Lancashire Holdings announces special dividend as profits grow

6th Nov 2024 09:14

(Sharecast News) - Lancashire Holdings posted a 9% jump in premiums written on Wednesday as it announced a special dividend, sending shares in the insurer surging.

In the nine months to the end of September, gross premiums written rose to $1.7bn, with insurance revenue up 16.8% year-on-year to $1.3bn.

Lancashire said net losses relating to recent weather events are expected to be between $110m and $140m.

The group reported a total investment return of 5%, including unrealised gains and losses.

It also announced a special dividend of 75 cents per common share, or $180m, "following a strong operating performance year-to-date".

Chief executive Alex Maloney said: "I am pleased to report that Lancashire is in excellent shape as we approach the final months of 2024.

"In the year-to-date, the industry has seen an elevated catastrophe and risk loss environment, but we still expect our undiscounted combined ratio to be at the higher end of our range for the full year. This is testament to our diversification strategy, and the quality of the business we have written.

"Our estimated ultimate net losses incurred in relation to recent weather events including hurricanes Milton, which occurred in the fourth quarter, Helene, Debby and storm Boris, and the Calgary hailstorms, are expected to be in the range of $110 million to $140 million."

At 0910 GMT, the shares were up 9.9% at 691p.