Lancashire hit by $30m in marine losses
Lancashire Holdings has revealed that it has had exposure to approximately $30 million in loss events within its marine portfolio.
In addition, the company said that it has suffered an accumulation of attritional losses as a result of exposures to a number of recent natural catastrophe events, including hurricane Florence, and typhoons Jebi, Mangkhut and Trami. The aggregate estimated net ultimate losses for these events are expected to be in a range of $25 million to $45 million.
The loss estimates include Lancashire’s aggregate exposures through its Bermuda, UK and Lloyd’s operations. These estimates are after anticipated recoveries from Lancashire’s outwards reinsurance programme and the impact of outwards and inwards reinstatement premiums.
Lancashire said that it has exposure to hurricane and typhoon risks in the following classes: property retrocession, property direct and facultative, property reinsurance, cargo, marine and energy. Lancashire added that its preliminary estimates for the loss events noted above have been derived from a combination of market data and assumptions, a limited number of provisional loss advices, limited client loss data and modelled loss projections. As additional information emerges, the company’s actual ultimate loss may vary from the preliminary estimates announced. The final settlement of all claims is likely to take place over a considerable period of time.
As a result the company predicts a negative return on equity for the third quarter of 2018, adding that if it had not been bit by these events, it would have been profitable for the third quarter. Lancashire expects to remain profitable for the first 9 months of 2018 and will provide a more detailed update as part of its earnings release covering the Group’s financial statements for the third quarter of 2018 due for release on 1 November 2018.
