Lancashire enjoys ‘significantly improved’ market in Q1

Bermuda-based Lancashire Holdings hailed strong growth in the first quarter of 2023 as its CEO said it was successfully taking advantage of “significantly improved market conditions”.

The company’s gross premiums written increased by 22.7% year-on-year to $586.2 million. The growth of its reinsurance book, which increased by 19% to reach $369.3 million, was dwarfed by stronger growth in its insurance unit, which enjoyed growth of 29.4% to reach $216.9 million.

In its reinsurance book, it said the biggest driver was the continued development of its casualty reinsurance classes. Within property reinsurance, it said it saw significant rate increases in property-catastrophe treaty whilst new business drove increases in specialty reinsurance.

It said the growth in the insurance segment was primarily driven by property insurance, where it continues to build out its property construction book of business. It said it also saw substantial rate increases in the property direct and facultative class. Additionally, there was strong growth in energy and marine insurance driven by exposure increases in energy liabilities and new business in cargo and specie.

Alex Maloney (pictured), CEO, said: “I am pleased to report that Lancashire has continued to execute its strategy to take advantage of the significantly improved market conditions.

“In the first three months of 2023 we maintained the momentum we built during 2022 with an increase in gross premiums written of 22.7% to $586.2 million, the highest the Group has delivered in a first quarter.

“Strong rate rises in a number of our product lines have persisted, particularly in property catastrophe business where the supply and demand gap for capacity which we saw at the January 1 renewals remains.

“For most other lines, 2023 is the sixth year of consecutive rate increases and we will continue to grow, where it makes sense, in this positive underwriting environment.

“As for our investments, they delivered a positive total net investment return for the quarter of 1.5%.

“Our track record of navigating the insurance cycle through disciplined risk selection and capital management gives us confidence in delivering on our strategic priorities for the remainder of 2023.

“We look forward to making the most of these exciting underwriting opportunities supported by our robust capital position and talented teams.”

“Gross premiums written increased by $108.3 million or 22.7% and IFRS 17 insurance revenue increased by $81.4 million or 31.6% in the first three months of 2023 compared to the same period in 2022. The Group’s two principal segments, and the key market factors impacting them, are discussed below.”