Lancashire reports strong momentum in second quarter

The company reported a significant surge in gross premiums written of 26.2%, to $1.18bn.

Insurance revenue for the period amounted to $720.9m, while Lancashire reported an insurance service result of $188.8m and a subsequent profit after tax amounting to $159.2m.

In terms of the company's combined ratio, which serves as a measure of profitability in the insurance sector, Lancashire showcased a discounted combined ratio of 71.4% and an undiscounted combined ratio of 79.2%.

Lower ratios generally indicate higher profitability.

The group also highlighted its total net investment return, which stood at 2.2%.

Shareholders were also given a reason to celebrate, as the company declared an interim dividend of five cents per common share.

"We are very pleased with our performance in the first half of 2023," said group chief executive officer Alex Maloney.

"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%."

Reporting by Josh White for Sharecast.com.