Lancashire Holdings which manages syndicates 2010 and 3010 reported interesting and encouraging numbers for the first half of 2021
- gross premium up by approx 41% compared to last year - ability to grow to this extent thanks to earlier capital raising;
- underwriting profit $127m ($39.4m in HY1 2020);
- their renewal price index at +111%;
- a low combined ratio of 80.7% which but for Uri would have been 65.7%;
- reserve releases $54m approx. (-$5.1m in HY1 2020) thanks to IBNR releases;
- reserves for Covid stable at $41.6m net.
The Press Release and and slides from the presentation to analysts available here.
Classes of business
- property and casualty reinsurance grew the most at 73% thanks new business and rate increases in the hardening market;
- property and casualty insurance grew 30% approx mainly in the D&F (direct and facultative) property area and an improving political risks class;
- aviation class saw the highest renewal prices at 113% and so new business added in aviation hull and liability;
- energy up too as market is "dislocated" except in exploration and production ("upstream") energy;
The cumulative rate increases achieved over the past three years has fed through into these numbers. Much lower first half loss ratio assisted considerably at 38.4% (22.6% absent "Uri").
Lancashire expects the rating environment to remain positive and they will retain profitable earnings for future growth.