Lancashire hits record first half net income
Lancashire Holdings' first half net income soared 26% to a record $200.8 million as the Bermuda-based re/insurer benefited from continued strong rates in its markets.
The company said gross premiums written increased 8.3% to $1.23 billion to record an insurance service result of $222.8 million, up from $188.8 million. However, the company's combined ratio increased to 82.2% on an undiscounted basis compared to 79.2% in 2023.
The company also benefited from strong investment income, with net returns of $75.2 million compared to $63.2 million.
“Lancashire has delivered its best ever half-year performance in the first six months of 2024," said Alex Maloney, group chief executive officer. "This outstanding result demonstrates the continued success of our long-term strategy to manage the market cycle and further strengthen our business through diversification.
"We have continued to take advantage of favourable market conditions while holding true to our principles of disciplined underwriting and optimised capital allocation."
He added: "We have continued to see rates remain positive across our product suite with a Group RPI for the period of 102%.
"Our strategic focus has always been to adapt to the market cycle and grow the business when the environment is right, while actively managing our capital to support those underwriting opportunities. This includes our new US operation, which has made a fantastic start with an extremely strong team across our underwriting and support functions."
Maloney said the loss environment was "relatively active for the industry", including the MV Dali Baltimore bridge collision disaster. But he said none of these events were individually material for the Group.
Maloney said the re/insurer was "well on track to deliver on our full year guidance for an average loss year undiscounted combined ratio in the mid-80% range, and an RoE, as measured by change in diluted book value per share, of around 20%".
He said the company had also increased its interim dividend to 7.5 cents per share.
He added: "Across Lancashire we have committed people who are the foundation of our strong, positive culture and commercial success. We place value on maintaining our distinct ways of working and collaborative approach, which make us an extremely attractive employer that is able to recruit and retain the very best talent in the sector.
"We also continue to support the important work of the Lancashire Foundation and, due to the strong operational performance of the Group in 2023, the Board has approved the maximum level of funding to aid its charitable work this year."
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