2024 Preliminary Results

Pembroke, Bermuda - 19 February 2025

Conduit Holdings Limited ("CHL"; LSE ticker: CRE)

Preliminary results for the year ended 31 December 2024

Strong premium growth across all segments

Resilient performance despite significant industry loss year

Robust outlook with strong balance sheet to capitalise on opportunities

CHL, the ultimate parent company of Conduit Re, a multi-line Bermuda-based reinsurance business, today presents its preliminary results for the year ended 31 December 2024.

Trevor Carvey, Chief Executive Officer, commented: "From a standing start four years ago, we have delivered a business which produced $1.16 billion of gross premiums written in 2024, an increase of 24.8% on 2023. In a high catastrophe year, the business produced a 12.7% ROE, after having delivered a 22.0% ROE in 2023.

While the business is still exhibiting substantial growth, we now have a demonstrated platform, generating profitable returns even in high industry loss years. Our results also illustrate the continued and growing cost efficiency of our business model and an increasing contribution to profitability from investment returns as our asset base grows. The Company is well capitalised and we expect to continue to build on these achievements as the business grows and matures. We had a solid January 2025 renewal period with extensive support from our existing clients across our multi-line profile. Selective additions of attractive business led to double digit growth over the 2024 renewal season on an ultimate basis.

The California wildfires are a tragic event for the families and communities impacted, as well as a significant loss for the industry, from which Conduit is not immune. From an industry perspective, we expect that the wildfires will impact rates in areas of the property portfolio which will flow through to an improved underwriting environment and provide continued opportunities for the Company. While it is only February and we have experienced a very significant event early in the year, our current forecast leads us to believe we can still deliver an ROE in the low to mid teens for the year, assuming reasonable loss activity and investment performance."

Key highlights:

Results for the year ended 31 December 2024

• 24.8% increase in gross premiums written to $1.16 billion (2023: $0.93 billion)
• Deliberate and targeted growth achieved across all three segments as the business continued to see attractive underwriting opportunities in its target classes
• In an already attractive market, the business saw continued rate increases: overall risk-adjusted rate change of +1% (net of claims inflation)
• 2024 discounted combined ratio of 86.0% (2023: 72.1%) in a high catastrophe year - includes the impact of Hurricanes Helene and Milton as well as a series of elevated risk losses
• Enhanced operating leverage: total reinsurance and other operating expense ratio reduced to 12.7%
  (2023: 13.9%)
• Continuing to see the benefits of asset accumulation on the balance sheet: net investment income of $65.0 million (+57.4% on 2023)
• Comprehensive income of $125.6 million, resulting in a 12.7% retuon equity in a high catastrophe year
• Final dividend of $0.18 (approximately 14 pence) per common share, taking the full 2024 dividend to $0.36 (approximately 28 pence) per common share, in line with our stated dividend policy
• Tangible net assets per share of $6.70 (£5.35) as at 31 December 2024 increased 12.9% including dividends paid during the year (31 December 2023 - $6.25 or £4.91)

Outlook

• Continued strong growth at January renewals
• • Growth experienced in each business segment
  • Client partnerships creating strong levels of renewing business
  • Multi-lineprofile allows selective participation in new opportunities aligning business with target risk appetite
  • Risk-adjustedrate change, net of claims inflation, was down modestly at -3% but pricing and, importantly, underwriting terms and conditions remain at very attractive levels
• Retrocession programme renewed in January 2025 at improved terms
• 2024 experienced over $140 billion of insured natural catastrophe losses and the January 2025 California wildfires are likely one of the costliest insured catastrophes in history. We expect the recent events to support favourable underwriting conditions during upcoming renewal periods and we expect to see opportunities to grow our book and deploy capacity at favourable rates
• Balance sheet remains very strong with capacity for further growth

California Wildfires

The January 2025 California wildfires have caused widespread damage across the Los Angeles area. While there is still considerable uncertainty due to the complicated nature of the losses and recency of the event, our preliminary undiscounted ultimate loss estimate across all divisions is between $100 and $140 million, net of reinsurance recoveries and reinstatement premiums.

Our current preliminary estimate is based on an analysis of in-force contracts with exposure within the Los Angeles area, evaluating all the initial information we have received from brokers, cedants and other industry sources, along with a review of the latest modelled losses for our portfolio at various retuperiods. As additional information emerges our ultimate loss may vary from this preliminary estimate. The financial impact on Conduit of this event will be reflected in the interim results for the six months ended 30 June 2025.

Neil Eckert, Executive Chairman, commented: "On our IPO four years ago we set out with a target of delivering mid-teens ROEs and gross premiums written of $0.9 billion in year four. Our premium in 2024 was $1.16 billion which is 30% above our IPO target, in addition we achieved a 12.7% ROE in a high industry loss year following on from a 22.0% ROE in 2023. We can be proud of what this business has achieved and, with a strong capital base and a robust, efficient platform that is still in its growth phase, I am very excited for the future."

During 2024, all our three segments delivered growth in gross premiums written and Conduit Re experienced an increasing number of opportunities to deploy its capital into the segments and products that it targets. The non-catastrophe elements of both Property and Specialty in particular provided good opportunities for selective growth throughout the year.

Pricing

Pricing levels and terms and conditions continued to be very attractive in 2024 with a moderate increase (+1%) in overall risk-adjusted rate change, net of claims inflation, against a backdrop of historically high rates.

2024 risk-adjusted rate change by segment, net of claims inflation:

Reinsurance revenue for the year ended 31 December 2024 was $813.7 million compared to $633.0 million for 2023. The increase in reinsurance revenue relative to the prior year was due to continued growth in the business plus the earn-out of premiums from prior underwriting years.

Ceded reinsurance expenses for the year ended 31 December 2024 were $93.7 million compared to $76.7 million for 2023. The increase in cost relative to the prior year reflected additional limits purchased due to the growth of the inwards portfolio exposures plus price increases on renewals.

Net reinsurance service expenses

For the year ended 31 December 2024:

Net reinsurance losses and loss related amounts

2024 was another above average year of loss activity for the industry. Hurricanes Helene and Milton made landfall in the United States, and there was also elevated activity across smaller and mid-size natural catastrophe and large risk events such as the Baltimore Bridge.

We recorded an undiscounted net loss, after reinsurance and reinstatement premiums, of $68.0 million related to Hurricanes Helene and Milton. These two events contributed 9.4% to our undiscounted loss ratio for 2024.

Our loss and reserve estimates have been derived from a combination of reports and statements from brokers and cedants, modelled loss projections, pricing loss ratio expectations and reporting patterns, all supplemented with market data and assumptions. We continue to review these estimates as more information becomes available.

Our discounted net loss ratio for the year ended 31 December 2024 was 73.3% compared with 58.2% for the 2023 year, while our undiscounted net loss ratio was 84.4% and 68.0% respectively. The increase for the year ended 31 December 2024 was primarily related to an increase in net losses related to natural catastrophes and large risk events. Although 2023 was an active year for natural catastrophes, no major loss event, individually or in aggregate, had an outsized or material impact on Conduit.

Our undiscounted ultimate loss estimates, net of ceded reinsurance and reinstatement premiums, for previously reported loss events remained stable. The inherent uncertainty in estimating the net liability for incurred claims gives rise to favourable or adverse development. During the year ended 31 December 2024 the favourable development in the discounted net liability for incurred claims for prior accident years was $4.3 million (31 December 2023: $3.9 million).

Reinsurance operating expenses and other operating expenses

For the year ended 31 December 2024:

Reinsurance operating expenses includes brokerage and operating expenses deemed attributable to reinsurance contracts.

Total reinsurance and other operating expenses were $91.3 million for the year ended 31 December 2024 compared with $77.3 million for the prior year. The increase is due to the continued growth of the business and increased headcount. The decrease in the reinsurance operating expense ratio and other operating expense ratio was due to the growth in net reinsurance revenue during the year.

Net reinsurance finance income (expense)

For the year ended 31 December 2024:

The net reinsurance finance expense was $30.8 million for the year ended 31 December 2024 compared with $32.8 million for the prior year. The unwind of discount made up most of the expense in both years, although there was some income related to the increase in discount rates in the latter part of 2024 as we re-measured at those higher rates. The opposite was true for 2023 where discount rates decreased late in the year resulting in an additional expense.

Investments

In line with our stated strategy, we continue to maintain a 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. There are currently no risk assets held in the portfolio. Risk assets will generally only be considered to diversify and protect the portfolio, and where the risk-retuprofiles are appropriate.

The investment retufor the year ended 31 December 2024 was 4.0% driven by net investment income given a generally higher yielding portfolio. For 2023 the portfolio returned 5.8% driven by net investment income and net unrealised gains on investments due to a significant reduction in treasury yields and narrowing of credit spreads during the latter part of 2023.

Net investment income, excluding realised and unrealised gains and losses, was $65.0 million for the year ended 31 December 2024 (31 December 2023 - $41.3 million), or an increase of 57.4%, driven by a higher yielding portfolio and growth in cash and investment balances year on year. Total investment return, including net investment income, net realised gains and losses, and net change in unrealised gains and losses, was a gain of $66.1 million (31 December 2023 - $70.6 million).

The breakdown of the managed investment portfolio is as follows:

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

Capital & dividends

Total capital and tangible capital available was $1.05 billion as at 31 December 2024 (31 December 2023 - $0.99 billion).

Tangible net assets per share as at 31 December 2024 was $6.70, or £5.35 (31 December 2023 - $6.25 or £4.91). Including dividends, tangible net assets per share increased 12.9% during 2024.

Shares purchased by CHL's employee benefit trust during 2024 amounted to $9.4 million (2023 - $13.7 million) and will be held in trust to meet future obligations under CHL's variable incentive schemes.

On 18 February 2025 CHL's Board of Directors declared a final dividend of $0.18 (approximately 14 pence using the exchange rate on 18 February 2025) per common share, resulting in an aggregate payment of $29.7 million. The dividend will be paid in pounds sterling on 17 April 2025 to shareholders of record on 21 March 2025 (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 2024 of $0.18 (approximately 14 pence) per common share. Consequently, the full 2024 dividend was $0.36 (approximately 28 pence) per common share in line with our stated dividend policy.

Financial Information

The unaudited consolidated financial statements for the year ended 31 December 2024 are published on Conduit's website at www.conduitreinsurance.com.

Conduit's 2024 Annual Report and Accounts are expected to be made available on Conduit's website by Friday 28 February 2025.

Presentation for Analysts and Investors at 12:00 noon UK time

Conduit Re's management will host a virtual meeting for analysts and investors via a webcast and conference call on Wednesday 19 February 2025 at 12:00 noon UK time.

To access the webcast, please register in advance here: https://sparklive.lseg.com/ConduitHoldingsLtd/events/3ce9fab6-452c-4161-9065-c6bdf5d57c39/conduit-holdings-ltd-full-year-results-2024

To access the conference call, please register to receive unique dial-in details here: https://registrations.events/direct/LON895647444

A recording of the presentation will be made available later in the day on the Investors section of Conduit's website at www.conduitreinsurance.com.

Results and Investor Presentation via Investor Meet Company at 3:00 pm UK time

Conduit's management will provide a separate presentation aimed at retail investors, relating to the full year 2024 financial results via the Investor Meet Company platform for retail investors on Thursday 20 February 2025 at 3:00pm UK time.

The presentation is open to all existing and potential shareholders. No new material information, including trading or financial information, will be disclosed during the presentation.

There will be an opportunity for Questions & Answers at the end of the meeting. Questions can be submitted pre-event via the Investor Meet Company dashboard up until 9:00 am UK time the day before the meeting or at any time during the live presentation.

Investors can register to join the presentation via the below link: https://www.investormeetcompany.com/conduit-holdings-limited/register-investor

Media contacts

H/Advisors Maitland - Vikki Kosmalska / Genevieve Ryan

+44 (0) 207 379 5151 [email protected]

Investor relations and other enquiries: [email protected]

Panmure Liberum (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

This announcement contains information, which may be of a price sensitive nature, that Conduit is making public in a manner consistent with the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended, and other regulatory obligations. The information was submitted for publication, through the agency of the contact persons set out above, at 7:00 am UK time on 19 February 2025.

About Conduit Re

Conduit Re is a Bermuda-based multi-line reinsurance business with global reach. 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 positive.

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.

Leamore about Conduit Re: Website: https://conduitreinsurance.com/

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

Important information (disclaimers)

This announcement contains inside information for the purpose of the Market Abuse Regulation (EU) No 596/2014 (which forms part of UK domestic law pursuant to the European Union (Withdrawal) Act 2018, as amended).

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", "signals", "projects", "anticipates", "expects", "achieve", "intends", "tends", "on track", "well placed", "continued", "estimated", "projected", "preliminary", "upcoming", "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 or loss estimates. Forward-looking statements include statements relating to the following: (i) future capital requirements, 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 hurricanes, storms, floods and wildfires; the impact of complex causation and coverage issues associated with attribution of losses to wildfires, wind or flood damage; the impact of increased costs and inflation to settle claims in high density areas and emerging information as losses develop; 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 and at policy inception; the patteand development of premiums as they are earned; 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 the ongoing conflicts in Ukraine and the Middle East, 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 Bermuda, 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 emerging information regarding losses from the California wildfires, the escalation or expansion of the Ukraine conflict or Middle East conflict, 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. 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. All subsequent written and oral forward-looking statements attributable to Conduit and/or the group or to persons acting on its behalf are expressly qualified in their entirety by the cautionary statements referred to above.

The Conduit renewal year on year indicative risk-adjusted rate change measure is an internal methodology that management uses to track trends in premium rates of a portfolio of reinsurance contracts. The change measure is specific for our portfolio and 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. It is not intended to be commentary on wider market conditions. 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 financial statements 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:

The GBP equivalent of NTAVS is calculated using the end of period exchange rate between USD and GBP.