Lancashire Holdings reported a modest rise in insurance revenue for the first nine months of 2026, even as gross premiums written slipped slightly due to a planned reduction in inwards property retrocession.
Insurance revenue increased by $9.9 million, or 0.7%, to $1.4097 billion for the first nine months of 2026, from $1.3998 billion a year earlier.
Lancashire said gross premiums earned as a percentage of gross premiums written were 91.5%, consistent with the ratio recorded in the equivalent period of 2025.
It described the modest increase as a reflection of premium earnings from prior underwriting years, when the business saw substantial growth.
By segment, insurance revenue rose 2.5%, or $18.4 million, to $746.5 million, from $728.1 million, while reinsurance revenue slipped 1.3%, or $8.5 million, to $663.2 million, from $671.7 million.
Lancashire’s gross premiums written fell to $1.806 billion for the first nine months of 2026, down $19.4 million, or 1.1%, from $1.8254 billion in the same period of 2025.
Lancashire said that, excluding the impact of reinstatement premiums related to last year’s California wildfires, gross premiums written were flat on an underlying basis.
The overall renewal price index (RPI) for the group was 93% for the period, meaning renewing business was written at rates about 7% below the prior year’s levels.
The reinsurance segment accounted for the decline, with gross premiums written down 6% for the first nine months of 2026, or $61.6 million, to $969.5 million.
Lancashire said this reflected a planned reduction in its inwards property retrocession portfolio. The segment’s RPI was 92%.
The insurance segment moved in the opposite direction, with gross premiums written up 5.3%, or $42.2 million, to $836.5 million.
Growth during the period was primarily driven by energy and marine lines and the continued build-out of the Lancashire US franchise, the company said. The insurance segment’s RPI was 94%.
On losses, Lancashire said the third quarter of 2026 was relatively benign, with few catastrophe events. The group also said its exposure to the ongoing conflict in the Middle East is limited and within its risk appetite.
Alex Maloney, Group Chief Executive Officer, commented, “Lancashire delivered another strong underwriting performance in the first nine months of the year. While pricing has moderated in some parts of the market, we benefit from a diversified portfolio and rates continued to remain adequate across much of our business.
“Gross premiums written were broadly stable year-on-year at $1.806 billion. The loss environment in the third quarter was also relatively benign, particularly for natural catastrophes, and our exposure to the conflict in the Middle East remains manageable and not material to the Group.
“Our conservatively-positioned investment portfolio continues to deliver an attractive level of investment income, although this was offset by the mark-to-market impact of higher government bond yields in the third quarter.
“Given the relatively short duration of the portfolio, the prevailing environment of higher yields should benefit investment income in future periods. The Group’s healthy performance for the year to date means that we remain on track to meet our 2026 full year guidance of a high-teens RoE.
“The positive operational performance of the Group, and our strong capital position, means we are able to declare a special dividend of 75 cents per common share, resulting in an aggregate distribution of approximately $182 million. Managing the cycle is central to how Lancashire has always operated and our increased diversification across products and geographies gives us additional flexibility.
“As pricing conditions vary across markets, the breadth of our portfolio enables us to remain disciplined and selective, directing appetite and capital to areas where returns remain most attractive. Where there are opportunities to build momentum, we will take them and we have continued to add talent to our bench strength and invest in new products that are complementary to our existing portfolio. We head into 2027 from a position of strength.
“I am confident that our outstanding teams, collective expertise, increased relevance to our clients and brokers, distinctive culture, and robust capital base will ensure we continue to deliver attractive returns across the cycle.”
