In its trading statement, Lancashire credited the increase in GWP to growth in the property and casualty reinsurance segment, driven by new business in the new casualty reinsurance classes of business. Overall the RPI for this segment remained strong at 108%.
Its growth in the property and casualty insurance segment was supported by the continued build-out of its property direct and facultative book of business, as well as new business in property political risk and property construction classes. Meanwhile, strengthing in its marine class was attributed to a combination of new business, the renewal of a large multi-year contract and the marine liability class of business having a very strong RPI.
Increases seen in its energy arm were mainly driven by new business in the energy liabilities class, the group stated, while Q1 is not a major renewal period for the aviation segment and the gross premium written has remained comparable to the prior year.
Commenting on the trading statement posted by Lancashire group CEO Alex Maloney framed the results in the context of the ongoing humanitarian crisis in Ukraine and noted the business is supporting UNICEF and the Red Cross via direct contributions from the Lancashire Foundation and matching employee donations. Lancashire is continuing to monitor events across Ukraine and Russia, he said, especially regarding potential exposure to losses in its political violence, aviation war and marine insurance classes, as well as its aviation and specialty reinsurance classes.
“We estimate that our ultimate net losses incurred within Ukraine are in the range of $20 million to $30 million,” he said. “This continues to be a complex and evolving situation and we will give an update at the announcement of our half year results in July. While we continue to analyse our potential exposure scenarios in Russia, we consider that any potential losses would be within our risk tolerances, and would not impact our ability to deliver on our ambitious growth plans for 2022.”
Despite the still unfolding backdrop of the Ukraine crisis, Maloney said, the group’s underlying trading conditions remain favourable and Lancashire has continued to deliver strong premium growth in the first quarter.
“In light of the potential for broader market dislocation,” he said, “we remain confident that our strong balance sheet, robust capital position and talented underwriting teams, will give us further opportunities for profitable growth during 2022.”