Lancashire Holdings increased first-half profit by 30 per cent as lower catastrophe losses outweighed declining premiums and softer insurance pricing.

The Bermudian-based speciality re/insurer reported profit after tax of $141.7 million for the six months ended June 30, compared with $109.2 million a year earlier.

Gross premiums written fell 3 per cent to $1.32 billion. Lancashire said the decline was closer to 1 per cent after excluding unusually high reinstatement premiums collected during the first half of 2025.

Reinstatement premiums are additional payments that restore insurance coverage after a claim.

The group saw a quieter period for major claims. Catastrophe, weather and other large losses fell to $60.1 million, from $211.2 million a year earlier, when the California wildfires weighed heavily on its results.

Lancashire’s discounted combined ratio improved to 80.7 per cent from 87.4 per cent. A ratio below 100 per cent indicates an underwriting profit.

The undiscounted combined ratio fell to 90.8 per cent, from 97.8 per cent.

Alex Maloney, the group chief executive, said market conditions were “softening — but not soft”, adding that pricing is still adequate across most of the company’s business lines.

Lancashire’s renewal price index stood at 92 per cent. This indicates that renewal rates declined by about 8 per cent overall.

The company reduced its property retrocession business as pricing became less attractive, while expanding its energy, marine and aviation treaty portfolios.

It also bought more reinsurance protection, particularly for its property business. Reinsurance premium allocations increased 14 per cent to about $232 million.

Lancashire said it had increased its reserve for the 2024 Francis Scott Key Bridge collapse in Baltimore involving the container ship MV Dali to the full limit of its policy. The company said this meant there should be no further downside from the claim.

Investment returns declined to $51.3 million, from $108.2 million, largely because of a $29.6 million unrealised loss caused by rising government bond yields.

The board declared an interim dividend of 7.5 cents per share. Lancashire also paid shareholders a special dividend of 50 cents per share in April.

The company kept its forecast of a high-teens return on equity for the full year. Its annualised return on equity reached 19.6 per cent during the first half.