Last checked at 21 Oct 2021 07:00
LANCASHIRE HOLDINGS LIMITED - Natural Catastrophe and Large Loss EstimatesLANCASHIRE HOLDINGS LIMITED - Natural Catastrophe and Large Loss Estimates
PR Newswire
London, October 20
LANCASHIRE HOLDINGS LIMITED
21 October 2021Hamilton, Bermuda
Natural Catastrophe and Large Loss Estimates
Lancashire Holdings Limited (the “Company” or “Lancashire”) announces that it has exposures to a number of recent natural catastrophe events, including hurricane Ida and the European storms Bernd, Volker and Xero, which it estimates will lead to aggregate net ultimate losses in a range of $165 million to $185 million.
In addition, Lancashire has reported exposure to large loss events within its political violence portfolio related to the unrest in South Africa during July 2021. The aggregate estimated ultimate net losses for these events are expected to be approximately $40 million.
These estimates are after anticipated recoveries from Lancashire’s outwards reinsurance programme and the impact of outwards and inwards reinstatement premiums.
Alex Maloney, Group Chief Executive Officer, commented:
“Our thoughts are with those who have suffered as a result of the recent catastrophe and political violence events. For Lancashire, these loss estimates are within our expectations for these types of events and demonstrate the value of our products to our (re)insureds and other stakeholders. Looking ahead, the Company remains strongly capitalised to be able to take advantage of the improving market, both in the rest of this year and in order to achieve our ambitious underwriting plans for 2022. The rating environment continues to improve, premiums continue to grow, and we are well-positioned to achieve our strategic goals.”
It should be noted that Lancashire has estimated its exposure to windstorm and flood related events in the following classes: property retrocession, property direct and facultative, property reinsurance, marine and energy. Lancashire’s preliminary estimates for the loss events noted above have been derived from a combination of market data and assumptions, a limited number of provisional loss advices, limited client loss data and modelled loss projections. As additional information emerges, the Company’s actual ultimate loss may vary from the preliminary estimates announced. The final settlement of all claims is likely to take place over a considerable period of time.
Lancashire will provide a more detailed update as part of its earnings release covering the Group’s financial statements for the third quarter of 2021 due for release on 4 November 2021.
See further the “Note Regarding Forward-Looking Statements” below.
For further information, please contact:
| Lancashire Holdings Limited Christopher Head | +44 20 7264 4145 chris.head@lancashiregroup.com |
| Jelena Bjelanovic | +44 20 7264 4066 jelena.bjelanovic@lancashiregroup.com |
| FTI Consulting Edward Berry Tom Blackwell | +44 20 37271046 Edward.Berry@FTIConsulting.com Tom.Blackwell@FTIConsulting.com |
About Lancashire
Lancashire, through its UK and Bermuda-based operating subsidiaries, is a provider of global specialty insurance and reinsurance products.
| Financial Strength Rating (1) | Financial Strength Outlook (1) | Long Term Issuer Rating (2) | |
| A.M. Best | A (Excellent) | Stable | Bbb+ |
| S&P Global Ratings | A- | Stable | BBB |
| Moody’s | A3 | Stable | Baa2 |
(1) Financial Strength Rating and Financial Strength Outlook apply to Lancashire Insurance Company Limited and Lancashire Insurance Company (UK) Limited.(2) Long Term Issuer Rating applies to Lancashire Holdings Limited.
Lancashire Syndicates Limited benefits from Lloyd’s ratings: A.M. Best: A (Excellent); S&P Global
Ratings: A+ (Strong); and Fitch: AA- (Very Strong).
Lancashire has capital of approximately $2.0 billion and its common shares trade on the premium segment of the Main Market of the London Stock Exchange under the ticker symbol LRE. Lancashire has its head office and registered office at Power House, 7 Par-la-Ville Road, Hamilton HM 11, Bermuda.
The Bermuda Monetary Authority (“BMA”) is the Group Supervisor of the Lancashire Group.
For more information, please visit Lancashire’s website at www.lancashiregroup.com.
The information was submitted for publication, through the agency of the contact persons set out above, at 07.00 BST on 21 October 2021.
NOTE REGARDING FORWARD-LOOKING STATEMENTS:
CERTAIN STATEMENTS AND INDICATIVE PROJECTIONS (WHICH MAY INCLUDE MODELLED LOSS SCENARIOS) MADE IN THIS RELEASE OR OTHERWISE THAT ARE NOT BASED ON CURRENT OR HISTORICAL FACTS ARE FORWARD-LOOKING IN NATURE INCLUDING, WITHOUT LIMITATION, STATEMENTS CONTAINING THE WORDS “BELIEVES”, “ANTICIPATES”, “AIMS”, “PLANS”, “PROJECTS”, “FORECASTS”, “GUIDANCE”, “INTENDS”, “EXPECTS”, “ESTIMATES”, “PREDICTS”, “MAY”, “CAN”, “LIKELY”, “WILL”, “SEEKS”, “SHOULD”, OR, IN EACH CASE, THEIR NEGATIVE OR COMPARABLE TERMINOLOGY.
ALL FORWARD-LOOKING STATEMENTS IN THIS RELEASE SPEAK ONLY AS AT THE DATE OF PUBLICATION. LANCASHIRE HOLDINGS LIMITED EXPRESSLY DISCLAIMS ANY OBLIGATION OR UNDERTAKING (SAVE AS REQUIRED TO COMPLY WITH ANY LEGAL OR REGULATORY OBLIGATIONS INCLUDING THE RULES OF THE LONDON STOCK EXCHANGE) TO DISSEMINATE ANY UPDATES OR REVISIONS TO ANY FORWARD-LOOKING STATEMENT TO REFLECT ANY CHANGES IN THE GROUP’S EXPECTATIONS OR CIRCUMSTANCES ON WHICH ANY SUCH STATEMENT IS BASED. ALL SUBSEQUENT WRITTEN AND ORAL FORWARD-LOOKING STATEMENTS ATTRIBUTABLE TO THE GROUP OR INDIVIDUALS ACTING ON BEHALF OF THE GROUP ARE EXPRESSLY QUALIFIED IN THEIR ENTIRETY BY THIS NOTE. PROSPECTIVE INVESTORS SHOULD SPECIFICALLY CONSIDER THE FACTORS IDENTIFIED IN THIS RELEASE WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER BEFORE MAKING AN INVESTMENT DECISION.