Bermudian-based re/insurer Lancashire Holdings Limited has reported record first-quarter gross premiums written of $586.2 million, an increase of 22.7 per cent year-on-year.

Lancashire’s trading statement for the quarter reported a group renewal price index of 117 per cent.

The company said insurance revenue had increased by 31.6 per cent, or $81.4 million, year-on-year to $338.7 million.

Lancashire reported a regulatory enhanced capital requirement ratio of approximately 308 per cent as at December 31.

Lancashire does not release net income with its quarterly trading statements. It lost $92 million on gross written premiums of $1.65 billion for the full 2022 year.

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Q1 2023 trading statement Lancashire Results.pdf

Alex Maloney, group chief executive officer, said: “I am pleased to report that Lancashire has continued to execute its strategy to take advantage of the significantly improved market conditions.”

He added: “Strong rate rises in a number of our product lines have persisted, particularly in property catastrophe business where the supply and demand gap for capacity which we saw at the January 1 renewals remains.

“For most other lines, 2023 is the sixth year of consecutive rate increases and we will continue to grow, where it makes sense, in this positive underwriting environment.

“As for our investments, they delivered a positive total net investment return for the quarter of 1.5 per cent.

“Our track record of navigating the insurance cycle through disciplined risk selection and capital management gives us confidence in delivering on our strategic priorities for the remainder of 2023.

“We look forward to making the most of these exciting underwriting opportunities supported by our robust capital position and talented teams.”

Gross premiums written in the reinsurance segment were $369.3 million, an increase of $59 million or 19 per cent year-over-year.

The company said that the continued development of its casualty reinsurance classes was the most significant contributor to growth in the reinsurance segment.

Within property reinsurance, Lancashire saw significant rate increases in property catastrophe treaty while new business drove increases in specialty reinsurance.

Gross premiums written in the insurance segment were $216.9 million, an increase of $49.3 million or 29.4 per cent.

Lancashire said growth in the insurance segment was primarily driven by property insurance, where the group continues to build out its property construction book of business.

It also saw substantial rate increases in the property direct and facultative class.

Additionally, there was strong growth in energy and marine insurance driven by exposure increases in energy liabilities and new business in cargo and specie.

Lancashire said the first quarter saw natural catastrophe loss activity across a number of events including US convective storms, the Turkey earthquake and flooding in New Zealand.

It said the company also incurred some risk losses, particularly in its energy classes. These losses, both individually and in aggregate, were not sufficiently material to exceed its normal disclosure threshold.