Bermudian-based Lancashire Holdings Ltd increased its gross premiums written by 46.1 per cent to $354.8 million, with a renewal price index of 112 per cent, in the first quarter of 2021 when compared to the same period a year ago.

Alex Maloney, group chief executive officer, said: “This increase in our top line premium income represents our strongest ever first quarter premium and has been supported by the equity capital which we raised in June 2020.”

The company said its net losses recorded for the quarter in relation to Winter Storm Uri, including the impact of reinsurance and inward and outwards reinstatement premiums, were estimated in the range of $35 million to $45 million.

Lancashire said it continued the build out of new classes of business – casualty reinsurance, speciality reinsurance and accident and health – and underwriting teams in the first quarter of the year.

The company had a regulatory ECR ratio of approximately 220 per cent as at December 31 (pro forma of approximately 285 per cent including new debt issuance).

Lancashire also reported a successful $450 million debt issuance qualifying as tier 2 ancillary capital during the quarter.

The increase in gross premiums written was largely due to growth in the property and casualty reinsurance segment as the group deployed further capital into the hardening market, the company said.

The increase in this segment was primarily driven by new business as well as rate increases, particularly within the property reinsurance and property retrocession classes.

The group’s total ultimate loss estimates net of reinsurance and the impact of inward and outwards reinstatement premiums for Covid-19 related losses remained unchanged during the first quarter of 2021, the company said.

Prior year favourable development for the first quarter of 2021 was $4.7 million, compared to adverse development of $17 million for the same period in 2020.

The group’s investment portfolio produced a flat total portfolio return for the first quarter of 2021.

Mr Maloney added: “Our growth was driven by the improved market conditions. We have increased revenue across many of our core lines as well as achieving faster than expected momentum in some of our newer business lines. Absent the estimated impact of Winter Storm Uri, our underlying financial performance was strong.

“We look forward to the exciting opportunities that are expected to develop throughout the year as we are able to more flexibly combine the benefits of remote interaction with a return to the office environment.

“This will provide the opportunity for greater engagement among ourselves, our clients and our broader stakeholders. Furthermore, our strong balance sheet, boosted by our recent debt raise, stands us in good stead to fund the opportunities we see ahead.”