Lancashire Holdings’ Q1 statements estimate aggregate net ultimate losses related to the California wildfires in the range of $145 million to $165 million.

Alex Maloney, group chief executive, said the estimate falls within the group’s modelled loss ranges for this type of catastrophe event.

“Loss information after these types of events can take some time to emerge,” Mr Maloney said. “As additional information becomes available, the group’s actual ultimate net losses may vary, perhaps materially, from present estimates. No other loss events were individually material for the group in the quarter.”

Lancashire’s insurance revenue increased $36.9 million, or 8.7 per cent, during Q1 compared with the same period in 2024.

Mr Maloney said: “For the first three months of 2025 gross premiums written increased by 12.7 per cent, year-on-year, to $712.1 million. The underlying increase, excluding the impact of reinstatement premiums, was 6.6 per cent.

“Across our portfolio, we have continued to take advantage of underwriting opportunities while maintaining our usual discipline and focus on risk and positive returns.”

In Q1, Lancashire’s insurance revenue increased 8.7 per cent year-on-year to $458.9 million, with the group retail price index at 97 per cent.

“In a challenging environment, the resilience of the business is clear, with our greater scale and diversification, across classes and geographies, giving us the ability to better withstand volatility and deliver consistently healthy returns for our shareholders,” Mr Maloney said.

He said Lancashire continued to focus on profitable growth.

“Rating levels remain more than adequate, albeit slightly lower than the highs of recent years,” he said. “Our investment portfolio remains relatively conservative and returned 1.9 per cent for the quarter. In an increasingly unpredictable global financial climate, we will continue to maintain a short-duration and high-quality portfolio.”

The firm still expects to deliver a return on equity in the mid-teens for 2025.

Mr Maloney said Lancashire’s performance and outlook, set against the loss environment the sector has seen in the past twelve months, demonstrates the relevance of its strategy, quality of its underwriting teams and distribution relationships.

“We are in a very strong position overall and we remain extremely well capitalised,” the CEO said.