Lancashire Holdings Ltd Q4 2017 Results

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15 February, 2018

Lancashire Holdings Ltd Q4 2017 Results

Lancashire Holdings Limited has today announced its results for the fourth quarter of 2017 and the year ended 31 December 2017.

Financial highlights:

 

Three months ended

 

Twelve months ended

 

Highlights ($m)

31-Dec-17

31-Dec-16

31-Dec-17

31-Dec-16

Gross premiums written

67.4

95.1

591.6

633.9

Net premiums written

52.1

88.1

398

458.7

(Loss) Profit before tax

-3.2

50.9

-72.9

150.4

(Loss) Profit after tax1

-5.4

51.1

-71.1

153.8

Comprehensive (loss) income1

-9.1

34.6

-66.2

157.9

Net operating (loss) profit1

-3.1

45.9

-86

144

Net loss ratio

75.50%

32.60%

78.40%

29.20%

Combined ratio

119.50%

79.00%

124.90%

76.50%

Following one of the most severe years for industry insured catastrophe losses, Lancashire has reported a pre-tax loss of $72.9m for 2017, compared to a profit of $150.4mn the previous year.

For the full year, the combined ratio was 48.4 points worse than in 2016 and this can largely be attributed to the losses from hurricanes Harvey, Irma, and Maria, the Mexican earthquakes and the two Californian wildfires. 

The net incurred losses to the insurer from the hurricanes and earthquakes alone are given as $147.3mn, with the wildfires adding an additional $34.5mn, excluding the impact of inwards and outwards reinstatement premiums and its share of losses from asset management platform Kinesis.

Commenting on the impact of the 2017 catastrophes on the company and looking to the future, Alex Maloney CEO said: 

“Overall we feel that we had the right underwriting strategy, risk levels and capital headroom to absorb these events when balanced against the underwriting opportunity that presented itself during 2017. With the impairment of capital due to these catastrophe losses, and attrition across many specialty classes, the market has finally turned a corner and we are witnessing rate increases, or at least stability, across most of the classes of business we underwrite.”

To view the full press release click here.