Lancashire swings to red in 2021

11-02-2022

Lancashire swings to red in 2021

shutterstock/Monster Ztudio

Bermuda-based and London-listed insurer Lancashire Holdings has reported strong premium growth in 2021. Its full-year results show gross written premiums up by half to a record $1.2 billion, from $814.1 million in 2020. 

However, heavy weather-related and large losses meant its combined ratio of 107.3% was little better than last year (107.8%). Overall for the year, the insurer swung to a $56.8m loss, against a $5.9m profit in 2020.

Winter Storm Uri, Hurricane Ida, European storms and floods, and Midwest US tornadoes contributed to a significant year for insured losses. The business said. It is only the second year the insurer has reported an overall loss since its inception. 

Nevertheless, group chief executive Alex Maloney was upbeat: “2021 saw Lancashire successfully continue the long-term build-out of its franchise and expand into a number of new classes, with gross premiums written increasing by 50%. Much of this premium will continue to earn through in 2022 and is expected to provide earnings resilience in future years. Delivery against this aspect of our strategy means we are well-positioned for profitable growth in the most attractive market conditions of recent years,” he said.

“Our strong capital position allows us to execute our ambitious business plans in which we expect further rate increases on our existing portfolio, with new underwriting teams delivering additional premiums and new business growth within both our catastrophe and non-catastrophe lines”.

Lancashire Holdings, Growth, Profit, Catastrophe, Insurance, Reinsurance, Alex Maloney, London, UK, Bermuda

Bermuda Re