Lancashire Holdings has published its trading statement for the period up to Sept. 30, detailing its financial performance.
Gross premiums for the group surged by $294.2 million, marking a 23.2% increment within the first nine months of the year compared to the corresponding time frame in 2022. It is worth noting that Lancashire observed a 26.2% increase in this segment in the first half of the year over the same period last year.
In the reinsurance segment, the expansion of casualty reinsurance operations was a notable driver of growth. Specialty reinsurance continued to capture new business due to a favourable rating climate. Property reinsurance classes also saw considerable rate enhancements. The Rate on Line Index (RPI) stood at 123% for this segment.
For the insurance segment, property insurance remained the dominant growth force, spurred by marked rate increases in direct and facultative property classes and the progressive development of the property construction portfolio.
In specialty insurance, there was an uptick in premiums in the political risk division, while energy and marine sectors saw growth leveraging positive market dynamics. Aviation insurance recorded robust RPIs, although the main renewal phase is anticipated in the final quarter. The segment's RPI reached 112%.
The implementation of IFRS 17 introduced insurance revenue as a new financial metric. Considering this new standard, the insurance revenue climbed by $200.9 million, a 22.1% increase in the first three quarters of 2023 compared to the same period the previous year. The factors boosting gross premiums written similarly propelled the rise in insurance revenue.
Regarding loss events, the first nine months of 2023 witnessed a series of natural catastrophes, including wind and convective storms in the US, wildfires in Hawaii, an earthquake in Turkey, hurricane Idalia, and cyclone-induced floods in New Zealand. Additionally, some risk losses were recorded, particularly in the energy sector, though these were not materially significant individually.
“During the first nine months of 2023, we have continued to successfully implement our long-term strategy to manage the market cycle and deliver strong profitable growth through a portfolio of diversified products,” said Alex Maloney, Lancashire Group CEO. “I am always impressed by the talent, hard work and dedication of our people across the Lancashire Group and I would like to thank them for their ongoing commitment to the business. I would also like to thank our clients, brokers and shareholders for their continued support.”
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