Lancashire anticipates large Q3 storm exposure – The Royal Gazette | Bermuda News, Business, Sports, Events, & Community

Log In

Reset Password
BERMUDA | RSS PODCAST

Lancashire anticipates large Q3 storm exposure

Bermuda-headquartered Lancashire Holdings Limited’s third-quarter earnings release in early November will include losses for exposures to recent natural catastrophe events, including Hurricane Ida and the European storms Bernd, Volker and Xero.

Lancashire said that it estimates net ultimate losses in a range of $165 million to $185 million.

But Lancashire has also served notice of exposure to large-loss events within its political violence portfolio related to the unrest in South Africa during July.

The estimated aggregate of ultimate net loss for these events could be $40 million.

The estimated losses are after anticipated recoveries from Lancashire’s outwards reinsurance programme and the impact of outwards and inward reinstatement premiums.

Alex Maloney, group chief executive officer, said: “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.”

Lancashire has estimated its exposure to wind storm and flood-related events in the following classes: property retrocession, property direct and facultative, property reinsurance, marine and energy.

Lancashire said that its preliminary estimates for the loss events have been derived from a combination of market data and assumptions, a limited amount of provisional loss advice, limited client loss data and modelled loss projections.

The actual ultimate loss may vary from the preliminary estimates announced as additional information emerges. The final settlement of all claims is likely to take place over a considerable period of time.

Lancashire is due to release the group’s financial statements for the third quarter on November 4.

Alex Maloney, CEO of Lancashire Group

You must be Registered or to post comment or to vote.

Published October 25, 2021 at 7:55 am (Updated October 25, 2021 at 11:01 am)

Lancashire anticipates large Q3 storm exposure

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon