Lancashire reports record first-quarter financial results
Bermuda-headquartered Lancashire Holdings Limited has declared a strong start to the 2024 year with record first-quarter results.
Alex Maloney, the group chief executive, said: “The positive underwriting environment allowed us to grow our business further with gross premiums written increasing nearly 8 per cent year-on-year to $631.7 million. Insurance revenue increased by nearly 25 per cent year-on-year to $422 million.
“We continue to see strong opportunities for profitable growth across our portfolio with a group [Renewal Price Index] for the quarter of 104 per cent.
• Gross premiums written increased by 7.8 per cent year-on-year to $631.7 million.
• Insurance revenue increased by 24.6 per cent year-on-year to $422 million.
• Group Renewal Price Index of 104 per cent.
• Total investment return, including unrealised gains and losses, of 0.9 per cent.
• Regulatory Enhanced Capital Requirement ratio of 328 per cent, as at December 31, 2023.
Mr Maloney added: “Our new US operation, Lancashire Insurance US, has now begun underwriting excess and surplus lines business in the property and energy casualty classes. We are very pleased with the strong team we have built and we believe that there are significant long-term opportunities for Lancashire in this market.
“In terms of the loss environment, the market impact of the tragic Baltimore bridge disaster late in the quarter is still being assessed. However, our potential exposure will be within our expectations for an event of this type.
“We affirm the guidance we gave for the 2024 financial year for an undiscounted combined ratio around the mid-80 per cent range and a return on equity, as measured by the change in diluted book value per share, of around 20 per cent.
“On investments, our portfolio delivered a positive return of 0.9 per cent for the quarter. The market yield of 5.4 per cent was offset by mark to market movements on fixed maturities.
“I am excited by the prospects for Lancashire as we move through 2024. Our strong balance sheet, with a regulatory [Enhanced Capital Requirement] ratio of 328 per cent, gives us the flexibility to achieve our goals.
“We remain focused on writing profitable business across our diversified product suite, offering relevant solutions to our clients and fully delivering on our strategic priorities.”
Lancashire, through its Bermuda and UK operating subsidiaries, is a provider of global specialty insurance and reinsurance products.
• To read the full results, see Related Media
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