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Approximately $30 million and as much as $45 million – that’s what Lancashire Holdings Limited initially expects in terms of losses for its marine business and from natural catastrophes, respectively.
In an announcement this morning, Lancashire reported being exposed to loss events within its marine portfolio and also cited an accumulation of attritional losses resulting from exposures to recent natural catastrophe events such as hurricane Florence and typhoons Jebi, Mangkhut, and Trami.
Lancashire said the preliminary loss approximations include the aggregate exposures through its Bermuda, UK, and Lloyd’s operations and are after anticipated recoveries from its outwards reinsurance programme and the impact of outwards and inwards reinstatement premiums.
“Given these loss estimates, the company expects that it will produce a negative return on equity for the third quarter of 2018,” stated Lancashire. “Absent these events, the company would have been profitable for the third quarter.
“The company also expects to remain profitable for the first nine months of 2018.”
Lancashire has exposure to hurricane and typhoon risks in the classes of property retrocession, property direct and facultative, property reinsurance, cargo, marine, and energy.
