Lancashire's first-half profits jump 26%

8th Aug 2024 09:33

(Sharecast News) - Bermuda-based Lancashire Holdings saw profits rise by 26% in the first six months of 2024 as the non-life insurance group delivered its best-ever half-year performance.

Profit after tax totalled $200.8m, up from $159.2m the year before, helped by an 8.3% year-on-year increase in gross premiums written to $1.28bn.

Gross premiums written in the reinsurance segment increased by 11.6% to $734.6m, driven by property reinsurance and specialty reinsurance lines, while GPW in insurance rose 4.1% to $547.6m.

Insurance revenues meanwhile jumped 18.5% to $854m, with higher growth a result of earnings coming through from prior underwriting years.

The undiscounted combined ratio - a key measure of how profitable insurers are - rose to 82.2%, up from 79.2% the year before but in line with the company's full-year guidance of a mid-80% range.

"We have continued to take advantage of favourable market conditions while holding true to our principles of disciplined underwriting and optimised capital allocation," said chief executive Alex Maloney.

"With our strong balance sheet and capital base, we remain in excellent health going into the second half of the year."

The stock was up 1% at 606p by 1000 BST.