Lancashire Holdings Ltd., the Bermuda-based specialty insurer, reported an after-tax profit of $321.3 million for the year ending December 31, 2024, driven by strong underwriting performance and a 5% investment return. The company’s gross premiums written rose 11.3%, exceeding $2.1 billion, while insurance revenue increased 16.1%, reaching nearly $1.8 billion. Lancashire is listed on the London Stock Exchange.
The announcement comes as Lancashire confirms its role as a key insurer in the Baltimore bridge collapse, a high-profile disaster that resulted in extensive claims. The MV Dali collision, which led to the collapse of the Francis Scott Key Bridge in March 2024, has emerged as one of the most significant loss events for the company this year.
Lancashire reported an insurance service result of $379.9 million, with a discounted combined ratio of 80.0% and an undiscounted combined ratio of 89.1%. The company continued its underwriting expansion, with reinsurance segment premiums climbing 13.5% and insurance segment premiums rising 9.1%. Growth was fueled by new business, particularly within the United States and Australian property markets.
Investment income also contributed to Lancashire’s financial standing, rising 33.5% to $144.8 million, with a total investment return of five%. Despite its gains, Lancashire absorbed $214.1 million in net losses from catastrophic and large-risk events, including hurricanes Milton, Helene, and Debby, storm Boris, and Calgary hailstorms.
The Baltimore bridge disaster was the single largest large-risk event absorbed by the company, reinforcing broader concerns over rising claims severity across the insurance industry.
Lancashire returned $354.2 million to shareholders in 2024. The company’s board declared a total year-end dividend of $0.40 per share, consisting of a final ordinary dividend of $0.15 and a special dividend of $0.25.
“Importantly, we remain extremely well capitalized to fund future growth opportunities,” said Alex Maloney, group chief executive officer.
Looking ahead, the company expects to generate a mid-teens return on equity in 2025, assuming loss activity remains in line with 2024 levels. However, early estimates suggest that the January 2025 California wildfires could impact results by $145 million to $165 million.
Lancashire Holdings Limited is a Bermuda-based insurance and reinsurance company specializing in property, casualty, energy, and marine coverage. Founded in 2005, Lancashire was established to provide specialty insurance solutions in high-risk sectors, focusing on underwriting discipline and capital efficiency.
Lancashire Holdings was founded in Bermuda in 2005 by Richard Brindle, a former CEO of Lloyd’s insurer Ascot Underwriting Ltd. The company was established in response to the demand for specialized insurance and reinsurance solutions, particularly following catastrophic events such as Hurricane Katrina, which highlighted gaps in the market for property catastrophe insurance.
From its inception, Lancashire positioned itself as a specialty (re)insurer with a focus on high-margin, low-frequency risks. The company took advantage of market dislocations following major catastrophe events, offering tailored coverage in areas such as property catastrophe, energy, terrorism, and aviation.
By 2009, Lancashire had expanded its underwriting capabilities and further solidified its presence in the Lloyd’s market. The acquisition of Cathedral Capital in 2013 allowed Lancashire to establish a stronger footprint within Lloyd’s of London, increasing access to specialized underwriting expertise and expanding its global reach.
Lancashire continued to grow through selective market participation, writing business across North America, Europe, and Asia. The firm focused on maintaining strict underwriting discipline while ensuring prudent capital management, making it one of the more profitable companies in the specialty insurance sector.
Lancashire operates through multiple platforms, including Lancashire Insurance Company Limited in Bermuda, Lancashire Insurance Company in the United Kingdom, and Lloyd’s Syndicates 2010 and 3010. The firm has consistently reported strong financial results, emphasizing profitability over volume.
Its disciplined approach to underwriting has allowed the company to withstand large catastrophe losses while maintaining competitive returns. Lancashire’s combined ratio, a key measure of profitability in the insurance industry, has remained relatively low, reinforcing its strong market position.
In recent years, Lancashire has expanded its presence in the United States through Lancashire Insurance US, reflecting its strategy to grow in high-demand markets. Leadership transitions have accompanied this growth, with the company reinforcing its commitment to underwriting excellence and operational efficiency.
The company has also faced increasing catastrophe-related claims, including those from hurricanes, wildfires, and major industrial accidents. One of the most high-profile claims in Lancashire’s recent history is the 2024 Baltimore bridge disaster, which significantly impacted the insurance sector.
As Lancashire approaches its 20th anniversary in 2025, the company remains focused on maintaining its specialty underwriting expertise and capital discipline. With increasing climate-related risks and evolving regulatory challenges, Lancashire is expected to continue adapting its strategy while retaining its core focus on high-margin, specialty insurance solutions.
