Bermudian-based re/insurer Lancashire Holdings Limited is to expand its international footprint by setting up an operation in the United States.

The news comes as Lancashire reports a first-half profit after tax of $159.2 million, which compares with a profit after tax of $31 million in the first half of 2022.

The company said Lancashire Insurance US will operate under a delegated underwriting arrangement with Lancashire’s British company platform.

The new operation in the US is expected to begin underwriting in early 2024.

Alex Maloney, group chief executive, said: “Lancashire Insurance US will be complementary to our existing capabilities and will give us the ability to write business that is within our appetite and that we currently do not have access to.

“This is another positive development for Lancashire and, with our reputation for underwriting excellence and service to our clients, we believe there are significant long-term prospects for us in the US.”

For the first half of 2023, Lancashire Holdings said, gross premiums written increased by 26.2 per cent to $1,184 million.

Insurance revenue was $720.9 million, which compares with insurance revenue of $579.8 million in the first half of 2022.

Mr Maloney said: “We are very pleased with our performance in the first half of 2023. Our long-term strategy to develop a more diversified and capital-efficient product portfolio is delivering the expected benefits, with a half-year change in diluted book value per share of 12.2 per cent.

“Our philosophy has always been to grow when market conditions are favourable, while maintaining our approach to underwriting discipline.

“During the first six months of 2023, we continued to take advantage of the strong underwriting environment with gross premiums written increasing 26.2 per cent year-on-year.

“The undiscounted combined ratio was a healthy 79.2 per cent, or 71.4 per cent on a discounted basis.

“The rating environment remains positive across our product lines and we do not see that changing during the remainder of the year.

“Our investments have delivered a positive net return of 2.2 per cent or $63.2 million as we benefit from higher yields due to the short duration of the portfolio.”

Mr Maloney added: “We are excited by the opportunities ahead of us during the remainder of 2023 and into 2024.

“Our capital position remains strong, giving us the headroom to continue to take advantage of the positive market conditions.”