Bermuda-based re/insurer Lancashire Holdings Limited has announced a 22.7% rise in gross premiums written (GPW) for the first quarter of 2023 to $586.2 million from $477.9 million, the highest the group has delivered in a first quarter.
The GPW in the insurance segment grew 29.4% to $216.9 million in Q1, driven by growth in property insurance. While, the GPW in the reinsurance segment rose by 19% to $369.3 million due to development of the casualty reinsurance classes, the re/insurer noted.
The re/insurer also said that its group renewal price index was at 117%. In a quarter of continued volatility, the investment portfolio generated a positive return of 1.5%.
The first quarter of 2023 saw natural catastrophe loss activity across a number of events including US convective storms, the Turkey earthquake and flooding in New Zealand, the re/insurer noted.
IFRS 17 insurance revenue increased by 31.6% to $338.7 million from $257.3 million in 2022.
The Group adopted IFRS 17, Insurance Contracts and IFRS 9 accounting standards for the first time on Jan. 1, 2023. The consolidated financial statements for the six months ending June 30, 2023, will be reported under these new accounting standards.
Its regulatory ECR ratio, which measures a firm’s ability to meet its insurance liabilities, was reported to be approximately 308% as at December 31, 2022.
“I am pleased to report that Lancashire has continued to execute its strategy to take advantage of the significantly improved market conditions,” Alex Maloney, group CEO of Lancashire, said.
“Strong rate rises in a number of our product lines have persisted, particularly in property catastrophe business where the supply and demand gap for capacity which we saw at the January 1 renewals remains,” he added.
Lancashire has experienced six years of consecutive rate increases in most other lines, and will continue to expand in this favorable underwriting environment, where it is reasonable to do so, the re/insurer explained.
“Our track record of navigating the insurance cycle through disciplined risk selection and capital management gives us confidence in delivering on our strategic priorities for the remainder of 2023. We look forward to making the most of these exciting underwriting opportunities supported by our robust capital position and talented teams,” Maloney added.
