and reinstatement premiums,
for the previously reported 2021 loss events remain relatively stable.
Our loss and reserve estimates have been derived from a combination of reports
from brokers and cedants, modelled loss projections, pricing loss ratio
expectations and reporting patterns, all supplemented with market data and
assumptions. We will continue to review these estimates as more information
becomes available.
Investments
In line with our stated strategy, we continue to maintain our 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.
The Federal Reserve raised rates seven times in 2022, and has indicated
further increases going forward. As a result, the portfolio return is negative
5.0% for the year ended 31 December 2022, mostly due to unrealised losses.
Conduit recorded a small loss on the investment portfolio in the year ended 31
December 2021 due to rising yields in the fourth quarter of the year. While we
expect market volatility to remain elevated in the near term, Conduit expects
to be able to reinvest at higher rates as the existing portfolio matures.
Net investment income, excluding realised and unrealised losses, was $17.8
million for 2022 compared to $5.5 million for 2021. Total investment return,
including net investment income, net realised gains and losses, and net change
in unrealised gains and losses, was a loss of $52.8 million for 2022 compared
to a gain of $3.1 million in 2021.
The breakdown of the managed investment portfolio is as follows:
As at 31 December 2022 As at 31 December 2021
Fixed maturity securities 91.3% 95.3%
Cash and cash equivalents 8.7% 4.7%
Total 100.0% 100.0%
Key investment portfolio statistics for our fixed maturities and managed cash
were:
As at 31 December 2022 As at 31 December 2021
Duration 2.2 years 2.4 years
Credit Quality AA AA-
Book yield 2.4% 0.9%
Market yield 5.2% 1.2%
Other operating expenses and equity-based incentives
Other operating expenses were $34.3 million for the year ended 31 December
2022 compared with $30.6 million for the prior year, while our equity-based
incentives expense was $2.1 million compared with $0.3 million.
Other operating expenses contributed 7.1% to Conduit's combined ratio in 2022
compared with 15.8% for the same period of 2021.
The prior year ratio was a reflection of our start-up nature with earnings yet
to mature but employment costs and technology platform development costs
incurred upfront.
Capital & dividends
Total capital and tangible capital available was $0.81 billion as at 31
December 2022 compared to $0.98 billion as at 31 December 2021.
Tangible net assets per share as at 31 December 2022 were $5.08 (31 December
2021: $5.93).
CHL continued on-market purchases of its shares under a share purchase
programme announced on 29 December 2021, where shares may be repurchased
pursuant to authority obtained at CHL's most recent annual general meeting.
Shares repurchased by CHL and CHL's employee benefit trust during 2022
amounted to $19.9 million and will be held in treasury and/or trust to meet
future obligations under CHL's variable incentive schemes.
On 22 February 2023 CHL's Board of Directors declared a final dividend of
US$0.18 (approximately 15 pence) per common share, resulting in an aggregate
payment of $28.8 million. The dividend will be paid in pounds sterling on 21
April 2023 to shareholders of record on 24 March 2023 (the "Record Date")
using the pound sterling / US dollar spot exchange rate at 12 noon BST on the
Record Date.
CHL previously declared and paid an interim dividend during 2022 of US$0.18
(approximately 15 pence) per common share. Consequently, the full 2022
dividend is $0.36 (approximately 30 pence) per common share in line with our
stated dividend policy.
Webcast
Conduit's management will host a virtual meeting for analysts and investors
via a webcast and conference call on Wednesday, 22 February 2023 at 12.00 noon
UK time / 8.00 am Bermuda time.
To access the webcast, please register in advance here:
https://www.lsegissuerservices.com/spark/ConduitHoldingsLtd/events/c11d3e02-007d-4e43-b1b9-eb4f44638b0e
(https://www.lsegissuerservices.com/spark/ConduitHoldingsLtd/events/c11d3e02-007d-4e43-b1b9-eb4f44638b0e)
To access the conference call, please register to receive unique dial-in
details here:
https://cossprereg.btci.com/prereg/key.process?key=PFFY677FE
(https://cossprereg.btci.com/prereg/key.process?key=PFFY677FE)
A recording of the conference call will be made available later in the day on
the Investors section of Conduit Re's website at www.conduitreinsurance.com
(http://www.conduitreinsurance.com) .
Media contacts
H/Advisors Maitland - Vikki Kosmalska / Alistair de Kare-Silver +44 (0) 207
379 5151
conduitre@h-advisors.global
Investor relations and other enquiries:
info@conduitreinsurance.com
Panmure Gordon (UK) Limited (Joint Corporate Broker)
+44 (0)207 886 2500
Berenberg (Joint Corporate Broker)
+44 (0) 203 207 7800
Peel Hunt (Joint Corporate Broker)
+44 (0) 207 418 8900
About Conduit Re
Conduit Re is a pure-play reinsurance business based in Bermuda. Conduit
Reinsurance Limited is licensed by the Bermuda Monetary Authority as a Class 4
insurer. A.M. Best has assigned a Financial Strength Rating of A- (Excellent)
and a Long-Term Issuer Credit Rating of a- (Excellent) to Conduit Reinsurance
Limited. The outlook assigned to these ratings is stable.
Conduit Holdings Limited is the ultimate parent of Conduit Reinsurance Limited
and is listed on the London Stock Exchange (ticker: CRE). References to
"Conduit" include Conduit Holdings Limited and all of its subsidiary
companies.
Learn more about Conduit Re:
Website: https://conduitreinsurance.com/ (https://conduitreinsurance.com/)
LinkedIn: https://www.linkedin.com/company/conduit-re
(https://www.linkedin.com/company/conduit-re)
Market abuse regulation
This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 as it forms part of UK domestic law by virtue of
the European Union (Withdrawal) Act 2018.
Important information (disclaimers)
This announcement includes statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements may be
identified by the use of forward-looking terminology, including the terms
"believes", "estimates", "plans", "goals", "objective", "rewards",
"expectations", "projects", "anticipates", "expects", "achieve", "intends",
"tends", "on track", "well placed", "estimated", "projected", "may", "will",
"aims", "could" or "should" or, in each case, their negative or other
variations or comparable terminology, or by discussions of strategy, plans,
objectives, goals, targets, future events or intentions. Forward-looking
statements include statements relating to the following: (i) future capital
expenditures, expenses, revenues, unearned premiums pricing rate changes,
terms and conditions, earnings, synergies, economic performance, indebtedness,
financial condition, dividend policy, claims development, losses and loss
estimates and future business prospects; and (ii) business and management
strategies and the expansion and growth of Conduit's operations.
Forward-looking statements may and often do differ materially from actual
results. Forward-looking statements reflect Conduit's current view with
respect to future events and are subject to risks relating to future events
and other risks, uncertainties and assumptions relating to Conduit's business,
results of operations, financial position, liquidity, prospects, growth and
strategies. These risks, uncertainties and assumptions include, but are not
limited to: the possibility of greater frequency or severity of claims and
loss activity than Conduit's underwriting, reserving or investment practices
have anticipated; the reliability of catastrophe pricing, accumulation and
estimated loss models; the actual development of losses and expenses impacting
estimates for claims which arose as a result of recent loss activity such as
the Ukraine crisis, Hurricanes Ian and Ida, the European storms and floods in
2021 and 2022 and the earthquake in Turkey; the impact of complex causation
and coverage issues associated with attribution of losses to wind or flood
damage; unusual loss frequency or losses that are not modelled; the
effectiveness of Conduit's risk management and loss limitation methods,
including to manage volatility; the recovery of losses and reinstatement
premiums from our own reinsurance providers; the development of Conduit's
technology platforms; a decline in Conduit's ratings with A.M. Best or other
rating agencies; the impact that Conduit's future operating results, capital
position and ratings may have on the execution of Conduit's business plan,
capital management initiatives or dividends; Conduit's ability to implement
successfully its business plan and strategy during 'soft' as well as 'hard'
markets; the premium rates which are available at the time of renewals within
Conduit's targeted business lines; increased competition on the basis of
pricing, capacity or coverage terms and the related demand and supply dynamics
as contracts come up for renewal; the successful recruitment, retention and
motivation of Conduit's key management and the potential loss of key
personnel; the credit environment for issuers of fixed maturity investments in
Conduit's portfolio; the impact of swings in market interest rates, currency
exchange rates and securities prices; changes by central banks regarding the
level of interest rates and the timing and extent of any such changes; the
impact of inflation or deflation in relevant economies in which Conduit
operates; Conduit becoming subject to income taxes in the United States or in
the United Kingdom; and changes in insurance or tax laws or regulations in
jurisdictions where Conduit conducts business. Forward-looking statements
contained in this trading update may be impacted by the escalation or
expansion of the Ukraine conflict on Conduit's clients, the volatility in
global financial markets and governmental, regulatory and judicial actions,
including coverage issues.
Forward-looking statements speak only as of the date they are made. No
representation or warranty is made that any forward-looking statement will
come to pass. These forward-looking statements speak only as at the date of
this announcement. Conduit disclaims any obligation or undertaking to update
or revise any forward-looking statements contained herein to reflect actual
results or any change in the assumptions, conditions or circumstances on which
any such statements are based unless required to do so by law or regulation.
"Estimated ultimate premiums written" is the estimated total gross premiums
written that is expected to be earned assuming all bound contracts run to the
end of the period of cover, after management discount for prudence.
The Conduit renewal year on year indicative pricing change measure is an
internal methodology that management intends to use to track trends in premium
rates of a portfolio of reinsurance contracts. The change measure reflects
management's assessment of relative changes in price, exposure and terms and
conditions. It is also net of the estimated impact of claims inflation. The
calculation involves a degree of judgement in relation to comparability of
contracts and the assessment noted above, particularly in Conduit's initial
years of underwriting. To enhance the methodology, management may revise the
methodology and assumptions underlying the change measure, so the trends in
premium rates reflected in the change measure may not be comparable over time.
Consideration is only given to renewals of a comparable nature so it does not
reflect every contract in the portfolio of Conduit contracts. The future
profitability of the portfolio of contracts within the change measure is
dependent upon many factors besides the trends in premium rates.
Additional Performance Measures (APMs)
Conduit presents certain APMs to evaluate, monitor and manage the business and
to aid readers' understanding of Conduit's financials and methodologies used.
These are common measures used across the (re)insurance industry and allow the
reader of Conduit's financial reports to compare those with other companies in
the (re)insurance industry. The APMs should be viewed as complementary to,
rather than a substitute for, the figures prepared in accordance with IFRS.
Conduit's Audit Committee has evaluated the use of these APMs and reviewed
their overall presentation to ensure that they were not given undue
prominence. This information has not been audited.
Management believes the APMs included in the consolidated financial statements
are important for understanding Conduit's overall results of operations and
may be helpful to investors and other interested parties who may benefit from
having a consistent basis for comparison with other companies within the
(re)insurance industry. However, these measures may not be comparable to
similarly labelled measures used by companies inside or outside the
(re)insurance industry. In addition, the information contained herein should
not be viewed as superior to, or a substitute for, the measures determined in
accordance with the accounting principles used by Conduit for its consolidated
financial statements or in accordance with IFRS.
Below are explanations, and associated calculations, of the APMs presented by
Conduit:
APM Explanation Calculation
Net loss ratio Ratio of net losses and loss adjustment expenses expressed as a percentage of Net losses and loss adjustment expenses / Net premiums earned
net premiums earned in a period.
Net acquisition expense ratio Ratio of net acquisition expenses charged by insurance brokers and other Net acquisition expenses / Net premiums earned
insurance intermediaries to Conduit expressed as a percentage of net premiums
earned in a period.
Other operating expense ratio Ratio of other operating expenses expressed as a percentage of net premiums Other operating expenses / Net premiums earned
earned in a period.
Combined ratio The sum of the net loss ratio, net acquisition expense ratio and other Net loss ratio + Net acquisition expense ratio + Other operating expense ratio
operating expense ratio. A combined ratio below 100% generally indicates
profitable underwriting, whereas a combined ratio over 100% generally
indicates unprofitable underwriting, each prior to the consideration of total
net investment return.
Accident year loss ratio Ratio of the net accident year ultimate liability revalued at the current Accident year net losses and loss adjustment expenses / Net premiums earned
balance sheet date expressed as a percentage of net premiums earned in a
period.
Underwriting year loss ratio Ratio of net losses and loss adjustment expenses of an underwriting year (or Underwriting year net losses and loss adjustment expenses / Net premiums
calendar year) expressed as a percentage of net premiums earned in a period. earned
Total net investment return Conduit's principal investment objective is to preserve capital and provide Net investment income + Net unrealised gains (losses) on investments + Net
adequate liquidity to support the payment of losses and other liabilities. In realised gains (losses) on investments / Non-operating cash and cash
light of this, Conduit looks to generate an appropriate total net investment equivalents + Fixed maturity securities, at beginning of period
return. Conduit bases its total net investment return on the sum of
non-operating cash and cash equivalents and fixed maturity securities. Total
net investment return is calculated daily and expressed as a percentage.
Return on equity ROE enables Conduit to compare itself against other peer companies in the Profit (loss) after tax for the period / Total shareholders' equity, at
immediate industry, it is also a key measure internally, and is integral in beginning of period
the performance-related pay determinations. ROE is calculated as the profit
for the period divided by the opening total shareholders' equity.
Total shareholder return TSR allows Conduit to compare itself against other public peer companies. TSR Closing common share price - Opening common share price + Common share
is calculated as the percentage change in common share price over a period, dividends during the period / Opening common share price
after adjustment for common share dividends.
Dividend yield Calculated by dividing the annual dividends per common share by the common Annual dividends per common share / Closing common share price
share price on the last day of the given year and expressed as a percentage.
Underwriting profit / loss Profit or loss directly related to the underwriting activities of Conduit. Net premiums earned - net losses and loss adjustment expenses - net
acquisition costs
Consolidated statement of comprehensive loss (unaudited)
For the year ended 31 December 2022
2022 2021
$m $m
Gross premiums written 637.5 378.8
Ceded reinsurance premiums (56.6) (32.6)
Net premiums written 580.9 346.2
Change in unearned premiums (99.6) (152.8)
Change in unearned premiums on premiums ceded 1.0 0.8
Net premiums earned 482.3 194.2
Net investment income 17.8 5.5
Net realised losses on investments (2.8) (1.0)
Net unrealised losses on investments (67.8) (7.6)
Net foreign exchange losses - (0.5)
Total net revenue 429.5 190.6
Insurance losses and loss adjustment expenses 386.1 191.0
Insurance losses and loss adjustment expenses recoverable (40.2) (48.9)
Net insurance losses 345.9 142.1
Net insurance acquisition expenses 136.1 59.1
Equity-based incentives expense 2.1 0.3
Other operating expenses 34.3 30.6
Total expenses 518.4 232.1
Results of operating activities (88.9) (41.5)
Financing costs (0.8) (0.5)
Total comprehensive loss for the year (89.7) (42.0)
Loss per share
Basic and diluted $(0.55) $(0.25)
Consolidated balance sheet (unaudited)
As at 31 December 2022
2022 2021
$m $m
Assets
Cash and cash equivalents 112.9 67.5
Accrued interest receivable 5.5 3.7
Investments 1,021.7 1,008.4
Inwards premiums receivable 260.5 155.0
Reinsurance assets
- Unearned premiums on premiums ceded 1.8 0.8
- Reinsurance recoverable 76.6 48.9
- Other reinsurance receivables 12.8 0.3
Other assets 3.6 1.6
Right-of-use assets 2.2 2.9
Deferred acquisition expenses 69.4 44.6
Intangible assets 1.4 1.1
Total assets 1,568.4 1,334.8
Liabilities
Reinsurance contracts
- Losses and loss adjustment expenses 459.3 171.6
- Unearned premiums 252.4 152.8
- Other reinsurance payables 15.0 -
Amounts payable to reinsurers 16.2 7.3
Other payables 8.7 19.0
Lease liabilities 2.4 2.9
Total liabilities 754.0 353.6
Shareholders' equity
Share capital 1.7 1.7
Own shares (20.1) (0.2)
Other reserves 1,058.1 1,056.0
Retained loss (225.3) (76.3)
Total shareholders' equity 814.4 981.2
Total liabilities and shareholders' equity 1,568.4 1,334.8
Statement of consolidated cash flows (unaudited)
For the year ended 31 December 2022
2022 2021
$m $m
Cash flows from operating activities
Comprehensive loss (89.7) (42.0)
Depreciation 0.9 0.1
Interest expense on lease liabilities 0.1 0.1
Net investment income (18.7) (6.2)
Net realised losses on investments 2.8 1.0
Net unrealised losses on investments 67.8 7.6
Net foreign exchange losses 0.3 0.3
Equity-based incentives 2.1 0.3
Change in operational assets and liabilities
- Reinsurance assets and liabilities 239.6 82.0
- Other assets and liabilities (2.0) 5.5
Net cash flows from operating activities 203.2 48.7
Cash flows used in investing activities
Purchase of investments (304.9) (1,570.4)
Proceeds on sale and maturity of investments 206.2 558.9
Interest received 21.1 7.5
Purchase of intangible assets (0.3) (0.9)
Purchase of property, plant and equipment - (0.5)
Net cash flows used in investing activities (77.9) (1,005.4)
Cash flows used in financing activities
Lease liabilities paid (0.6) (0.1)
Dividends paid (59.3) (29.7)
Purchase of own shares (19.9) (0.2)
Net cash flows used in financing activities (79.8) (30.0)
Net increase (decrease) in cash and cash equivalents 45.5 (986.7)
Cash and cash equivalents at the beginning of the year 67.5 1,054.0
Effect of exchange rate fluctuations on cash and cash equivalents (0.1) 0.2
Cash and cash equivalents at end of year 112.9 67.5
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AnnouncementREG - Conduit Holdings Ltd - Director/PDMR Shareholding
AnnouncementREG - Conduit Holdings Ltd - Director/PDMR Shareholding
AnnouncementREG - Conduit Holdings Ltd - Purchase of Shares by Employee Benefit Trust
AnnouncementREG - Conduit Holdings Ltd - Holding(s) in Company
Announcement