Lancashire Insurance Company Ltd has entered into a new $300 million credit facility involving a group of banks.

The company is a wholly owned subsidiary of Bermudian-based Lancashire Insurance Company Ltd.

Lloyds Bank and Barclays Bank are the joint bookrunners for the new $300 million five-year letter of credit and revolving credit facility.

The facility is a replacement of expiring capacity for the group. The letters of credit will be used to support obligations under reinsurance liabilities of the company.

Denise O’Donoghue, Lancashire’s head of investments and treasury, said: “The Lancashire group is very pleased to have the continued support of this strong syndicate of lenders, all of whom represent core relationship banks to Lancashire.

“This renewal allows Lancashire to maintain financial flexibility and strength for our clients.”