Lancashire Holdings swings to profit in first half

Lancashire Holdings said on Wednesday that it swung to a profit in the first half as gross premiums written surged.

In the six months to 30 June, the insurer swung to a pre-tax profit of $54.1m from a loss of $23m in the first half of the previous year, with gross premiums written up 40.7% to $697.2m.

Lancashire said the rating environment continues to be favourable for most of the products it sells, giving rise to a renewal price index of 111% and "considerable" organic growth.

Chief executive office Alex Maloney said: "Looking ahead, we expect the rating environment to remain positive."

Underwriting profit increased to $127.1m from $39.4m despite the impact of Winter Storm Uri in the US in the first quarter. Lancashire said it did not incur any other significant losses and had positive reserve releases of $53.6m during the period, while its loss reserves for Covid-19 remain stable.

Lancashire’s combined ratio - which measures an insurer’s profitability - improved to 80.7% from 106.9%.

"It has always been our strategy to write more business and deploy more of our capital when market conditions dictate, and these results amply demonstrate our persistent focus on delivering on our strategic aims," Maloney said.