Bermudian-based re/insurer Lancashire Holdings Limited has reported a loss before tax of $2.8 million for fiscal year 2022 (2021: $56.8 million loss before tax).

Lancashire said strong premium growth and diversification drove underwriting profit to $150.8 million for the year (2021: $69 million).

Gross premiums written increased by 35 per cent year-on-year to $1.65 billion (2021: $1.23 billion).

Net premiums written were $1.19 billion (2021: $816 million).

Lancashire had a combined ratio of 97.7 per cent, which it said demonstrates the benefit of growth and diversification (2021: 107.3 per cent)

The company reported a total net investment return of negative 3.5 per cent, primarily driven by unrealised losses.

Fully converted book value per share was $5.24 (2021: $5.77)

Alex Maloney, group chief executive, said: “In the five years since 2017 our gross premiums written have increased by almost 280 per cent.

“Our robust underwriting performance in 2022 came against a backdrop of high industry losses and a volatile macroeconomic environment.

“In line with our ‘underwriting comes first’ principle, we have continued to expand our footprint and take full advantage of the organic growth opportunities and rate increases being seen across the majority of our product lines.

“This growth has come from those lines where we have longer-term strength and expertise and from those we have added over the past few years as part of our actions to diversify and fortify our portfolio.”

He added: “Catastrophe and weather related losses for the year, excluding the impacts of reinstatement premiums, were $218.4 million. This includes the impact of hurricane Ian, which was within our expectations for these types of events and at the lower end of the $160 million to $190 million range provided at Q3.

“We previously set aside $22 million for direct claims emanating from the conflict in Ukraine. In Q4, we subsequently revised this to include an additional management margin for any potential indirect claims related to the conflict across a number of classes.

“Our potential claims related to the conflict now total $65.8 million. Given the nature of the conflict, the ultimate claims relating to the event are subject to a high level of uncertainty.”