Lancashire posts profit in ‘tough’ year
Lancashire Holdings posted its 2008 results this week, with pre-tax profits down 75% at $97.6 million (£68.6 million).
This is compared to 2007 pre-tax profit of $392 million.
Chief executive Richard Brindle said 2008 was “one of the toughest years that many of us have experienced in the insurance industry”.
The group reported a $150 million loss on hurricanes Gustav and Ike, and said it expects catastrophe premiums to increase strongly this year because of the 2008 hurricane season.
The hurricane loss was partially offset by a ‘very strong’ performance from the firm’s investment portfolio, which returned 3.1% over the year despite tumbling share prices across the financial markets.
Gross written premiums decreased to $638.1 million, down from $753.1 million in 2007.
Combined ratio worsened significantly to 86.3%, compared to 46.3% the previous year.
The Bermuda-based company said it has sufficient capital to take advantage of current market conditions, and added that it has no plans to raise capital from investors.
Brindle said: “Looking forward, I can only reiterate that I believe we enter 2009 well placed to take advantage of some extraordinary opportunities.”
Share price in the company rose 2% following the announcement.
Category: Financials, Insurance News
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