Lancashire flags growth of political risk book as 9M premium surges

Lancashire Group has heralded growth in its political book as it posted an impressive increase of more than 23% in its 2023 nine-month GWP. The increase of 23.2% to $1.56 billion compared to the same period last year.

Lancashire said the growth in the insurance segment was primarily driven by property insurance, with significant rate increases in the property direct and facultative class and the continued build out of the property construction book of business. 

It added that in specialty insurance more premium was written in the political risk class, and energy and marine continued to grow across our underwriting platforms taking advantage of positive market conditions across most classes. Aviation insurance benefited from exceptionally strong RPIs, albeit the major renewal period is in the fourth quarter. Overall the RPI was 112% for the segment.

On the claims front, Lancashire said that the first nine months of 2023 have seen natural catastrophe loss activity across a number of events including US wind and convective storms, the Hawaiian wildfires, the Turkey earthquake, hurricane Idalia, and cyclones and flooding in New Zealand. It also incurred some risk losses, particularly in its energy classes. However, it stressed that these losses were not individually material.

Commenting on the update, CEO Alex Maloney said:

“During the first nine months of 2023, we have continued to successfully implement our long-term strategy to manage the market cycle and deliver strong profitable growth through a portfolio of diversified products. Gross premiums written increased by 23.2% to $1.6 billion in the year to date, with rates remaining extremely attractive across our product lines. We continue to expect a positive environment into 2024, with further opportunities for Lancashire.”

“Our previously announced plans to expand our international footprint further through Lancashire Insurance US continue, and we are pleased with the progress we are making towards an underwriting launch in early 2024.”

“I am always impressed by the talent, hard work and dedication of our people across the Lancashire Group and I would like to thank them for their ongoing commitment to the business. I would also like to thank our clients, brokers and shareholders for their continued support.”

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