Lancashire Holdings Announces Strong 2024 Results and Looks Ahead to 2025
Lancashire Holdings Ltd, the Bermuda-based specialty insurer listed on the London Stock Exchange, has released its financial results for the year ending December 31, 2024. The company reported a solid after-tax profit of £250.6 million, fueled by impressive underwriting performance and a 5% return on investments.
Gross premiums written increased by 11.3%, exceeding £1.64 billion, while insurance revenue saw a significant rise of 16.1%, reaching nearly £1.4 billion. The company’s strong performance comes as it grapples with the aftermath of the Baltimore bridge collapse, a major event that resulted in substantial claims.
Baltimore Bridge Disaster a Key Loss Event
The collision of the MV Dali, which caused the collapse of the Francis Scott Key Bridge in March 2024, has emerged as one of the most significant financial impacts for Lancashire this year. The company reported an insurance service result of £296.3 million, with a discounted combined ratio of 80.0% and an undiscounted combined ratio of 89.1%.
Lancashire continued to expand its underwriting operations, with reinsurance segment premiums climbing 13.5% and insurance segment premiums increasing by 9.1%. This growth was supported by new business, particularly in the United States and Australian property markets.
Investment Income and Dividend Announcement
Investment income also played a crucial role in Lancashire’s robust financial standing, increasing 33.5% to £112.9 million, resulting in a total investment return of 5%. Despite these gains, Lancashire absorbed £167.0 million in net losses from catastrophic and large-risk events. These events included hurricanes Milton, Helene, and Debby, as well as storm Boris and hailstorms in Calgary. The Baltimore bridge disaster was the single largest single-risk event absorbed by the company.
Lancashire returned £276.3 million to its shareholders in 2024. The company’s board declared a total year-end dividend of £0.31 per share, composed of a final ordinary dividend of £0.12 and a special dividend of £0.20.
Alex Maloney, group chief executive officer, stated, “Importantly, we remain extremely well capitalised to fund future growth opportunities.”
Looking Ahead to 2025 and Beyond
Looking ahead, the company anticipates generating a mid-teens return on equity in 2025, assuming that loss activity stays in line with levels seen in 2024. However, preliminary estimates suggest that the January 2025 California wildfires could impact the year’s results by between £113.1 million and £128.7 million.
About Lancashire Holdings
Lancashire Holdings Limited is a Bermuda-based insurance and reinsurance company, specializing in property, casualty, energy, and marine coverage. Founded in 2005, Lancashire was established to provide niche insurance solutions in high-risk sectors, with a strong emphasis on underwriting discipline and efficient capital management.
The company was founded in response to the demand for specialized insurance and reinsurance solutions following catastrophic events, such as Hurricane Katrina. From the beginning, Lancashire positioned itself as a specialty (re)insurer with a focus on high-margin, low-frequency risks. Over the years, the company has expanded its underwriting capabilities, solidifying its presence in the Lloyd’s market and globally via selective market participation.
Lancashire operates through several platforms, including Lancashire Insurance Company Limited in Bermuda, Lancashire Insurance Company in the United Kingdom, and Lloyd’s Syndicates 2010 and 3010. These platforms have consistently delivered strong financial results, driven by Lancashire’s disciplined approach to underwriting and capital management. The company has expanded its U.S. presence recently, reflecting its strategy to grow in high-demand markets. Lancashire faces increasing risks from climate-related events but remains focused on specialty solutions as it approaches its 20th anniversary in 2025.
