REG-Lancashire Holdings Ltd: Lancashire Holdings Limited - Third Quarter 2025 Results

Lancashire HoldingsAnnouncement

Today 07:02

LANCASHIRE HOLDINGS LIMITED

 

5 November 2025

Hamilton, Bermuda

 

Lancashire Holdings Limited (“Lancashire” or “the Group”) today
announces its trading statement for the nine months ended 30 September 2025.

 

Trading statement highlights

 

•                              Strong third quarter with continued
growth and disciplined and selective underwriting.

•                              Gross premiums written increased by
7.4% year-on-year to $1.8 billion, insurance revenue increased by 7.8%
year-on-year to $1.4 billion, with a Group Renewal Price Index (RPI) of 96%.

•                              Total investment return of 5.6%,
including unrealised gains and losses, year-to-date.

•                              Minority buy-out of Syndicate 2010
achieved.

•                             Special dividend of 75 cents per
common share, or $182 million, reflecting robust capital position and positive
operating performance.

 

Alex Maloney, Group Chief Executive Officer, commented:

“Lancashire delivered a strong third quarter, continuing to grow in line
with market opportunities while maintaining a disciplined and selective
approach to underwriting.

 

Gross premiums written rose 7.4% year-on-year to $1.8           b         
illion and insurance revenue increased by 7.8% to

$1.4 billion.

Our performance over the first nine months of the year - particularly in light
of the California wildfires early on - demonstrates the strength and
resilience of our business model. It highlights the value of our strategy, our
capacity to navigate volatility, and the advantages of our diversified
portfolio across both product lines and geographies.

Market dynamics remain robust and, while certain classes have seen the start
of some softening from recent highs, overall pricing remains healthy across
most of the book. Our results were also supported by strong investment
returns, achieving 5.6% for the year to date.

Reflecting Lancashire’s earnings in the first nine months of the year, the
Board has approved a special dividend of 75 cents per common share, resulting
in an aggregate distribution of approximately $182 million.          
           

During the quarter, we received approval from Lloyd’s of London to complete
the minority buy-out of the remaining capacity on Syndicate 2010 for the 2026
underwriting year. This is a significant milestone for the business, offering
new opportunities and strategic flexibility.          
           

Our capital position remains exceptionally strong. We are returning capital to
shareholders, investing in our syndicate platform, and continuing to pursue
attractive underwriting opportunities through the remainder of the year and
beyond.          
           

Finally, our people remain at the heart of our success. In September, we
conducted our 2025 all-employee engagement survey, and I’m pleased to report
another round of highly positive feedback. I’m especially proud that our
culture continues to be valued by our colleagues. This reinforces my
confidence in the dedication and commitment of our team, who are driving
Lancashire forward with energy and purpose. My sincere thanks go to them - and
to all our stakeholders - for their continued support.”

 

Business update

 

Gross premiums written and insurance revenue

                         Nine months ended                                          
                         30 September 2025  30 September 2024  Change  Change  RPI  
                         $m                 $m                 $m      %       %    
 Reinsurance             1,031.1            941.2              89.9    9.6%    97%  
 Insurance               794.3              758.8              35.5    4.7%    96%  
 Gross premiums written  1,825.4            1,700.0            125.4   7.4%    96%  
                                                                                    
 Reinsurance             671.7              629.3              42.4    6.7%         
 Insurance               728.1              668.7              59.4    8.9%         
 Insurance revenue       1,399.8            1,298.0            101.8   7.8%         

 

Gross premiums written

 

Gross premiums written increased by $125.4 million, or 7.4%, in the first nine
months of 2025, compared to the same period in 2024. Excluding the impact of
reinstatement premiums, underlying growth in gross premiums written was 4.8%.
In the reinsurance segment there has been measured growth across most lines,
including planned growth in areas of specialty reinsurance such as aviation,
marine and energy treaty. In the insurance segment the continued build-out of
the Lancashire US franchise has seen classes such as energy liability and
property insurance grow, as well as premium growth in marine hull and war and
political risk lines of business via our London platforms. The overall RPI for
the Group was 96%.

 

Insurance revenue

 

Insurance revenue increased by $101.8 million, or 7.8%, in the first nine
months of 2025 compared to the same period in 2024. Gross premiums earned, the
key driver of insurance revenue, as a percentage of gross premiums written,
was 91.6% for the first nine months of 2025, compared to 88.2% for the
equivalent period in 2024.                      Insurance revenue continues
to increase at a faster rate than gross premiums written, reflecting premium
earnings from prior underwriting years where the business saw substantial
growth.

 

Loss environment

The third quarter loss environment was relatively benign for natural
catastrophe losses. The environment for large single risks losses remains
active, consistent with trends seen earlier in the year.

 

Investments

 

 As at                     30 September 2025  30 September 2024  
 Duration                  2.1 years          1.9 years          
 Credit quality            A+                 AA-                
 Book yield                4.8%               4.8%               
 Market yield              4.5%               4.7%               
 Managed investments ($m)  $3,316.5           $3,207.2           

 

The Group’s investment portfolio, including unrealised gains and losses,
delivered a 5.6% return over the first nine months of 2025. Performance was
supported by falling yields, amid rising expectations of rate cuts, which
lifted prices. Additionally, modest tightening in investment-grade credit
spreads and a foreign exchange gain of 50 bps for non-US dollar portfolios,
held for hedging purposes, further contributed to returns. Private investment
funds also generated strong performance during the period.

 

Dividends

Lancashire’s Board of Directors has declared a special dividend of 75 cents
per common share (approximately 57 pence per common share at the current
exchange rate), which will result in an aggregate payment of approximately
$182 million. The dividend will be paid in Pounds Sterling on 12 December 2025
(the “Dividend Payment Date”) to shareholders of record on 14 November
2025 (the “Record Date”) using the £ / $ spot market exchange rate at 12
noon London time on the Record Date. Shareholders interested in participating
in the dividend reinvestment plan (“DRIP”), or other services including
international payment, are encouraged to contact the Group’s registrars,
MUFG Corporate Markets, for more details.

Analyst and Investor Conference Call

There will be an analyst and investor conference call on the trading statement
at 10am UK time / 6am Bermuda time / 5am EDT on Wednesday 5 November 2025. The
conference call will be hosted by Lancashire management and a presentation
will be made available on the Group’s website prior to the call.

 

Participant Access

 

Please note that conference call participants are required to register in
advance to access either the audio conference call or webcast, the full
registration and access details are set out below.           
           

 Audio access:    https://emportal.ink/3IdQ7Oz                                                            
                  Please register to obtain your personal audio conference pin and call details.          
                                                                                                          
 Webcast access:  https://onlinexperiences.com/Launch/QReg/ShowUUID=F9F23CB6-A7E8-4DCB-B57C-EB1D8188A755  
                  Please use this link to register and access the call via webcast.                       

 

A webcast replay facility will be available for 12 months and accessible at:  
                              
https://www.lancashiregroup.com/en/investors/results-reports-and-presentations.html

 

Contact information                      

 Lancashire Holdings Limited                                         
 Christopher Head             chris.head@lancashiregroup.com         
 Jelena Bjelanovic            jelena.bjelanovic@lancashiregroup.com  
                                                                     
 FTI Consulting                                                      
 Edward Berry                 Edward.Berry@FTIConsulting.com         
 Tom Blackwell                Tom.Blackwell@FTIConsulting.com        

 

About Lancashire

Lancashire, through its operating subsidiaries, is a provider of global
specialty insurance and reinsurance products.          
          
          Lancashire 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 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 UK time on 5 November 2025.

 

NOTE REGARDING RPI METHODOLOGY:

THE RENEWAL PRICE INDEX (“RPI”) IS AN INTERNAL METHODOLOGY THAT MANAGEMENT
USES TO TRACK TRENDS IN PREMIUM RATES OF A PORTFOLIO OF INSURANCE AND
REINSURANCE CONTRACTS. THE RPI WRITTEN IN THE RESPECTIVE SEGMENTS IS
CALCULATED ON A PER CONTRACT BASIS AND REFLECTS MANAGEMENT’S ASSESSMENT OF
RELATIVE CHANGES IN PRICE, TERMS, CONDITIONS AND LIMITS AND IS WEIGHTED BY
PREMIUM VOLUME. THE RPI DOES NOT INCLUDE NEW BUSINESS, TO OFFER A CONSISTENT
BASIS FOR ANALYSIS. THE CALCULATION INVOLVES A DEGREE OF JUDGEMENT IN RELATION
TO COMPARABILITY OF CONTRACTS AND THE ASSESSMENT NOTED ABOVE. TO ENHANCE THE
RPI METHODOLOGY, MANAGEMENT MAY REVISE THE METHODOLOGY AND ASSUMPTIONS
UNDERLYING THE RPI, SO THE TRENDS IN PREMIUM RATES REFLECTED IN THE RPI MAY
NOT BE COMPARABLE OVER TIME. CONSIDERATION IS ONLY GIVEN TO RENEWALS OF A
COMPARABLE NATURE SO IT DOES NOT REFLECT EVERY CONTRACT IN THE PORTFOLIO OF
CONTRACTS. THE FUTURE PROFITABILITY OF THE PORTFOLIO OF CONTRACTS WITHIN THE
RPI IS DEPENDENT UPON MANY FACTORS BESIDES THE TRENDS IN PREMIUM RATES.

 

NOTE REGARDING ALTERNATIVE PERFORMANCE MEASURES:

THE GROUP USES ALTERNATIVE PERFORMANCE MEASURES TO HELP EXPLAIN BUSINESS
PERFORMANCE AND FINANCIAL POSITION. THESE MEASURES HAVE BEEN CALCULATED
CONSISTENTLY WITH THOSE AS DISCLOSED IN THE GROUP’S ANNOUNCEMENT OF ITS
RESULTS FOR THE YEAR ENDED 31 DECEMBER 2024 AND THE UNAUDITED CONDENSED
INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE
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 2024 AND THE UNAUDITED CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2025. 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. PROSPECTIVE INVESTORS
SHOULD SPECIFICALLY CONSIDER THE FACTORS IDENTIFIED IN THIS RELEASE AND THE
REPORT AND ACCOUNTS NOTED ABOVE WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER
BEFORE MAKING AN INVESTMENT DECISION.



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