Lancashire Holdings Ltd’s net losses related to recent weather events could reach $140 million, the company said as it issued a trading statement for the nine months ended September 30.

The Bermudian-based insurer and reinsurer reported that gross premiums written increased by 9 per cent year-on-year to $1.7 billion, and insurance revenue increased by 16.8 per cent year-on-year to $1.3 billion.

Lancashire reported a total investment return of 5 per cent, including unrealised gains and losses.

Alex Maloney, group chief executive, said: “I am pleased to report that Lancashire is in excellent shape as we approach the final months of 2024. Over the past few years, we have successfully made our business more resilient to withstand volatility and deliver more sustainable returns for investors.

“We expect to deliver in line with our ROE guidance for the year. In terms of gross premiums written in the first nine months of 2024, Lancashire continued to grow ahead of rate increasing premiums by 9 per cent to $1.7 billion.”

He added: “The devastation caused by the recent weather events in the US and other catastrophes has been tragic and our thoughts are with all those affected. Instances like these show the value of [insurance and reinsurance] products in supporting communities to help them rebuild after major catastrophe events.

“In the year-to-date, the industry has seen an elevated catastrophe and risk loss environment, but we still expect our undiscounted combined ratio to be at the higher end of our range for the full year. This is testament to our diversification strategy and the quality of the business we have written.

“Our estimated ultimate net losses incurred in relation to recent weather events including hurricanes Milton, which occurred in the fourth quarter, Helene, Debby and storm Boris, and the Calgary hailstorms, are expected to be in the range of $110 million to $140 million.”