Lancashire Holdings posts full-year profit, beats expectations
By Michele Maatouk
Date: Wednesday 10 Feb 2021
(Sharecast News) - Lancashire Holdings posted a slump in full-year profit on Wednesday, but the results were ahead of expectations for a loss as the insurer's investment portfolio recovered.
In the year to the end of December 2020, pre-tax profit fell to $5.9m from $119.5m the year before, but this was better than analysts' expectations for a loss of $31.4m.
Gross premiums written increased by 15.2% on the year to $814.1m, in line with consensus expectations of around $812m. Meanwhile, the combined ratio - which measures an insurer's profitability - came in at 107.8% compared to 80.9% the year before, including the impact of the Covid-19 pandemic. A ratio above 100% means the insurer is paying out more money in claims than it is getting from premiums.
Lancashire said its investment portfolio contributed significantly to profitability, generating returns of 3.9% for the year.
Chief financial officer Natalie Kershaw said: "We are pleased to have navigated 2020 relatively unscathed given the number of catastrophe and risk losses incurred in addition to the financial impacts of Covid-19.
"In such a difficult year we consider making an overall profit after tax of $4.2m and comprehensive income of $24.3m a very positive result."
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10 Lower Thames St,
London EC3R 6EN