Lancashire Holdings Limited reported growth during the first half of 2024 across various financial metrics, including profit after tax. The company saw a 26% surge in profits of $200.8 million and significant growth in gross premiums and insurance revenue.
“Lancashire has delivered its best ever half-year performance in the first six months of 2024,” said Alex Maloney, group CEO. “This outstanding result demonstrates the continued success of our long-term strategy to manage the market cycle and further strengthen our business through diversification.
“We have continued to take advantage of favourable market conditions while holding true to our principles of disciplined underwriting and optimised capital allocation.”
In the first six months of the year, the group grew ahead of rate with gross premiums written increasing 8.3% year-on-year, while insurance revenue spiked 18.5% to $854.1 million. Lancashire also reported a combined ratio of 73.0% or 82.2% on an undiscounted basis.
The firm is continuing to see rates remain positive across its product suite with a Group RPI for the period of 102%. Maloney noted its strategic focus on adapting to the market cycle which can be seen in the launch of its new US operation which he has said has made a “fantastic start”. Looking to the loss environment of H1 2024, he said it was relatively active for the industry but significant insured market events were not individually material for the group which delivered a strong underwriting performance.
“With our strong balance sheet and capital base, we remain in excellent health going into the second half of the year,” he said. “Based on our strong performance in the first six months of the year, we are well on track to deliver on our full year guidance for an average loss year undiscounted combined ratio in the mid-80% range, and an RoE, as measured by change in diluted book value per share, of around 20%.”
“As we head into the remainder of 2024, building on this record half-year performance, we look with confidence to 2025 and beyond. I would like to thank everyone at Lancashire for their hard work, and our clients, brokers and shareholders for their support,” Maloney added
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