(Alliance News) - Lancashire Holdings Ltd on Thursday reported a double-digit rise in gross premiums written in the first quarter of 2025, as the insurer reaffirmed its full-year return on equity target despite continued pressure from large catastrophe events.
The Bermuda-based insurer said gross premiums written rose around 13% year-on-year to USD712.1 million in the three months to March 31 from USD631.7 million a year prior, driven by growth in property, casualty, energy and marine lines within its reinsurance segment.
Insurance revenue increased 8.7% to USD458.9 million from USD422.0 million.
The group maintained its estimate for net losses from the January California wildfires at between USD145 million and USD165 million, with no other major events materially impacting the quarter. The group said its full-year return on equity is still expected in the mid-teens, even in a challenging "loss environment".
"Our performance and outlook, set against the loss environment the sector has seen in the last twelve months, demonstrates the relevance of our strategy," said Chief Executive Officer Alex Maloney. "We are in a very strong position overall and we remain extremely well capitalised."
The company reported a 1.9% total investment return for the quarter, supported by strong income and positive private fund performance. The portfolio maintained a short duration of two years and an average credit quality of A+.
Shares in Lancashire were up 0.7% at 566.97 pence in London on Thursday morning.
By Eva Castanedo, Alliance News reporter
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Lancashire Holdings (LRE)
