Lancashire's Alex Maloney reports higher H1 profit despite softer reinsurance premiums

Lancashire Holdings reported higher first-half profit despite broadly flat insurance revenue and lower reinsurance premiums, as a planned reduction in inwards property retrocession business and increased reserves for the Baltimore Bridge loss weighed on topline growth, with group chief executive officer Alex Maloney (pictured) reaffirming the company's guidance for a high-teens return on equity in 2026.

After tax profit for the six months ended June was up 30% year-on-year to $142 million from $109 million.

Gross written premium was down a percent to $1.32 billion from $1.36 billion in 2025 with the insurance segment up 4% YoY and reinsurance down 8%.

Maloney said: “In the reinsurance segment we saw a lower level of inwards reinstatement premiums and executed a planned reduction in inwards property retrocession business, which was partially offset by growth in energy, marine and aviation treaty lines.

“We have also increased our reserve for the MV Dali Baltimore Bridge loss to our full policy limits, thereby capping any further downside from this event.” 

Insurance revenue for the half was flat at $930 million.

Margins showed 7-point improvement to an undiscounted combined ratio of 90.8% from 97.8% the year prior.

Maloney added: “Looking ahead, we remain on track to deliver our guidance given at the start of the year of a high-teens RoE for 2026 and we are well positioned to manage the next phase of the cycle, in which we expect rates will continue to reflect the excess capacity in the industry. In this context, we will draw on our considerable experience and expertise to remain disciplined, and we have the agility to deploy capital where we see the best returns. Lancashire’s strong capital base, robust reserves, and more efficient use of reinsurance provide important levers to underpin performance and to manage the business through the cycle.”

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