Lancashire Holdings Limited has reported gross written premiums (GWP) of $503.4 million within its property and casualty (P&C) reinsurance segment for the first nine months of 2021.
This is $231.7 million, or 85.3%, higher than the $271.7 million that the segment recorded for the 9M period last year.
This huge level of growth helped to boost Lancashire’s overall GWP levels to $967.7 million, which was $309.0 million, or 46.9%, higher than the $658.7 million it reported last year.
The primary P&C segment also had a strong 9M performance, with GWP up 40.7% to $158.4 million, while aviation premiums grew 13.6% to $92.1 million, and energy was up 23.1% to $145.2 million.
Lancashire noted that the addition of new underwriting teams in 2021 enabled it to access new business bound in the casualty, accident and health, and specialty reinsurance classes.
The remainder of the book saw strong new business growth across a range of segments and particularly in the property political risk, property direct and facultative, aviation, energy power and energy liabilities classes of business
The only segment to see a decrease in GWP was marine, which declined by 8.9% to $68.6 million for the nine months to September 30th.
Lancashire explained that gross premiums written in the property catastrophe class increased largely as a result of new business and rate increases. Inwards reinstatement premiums, principally as a result of natural catastrophe loss events in the third quarter of 2021, also contributed meaningfully to the growth in this segment.
As previously reported, Lancashire saw net losses of between $165 million and $185 million due to Q3 natural catastrophe events, which included Hurricane Ida and European storms and flood losses.
The company also recorded an approximately $40 million risk loss in its political violence portfolio related to the unrest in South Africa in July 2021.
Prior year favourable development for the first nine months of 2021 was $69.6 million, compared to favourable development of $11.2 million for the same period in 2020.
“As announced on 21 October 2021, the Group had exposure to the recent natural catastrophe events and to the political unrest in South Africa. The Group’s loss estimates for these recent events are within our expectations and risk appetites,” said Lancashire Group CEO Alex Maloney.
“Despite another challenging year of losses for Lancashire and the industry, I am very pleased with the Group’s growth in premium in an improved and still-improving rating environment in many of our core business lines. We have reported an increase in gross premiums written of 46.9% to $967.7 million for the year to date, delivering on our strategy to deploy more of our capital when pricing conditions are favourable.”
“The devastating consequences of the recent catastrophe events remind us of the value of the insurance and risk solutions we sell, providing the opportunity for communities to rebuild following loss and disruption,” Maloney continued.
“Looking ahead, the Group remains strongly capitalised to be able to take advantage of the improving market, both for the rest of this year and to achieve our ambitious underwriting plans for 2022.”