Lancashire Holdings reported a profit of $293.4 million for 2025 as strong underwriting and investment returns offset major catastrophe losses, while executives at the Bermudian-based re/insurer warned that pricing in parts of the market is beginning to soften.

The company said gross premiums written rose 5.1 per cent to $2.26 billion and the group delivered a return on equity of 20.9 per cent for the year, pointing to continued profitability for speciality reinsurers even after absorbing losses from events including the California wildfires.

Alex Maloney, chief executive, said the results reflected a business that had diversified across product lines and geographies, helping to reduce volatility and support shareholder returns.

Lancashire recorded an insurance service result — its underwriting profit — of $381.1 million with a discounted combined ratio of 83.7 per cent, indicating underwriting remained profitable.

The group experienced $277 million in catastrophe, weather and large-loss events during the year, including $163.4 million related to the California wildfires.

Investment performance also supported results, generating $218 million in returns, or 7 per cent, as higher yields and market movements boosted the portfolio.

Lancashire said it continued to return major capital to shareholders, declaring total dividends relating to 2025 of $357 million, including a special dividend of 50 cents per share.

Looking ahead, the company said market conditions remained healthy but show early signs of increased competition.

Mr Maloney said: “While we expect 2026 to be more competitive, we are still in a healthy place when it comes to rate adequacy.”

He added that Lancashire would continue to focus on disciplined underwriting while taking advantage of opportunities across its underwriting platforms.