Property & energy segments drive down premiums at Lancashire
Lancashire’s property and marine segments drove down premiums at the re/insurer in the third quarter of 2015.
Its gross written premiums (GWP) slumped 20.8 percent to $120.4 million in the quarter, compared with $152.1 million in the third quarter of 2014. Lancashire’s GWP for the first nine months of 2015 fell to $169.4 million, compared with $238.3 million in the same period of the prior year.
During the quarter, the decrease was driven by contractions in Lancashire’s property, energy, marine and Lloyd’s segments of 19.8 percent, 39.8 percent, 56.9 percent and 7.2 percent respectively.
“The decrease in premiums for the quarter and year to date came primarily from the property and energy segments where a number of multi-year deals written in 2014 are not yet due to renew,” explained the re/insurer.
However, its aviation segment posted GWP growth of 8.1 percent in the quarter, driven by new business in the aviation satellite book.
Its profits also fell, to $34.1 million in the third quarter of 2015, compared with $37.6 million in the third quarter of 2014, while its combined ratio improved to 70.2 percent in the third quarter of 2015, compared with 82.4 percent in the same period of the prior year.
Alex Maloney, chief executive officer of Lancashire, said: “I believe that in the current market the most important priority remains to focus on disciplined underwriting, adding value for our clients and brokers (many of whom are themselves facing challenging times) and thereby maintaining and servicing with excellence a core book of business.”
He added: “Premiums are down for the quarter – in line with experience across the market and as I would expect. In the current market one has to question the wisdom of driving for top line growth. I take comfort in this environment that the Group, across its Lloyd’s, London and Bermuda businesses, continues to be relevant to the needs of our core clients and brokers.”
