Lancashire Holdings Limited, the Bermuda-based insurer and reinsurer, delivered profit after tax of $141.7 million in the first half of 2026, an increase of 30% year-on-year, as the undiscounted combined ratio strengthened to 90.8% from 97.8% a year earlier.
During the six month period, gross premiums written (GPW) decreased to $1.315 billion from $1.356 billion in H1’25, as reinsurance GPW fell to $749 million from $816 million, partially offset by a rise in insurance GPW to $566 million from $541 million.
In the reinsurance segment, Lancashire reveals that it saw “lower level of inwards reinstatement premiums and executed a planned reduction in inwards property retrocession business, which was partially offset by growth in energy, marine and aviation treaty lines.”
Growth in the insurance arm was broad based across the energy, marine, and casualty lines of business.
Year-on-year, insurance revenue was flat for H1’26 at $930 million, as a reduction in reinsurance revenue to $437 million was offset by a rise in insurance revenue to $493 million.
“Gross premiums earned, the key driver of insurance revenue, as a percentage of gross premiums written was 83.0% for 2026 compared with 81.9% for 2025. The increased percentage reflects premium earnings from prior underwriting years where the business saw substantial growth,” explains Lancashire.
The insurance service result increased to $198.8 million in H1’26 from $155.7 million in H1’25, driven by $125.5 million in reinsurance and $73.3 million in insurance, compared with $80.4 million and $75.3 million, respectively, in H1’25.
During in H1’26, Lancashire experienced net losses from catastrophe, weather and large loss events of $60.1 million, although the firm confirms that none of the catastrophe or large risk event losses was individually material for the Group.
Favourable prior accident year loss development for the undiscounted net movement in loss reserves was $21.8 million during H1’26, which is significantly lower than the $109.1 million the firm released in the same period in 2025.
On the asset side of the balance sheet, total investment return, including net investment income and net realised and unrealised gains and losses, totalled $51.3 million, compared with $108.2 million in H1’25.
Alex Maloney, Group Chief Executive Officer, commented: “The first half of 2026 demonstrated the strength of Lancashire’s strategy in action. Our diversified portfolio, disciplined underwriting and strong capital position have produced an excellent return for shareholders while we continue to invest for future growth.
“For the first six months of the year, the Group delivered a healthy profit of $141.7 million, resulting in an annualised RoE of 19.6%, reflecting the quality of our underwriting portfolio and strong capital base. These results further demonstrate our ability to generate attractive returns through different stages of the market cycle.
“In line with our expectations of a broadly stable top line, gross premiums written were $1,315.0 million and insurance revenue was $930.0 million. The Group RPI for the first six months of the year was 92%, which is reflective of some softening – but not soft – market conditions and, importantly, rating adequacy remains across most lines of business.
“Although the loss environment during the first half was less active than 2025, it was by no means benign. Against this backdrop, Lancashire delivered another strong result. Our exposure to losses arising from events in the Middle East remains manageable and we have established reserves for expected claims to date, which are not material to the Group. We have also increased our reserve for the MV Dali Baltimore Bridge loss to our full policy limits, thereby capping any further downside from this event.
“Our investment portfolio also performed well notwithstanding the mark-to-market impact of higher government bond yields over the period. The portfolio remains high quality and short duration, consistent with our approach to risk management and capital preservation.
“We have also continued to invest in talent and products to enhance our underwriting capabilities and support long-term value creation.
“In June, we announced the expansion of Lancashire Insurance US’s product portfolio to include financial lines, inland marine, and environmental liability classes. We have also added some new niche underwriting lines to our London portfolio and will continue to pursue opportunities aligned with market conditions.
“Our ability to attract high-calibre talent across the business remains a clear competitive advantage and is supported by the strong and positive culture that we have built across the Lancashire Group.
“Looking ahead, we remain on track to deliver our guidance given at the start of the year of a high-teens RoE for 2026 and we are well positioned to manage the next phase of the cycle, in which we expect rates will continue to reflect the excess capacity in the industry. In this context, we will draw on our considerable experience and expertise to remain disciplined, and we have the agility to deploy capital where we see the best returns. Lancashire’s strong capital base, robust reserves, and more efficient use of reinsurance provide important levers to underpin performance and to manage the business through the cycle.
“As we enter the second half of the year, I would like to thank colleagues across the Lancashire Group for their continued hard work and commitment. With a diversified business, clear strategy, talented teams, and strong culture, we are well positioned to sustain our momentum and generate attractive returns for our shareholders.”
