Net loss estimates incurred within Ukraine are in the range of $20 million to $30 million, excluding the impact of reinstatement premiums, Bermudian-based Lancashire Holdings Limited has reported.

Lancashire added that loss estimates for Ukraine and potential losses in Russia would continue to be assessed as the conflict and the implications of sanctions evolve.

The company made the admission as it announced its results for the first quarter of the year.

Alex Maloney, group chief executive officer, said: “Lancashire continues to be shocked and saddened by the tragic human costs and wider destructive impacts of the conflict in Ukraine.

“In response to the developing humanitarian crisis, Lancashire is supporting Unicef and the Red Cross through direct contributions from the Lancashire Foundation as well as matching employee donations.

“From a business perspective, we continue to monitor events across Ukraine and Russia with respect to potential exposure to losses in our political violence, aviation war and marine insurance classes, as well as our aviation and specialty reinsurance classes.”

He added: “This continues to be a complex and evolving situation and we will give an update at the announcement of our half-year results in July.

“While we continue to analyse our potential exposure scenarios in Russia, we consider that any potential losses would be within our risk tolerances, and would not impact our ability to deliver on our ambitious growth plans for 2022.

“Against this backdrop, underlying trading conditions remain favourable and Lancashire has continued to deliver strong premium growth in the first quarter, with a 34.7 per cent increase in gross premiums written year-on-year.

“In light of the potential for broader market dislocation, we remain confident that our strong balance sheet, robust capital position and talented underwriting teams, will give us further opportunities for profitable growth during 2022.”

Gross premiums in the quarter increased to $477.9 million.

The year-over-year jump was primarily due to growth in the property and casualty reinsurance segment driven by new business in the new casualty reinsurance classes of business, the company said.

Overall the RPI for this segment remained strong at 108 per cent.

Lancashire said growth in the property and casualty insurance segment was primarily due to the continued build out of the property direct and facultative book of business as well as new business in property political risk and property construction classes.

The company reported a total net investment return of negative 2.3 per cent, primarily driven by unrealised losses.