Insights
Lancashire plc has released its group result for the 2024 financial year
Posted 06/03/2025 – Insights
Group headline figures
| 2024 | 2023 | |
| Gross premiums written | $2,149.6m | $1,931.7m |
| Insurance revenue | $1,765.1m | $1,519.9m |
| Insurance service result | $379.9m | $382.1m |
| Profit after tax | $321.3m | $321.5m |
| Undiscounted combined ratio | 89.1% | 82.6% |
| Positive prior year development | $121.1m | $78.8m |
Group highlights
- Gross premiums written increased by 11.3% to $2,149.6m (2023: $1,931.7m)
- Profit after tax of $321.3m (2023: $321.5m)
- Undiscounted combined ratio deterioration of 6.5 points to 89.1% (2023: 82.6%)
- Average rate increase of +1% (2023: +15%)
Alex Maloney, Chief Executive Officer, commented:
“2024 was another superb year for Lancashire with an excellent profit after tax of $321.3m delivering a strong return on equity of 23.4%. In a year of high industry losses this is an outstanding result. It shows the continued successful execution of our strategy to grow materially at the right time in the underwriting cycle, utilise our capital more efficiently, diversify our portfolio to reduce volatility, and retain and attract the best talent. Throughout 2024, we continued to take advantage of the healthy margin environment. Gross premiums written increased by 11.3% to more than $2.1bn and insurance revenue was $1.7bn, an increase of 16.1% on 2023. As a result, we delivered an excellent underwriting return, with an insurance service result of $379.9m and a combined ratio of 89.1% (80.0% discounted), underpinned by our robust and disciplined underwriting approach.”
Divisional headline figures
| Reinsurance | Insurance | |
| Gross premiums written | $1,097.8m | $1,051.8m |
| Insurance revenue | $855.1m | $910.0m |
| Insurance service result | $264.1m | $115.8m |
Divisional highlights
- Reinsurance – Reinsurance gross premiums written increased by 13.5% with new business for property and specialty reinsurance being the main driver of growth. The rate increase for the division was +1%.
- Insurance – The division’s gross premiums written increased by 9.1%. This was mainly due to a number of new opportunities for property insurance written by Lancashire US and Australia. Insurance rates increased for the year by +1%.
Alpha comment
This is a solid set of 2024 results for Lancashire. The group has achieved strong growth, with reinsurance growing slightly more than insurance. Lloyd’s members provide support to Lancashire via syndicate 2010 which we would expect has contributed to the overall profit. Although rate increases have slowed since 2023, Lancashire was still able to achieve +1% across its portfolio. The group’s prior year releases were significant at $121.1m (up from $78.8m last year) with a reserve confidence level of 86%. Catastrophe and large losses for 2024 were $214.1m (2023: $106.1m). This does not include the recent LA wildfires, where Lancashire expects its exposure to be in the range of $145m to $165m.
