Lancashire Holdings has reported gross premiums written of $712.1 million for the first quarter of 2025, representing a 12.7% year-on-year increase. The group’s renewal price index (RPI) for the period stood at 97%.
The reinsurance segment contributed to the growth with new business in property, casualty, and energy and marine lines. There were also higher reinstatement premiums, primarily tied to losses from the California wildfires.
Meanwhile, growth in the insurance segment – driven mainly by the US platform – was partly offset by lower volumes in aviation.
Insurance revenue for the quarter rose by 8.7% to $458.9 million, an increase of $36.9 million compared to the same period last year. The company noted that the lower growth rate in insurance revenue relative to gross premiums written was primarily the result of how reinstatement premiums are accounted for under IFRS 17.
The group’s previously communicated estimated range for net ultimate losses related to the January California wildfires remains unchanged at between $145 million and $165 million. These estimates, which are undiscounted and include reinstatement premiums, fall within the group’s modelled expectations for this type of catastrophe event.
Lancashire noted that additional information related to these losses may emerge over time and could materially affect the final outcome.
Comparatively, for the year ending December 31, 2024, Lancashire reported an after-tax profit of £250.6 million. The company’s gross premiums written rose 11.3%, exceeding £1.64 billion, while insurance revenue increased 16.1%, reaching nearly £1.4 billion.
Lancashire’s investment portfolio delivered a total return of 1.9% in Q1 2025. According to the group, this was driven by income generated through higher yields and gains from falling treasury rates, which helped offset a slight widening in investment grade credit spreads. Private investment funds also delivered strong performance during the quarter.
Group CEO Alex Maloney (pictured above) said the company had continued to capitalize on underwriting opportunities while maintaining its risk-focused approach. He added that, excluding the wildfire impact, the underlying performance remained strong.
Maloney said that even in a year similar to 2024 in terms of catastrophe and large risk losses, including the California wildfires, the company expects to achieve a return on equity in the mid-teens for 2025.
He also noted that recent results reflect the group’s strategy, underwriting capabilities, and market relationships. As of December 31, 2024, the group’s regulatory ECR ratio stood at 271%.
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