The latest financials from Lancashire Holdings look good, plus the company has announced a new underwriting operation will be launched in the US market;
Alex Maloney, Group Chief Executive Officer, commented:
“We are very pleased with our performance in the first half of 2023. 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%. Our philosophy has always been to grow when market conditions are favourable, while maintaining our approach to underwriting discipline. During the first six months of 2023 we continued to take advantage of the strong underwriting environment with gross premiums written increasing 26.2% year-on-year. The undiscounted combined ratio was a healthy 79.2%, or 71.4% on a discounted basis.
The rating environment remains positive across our product lines and we do not see that changing during the remainder of the year.
Our investments have delivered a positive net return of 2.2% or $63.2 million as we benefit from higher yields due to the short duration of the portfolio.
Lancashire has long been recognised as a business that actively manages the underwriting cycle and, when it makes sense to do so, seeks new areas for disciplined growth. With that in mind, subject to all necessary approvals, we intend to expand our international footprint
and launch Lancashire Insurance U.S., which will operate under a delegated underwriting arrangement with Lancashire’s UK company platform.
Lancashire Insurance U.S. will be complementary to our existing capabilities and will give us the ability to write business that is within our appetite and that we currently do not have access to. The new operation in the U.S. is expected to begin underwriting in early 2024.”