Good day everyone. Welcome to Conduit's Trading Update Call for Q3 2025. We appreciate your time today. Joining me on the call are Neil Eckert, Chief Executive Officer, and Elaine Whelan, Chief Financial Officer. Please note our disclaimer language on slide two. I will now turn the call over to our CEO, Neil Eckert.
Thanks Brett. Welcome to our presentation. I'm joined today by Elaine Whelan, our CFO. As usual with our trading updates, today's presentation will focus on our top line underwriting experience across each of our segments through the first nine months of the year. I will also provide our views on recent market conditions and some thoughts on the up and coming renewal season. Elaine will provide some additional detail on our financial investment highlights through the third quarter before closing remarks and time for questions. For the first nine months of 2025. We delivered growth in gross premiums written.
Across all three of our segments. Our casualty segment has experienced the strongest. Growth during 2025 while property and specialty. Have increased at a more modest single digit rate. The relative growth rates across our segments reflect the opportunities we have seen throughout the year. Certain classes have presented more compelling opportunities t o deploy our capital, and we have c onsciously grown in those areas while we have also deliberately pulled back in other classes. Market conditions have become more competitive during 2025 following several years of price increases and strong returns for the industry. Overall, our risk adjusted rate change net of claims inflation was down 3% for t he nine months ended 30th September.
In casualty, original rate change in certain classes is meeting or exceeding expected claims inflation, while conditions in property and specialty segments have been more competitive with some s oftening occurring after several years of increases. Despite the softening experienced during the year, we believe pricing remains adequate. Our investment portfolio continued to perform well through Q3 with a net investment return of 5.4% for the first nine months. As our business matures, the investment portfolio has increased to $2 billion, providing increased leverage and income to support returns. Managed investments and cash increased approximately $350 million over the last 12 months.
While the first half of 2025 was marked by elevated loss activity with over $100 billion of insured catastrophe losses, the third quarter was a relatively benign period. Additionally, our loss estimates for previously reported e vents have remained steady. Whilst we recognize t he loss environment was more benign during the third quarter. We are reaffirming our mid-single digit ROE guidance for 2025, recognizing that there is still potential for late season hurricane activity and other loss e vents before year end.
We were reminded last week with Hurricane Melissa hitting several islands in the Caribbean with very intense winds and rain before coming to Bermuda. Our thoughts are with those who continue to experience the devastating impact of the storm as they begin to rec. While the full extent of the catastrophe will take time to assess and there remains uncertainty in industry loss estimates immediately following an event, our market share in the Caribbean is small and we do n ot expect this to be a material event.
In line with our capital management strategy w e have followed a cautious approach to o ur share buyback program through the peak Atlantic hurricane season. Now that we are through the most active part of the season, we will resume executing on our buyback program where we have Board approval for up to $50 million until May 2026.
2025 continues to be a transitional year across multiple dimensions for Conduit, marked by deliberate steps to strengthen our leadership and position the company for improved underwriting resilience. Among these strategic initiatives, we are pleased to have announced the appointment of Stephen Postlewhite as our new Chief Underwriting Officer. Stephen brings nearly three decades of experience in the global specialty insurance and reinsurance m arket and has a proven track record.
Of driving results across senior roles at several leading insurance and reinsurance organisations. His skills and experience are well aligned with Conduit strategy and commitment to strengthen our underwriting capabilities. This appointment follows a rigorous search to identify a leader capable of advancing our underwriting strategy in this next phase of the company. The appointment complements the recent addition of William Randolph as Chief Risk Officer and the promotion of Angus Hampton to head a casualty amongst other employments and promotions across the company.
We are also pleased to welcome Nicholas Schott as an Independent Non-executive Director on the Conduit Board. Nicholas joins us with an exceptional track record in financial services honed over decades as a trusted leader in the investment b anking and in advisory roles for FTSE 100 institutions.
Collectively these appointments underscore our commitment to bring the resources and talent to the organization in order to execute on our strategy. Now turning to our top line underwriting performance. In the first nine months of the year we achieved 8.5% growth in gross premiums written reaching $1.04 billion. This growth reflects both targeted new business and increased participations on accounts where we saw strong alignment with our underwriting approach. Growth in our property and specialty books has continued to moderate as we proactively respond to evolving market dynamics and have reduced certain accounts where pricing has softened more aggressively.
Our casualty segment continued to grow in Q3 and we increased participation, demonstrating positive rate momentum in targeted classes. As we work through our planning process and approach January renewals, we expect our growth rate will continue to moderate next year as pricing will likely continue to soften and we begin to reposition our property portfolio towards a greater share of excess of loss business. We are also focused on improving the alignment of our inwards and outward portfolio with more effective retro coverage. As discussed earlier in the year, following the California wildfires, we purchased retrocession protection against large secondary perils. Our aim is to reduce volatility going forwards from these types of events and we are focused on the net performance of our portfolio in our 2026 business planning.
I will now turn to premium growth for our individual business segments along with their respective market conditions and outlook. In property, we have grown gross premiums written by $32 million to $568 million for the first nine months of 2025, representing a 6% increase over the same period in 2024. After several years of positive rate compounding, the property market has experienced softening prices during 2025, driven by increased capacity from traditional reinsurers as well as alternative capital sources. This resulted in a risk adjusted rate change net of inflation through 30th September of - 5% for property, which was consistent with the experience we have seen during the year and within our expectations. Although pricing is moderating, our property book remains adequately priced with sufficient margin.
Market behavior generally remains disciplined around terms and conditions with attachment points holding, and we have seen pricing for loss-impacted accounts remain firm. As mentioned earlier this year, we are targeting a greater balance of quota share and excess of loss business within the property portfolio. Our strong relationships with customers and brokers will help provide access to the business we are targeting as we seek to expand shares on well-performing business and participate on new programs. We will also reduce shares on underperforming accounts or where the pricing or structure is no longer aligned with our appetite. As we execute on these plans for 2026, we expect to move towards a more even balance between quota share and excess of loss within the property segment during the upcoming year, with further progress over the next two to three renewal seasons.
Casualty continues to be our second largest segment providing attractive diversification to our underwriting risk profile and supporting the growth of our investment portfolio. We increased casualty gross premiums written by $45 million during the first nine months of 2025 reaching $269 million. This represents a 20% increase over the same period of 2024. The casualty market continues to be relatively disciplined although pricing conditions vary by class across our casualty portfolio. Risk adjusted rate change net of inflation for the first nine months was +1 %. This reflects our preferred classes keeping pace with claims inflation while other classes within casualty such as D&O and financial lines have experienced more competitive pricing and we have reduced our exposures in these areas. The growth we have experienced in casualty has been focused in targeted classes demonstrating improving conditions and positive rate momentum.
This includes U.S. General Third Party Liability and U.S. Excess and Surplus Lines. Our casualty portfolio is built on a foundation of solid long term quota share partnerships and it will be difficult to materially increase the excess or loss proportion of the account in this class. Overall growth was driven by increasing our support to partners that have demonstrated underwriting discipline as the cycle changes, including expertise in managing claims in this environment. We expect the casualty market will continue to be dynamic as we enter 2026 and we will maintain our careful to selecting our partners. Turning lastly to specialty, gross premiums written increased by a modest $4 million for the first nine months of 2025 to $202 million. This represents a stable 2% growth in the portfolio over the same period in 2024, consistent with growth presented at our 2025 Interim Results.
Specialty is a broad market and conditions vary widely across classes. Capacity continues to be attracted to the margin potential and non-correlating characteristics of specialty risks and we have seen new entrants looking to gain share. Rates are beginning to come off peak levels we experienced in 2024 and as a result the portfolio has experienced a -3% risk adjusted rate change net of inflation for the nine month period. Our tempered growth reflects the increased competition in the market and the team reducing exposure to accounts showing signs of margin compression. While these dynamics have introduced some pressure on rates, the broader environment remains disciplined with terms and conditions largely remaining consistent. That said, we are beginning to experience a modest upward trend in ceding commissions as cedents seek to benefit from abundant reinsurance capacity in Q3.
We have strengthened our specialty underwriting team with the appointment of David Frawley. David is a seasoned underwriter with deep market experience, particularly in marine and aviation classes, which will allow us to take advantage of any meaningful firming of aviation rates in 2026. Following a number of significant loss events this year, I will now hand back to Elaine to go through our financial investment highlights.
Thanks Neil. Gross premiums written of $1,039.1 million are up 8.5% on the prior year. As we mentioned at the half year we expected the growth we discussed then to moderate slightly over the rest of the year and that's still the case but we still expect to have a healthy level of growth for the full year. We have reinsurance revenue of $662.4 million versus $588.2 million in the prior year, a 12.6% increase year- on- year. A reminder once again our reinsurance revenue is essentially gross premiums earned, less ceding commission and a smaller adjustment for non distinct investment components. It therefore tracks the same pattern as our gross premiums earned would have just a lower number after the ceding commission deduction.
Generally ceding commissions have ticked up a bit so we're seeing a higher deduction for those which of course impacts our reinsurance revenue. On losses, then, the first six months of 2025 was clearly another highly active period of natural catastrophe events and risk losses for the industry, including the California Wildfires, but the third quarter has been relatively quiet. Our California Wildfire loss hasn't really moved since the half year and we are maintaining our previously reported reserve on that other previously reported loss. Events also remain stable on the investment side, with the reduction in yields and spread tightening in the quarter plus the portfolio generally producing strong investment income. We generated a return of 1.5% bringing us to 5.4% for the year- to- date. Book yield is 4.2% and market yield is 4.3%.
We remain relatively short duration and are focused on maintaining a high quality, highly liquid portfolio. Duration is currently 2.8 years versus 2.7 years on our net reserves. Average credit quality is double A and you can see the usual pie chart here with our asset allocation and no significant changes from prior quarters in that order. Strategy. I'll now hand back to Neil for closing comments.
Thank you, Elaine. In closing, as we look forward to January renewals in 2026, we believe pricing will continue to soften and our growth will moderate as we reposition certain parts of the portfolio towards a greater share of excess of loss business. Notably, in our property segment, we will be focused on better alignment of our inwards outward portfolio and improving our net position. Our balance sheet remains strong and we are resuming the previously announced share buyback program after pausing during the peak Atlantic hurricane season. We are committed to transitioning Conduit to being a stronger, more resilient underwriting company and the recent employee appointments and promotions signal our investment in the business. We believe the actions we are taking will support more stable and resilient returns for shareholders. That concludes today's presentation. Thank you for your time. We will now turn over to Q & A.
Thank you. If you're dialed into the call and would like to ask a question, please press star and the number one on your telephone keypad. Additionally, if your question has been answered or if you'd like to address our question, please press star one. Again, we will pause for a moment to assemble the queue and we'll take our first question from Michael Huttner. Please go ahead.
Fantastic. Thank you. Congratulations on what looks like a strong quarter. I had three questions, please. The first one is on the growth. I think you said moderate next year. Can you give us a feel for your thinking here? I think I had previously 5% growth. I think consensus is 2%. But any kind of indication of how, what it would look like next year would be really, really helpful. The second is I know you haven't, even though the quarter is clearly benign and the fact that you and Melissa is not material and you didn't mention anything else sounds like in the first four months of the second half we're looking good.
I just wondered if you can kind of talk a little bit about, you know, you didn't upgrade anything. You know, is this, are we going to see the benefits of these improvements or will they be kind of used in some way to improve resiliency or something? The final question is not actually a question, it's a kind of suggestion. Maybe. I know you spoke about Excel and quota share and by line of business. Maybe you could publish these numbers. Thank you.
Right, Michael. It's new here. Thank you. We don't give forward guidance on revenue. What we have said is growth will moderate and as we've deployed, we were growing strongly during the deployment phase of the business. It's starting to get towards maturity and you know, that brings into focus the quality of the portfolio, capital management, and those issues. I'm aware of analyst consensus forecast next year.
But we did say growth will moderate. We didn't say shrink. I mean, I don't really want to be more explicit than that on the update on earnings. There was a Cat 5 on the water this time last week. We are in a hurricane season. It just seemed inappropriate to revise earnings at this point. What we have said is we are reaffirming guidance and that there were no material events in the aggregate or individually as far as Conduit is concerned. Could you just repeat your observation just so that.
It's just that you talked, you're changing your business model. You talked about more quotas, more excess of loss, less quota share. I just wondered if you could actually publish the numbers. Just using hints and suggestions for an analyst is challenging.
Yeah, I do understand that. We have now approved the 2026 business plan and what we have is a plan and an aspiration. We have not communicated that in this quarterly update, but your comments are noted and we will see if we can be helpful in that regard.
Thank you.
Thank you.
Our next question comes from the line of Abid Hussain. Please go ahead.
Oh, hello everyone. Hi. Just two questions from me. The first one is on stabilization. As you stabilize the ship with people, changes, product mix shift and then margins. How should we think about the outlook? For the business in terms of growth capital distributions or growth versus capital distributions and more broadly the ROE going forward, so beyond this year really. The second question is on the casualty book.
You've accelerated the growth across the casualty. Book over the third quarter. What is it that you like about that business versus the other lines of business? Does it bring capital diversification benefits from the cat exposed lines? Any more color as to sort of why you're looking to grow in that particular line of business? Thank you.
Okay. In terms of stabilization, I mean I said to Michael in the previous answer that as we hit this part of the cycle and as we have now reached virtually full deployment, growth will moderate. It is about exposure management, it is about bottom line and it is about capital strategy. We did announce today that we are resuming our share buyback. That I think would be the future emphasis. In terms of returns, I mean we have voiced what our aspiration is through a cycle and there will be parts of the cycle where returns will be lower because of rating and parts of the cycle when rates will be higher. Our future aspirations remain unchanged. I am obviously aware of analyst consensus for next year which I think is around sort of 13 and a bit % ROE.
I don't really want to go further than that. In terms of casualty, it's where the market is the strongest at the moment. We are very specific in terms of our appetite for certain segments and parts of the casualty account. It has the benefit of diversification as you alluded to in your question and doesn't give us additional PML probable maximum loss exposure as it relates to the property account. It does help when we are writing more excess of loss on the property side to continue to grow the casualty account, which we will look to do both in America and internationally.
Yeah, but it's. Elaine, if you could just add a bit on the capital points. We did put a slide in one of our decks a quarter or two back in terms of how we think about capital and I'd point you towards that again. I think that way of thinking hasn't changed in terms of how we think about the capital for what we want to write and building various buffers over that for whatever opportunities come up and whatnot. Our consideration about dividends versus share buybacks is obviously somewhat influenced by our trading multiple as well. Go and take another look at that slide.
Super, thank you.
Thank you.
Our next question comes from the line of Ben Cohen. Please go ahead.
Hi there. Good morning. Good afternoon. I had two questions please. Firstly, could you just say a bit more about how you see your retro buying strategy ahead of next year and maybe any sort of preliminary feedback that you've had from brokers in terms of price and your ability to sort of make any changes that you're looking for.
On a similar vein in terms of the business that you're writing and the mix shift that you're looking to get from a shifting from proportional to XoL, can you just say a bit more about client acceptance, desire to sort of expand shares with you on the XoL side. Do I detect in the statement or in the discussion at Q3 versus Q2 that maybe you're seeing that shift to XoL just. Just being a little bit more difficult whether it's related to environment or customer demand. Maybe you could give a bit of color there. Thank you.
Okay. On the retro buying strategy we have been discussing, had initial pre-market discussions with our flag broker and other brokers. We had previously bought a lot of named peril, as in wind and quake coverage. We know that the market has availability for all perils, including secondary perils, to be included in the program, which obviously is more economic than buying secondaries on a separate basis. So we have a comprehensive program structured. We have yet to go into market; that is common across the entire market. That process will start in the next two, three weeks, that there will be a small handful of programs out there. I mean, I noted the Lancashire comments on their retrocession as well.
Yes, we will be going for a comprehensive program that will reflect the necessity to protect our capital given that we will write more accelerated insurance in terms of business written. Most clients buy both quota share and excess of loss protection, and by being on and having an established quota share account, we will therefore see most of the XoL business.
Getting onto it, we w ill be the driver. It is hard, and Michael asked a question earlier for me to give a sort of percentage split at the half year. We said it's evolution, not revolution, and it's not an about face. We will, you know, where there are quota shares and there is satisfactory margin and we like the quality of the business, we will write those. The shift will probably be more predominantly in the property and the specialty. Casualty is very much a quota share type business because there is not the need to buy catastrophe volatility as it relates to natural perils, obviously. Casualty will be probably very much weighted towards quota share, and that's common across the market. The drive will be on property and specialty. You know, I look forward to the renewal season. We will know more about the outcome by the time that we report on the finals.
Thank you very much.
Thank you.
Our next question comes from the line of Iv an Bachman. Please go ahead.
Thank you very much. My first question will be about specialty. I mean you mentioned signs of increased competition and you've also highlighted that aviation might be an opportunity. Maybe you can be a little bit more granular at what subsegments of specialty do you see conditions worsen more, which ones you still like, and whether there's any geographic distribution there. My second question will be on capital generation. Now that we've been through most of the year, we're in November, maybe you could give some form of estimates of where do you expect your BSCR and DCR ratios to land by year end?
That would be very helpful and maybe question number three, I think we spoke about that at prior calls, but with new kind of pricing assumptions for the year. Maybe you can comment about your appetite for Nat Cat. Where do you expect your PMLs to develop given the mix shift, etc. Thank you.
Elaine. Do you want to comment first on the issue of BSCR and those things and then I'll come back to specialty and Nat Cat.
Yeah, sure, Ivan. Unfortunately we can't give any real guidance on that at this stage. We will be reporting on the map at year end, but we're not going to give an expectation of where we're going to end up at this point. We have previously set out a range that we expect to operate in and we expect to be comfortably in that range.
Good. If I pick up on the specialty, I mean specialty is in effect a very broad school. It is everything that property and casualty is not. We do see opportunities. There is a lot going on in engineering builders, risks. Some of the marine classes are softening. We have seen strong competition for offshore energy recently. It is a broad school and we do continue on a risk by risk, account by account basis to see good opportunity. We are also seeing international business and that will allow geographic diversification. Once again we will have a push with the major brokers to write more non-proportional as in excess of loss business. Nat Cat. Ivan, can you repeat the question on Nat Cat? Oh yes, it was about PMLs and we have not revised our PMLs.
Given the nature of the way that we can protect our account, I would not expect to see a material shift in those at all. We will give detailed guidance on our PMLs at our finals in February. Certainly, that is well ahead of next year's hurricane season, which is sort of peak exposure outside of obviously quake.
Thanks, appreciate that.
Thank you.
Our next question comes back from the line of Michael Huttner. Please go ahead.
Thank you. Thanks for this opportunity. I've got three. The first one is you were obviously at Monte Carlo and now we're two months later. I just wondered if how the environment has changed relative to what was discussed at Monte Carlo, which seemed kind of softening but nothing very dramatic. The second is on. What you'd say.
Elaine, that's really good but could you possibly say or maybe you could send out to all the slide you mentioned on the capital priorities. The last one is investment income. So you've got tons of investment assets, $2 billion. You've got a really nice 5.4% investment return. What. I'm really sorry you might say, well I can't answer the question or this is so simple I'm not going to answer it. What is the in terms of the bottom line, the figure which goes into the ROE. Call it, you know, if it's 5%, it's about $50 million or something. How much would the investment income portion be?
I'm having trouble because I seem to remember in the past you explained really helpfully that part of the unrealized gains from investment incidents, which I think are in this 5.4% figure, would then come out again as part of the iffy. I call it the unwind. Anyway. Thank you.
Do you want to, so capital branches, you know, I can confirm that Brett can actually, it is on our Conduit website under Investor Relations, but I will ask Brett to send it to the analysts on this call.
Thank you so much.
Elaine.
Yeah, I mean we do not disclose the split at Q3, but we did disclose it at the half year. You can go back and reference that. We did get a small benefit this quarter from the reduction in yields as well. They are seeing fairly strong investment income of the portfolio. Now though, it is not a good point for that. I will point to the half year in the first instance.
What was the book yield at the half year?
Half year would have been about 4.2%.
4.2%. So?
Really consistent.
Yeah. The book yields 4.2% and the actual return was 5.4%. You can work out the difference. The capital we have, our assets are expanding on an annualized basis at about, I'm talking historic, about $250 million.
Good. That deals with.
On the investment return, I seem to remember the 5.4%, which includes the unrealized gains that gets offset within the P& L by something else. It actually does not hit the bottom line. Am I right in this or am I completely missing the point?
It's somewhat offset by the reinsurance finance income and expense. That's, you know, unwinding the accretion on our investment, on our insurance liabilities and basically marking them to market for the movement in yields as well. It's not a perfect match and the investment income and investment return tends to be a little bit higher than that, but there is an offset.
Very helpful, thank you.
Thank you.
Our next question comes from the line of Joseph Theuns. Please go ahead.
Hi there. Thanks for taking my questions. The first is just on your growth in casualty. I just wanted to double check. My understanding is correct that this was driven by kind of increased market share with your current partners. The follow up question to that is just how was that? Because some of the other partners that your cedents have, did they sort of withdraw or is it just that how are you able to sort of increase your market share essentially? Or is it through high demand? My second sort of question is just about the transformation plan. Neil, you mentioned that the business strategy or plan for 2026 has now been agreed. Can you sort of give an indication of when we might hear it? Is it going to be the full year earnings or could it be earlier? Thank you.
Right. I mean you. Let's deal with the business plan first. I doubt that many companies would communicate the sort of inner workings of their own business plan to the market. I don't, certainly not before the earnings. At that time we will disclose all of the disclosures that we previously have, which would include things like PMLs. We, for commercial reasons and sensitivity, don't disclose individual detail of our outward reinsurance program. We will, as I say, disclose PMLs which give our net exposure. I mean we will be as helpful as we can but there are limits as to what a company can disclose in terms of commercially sensitive information. We will look to update in February on the casualty. It will be a mixture of growth on current partners.
I mean, all of our clients each year has different patterns and some of them will reduce the amount of coverage they buy and retain more, others will look to buy more. There is no hard and fast rule. We are still seeing new business opportunities as we grow and mature. It sometimes takes time to get onto people's reinsuring panels for casualty, especially if you are a new company. We are also looking to diversify on a geographic basis and we are seeing new opportunities in Europe.
Michael mentioned Monte Carlo. We have been traveling extensively. We have been working hard with our major inward broking partners. We have been having a number of meetings with our client base and working very hard on that. It is partly an increase in existing core relationships, but on most of the really top clients we have probably got the positioning we want. Future development and growth would come out of new customers and a slight geographic diversification. Obviously, you know, that falls within the confines of us being selective and casualty is a lot of subclasses and we have views on the bits that we find attractive.
Okay, that's very useful. Thank you.
Thank you again. If you'd like to ask a question, please press star and the number one on your telephone keypad. Now our next question comes from the line of Andreas Van Embden. Please go ahead.
Thank you very much. Yeah, I just have a high level question around cycle management and capital. Obviously you'll be managing your gross versus net or your retentions next year. One of the ways you can do that is through your reinsurance program. You're going to be optimizing this ahead of the 1:1. I just wondered whether you also considered using third party capital either against your property cat book or casualty as a capital management tool into 2026 or maybe even 2027 in order to sort of optimize your capital structure and maybe release some capital. Thank you.
Yeah. The answer to your question is yes, we have deeply considered it. We've run two individual projects looking at sidecars, quota shares, and they come with pros and cons. You know, in each case we have modelled it, you know, you can see the way casualty premium and you lose the investment income, which is one of the features we have. We like the business that we're writing in that area.
To cede it to a third party, yes, you get the ceding commission but as I say, you lose the investment income. It is a straightforward exercise modeling that. I mean at the moment our principal goals for this year end is expand the coverage in the program to take into account secondaries, protect our capital. You know, we are very, very conscious of this in the light that we will be writing more excess of loss and keep it simple and focus on capital management.
Yeah. Andreas, we have already sponsored a Cat bond and we do use some of the ILS funds as well. I mean third party capital is a space that we're already using actively.
Yeah, we have a $100 million Cat bond in force.
Yeah. I was thinking more in terms of partnerships coming alongside you, either funds or sidecars to sort of take some of the load of moving towards prep to Cat Excel.
Yeah. As I said, we've run two projects on that basis, looking at that, and we are aware of the ILS appetite in the market at the moment. We haven't closed a transaction of that nature, but it's under constant review and I do get the point.
All right, very interesting. Thank you.
Thank you.
Our next question comes back from the line of Michael Huttner, please go ahead.
Thank you. I promise my last question. You've been so helpful, I'm very tempted. It's just really to understand better what's happening in the market. I think you spoke about the terms and conditions in specialty remaining consistent, I think, but maybe in property attention points, maybe kind of, maybe not unchanged. I don't know the words you use, but clearly it's good, but maybe not as good. I think you also said something about the—let me just check my notes. Yeah, no, it was actually just on this.
Oh yes. No, the pricing, the pricing and loss affected, you mentioned that it remains firm. I think it was just a comparison. I think at Hannover at the Investor Day, which is three weeks ago, so it's a while back, they were kind of hopeful that loss adjusted—sorry, loss affected would see rising prices. I just wondered where you've seen the market shift here. Thank you.
We have seen some, and I describe it as moderate price rises on business that was loss affected in the California wildfires. There are one or two big claims hitting the specialty market, and we would expect to see payback emerging on some of those programs that are affected by the major events that have happened in the specialty market.
Yes, there is a hope on some aviation policies that there have been recoveries under aviation war programs in respect to Ukraine. Actually, I was asked a question earlier about aviation by, I think, Ivan, and I omitted to allude to it. David Frawley, who has joined us and works for Marc Maurer on the specialty side, does have expertise in this area. If there is a re-rating in that space, it may present opportunities. We will be cautious for now because there is, you know, we think the markets will develop over time. So yes, we do expect or have seen some pricing adjustment on loss effective business. Michael, what was your question again on property?
It was just, I was curious, pure curiosity on the attachment points where they're kind of holding firm or maybe crumbling a little bit at the edges.
The answer to that is market by market, it will vary. People will try and expand their coverage, especially on retro where we are a net beneficiary as opposed to a writer. The one thing I would say is that property is very model driven. It is, if people do start dropping attachment points, it drives through into the model and the way that the property is priced. There are some inbuilt defense mechanisms. We do recognize, you know, that the pricing, we have published the pricing that we're experiencing. I'm not denying that there are reductions in the property market. So far we have seen discipline as it relates to terms and conditions. That includes, you know, under conditions you would include deductibles and access points.
Super helpful. Thank you. Thank you very much, Neil.
Thank you.
There are no further questions on the conference line. I will now hand over to Neil for closing remarks.
Right, thank you everybody. That concludes today in terms of Q& A. It's been a good quarter for us. I think there's some solid progress being made. We're obviously very, very pleased with the hire of Stephen Postlewhite, which we announced today, who joins in late January. We look forward to a renewal season and the build up to year end, and we'll report further at the finals. I think that concludes it from me. Thank you for joining the call, and I will probably look forward to speaking to each of you individually in the next few days. Cheers.