Lancashire Holdings Limited reported $38.2 million (approximately £29 million) in profit after tax for the second quarter of 2017, compared to $31.5 million for the same period last year.
The underwriter’s net operating profit for the quarter ending June 30 reached $30.9 million, up from $25.6 million in the second quarter of 2016.
Group chief executive Alex Maloney commented: “In the current continuing soft market, I am very pleased with the RoE for the second quarter of 3.2% and 5.9% for the half year.”
According to Maloney, premium rating pressure continues in the current market. “There is evidence from the insurance industry that many insurance classes are operating at marginal levels of profitability at best.”
He said the dynamics of the loss environment cannot be accurately predicted in the short term, but that so far there has been a lower level of catastrophe losses this year compared to the first half of 2016 amid an active run of risk losses in the market.
Maloney added: “The insurance industry has experienced further rationalisation through the process of cost cutting and another flurry of M&A activity. Lancashire continues to respond to the pressures of the market by maintaining our underwriting excellence and discipline and keeping our overheads under control.”
Last month Andrew McKee joined the firm as chief executive of Cathedral Underwriting Limited, Lancashire’s Lloyd's underwriting agency. Maloney said McKee’s many years of experience will help to further strengthen and develop the firm’s Lloyd's business.
CFO Elaine Whelan, on the other hand, noted that Lancashire’s investment portfolio performed well through a further rate increase, citing another quarter with no significant losses.
“Our net loss ratio for the quarter was 12.1%, reflecting continuing favourable development on our prior year reserves,” she said.
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