LONDON – Lloyd’s of London insurer Lancashire posted a pre-tax profit of $54.1 million in the first half, helped by rising premium rates, it said on Wednesday, with the results coming in above analysts’ forecasts.
Lancashire recorded a pre-tax loss of $23 million a year ago due to the impact of the COVID-19 pandemic.
Lancashire’s results were helped by a 41% rise in gross written premiums and a rise in premium rates on renewals of 11%, it said in a statement.
“Looking ahead, we expect the rating environment to remain positive,” Chief Executive Alex Maloney said.
Underwriting profits were strong at $127.1 million, despite the impact of Winter Storm Uri in the United States, Lancashire said.
The property and casualty insurer’s combined ratio strengthened to 80.7% from 106.9% a year ago. A level below 100% indicates an underwriting profit.
The pre-tax profit numbers came in above analysts’ expectations of $33.4 million, according to a company-supplied consensus forecast.
Lancashire said it would pay an interim dividend of $0.05 per share, the same as a year ago.
(This story corrects earnings forecast in para 1 and 7)