Lancashire Holdings group results 31 December 2023
Lancashire has published today its 2023 group results to the LSE.
The Press Release is available in full here as well as the presentation key extracts as below:-
- Gross premiums: US$1,931.7m (2023: US$1,652.3.) +17%
- Profit before tax: US$321.5m (2023: US$-15.5m)
- Investment return: US$160.5m +5.7% (2023: US$-76.7m)
- Combined ratio: 74.9% (2023: 90.2%)
- Increased dividend and special dividend to reflect 2023 performance
- Renewal Price Index: 122% for reinsurance and 110% insurance
Alex Maloney, Lancashire's CEO stated in the Press Release:-
"The market showed continued discipline at the 1 January renewals and we are happy with the outcome. From the supply side, we have seen no significant new entrants coming into the market and existing participants have shown willingness to support good quality business at the right level after a strong year in 2023. We are continuing to see growth in demand from clients due to inflationary pressures, helping mitigate some of the increased supply.
Importantly, for catastrophe exposed reinsurance, attachment levels have remained a focus for the market, with sustained reluctance for low attaching layers. Within our non-catastrophe exposed products, almost all product lines remain in a very strong position from a rating adequacy perspective. Overall, for 2024 the market appears to be more stable, at healthier levels of profitability. We continue to remain disciplined in our underwriting, while taking advantage of the stronger market conditions."
There were no material loss events in 2023 - total US$106.1m compared to US$329.4m in 2022.
Lancashire says that it sees strong opportunities in 2024 and will continue to grow while these opportunities persist in such an attractive rating environment.
We await the 2021 Account result for Syndicate 2010 and updated forecasts for the 2022 Account.