Peel Hunt analysts have reported that Lancashire Holdings’ COVID-19 loss notifications are slower than expected and is taking management by surprise.
The specialty re/insurer held an analyst meeting to catch up on the recent capital raising and the development of re/insurance rates following the Florida renewals.
While Lancashire has estimated $35 million of covid-related losses largely across the property binder and property catastrophe reinsurance book, notifications typically take time as they make their way through the insurance vertical.
Given the uncertainty around Covid business interruption claims it may take a while for notifications to come through, hence Lancashire remains cautious.
The company recently announced the successful completion of the placing of new common shares, raising gross proceeds of approximately £277 million as the firm looked to take advantage of improved pricing.
Lancashire also reported rate increases of 20%-30% for its Florida property catastrophe portfolio at the June 1 renewals.
The company expects the momentum of rising rates to continue in this and other classes of business across its portfolio during the rest of this year and throughout 2021.
