Lancashire Holdings will return approximately $182 million to shareholders through a special dividend after reporting strong underwriting performance in the first nine months of 2026.

The Bermudian-based specialty insurer and reinsurer declared a dividend of 75 cents per common share and maintained its forecast for a full-year return on equity in the high teens, despite softer pricing in parts of the market.

Gross premiums written fell 1.1 per cent to $1.806 billion from $1.825 billion a year earlier. Excluding reinstatement premiums related to last year’s California wildfires, premium volume was flat.

Alex Maloney, Lancashire’s group chief executive, said: “While pricing has moderated in some parts of the market, we benefit from a diversified portfolio and rates continued to remain adequate across much of our business.”

Reinsurance premiums declined 6 per cent to $969.5 million, reflecting a planned reduction in inwards property retrocession, which provides cover for other reinsurers.

Insurance premiums rose 5.3 per cent to $836.5 million, driven primarily by energy and marine business and the continued expansion of Lancashire’s US franchise.

The group’s renewal price index was 93 per cent, indicating an overall decline in renewal pricing.

Insurance revenue increased 0.7 per cent to $1.410 billion, supported by premiums earning through from earlier underwriting years in which Lancashire had recorded substantial growth.

The company described the third-quarter loss environment as relatively benign, with few catastrophe events. Its exposure to the conflict in the Middle East remained limited and within its risk appetite.

Lancashire’s investment portfolio returned 0.6 per cent over the nine months, including unrealised gains and losses. Investment income contributed 3.3 per cent, but was partly offset by falling bond prices as Treasury yields rose and investment-grade credit spreads widened modestly.

Private investment funds made a positive contribution during the third quarter.

Managed investments totalled $3.173 billion at September 30, compared with $3.317 billion a year earlier. The portfolio’s average credit quality improved to AA- from A+, while its duration was 2.2 years.

Mr Maloney said the relatively short duration meant higher prevailing yields should support investment income in future periods.

He said Lancashire’s broader product range and geographical reach gave it flexibility to respond as market conditions changed.

“As pricing conditions vary across markets, the breadth of our portfolio enables us to remain disciplined and selective, directing appetite and capital to areas where returns remain most attractive,” he said.

The special dividend, equivalent to approximately 56p per share at the current exchange rate, will be paid in sterling on December 11 to shareholders on the register on November 13.

“We head into 2027 from a position of strength,” he said, expressing confidence in the group’s ability to deliver attractive returns.