LONDON (dpa-AFX) - Lancashire Holdings Limited (LRE.L), a provider of specialty insurance and reinsurance products, Thursday reported higher gross premiums written and insurance revenue in its first quarter.
In its trading statement for the three months ended March 31, the company reported that gross premiums written increased 12.7% to $712.1 million from last year's $631.7 million. The underlying increase, excluding the impact of reinstatement premiums, was 6.6%.
In the reinsurance segment, new business grew in property, casualty, and the energy and marine classes, as well as increased reinstatement premiums, largely related to the California wildfire losses. Growth in the insurance segment, primarily from the US platform, was offset by reductions across the aviation classes.
Insurance revenue increased 8.7% to $458.9 million from prior year's $422 million. Overall, growth was lower than for gross premiums written, primarily due to the reallocation of reinstatement premiums under IFRS 17. The company continues to estimate its aggregate net ultimate losses related to the California wildfires to be in the range of $145 million to $165 million.
Alex Maloney, Group Chief Executive Officer, said, 'In a challenging environment, the resilience of the business is clear, with our greater scale and diversification, across classes and geographies, giving us the ability to better withstand volatility and deliver consistently healthy returns for our shareholders....Absent the wildfires the underlying performance of the business is strong. As we outlined in March, in a severe loss year with a similar level of catastrophe and large risk losses as 2024, as well as the California wildfires, we would still expect to deliver an RoE in the mid-teens for 2025.'
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