Reinsurance News

Lancashire sees nat cat losses of up to $185m, political violence losses of $40m

21st October 2021 - Author: Luke Gallin

Lancashire Holdings Limited has announced estimated net losses from natural catastrophe events of between $165 million and $185 million for the third quarter of 2021, as well as losses of $40 million from its exposure to large loss events in its political violence portfolio related to the unrest in South Africa.

lancashire-logoCombined, natural catastrophe and large losses could reach $225 million for the company in Q3 2021.

The natural catastrophe loss range includes the impacts of hurricane Ida in the U.S. and European storms Bernd, Volker, and Xero.

Lancashire says that these estimates are after anticipated recoveries from its outwards reinsurance programme and the impact of outwards and inwards reinstatement premiums.

Alex Maloney, Group Chief Executive Officer (CEO), commented: “Our thoughts are with those who have suffered as a result of the recent catastrophe and political violence events.

“For Lancashire, these loss estimates are within our expectations for these types of events and demonstrate the value of our products to our (re)insureds and other stakeholders.

“Looking ahead, the Company remains strongly capitalised to be able to take advantage of the improving market, both in the rest of this year and in order to achieve our ambitious underwriting plans for 2022. The rating environment continues to improve, premiums continue to grow, and we are well-positioned to achieve our strategic goals.”

The firm says that the losses from windstorm and flood related events affected the following classes: property retrocession, property direct and facultative, property reinsurance, marine and energy.

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