Lancashire Holdings has released its trading statement for the first three months of 2021, emphasising its fastest ever first quarter premium growth and financial performance that was strong but for the impact of Winter Storm Uri.
Lancashire reported gross written premiums (GWP) of $354.8 million in Q1, compared to $242.8 million the previous year. This growth was largely driven by the property and casualty (P&C) reinsurance business, which reported GWP of $223 million, up from $113.1 million the previous year, an increase of 97.2 percent.
Its P&C insurance, marine and aviation businesses all saw single digit declines in GWP, with energy the only other business line that saw increases.
Alex Maloney, group chief executive officer, said the increase in Lancashire’s top line premium income represents its strongest ever Q1 premium, which was supported by its equity capital issuance in June 2020.
“Our growth was driven by the improved market conditions,” he said. “We have increased revenue across many of our core lines as well as achieving faster than expected momentum in some of our newer business lines.”
Maloney argued that, without the impact of Winter Storm Uri, Lancashire’s underlying financial performance was strong. “We look forward to the exciting opportunities that are expected to develop throughout the year as we are able to more flexibly combine the benefits of remote interaction with a return to the office environment,” he said.
“This will provide the opportunity for greater engagement amongst ourselves, our clients and our broader stakeholders. Furthermore, our strong balance sheet, boosted by our recent debt raise, stands us in good stead to fund the opportunities we see ahead.”
Lancashire Holdings, Alex Maloney, Results