Insights
Lancashire 3Q24 trading statement
Posted 06/11/2024 – Insights
Lancashire plc has released its results for 3Q24 ending 30th September 2024
Main highlights
- Gross premium written increased by 9.0% to $1,700m (Q3 2023: $1,560m)
- Insurance revenue increased by 16.8% to $1,298m (Q3 2023: $1,111m)
- Total investment return of 5.0% (Q3 2023: 2.8%)
- Net major incurred losses, including Hurricanes Milton, Helene and Debby, storm Boris and Calgary hailstorms expected to be in the range of $110m to $140m.
- Return On Equity (ROE) for the year affirmed
- Combined ratio expected to be within the range (at the higher end) despite major losses
Alex Maloney, Group Chief Executive Officer, commented:
“Over the past few years, we have successfully made our business more resilient to withstand volatility and deliver more sustainable returns for investors. We expect to deliver in line with our ROE guidance for the year.”
The group’s divisional figures and rate change for 3Q24 are as follows:
Claims
- Despite an active third quarter for catastrophe losses, including Hurricanes Helene and Debby, Calgary hailstorm, storm Boris and Hurricane Milton in October, net major losses are expected to be in the range of $110m to $140m.
- Large risk events net losses totalled $72.8m year to date with the largest being the Baltimore bridge collision.
Alpha comment
This is a good set a results published by Lancashire for Q3. Despite an active major loss quarter, the group continues to signal that their undiscounted combined ratio will end up within the mid-80% range with a ROE of around 20%. Investment returns year to date have been strong at 5%. Rate increases to date are +2% (RPI) and Lancashire continues to take advantage of the positive market conditions by growing their premium income. We expect Lancashire to publish strong 2024 full year results should all these metrics continue.
