REG-Lancashire Holdings Ltd: Loss estimate relating to California wildfires

Lancashire HoldingsAnnouncement

13/02/2025 07:15

 

LANCASHIRE HOLDINGS LIMITED

13 February 2025

Hamilton, Bermuda

Loss estimate relating to California wildfires

Lancashire Holdings Limited (the "Company" or "Lancashire") today announces
that it estimates its aggregate net ultimate losses relating to the wildfires
in California, which occurred in January 2025, in the range of $145 million to
$165 million. This estimate falls within the Company's modelled loss ranges
for this type of catastrophe event.

This estimate is undiscounted, 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
all those affected by the recent wildfires which wrought such devastation in
California. Events like this show the value of (re)insurance products in both
offering protection and in supporting people as they rebuild their lives.

Given our strong earnings performance and capital generation in 2024
Lancashire remains extremely well capitalised to achieve its strategic
ambitions. In addition, the aggregate reinsurance cover the Company has in
place to protect against the frequency of large catastrophe events should
allow Lancashire to deliver an attractive return for shareholders in 2025.

We will provide a further update on our position regarding these losses, and
further guidance for 2025, as part of the announcement of our results for the
full year ended 31 December 2024 on 6 March 2025."

Lancashire's preliminary estimate has 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 estimate announced.

See further the "Note Regarding Forward-Looking Statements" below.

For further information, please contact:

Lancashire Holdings Limited

 Christopher Head   chris.head@lancashiregroup.com         
 Jelena Bjelanovic  jelena.bjelanovic@lancashiregroup.com  

 

 

 About Lancashire

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

Lancashire's common shares trade in the equity shares (commercial companies)
category 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.

 

This release contains information, which may be of a price sensitive nature
that Lancashire is making public in a manner consistent with the UK Market
Abuse Regulation and other regulatory obligations. The information was
submitted for publication, through the agency of the contact persons set out
above, at 07:00 GMT on 13 February 2025.

 

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", "AIMS", "ANTICIPATES", "PLANS",
"PROJECTS", "FORECASTS", "GUIDANCE", "INTENDS", "EXPECTS", "ESTIMATES",
"PREDICTS", "MAY", "CAN", "LIKELY", "WILL", "SEEKS", "SHOULD", OR, IN EACH
CASE, THEIR NEGATIVE OR COMPARABLE TERMINOLOGY. SUCH FORWARD-LOOKING
STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER IMPORTANT
FACTORS THAT COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF
THE GROUP TO BE MATERIALLY DIFFERENT FROM FUTURE RESULTS, PERFORMANCE OR
ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. FOR A
DESCRIPTION OF SOME OF THESE FACTORS, SEE THE GROUP'S ANNUAL REPORT AND
ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023, THE GROUP'S UNAUDITED CONDENSED
INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE
2024 AND THE GROUP'S TRADING STATEMENT RELEASED ON 6 NOVEMBER 2024.
PROSPECTIVE INVESTORS SHOULD SPECIFICALLY CONSIDER THE FACTORS IDENTIFIED IN
THIS RELEASE AND THE REPORT AND ACCOUNTS AND RELEASE NOTED ABOVE WHICH COULD
CAUSE ACTUAL RESULTS TO DIFFER BEFORE MAKING AN INVESTMENT DECISION.

ALL FORWARD-LOOKING STATEMENTS IN THIS RELEASE OR OTHERWISE SPEAK ONLY AS AT
THE DATE OF PUBLICATION. LANCASHIRE 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.



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