Bermudian-based Lancashire Holdings Ltd has reported a profit after tax of $321.3 million for the year ended December 31, 2024, as the company capitalised on strong underwriting conditions and robust investment returns.

The company recorded an 11.3 per cent increase in gross premiums written, reaching more than $2.1 billion.

Insurance revenue rose 16.1 per cent to nearly $1.8 billion. The group reported an insurance service result of $379.9 million, with a discounted combined ratio of 80.0 per cent and an undiscounted combined ratio of 89.1 per cent.

The total investment return for the year was 5 per cent, contributing to a total dividend payout of $294.3 million, which includes a final ordinary dividend of $0.15 per share and a special dividend of $0.25 per share, subject to shareholder approval.

A 13.5 per cent rise in reinsurance premiums reflected Lancashire’s underwriting expansion, totalling $130.3 million, while insurance segment premiums increased 9.1 per cent to $87.6 million. New business drove the growth, particularly within the property sector in both the United States and Australia.

The company absorbed net losses from catastrophe, weather, and large loss events totalling $214.1 million.

These losses included the impact of hurricanes Milton, Helene and Debby, storm Boris and the Calgary hailstorms. The MV Dali Baltimore bridge collision was the most significant large-risk event.

Alex Maloney, group chief executive officer, said: "2024 was another superb year for Lancashire, with an excellent profit after tax of $321.3 million, delivering a strong return on equity of 23.4 per cent.

"In a year of high industry losses this is an outstanding result. It shows the continued successful execution of our strategy to grow materially at the right time in the underwriting cycle, utilise our capital more efficiently, diversify our portfolio to reduce volatility and retain and attract the best talent.”

Lancashire’s investment portfolio delivered a total return of 5.0 per cent, driven by favourable yield conditions. The company’s net investment income, excluding realised and unrealised gains and losses, increased 33.5 per cent to $144.8 million.

The group also returned $354.2 million to shareholders during the year, reflecting its commitment to capital management.

The board has declared a total year-end dividend of $0.40 per share, consisting of a final ordinary dividend of $0.15 per share and a special dividend of $0.25 per share.

"Returning excess capital generated to our shareholders has always been a core part of Lancashire’s DNA and, importantly, we remain extremely well capitalised to fund future growth opportunities," Mr Maloney added.

Lancashire expects that, assuming a similar level of catastrophe and large loss events as 2024, the company will deliver a return on equity in the mid-teens for 2025. The impact of the January 2025 California wildfires is estimated between $145 million and $165 million.

“In 2024, we continued to deploy our strategy that has seen us more than double the number of product classes that we write since 2018 giving us access to more of these opportunities in a compelling market where margins remain strong," Mr Maloney said.

The company marks its 20th anniversary in 2025, and Lancashire remains well-capitalised to support continued growth and disciplined underwriting strategies, he added.