Lancashire declares special dividend after "strong" third quarter

(Alliance News) - Lancashire Holdings Ltd on Wednesday reported continued growth in the third quarter as it declared a special dividend of 75 US cents.

The Hamilton, Bermuda-based insurance firm said insurance revenue rose 7.8% to USD1.40 billion in the nine months to September 30, from USD1.30 billion a year ago.

Lancashire said gross premiums written rose 7.4% to USD1.83 billion, from USD1.70 billion a year ago.

Gross premiums earned, the key driver of insurance revenue, came to 92% when represented as a percentage of gross premiums written. This was 88% for the equivalent period in 2024.

Lancashire said insurance revenue "continues to increase at a faster rate than gross premiums written, reflecting premium earnings from prior underwriting years where the business saw substantial growth."

The company's total investment return was 5.6% for the year to date, supported by falling yields amid rising expectations of rate cuts, which lifted prices.

Lancashire noted a "milestone" approval during the quarter from Lloyd's of London to complete the minority buy-out of the remaining capacity on Syndicate 2010 for the 2026 underwriting year.

Chief Executive Alex Maloney said: "Market dynamics remain robust and, while certain classes have seen the start of some softening from recent highs, overall pricing remains healthy across most of the book."

As a result of its third-quarter performance and capital position, the company's board has declared a special dividend of 75 US cents per common share, a total of USD182 million.

Maloney added: "Lancashire delivered a strong third quarter, continuing to grow in line with market opportunities while maintaining a disciplined and selective approach to underwriting."

"Our performance over the first nine months of the year - particularly in light of the California wildfires early on - demonstrates the strength and resilience of our business model.

"It highlights the value of our strategy, our capacity to navigate volatility, and the advantages of our diversified portfolio across both product lines and geographies."

Shares in Lancashire rose 4.0% to 672.00 pence on Wednesday morning in London.

By Roya Shahidi, Alliance News reporter

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