Conduit Re’s Chief Executive Officer Trevor Carvey has a decided to step down and retire with effect on April 11, according to the reinsurer’s parent company CHL.
At the same time, the company announced a trading update with a stated plan to buy more retrocessional cover to smooth earnings volatility.
Carvey’s retirement is a result of a change in personal circumstances that require his return to the UK, the Bermuda-based company said. Neil Eckert, executive chairman, will assume the responsibilities of interim chief executive officer with immediate effect.
CHL has begun a search to find a new CEO.
In a trading update included in the same announcement, Conduit reiterated its previously stated preliminary loss estimate from the California wildfires of between US$100 million and $140 million, net of reinsurance recoveries and reinstatement premiums.
In response to this hit, the company announced it intends buy additional reinsurance to protect it from further earnings volatility through this current financial year – specifically with regards to secondary perils (which include wildfires, floods and severe convective storms).
“The cost of the additional reinsurance cover, plus other adjustments we intend to make to the portfolio, will reduce our previous guidance of potential forecast RoE for the year to between high single digits and low double digits,” Conduit said. “We believe securing the additional protection in a year with such a significant loss event so early in the year is a prudent measure. We maintain our cross-cycle mid-teens RoE guidance target.”
Related: Secondary Perils Responsible for Growing Share of Disaster Claims: RMS
Eckert went on to thank Carvey 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. Since its formation in 2020, Conduit Re has become a quality business with a sizeable and growing income stream,” Eckert commented.
“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,” he continued.
“It has been an honour to lead Conduit Re over the last four years and I am confident that the company is well-positioned for future success,” Carvey said.
“CHL’s remuneration committee has exercised its discretion, following standard process, to treat Trevor as a good leaver pursuant to the terms of its management incentive plan and deferred share bonus plan,” the company continued.
Topics Mergers & Acquisitions
Was this article valuable?
Here are more articles you may enjoy.
Allstate Agent Can Be Sued Over Nonrenewal of ‘Grandfathered’ Flood Insurance Policy 
Questions About How a Deputy’s Stepson Became the Accused Gunman at FSU Shooting 
Group Sues California Department of Insurance Over FAIR Plan Surcharges 
NJ Wildfire Update: 50% Contained; High Spread Risk Today; Suspect in Custody 
