REG-Lancashire Hld Ltd: Natural Catastrophe and Large Loss Estimates

Lancashire HoldingsAnnouncement

21/10/2021 07:05

LANCASHIRE HOLDINGS LIMITED

21 October 2021
Hamilton, Bermuda

Natural Catastrophe and Large Loss Estimates

Lancashire Holdings Limited (the “Company” or “Lancashire”) announces
that it has exposures to a number of recent natural catastrophe events,
including hurricane Ida and the European storms Bernd, Volker and Xero, which
it estimates will lead to aggregate net ultimate losses in a range of $165
million to $185 million. 

In addition, Lancashire has reported exposure to large loss events within its
political violence portfolio related to the unrest in South Africa during July
2021. The aggregate estimated ultimate net losses for these events are
expected to be approximately $40 million.

These estimates are after anticipated recoveries from Lancashire’s outwards
reinsurance programme and the impact of outwards and inwards reinstatement
premiums.

Alex Maloney, Group Chief Executive Officer, commented:

“Our thoughts are with those who have suffered as a result of the recent
catastrophe and political violence events.  For Lancashire, these loss
estimates are within our expectations for these types of events and
demonstrate the value of our products to our (re)insureds and other
stakeholders.  Looking ahead, the Company remains strongly capitalised to be
able to take advantage of the improving market, both in the rest of this year
and in order to achieve our ambitious underwriting plans for 2022.  The
rating environment continues to improve, premiums continue to grow, and we are
well-positioned to achieve our strategic goals.”

It should be noted that Lancashire has estimated its exposure to windstorm and
flood related events in the following classes: property retrocession, property
direct and facultative, property reinsurance, marine and energy.
Lancashire’s preliminary estimates for the loss events noted above have been
derived from a combination of market data and assumptions, a limited number of
provisional loss advices, limited client loss data and modelled loss
projections. As additional information emerges, the Company’s actual
ultimate loss may vary from the preliminary estimates announced. The final
settlement of all claims is likely to take place over a considerable period of
time.

Lancashire will provide a more detailed update as part of its earnings release
covering the Group’s financial statements for the third quarter of 2021 due
for release on 4 November 2021.

See further the “Note Regarding Forward-Looking Statements” below. 

For further information, please contact:

 Lancashire Holdings Limited Christopher Head  +44 20 7264 4145 chris.head@lancashiregroup.com                                 
 Jelena Bjelanovic                             +44 20 7264 4066 jelena.bjelanovic@lancashiregroup.com                          
 FTI Consulting Edward Berry Tom Blackwell     +44 20 37271046 Edward.Berry@FTIConsulting.com Tom.Blackwell@FTIConsulting.com  

About Lancashire

Lancashire, through its UK and Bermuda-based operating subsidiaries, is a
provider of global specialty insurance and reinsurance products.

                     Financial  Strength  Rating ((1))  Financial Strength  Outlook ((1))  Long Term  Issuer  Rating ((2))  
 A.M. Best           A (Excellent)                      Stable                             Bbb+                             
 S&P Global Ratings  A-                                 Stable                             BBB                              
 Moody’s             A3                                 Stable                             Baa2                             

((1) Financial Strength Rating and Financial Strength Outlook apply to
Lancashire Insurance Company Limited and Lancashire Insurance Company (UK)
Limited.
(2) Long Term Issuer Rating applies to Lancashire Holdings Limited.)

Lancashire Syndicates Limited benefits from Lloyd’s ratings: A.M. Best: A
(Excellent); S&P Global

Ratings: A+ (Strong); and Fitch: AA- (Very Strong).

Lancashire has capital of approximately $2.0 billion and its common shares
trade on the premium segment of the Main Market of the London Stock Exchange
under the ticker symbol LRE. Lancashire has its head office and registered
office at Power House, 7 Par-la-Ville Road, Hamilton HM 11, Bermuda.

The Bermuda Monetary Authority (“BMA”) is the Group Supervisor of the
Lancashire Group.

For more information, please visit Lancashire’s website at
www.lancashiregroup.com.

The information was submitted for publication, through the agency of the
contact persons set out above, at 07.00 BST on 21 October 2021.

NOTE REGARDING FORWARD-LOOKING STATEMENTS:

CERTAIN STATEMENTS AND INDICATIVE PROJECTIONS (WHICH MAY INCLUDE MODELLED LOSS
SCENARIOS) MADE IN THIS RELEASE OR OTHERWISE THAT ARE NOT BASED ON CURRENT OR
HISTORICAL FACTS ARE FORWARD-LOOKING IN NATURE INCLUDING, WITHOUT LIMITATION,
STATEMENTS CONTAINING THE WORDS “BELIEVES”, “ANTICIPATES”, “AIMS”,
“PLANS”, “PROJECTS”, “FORECASTS”, “GUIDANCE”, “INTENDS”,
“EXPECTS”, “ESTIMATES”, “PREDICTS”, “MAY”, “CAN”,
“LIKELY”, “WILL”, “SEEKS”, “SHOULD”, OR, IN EACH CASE, THEIR
NEGATIVE OR COMPARABLE TERMINOLOGY.

ALL FORWARD-LOOKING STATEMENTS IN THIS RELEASE SPEAK ONLY AS AT THE DATE OF
PUBLICATION. LANCASHIRE HOLDINGS LIMITED EXPRESSLY DISCLAIMS ANY OBLIGATION OR
UNDERTAKING (SAVE AS REQUIRED TO COMPLY WITH ANY LEGAL OR REGULATORY
OBLIGATIONS INCLUDING THE RULES OF THE LONDON STOCK EXCHANGE) TO DISSEMINATE
ANY UPDATES OR REVISIONS TO ANY FORWARD-LOOKING STATEMENT TO REFLECT ANY
CHANGES IN THE GROUP’S EXPECTATIONS OR CIRCUMSTANCES ON WHICH ANY SUCH
STATEMENT IS BASED. ALL SUBSEQUENT WRITTEN AND ORAL FORWARD-LOOKING STATEMENTS
ATTRIBUTABLE TO THE GROUP OR INDIVIDUALS ACTING ON BEHALF OF THE GROUP ARE
EXPRESSLY QUALIFIED IN THEIR ENTIRETY BY THIS NOTE. PROSPECTIVE INVESTORS
SHOULD SPECIFICALLY CONSIDER THE FACTORS IDENTIFIED IN THIS RELEASE WHICH
COULD CAUSE ACTUAL RESULTS TO DIFFER BEFORE MAKING AN INVESTMENT DECISION.



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