Lancashire Holdings has reported results for the six months ended June 30, posting gross premiums written of US$1,356.2 million, up 5.8% from US$1,282.2 million a year earlier. Insurance revenue rose 8.9% year‑on‑year to US$930.1 million.
The insurance service result for the period was US$155.7 million, compared with US$222.8 million in the first half of 2024. The discounted combined ratio stood at 87.4%, up from 73.0% a year earlier, while the undiscounted combined ratio increased to 97.8% from 82.2%. The net insurance ratio rose to 78.6% from 65.2%.
In the first quarter of 2025, gross premiums written rose 12.7% year‑on‑year to US$712.1 million, with insurance revenue increasing 8.7% to US$458.9 million. The group reported a Renewal Price Index of 97%, indicating broadly stable rates across its portfolio.
The estimated range for California wildfire losses remained unchanged at US$145 million to US$165 million, with the loss spread across multiple classes. Total investment return for the quarter was 1.9%, and the company reported a regulatory Economic Capital Ratio of 271% as at 31 December 2024, reflecting its capital position heading into the first half.
Segment performance in recent quarters showed growth in the reinsurance portfolio across property, casualty, and energy/marine lines. Renewals linked to California wildfire exposures included reinstatement premiums that supported revenue.
The US insurance platform continued to expand, offsetting reduced activity in aviation classes, while the London Market and Bermuda operations contributed to portfolio diversification. This balance across lines and regions has been a key factor in maintaining premium growth despite loss events and selective rate adjustments.
Net investment return was US$108.2 million, compared with US$75.2 million in the prior‑year period. Total investment return reached 3.7%, up from 2.3% in 2024, supported by higher interest income and valuation gains.
Profit after tax was US$109.2 million, down from US$200.8 million, producing a 7.6% change in diluted book value per share, compared with 14.0% last year. Diluted earnings per share were US$0.44, down from US$0.82.
The board paid dividends per common share of US$0.40 during the financial year to date, compared with US$0.65 in the first half of 2024. The company expects its full‑year return on equity to be in the high‑teens, an upgrade from its earlier mid‑teens guidance, assuming a similar loss environment in the second half of 2025 as in 2024.
Group CEO Alex Maloney (pictured above) said the results reflect increased resilience in the business model and noted that growth has been timed to capitalise on the underwriting cycle. He said the underwriting portfolio is designed to absorb significant industry losses while producing more stable returns.
“The impact of the wildfires in California in January has been felt across the sector. Estimated industry insured losses are around $40 billion, making it one of the costliest wildfire disasters ever recorded. In this context, our strong profit after tax of $109.2 million and healthy discounted combined ratio for the period of 87.4% (undiscounted of 97.8%) shows our ability to deliver attractive returns even in a challenging loss environment,” he said.
Marking its 20th year of operations, the group said it remains focused on maintaining relationships with clients and brokers while delivering returns to investors. Maloney credited employees across all regions for contributing to the company’s strategic objectives and sustaining its organisational culture.
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