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CONDUIT CAPITAL LIMITED
Incorporated in the Republic of South Africa
(Registration number 1998/017351/06)
Share code: CND ISIN: ZAE000073128
(“Conduit” or “the Group”)
CONSTANTIA BUSINESS UPDATE
Conduit provides the following update to shareholders regarding the KZN floods, the year-to-date and third
quarter fiscal 2022 results of the Group’s major asset, the Constantia Insurance Group. Conduit wholly owns
the Constantia Insurance Group of companies (“Constantia”), a diversified niche insurance group.
Constantia’s gross exposure to claims resulting from the KZN floods is not expected to exceed R25 million. After
reinsurance recoveries the net exposure is within our risk appetite and is not expected to have a material impact
on Constantia’s underwriting performance.
For the nine months to March 2022, the Constantia Insurance Group, reported as follows:
• Gross premium income was R1.582 billion.
• The loss ratio was 46.5%.
• The combined ratio was 98.5%.
• Cash generated from operations was R80.3 million.
• The cash balance at 31 March 2022 was R172.6 million.
• The operating profit was R24 million.
Solid financial performance in our key segments of Medical Malpractice, Health and Specialty Property and
Casualty, saw premiums grow on average by 14% in these segments. Expense growth was again maintained
below inflation.
The Proposed Transaction, as announced on SENS on 20 December 2021 and which update thereto was
announced on 31 March 2022, is progressing and upon conclusion is expected to accelerate growth firmly within
the risk appetite, at or below our long-term target combined ratio of 95%.
The financial information above has not been reviewed or reported on by Conduit’s auditors.
Johannesburg
23 May 2022
Sponsor
Merchantec Capital
