Lancashire’s GPW growth balances outlook after staggering profit drop
Bermuda-based re/insurer Lancashire Holdings reported significant H1 losses driven by the impact of California wildfires. Despite the setback, the group CEO remains optimistic, highlighting the “resilience within the business model” and noting that most lines continue to be fundamentally well priced.
Natural catastrophe events saw net profit take a downturn, ending on $109 million compared to $200 million in the same period last year.
As a result of the 46% profit decrease year-on-year, Lancashire’s undiscounted combined ratio jumped to 97.8% from 82.2% in H1 2024.
Gross premiums written, however, saw a healthy increase of 5.8% year-on-year for the first half, reaching $135 million in 2025 compared to $128 million in 2024.
Alex Maloney (pictured), group chief executive officer, said: “Our strategy to grow at the right time in the cycle means we are better positioned, across various classes and geographies, than ever before. We have developed a robust, diversified and capital-efficient underwriting portfolio that can absorb the impact of significant industry loss events whilst delivering more predictable returns.
“The impact of the wildfires in California in January has been felt across the sector. Estimated industry insured losses are around $40 billion, making it one of the costliest wildfire disasters ever recorded. In this context, our strong profit after tax of $109.2 million and healthy discounted combined ratio for the period of 87.4% (undiscounted of 97.8%) shows our ability to deliver attractive returns even in a challenging loss environment.
“We have continued to grow our underwriting portfolio in line with the market opportunity in a disciplined way with gross premiums written increasing 5.8% year-on-year to $1,356.2 million. Insurance revenue increased 8.9% year-on-year to $930.1 million, with the Group RPI for the period standing at 96%.
In an unstable world, both geopolitically and economically, Lancashire continues to have the vision, resilience, and talent to maintain long and mutually beneficial relationships with our clients and brokers, and deliver sustainable returns for our investors.”
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