Lancashire has reported insurance revenue of $930.1 million for the first half of 2025, an increase of $76 million, or 8.9%, compared to the same period in 2024.
Of that total, the reinsurance segment contributed $450.6 million, while the insurance segment generated $479.5 million.
Meanwhile, the firm’s gross premiums written increased by $74 million, or 5.8%, during the first six months of 2025 to around $1.36 billion.
Lancashire disclosed that its reinsurance segment contributed $815.6 million to this total, while the insurance segment made up $540.6 million.
“In the reinsurance segment, new business growth and premium coming through from policies bound in prior years resulted in an increase in casualty, while a higher level of reinstatement premium contributed to the growth in property. In the insurance segment, new business growth in energy and marine was more than offset by rate decreases in property and aviation,” Lancashire added.
The firm also noted that gross premiums earned, the key driver of insurance revenue, as a percentage of gross premiums written was 81.9% for the first six months of 2025 compared to 76.9% 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,” Lancashire said.
Lancashire reported an insurance service result of $155.7 million for the first half of 2025, down from $222.8 million in the same period last year.
The firm also incurred net losses of $211.2 million from catastrophe, weather, and large loss events in the first six months of 2025, an increase from $44 million in the first six months of 2024.
Catastrophe and weather-related losses accounted for $172 million of the total in the first half of 2025, the bulk of which stemmed from the California wildfires. Large risk events contributed an additional $39.2 million in net losses.
As a result, Lancashire’s combined ratio for H1 2025 rose to 87.4% on a discounted basis and 97.8% undiscounted, both up year-on-year.
Alex Maloney, the firm’s Group Chief Executive Officer, commented, “Lancashire’s performance for the first six months of the year clearly demonstrates the increased resilience within our business model.
“Our strategy to grow at the right time in the cycle means we are better positioned, across various classes and geographies, than ever before.
“We have developed a robust, diversified and capital-efficient underwriting portfolio that can absorb the impact of significant industry loss events whilst delivering more predictable returns.”
Maloney continued, “The impact of the wildfires in California in January has been felt across the sector. Estimated industry insured losses are around $40 billion, making it one of the costliest wildfire disasters ever recorded.
“In this context, our strong profit after tax of $109.2 million and healthy discounted combined ratio for the period of 87.4% (undiscounted of 97.8%) shows our ability to deliver attractive returns even in a challenging loss environment.
“Our underwriting performance has been complemented by our investment portfolio, which returned 3.7% for the period and remains an important strategic lever for value creation. The relatively conservative, short duration, portfolio is well-positioned to limit downside risk, which is a prudent position in volatile markets.
“So, overall, we approach the second half of the year with confidence, a very strong balance sheet and robust capital base, which is able to support growth and shareholder returns.
“We outlined earlier in the year, in a severe loss year with a similar level of catastrophe and large risk losses as 2024, in addition to the California wildfires, we would expect to deliver an RoE in the mid-teens for 2025. In light of our half-year 2025 performance, in the same scenario, we would now expect to deliver a high teens RoE.
“I am pleased to report that during the period, we made an offer for the remaining capacity on Syndicate 2010 (for the 2026 underwriting year), which is not already owned by the Group. Acceptances have been received such that we now have 99.4% of the capacity and an application has been made to Lloyd’s for permission to effect a minority buy-out in respect of the remaining capacity.
“2025 is our 20th year of operations and I am proud that we remain a healthy, relevant and strong player in the sector. Our accomplishments during the first six months of the year have only been made possible by the talented and committed people that we have across the Lancashire Group, in all functions and all regions.
“I would like to thank them all for their hard work, dedication and support in assisting us in delivering our strategic goals and, importantly, in deepening our thriving and positive culture.
“In an unstable world, both geopolitically and economically, Lancashire continues to have the vision, resilience, and talent to maintain long and mutually beneficial relationships with our clients and brokers, and deliver sustainable returns for our investors.”
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