Bermuda-based insurer and reinsurer Lancashire Holdings Limited reported a 12.7% year-on-year increase in gross premiums written (GPW) to $712.1 million for the three months ended 31 March 2025, up from $631.7 million in the same period last year.
The reinsurance segment contributed $482.3 million to the Q1 total, up from $399.7 million a year earlier.
Lancashire said the growth was driven by new business in property, casualty, and energy and marine classes, along with increased reinstatement premiums, primarily related to the California wildfire losses.
The insurance segment contributed $229.8 million to the overall GPW figure, slightly down from $232 million in Q1’24.
Growth in this segment, particularly from the US platform, was offset by reductions in the aviation classes.
Insurance revenue rose 8.7% to $458.9 million, compared to $422 million in the prior-year quarter.
The reinsurance business contributed $220.3 million to total revenue in the quarter, up on the prior year’s $201.8 million, while the insurance business contributed $238.6 million, an increase on last year’s $220.2 million.
The increase was lower than GPW growth, largely due to the reallocation of reinstatement premiums under IFRS 17.
Lancashire estimates its aggregate net ultimate losses (undiscounted, including reinstatement premiums) from the California wildfires in January to be in the range of $145 million to $165 million—within its modelled loss range for such an event.
The firm’s investment portfolio returned 1.9% in Q1’25, including unrealised gains and losses.
Lancashire said the return was driven by investment income, with the portfolio benefiting from higher yields and rising prices amid falling Treasury rates, which helped offset a slight widening of investment-grade credit spreads. Private investment funds also delivered strong results during the quarter.
Alex Maloney, Group Chief Executive Officer, commented, “For the first three months of 2025 gross premiums written increased by 12.7% year-on-year to $712.1 million. The underlying increase, excluding the impact of reinstatement premiums, was 6.6%.
“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 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.
“Insurance revenue increased by 8.7% year-on-year to $458.9 million, with the Group RPI for the quarter at 97%. We continue to focus on profitable growth and rating levels remain more than adequate, albeit slightly lower than the highs of recent years.
“Our investment portfolio remains relatively conservative and returned 1.9% for the quarter. In an increasingly unpredictable global financial climate, we will continue to maintain a short duration and high quality portfolio.
“The estimated impact of the wildfires in California, which occurred in January, remains unchanged at between $145 million to $165 million. No other loss events were individually material for the Group in the quarter. Absent the wildfires the underlying performance of the business is strong.
“As we outlined in March, in a severe loss year with a similar level of catastrophe and large risk losses as 2024, as well as the California wildfires, we would still expect to deliver an RoE in the mid-teens for 2025.
“Our performance, and outlook, set against the loss environment the sector has seen in the last twelve months demonstrates the relevance of our strategy and the quality of our underwriting teams and distribution relationships.
“We are in a very strong position overall and we remain extremely well capitalised.”
The post Lancashire’s GPW up 12.7% in Q1’25 appeared first on ReinsuranceNe.ws.
