Lancashire Holdings has disclosed its financial outcomes for the full-year period ending on December 31, 2023.
The group reported an increase in gross premiums written, from $1,652.3 million in 2022 to $1,931.7 million in 2023. Revenue from insurance activities also rose to $1,519.9 million, compared to $1,226.5 million in the previous year.
The insurance service result improved to $382.1 million, up from $141.6 million, while a turnaround was also observed in the net investment return, which surged to $160.5 million from a previous loss of $76.7 million. This rebound contributed to a net profit after tax of $321.5 million, contrasting sharply with a loss of $15.5 million in 2022.
The net insurance ratio improved to 65.1%, down from 83.4%. The combined ratio, both discounted and undiscounted, witnessed substantial improvements, signalling a stronger underwriting performance.
Moreover, shareholders saw an increase in the diluted book value per share to $6.17 from $5.48, alongside a rise in dividends per common share paid within the financial year to $0.65 from $0.15.
Looking ahead to 2024, Lancashire anticipates sustained market discipline and a stable, profitable landscape.
In the past year, Lancashire launched Lancashire Insurance US in 2023, aiming to tap into the country’s excess and surplus market through a delegated underwriting arrangement. This move is set to enhance the group's distribution channels and client base in the United States.
The Lancashire Foundation's philanthropic efforts were also showcased, with $700,000 donated to various causes in 2023, reflecting the company's ongoing commitment to community engagement.
Furthermore, Lancashire also announced that it is closely monitoring the potential implications of the new Bermuda Corporate Income Tax legislation. The company anticipates that it will not be subject to this tax until January 1, 2030, due to its limited international presence, which aligns with specific exclusions in the tax rules.
“Lancashire delivered an outstanding performance in 2023. We continued to focus on writing profitable business in the best market conditions we have seen for a decade. Aligned to our belief in managing the market cycle, we have built a better balanced and more diverse underwriting portfolio over the past five years, which is generating more profit against our capital base. This has been one of our core strategic goals and will continue to be a focus going forwards,” group CEO Alex Maloney said.
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