Conduit Holdings LTD/ADR CNDHF

The principal activity of Conduit is to provide reinsurance products and services to its clients worldwide. A full listing of Conduit’s related parties can be found in note 22. 2. Summary of material accounting policies The basis of preparation, use of judgements and estimates, consolidation principles and material accounting policies adopted in the preparation of these consolidated financial statements are set out below. Excluding percentages, share and per share data or where otherwise stated, all amounts in tables and narrative disclosures are in millions of US dollars. Basis of preparation These consolidated financial statements are prepared on a going concern basis in accordance with IFRS as issued by the IASB, and the DTR issued by the Financial Conduct Authority, and are prepared on a historical cost basis, except for items measured at fair value as disclosed in the relevant accounting policies. In accordance with the requirements of IAS 1, the financial statements’ assets and liabilities have been presented in order of liquidity, which provides information that is more reliable and relevant for a financial institution. In the course of preparing these consolidated financial statements, no judgements have been made in the process of applying Conduit’s accounting policies, other than those involving estimations as noted in the ‘Use of judgements and estimates’ section, that have had a significant effect on amounts recognised in these consolidated financial statements. Going concern The consolidated financial statements of Conduit have been prepared on a going concern basis. In assessing Conduit’s going concern position as at 31 December 2025, the Board have considered a number of factors, including the current balance sheet position and Conduit’s strategic and financial plan, taking account of possible changes in trading performance and funding retention, stress testing and scenario analysis. Conduit’s capital ratios and its capital resources are comfortably in excess of regulatory solvency requirements, and internal stress testing indicates Conduit can withstand severe economic and competitive stresses. As a result of the assessment, the Board has a reasonable expectation that Conduit has adequate resources to continue in operational existence for the foreseeable future and therefore believe that Conduit is well placed to manage its business risks successfully.