Lancashire GWP rises 23% through first nine months
Lancashire Holdings has reported a 23% increase in gross written premiums to $1.559 billion for the first nine months of the year.
The Bermuda-based re/insurer also announced its long standing chairman will be stepping down.
In a trading statement, the company said the increase in GWP was driven by improvement in both segments, with insurance premiums rising by 28% to $722 million while reinsurance recorded a 19.2% increase to $838 million.
IFRS 17 insurance revenue for the group was $1.111 billi, up 22% from $910 million in 2022.
Lancashire said the group renewal price index rose 117%. Total net investment return was 2.8%.
The company provided a capital return of up to $169 million made up of $119 million in a special dividend and up to $50 million in buy-backs of Lancashire’s common shares.
Alex Maloney, group chief executive officer, said: “During the first nine months of 2023, we have continued to successfully implement our long-term strategy to manage the market cycle and deliver strong profitable growth through a portfolio of diversified products.
“Gross premiums written increased by 23.2% to $1.6 billion in the year to date, with rates remaining extremely attractive across our product lines. We continue to expect a positive environment into 2024, with further opportunities for Lancashire.
“Our investment returns have also continued to benefit from the higher interest rate environment and the short duration of our portfolio, with a total net investment return, including unrealised gains and losses, of 2.8% for the period. “
“Capital management and balancing risk and return have for a long time been at the heart of our strategy, and we continue to hold an extremely robust capital position. Our disciplined underwriting, and successful diversification strategy, mean that we are in a position to pay out some of the capital generated to date, and still have the flexibility to fund further growth and realise our ambitions for this phase of the market cycle.
“Our previously announced plans to expand our international footprint further through Lancashire Insurance U.S. continue, and we are pleased with the progress we are making towards an underwriting launch in early 2024.”
Lancashire also announced the retirement of Peter Clarke as chairman, He will officially step down after the 2024 annual general meeting next May 1.
He will be succeeded by Philip Broadley who has been appointed as a non-executive director and as chair designate.
Clarke has served as chair of Lancashire since 2016, and has recently completed nine years’ service as a director on the Lancashire Board.
Broadley is senior independent director and audit committee chair at AstraZeneca and a non-executive director of Legal & General Group and is expected to continue in those roles. He began his career at Arthur Andersen in 1983, becoming a partner in 1993, where he specialised in auditing banks and insurance companies.
He was group finance director at both Prudential from 2000 and at Old Mutual from 2008 until 2014.
He has served as Chair of the 100 Group of Finance Directors and as a member of the Code Committee of The Takeover Panel. He chaired the Group Audit Committee of Legal & General for six years.
Clarke said: “I am delighted to welcome Philip to the Lancashire Group. Philip will bring a wealth of strategic and leadership skills to our Board. He joins Lancashire at an exciting time, with great opportunities for profitable growth ahead. I look forward to working closely with Philip and Alex in planning the transition in the Chair role over the coming months.”
Maloney said: “We are delighted to announce Philip’s appointment as a non-executive director, and to welcome him to the Lancashire Group. Philip’s extensive financial services and insurance experience will add great value to our Board, and I look forward to working with him in his role as chair in due course.”
Broadley said: “Lancashire is in a period of robust growth in a strong market environment. I join a business which is in very good hands. I am extremely pleased to accept my appointment to the Board. I look forward to working with Alex and all my colleagues at Lancashire and to leading the LHL Board as Chair following the 2024 AGM.”
