Bermuda-based global insurer and reinsurer, Lancashire Holdings Limited, has reported that rating agency S&P Global Ratings has lifted its long-term issuer credit and financial strength ratings on the firm’s core re/insurance operating subsidiaries to ‘A’ from ‘A-‘.
At the same time, S&P Global Ratings has raised its long-term issuer credit rating on Lancashire Holdings to ‘BBB+’ from ‘BBB’, with a stable outlook.
The rating agency emphasised that Lancashire continues to strengthen its competitive position via broader product offerings, a larger geographic footprint, and premium growth in less volatile lines of business.
“The upgrade reflects our view of LRE’s strong competitive position, supported by improving diversification across both top-line and bottom-line metrics,” said S&P.
Adding: “In the past five years (2020-2024), the company significantly expanded its gross premiums written (GPW), reaching $2.15 billion in 2024. LRE has broadened its product and geographic footprint, benefiting from multi-year rate increases that management believes now adequately reflect underlying loss cost trends. The first nine months of 2025 have followed a similar trajectory, and we expect this momentum to carry into 2026, albeit at a more moderate pace due to the anticipated rate pressure in short-tail reinsurance lines.”
For the first nine months of 2025, Lancashire reported GPW growth of 7.4% year-on-year to $1.8 billion, while insurance revenue increased by 7.8% to $1.4 billion.
S&P expects the firm’s GPW to hit roughly $2.3 billion by 2027, supported by continued yet more measured growth opportunities.
“This larger business profile enhances LRE’s capacity to absorb losses through earnings and further diversifies its underwriting portfolio, particularly as the company expands into casualty reinsurance, U.S. excess and surplus lines, and additional new lines. Overall, we view these developments as strengthening LRE’s competitive position,” continued S&P.
