Lancashire’s acquisition of Cathedral and its third party manager Kinesis have helped to drive impressive premium growth during the first quarter.
Commenting on the results, Alex Maloney, CEO of Lancashire says: “The first quarter has been a busy one on many fronts. There has been the successful launch of the initial Kinesis product, the development and Lloyd’s approval of the business plan for the expansion of Cathedral’s syndicate 3010 and the realignment of the Lancashire companies’ catastrophe exposures into the property catastrophe excess of loss line.”
“Thanks to our strong value-added proposition with our brokers and clients as a leader for much of our business, we have been able to protect the core business lines at Lancashire companies and Cathedral from the weakening rate environment. We have maintained our position and in spite of the pressure on signings, we continue to see strong submission levels for both new and renewal business.”
Gross premiums written increased by 47.4 percent to $316.7 in the first quarter of 2014 compared to the same period in 2013. The increase in premiums has been largely driven by consolidation of the company’s new Lloyd’s segment, following the acquisition of Cathedral in the fourth quarter of 2013.
Combined ratio for the quarter was 66.4 percent, up from the 51.2 percent achieved in the first quarter of 2013. While net investment income rose to $7.1 million for the first quarter of 2014, an increase of 16.4 percent from the first quarter of 2013.
Lancashire, Q1, results