Specialty re/insurance underwriter Lancashire saw gross premiums written increase by 15.2% year on year to $814.1 million in 2020.
Meanwhile the firm’s combined ratio was confirmed at 107.8%, a figure which included the impact of COVID-19.
Overall profit after tax was $4.2 million while Lancashire’s investment portfolio generated returns of 3.9% for the year.
“The whole world faced a uniquely challenging year in 2020. Our first thoughts go to those whose lives have been impacted by personal tragedy and hardship,” said Alex Maloney, Group Chief Executive Officer.
“Similarly, our thanks go to all those who in their work and conduct are helping to defeat the current threat of the COVID-19 pandemic.
“This last year has demonstrated the value of our strategic planning in preparing for challenges and opportunities, both expected and unexpected. In the face of these challenges I am pleased to report that the Group’s Change in FCBVS (formerly termed Return on Equity or RoE1) was 10.2% for the full year.
“We are pleased to have navigated 2020 relatively unscathed given the number of catastrophe and risk losses incurred in addition to the financial impacts of COVID-19.”
Natalie Kershaw, Group Chief Financial Officer, added, “We are pleased to have navigated 2020 relatively unscathed given the number of catastrophe and risk losses incurred in addition to the financial impacts of COVID-19.
“In such a difficult year we consider making an overall profit after tax of $4.2 million and comprehensive income of $24.3 million a very positive result. Our investment portfolio contributed significantly to our profitability, generating returns of 3.9% for the year.
“Our capital position coming into 2020 was strong and sufficient to fund the 15.2% gross written premium growth during the year. Our outlook for 2021 is one of further rate hardening and we expect to utilise the $340.3 million of capital raised in our equity placing in June 2020 to fund further growth in our business during 2021. In line with our stated dividend policy we are declaring our standard final ordinary dividend of $0.10 per share.”