Lancashire is reporting that its gross written premiums increased 34.7% YOY in its latest results.
The firm said that they rose to $477.9m in the year following March 2021. It also said that its group renewal price index was at 106%. However, the insurer said that it estimated net losses from the conflict within Ukraine would be somewhere between $20m and $30m, while total net investment returns fell 2.3%.
Alex Maloney, group CEO of Lancashire, said: “From a business perspective, we continue to monitor events across Ukraine and Russia with respect to potential exposure to losses in our political violence, aviation war, and marine insurance classes, as well as our aviation and specialty reinsurance classes. We estimate that our ultimate net losses incurred within Ukraine are in the range of $20 million to $30 million.”
Maloney said that the situation was ‘complex and evolving’, and that he intended to give an update at the half-year results in July.
He added: “While we continue to analyse our potential exposure scenarios in Russia, we consider that any potential losses would be within our risk tolerances, and would not impact our ability to deliver on our ambitious growth plans for 2022.”
He went on: “Against this backdrop, underlying trading conditions remain favourable and Lancashire has continued to deliver strong premium growth in the first quarter, with a 34.7% increase in gross premiums written year-on-year. In light of the potential for broader market dislocation, we remain confident that our strong balance sheet, robust capital position and talented underwriting teams, will give us further opportunities for profitable growth during 2022.”
