Lancashire Holdings Limited, with operating subsidiaries in the UK and Bermuda, has issued its business update for the first nine months of 2022.
During the period, Lancashire saw a 34.3% increase in gross written premium (GWP), from US$967.7 million in 9M 2021 to US$1.3 billion this time around. All segments – property and casualty (P&C) reinsurance (US$739.3 million), P&C insurance (US$217.8 million), aviation (US$93.9 million), energy (US$156 million), and marine (US$93.1 million) – all improved in terms of GWP.
“The increase in gross premiums written of 34.3% for the first nine months of 2022, compared to the same period in 2021, was primarily due to growth in the property and casualty reinsurance segment,” noted Lancashire in its trading statement.
“This was mainly due to new business in the casualty reinsurance and financial lines classes of business as well as the continued strong RPI (renewal price index) for this segment of 108%, which is driven by the continued hardening in property reinsurance classes.”
The global specialty insurance and reinsurance provider also highlighted: “In the property and casualty insurance segment, the new property construction class of business has contributed meaningfully to the premium growth alongside the continued build-out of the property direct and facultative book of business.”
Aside from its GWP numbers, Lancashire also outlined the company’s loss estimates for Hurricane Ian.
“Our estimated ultimate net losses incurred in relation to Hurricane Ian, excluding the impact of reinstatement premiums and Lancashire capital management, are in the range of US$160 million to US$190 million,” it said.
“Loss information after these types of catastrophe events can take some time to emerge. As additional information emerges, the group’s actual ultimate net losses may vary, perhaps materially, from current estimates.”
Group chief executive Alex Maloney, meanwhile, expressed the view that Lancashire is well placed to manage inflationary pressures, adding that inflation also presents further opportunities as clients seek to secure additional cover.
“Even allowing for the impact of Hurricane Ian, and unrealised investment losses, our capital position remains strong, and we will drive forward with our growth strategy and capitalise on the strong rate environment through our diversified product portfolio,” said Maloney.
