Lancashire Holdings posted its results for the six months ending June 30, and under the new reporting standard IFRS 17 it reached $1.184 billion in gross written premiums (GWP).
GWP for H1 2023 increased by 26.2% over the same period last year. In total, Lancashire recorded an insurance revenue of $720.9 million, while the insurance service (underwriting) results reached $188.8 million. The undiscounted combined ratio was a healthy 79.2%, or 71.4% on a discounted basis.
Driving the GWP surge was the reinsurance and insurance segments, the former of which was due to the continued buildout of Lancashire’s casualty reinsurance lines as well as new business written in the specialty reinsurance class. As for the insurance segment, property insurance with substantial rate increases in the property direct and facultative line of business, in addition out of its Australia and construction teams, attributed to most of the growth.
Insurance revenue for the group increased by $141.1 million, a 24.3% rise, for the first six months of 2023.
Growth aside, Lancashire noted some hurdles in the first half year from catastrophe and large loss events, totalling $49.5 million. This is lower than the net losses the group posted last year, a period notable for the conflict and Ukraine as well as the floods in Australia; both events resulted in losses worth $53.1 million.
Meanwhile, the group’s investment portfolio recorded growth as well, increasing by $149 million in H1 2023 compared to the same period in 2022. Its investment portfolio returned 2.2% for the period, with positive returns of $51.4 million of investment income thanks to higher yields. Comparatively, Lancashire’s investment portfolio in 2022 returned -3.8% in H1 2022.
“We are very pleased with our performance in the first half of 2023. Our long-term strategy to develop a more diversified and capital-efficient product portfolio is delivering the expected benefits, with a half year change in diluted book value per share of 12.2%,” Lancashire Group CEO Alex Maloney said.
“The Group also continues to focus on delivering on our environmental, social and governance objectives,” he said. “The Lancashire Foundation, which has been operating since 2007, makes a tangible difference through its support for charities that have a positive impact on our communities and the environment. Additionally, we benefit from being part of the insurance industry's discussions around climate change through our membership of ClimateWise, which we joined last year.”
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