Lancashire gross written premiums reach first-quarter record

The FTSE 150 company said its group renewal price index (RPI) was 117% in the three months ended 31 March, indicating an increase in insurance premiums across the board.

Its IFRS 17 insurance revenue also increased, by 31.6% year-on-year, totalling $338.7m.

The firm’s total net investment return, including unrealised gains and losses, was reported to be 1.5%.

Its regulatory ECR ratio, which measures a company's ability to meet its insurance liabilities, was reported to be approximately 308% as at 31 December.

“I am pleased to report that Lancashire has continued to execute its strategy to take advantage of the significantly improved market conditions,” said group chief executive officer Alex Maloney.

“In the first three months of 2023 we maintained the momentum we built during 2022, with an increase in gross premiums written [to] the highest the group has delivered in a first quarter.

“Strong rate rises in a number of our product lines have persisted, particularly in property catastrophe business where the supply and demand gap for capacity which we saw at the 1 January renewals remains.”

Maloney said that for most other lines, 2023 was the sixth year of consecutive rate increases, adding that Lancashire would continue to grow “where it makes sense” in the current, positive underwriting environment.

“As for our investments, they delivered a positive total net investment return for the quarter of 1.5%.

“Our track record of navigating the insurance cycle through disciplined risk selection and capital management gives us confidence in delivering on our strategic priorities for the remainder of 2023.

“We look forward to making the most of these exciting underwriting opportunities supported by our robust capital position and talented teams.”

At 0827 BST, shares in Lancashire Holdings were up 3.57% at 595p.

Reporting by Josh White for Sharecast.com.