Lancashire Holdings Limited - Lancashire Holdings Limited - First Quarter 2026 Trading Statement
Trading statement highlights
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Gross premiums written of
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Insurance revenue increased by 2.1% year-on-year to
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Benign loss environment with limited exposure to
• Total investment return of 0.3%, including unrealised gains and losses.
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Regulatory ECR ratio of 254% as at
“Lancashire has had a positive start to 2026, holding fast to our core principle of active cycle management.
With the strong first quarter, we are on track to deliver results in line with our guidance for the year.
As part of our proactive approach to managing the cycle, we enacted a planned reduction in inwards property retrocession in our reinsurance segment. This was offset by a 12% increase in gross premiums written across our insurance lines to
As we move through 2026, we will continue to maximise opportunities where it makes sense, and we have the teams and talent across our Group to do this. The work we have done over recent years to grow our product portfolio and increase our geographic reach puts us in a strong position to continue to generate attractive risk-adjusted underwriting returns through the cycle.
Clearly, the period has seen very significant geopolitical volatility leading to wider economic uncertainty. Lancashire’s exposure to the current events in the
The Group’s investment portfolio, including unrealised gains and losses, returned 0.3% over the period.
Since acquiring 100% of the underwriting capacity for Syndicate 2010, with effect from the 2026 year of account,
we have been assessing the increased optionality that full alignment offers us. Subject to approval by Lloyd’s, we will combine
During the quarter, we also saw planned senior management transitions in our Lloyd’s and
For more than two decades, Lancashire has flexibly managed the (re)insurance cycle with a focus on disciplined risk selection, strong capital management, and adding value in our relationships with clients and brokers. We remain fully focused on keeping our momentum as we drive the business further forward, and we maintain our expectation of a stable top-line, and a high teens RoE for 2026.”
Business update
Gross premiums written and insurance revenue
Three months ended
31 March 2026 31 March 2025 Change Change RPI
$m $m $m % %
Reinsurance 411.0 482.3 (71.3) (14.8%) 92%
Insurance 257.4 229.8 27.6 12.0% 94%
Gross premiums written 668.4 712.1 (43.7) (6.1%) 93%
Reinsurance 218.4 220.3 (1.9) (0.9%)
Insurance 250.2 238.6 11.6 4.9%
Insurance revenue 468.6 458.9 9.7 2.1%
Gross premiums written
Gross premiums written decreased by
Insurance revenue
Insurance revenue increased by
Loss environment
The loss environment during the first quarter of 2026 was relatively benign and the Group’s exposure to the ongoing conflict in the
Investments
As at 31 March 2026 31 March 2025 Duration 2.2 years 2.0 years Credit quality A+ A+ Book yield 4.6% 4.8% Market yield 4.6% 4.8% Managed investments ($m)$3,218.8 $3,098.3
The Group’s investment portfolio, including unrealised gains and losses, delivered a 0.3% return over the first three months of 2026. Performance was primarily driven by investment income, offset by price declines resulting from rising
Analyst and investor conference call
There will be an analyst and investor conference call on the trading statement at
Participant access
Please note that conference call participants are required to register in advance to access either the audio conference call or webcast, the full registration and access details are set out below.
Audio access: https://emportal.ink/3PjMGJ1 Please register to obtain your personal audio conference pin and call details. Webcast access: https://onlinexperiences.com/Launch/QReg/ShowUUID=101F2A7A-046C-433E-9BE8-E3CF26E7 30EE Please use this link to register and access the call via webcast.
A webcast replay facility will be available for 12 months and accessible at: https://www.lancashiregroup.com/en/investors/results-reports-and-presentations.html
Contact information
Lancashire Holdings Limited
Christopher Head
chris.head@lancashiregroup.com
Jelena Bjelanovic
jelena.bjelanovic@lancashiregroup.com
FTI Consulting
Edward Berry
Edward.Berry@FTIConsulting.com
Tom Blackwell
Tom.Blackwell@FTIConsulting.com
About Lancashire
Lancashire, through its operating subsidiaries, is a provider of global specialty insurance and reinsurance products.
Lancashire common shares trade in the equity shares (commercial companies) category of the Main Market of the
The
For more information, please visit Lancashire’s website at www.lancashiregroup.com .
This release contains information, which may be of a price sensitive nature that Lancashire is making public in a manner consistent with the
NOTE REGARDING RPI METHODOLOGY:
THE RENEWAL PRICE INDEX (“RPI”) IS AN INTERNAL METHODOLOGY THAT MANAGEMENT USES TO TRACK TRENDS IN PREMIUM RATES OF A PORTFOLIO OF INSURANCE AND REINSURANCE CONTRACTS. THE RPI WRITTEN IN THE RESPECTIVE SEGMENTS IS CALCULATED ON A PER CONTRACT BASIS AND REFLECTS MANAGEMENT’S ASSESSMENT OF RELATIVE CHANGES IN PRICE, TERMS, CONDITIONS AND LIMITS AND IS WEIGHTED BY PREMIUM VOLUME. THE RPI DOES NOT INCLUDE NEW BUSINESS, TO OFFER A CONSISTENT BASIS FOR ANALYSIS. THE CALCULATION INVOLVES A DEGREE OF JUDGEMENT IN RELATION TO COMPARABILITY OF CONTRACTS AND THE ASSESSMENT NOTED ABOVE. TO ENHANCE THE RPI METHODOLOGY, MANAGEMENT MAY REVISE THE METHODOLOGY AND ASSUMPTIONS UNDERLYING THE RPI, SO THE TRENDS IN PREMIUM RATES REFLECTED IN THE RPI MAY NOT BE COMPARABLE OVER TIME. CONSIDERATION IS ONLY GIVEN TO RENEWALS OF A COMPARABLE NATURE SO IT DOES NOT REFLECT EVERY CONTRACT IN THE PORTFOLIO OF CONTRACTS. THE FUTURE PROFITABILITY OF THE PORTFOLIO OF CONTRACTS WITHIN THE RPI IS DEPENDENT UPON MANY FACTORS BESIDES THE TRENDS IN PREMIUM RATES.
NOTE REGARDING ALTERNATIVE PERFORMANCE MEASURES:
THE GROUP USES ALTERNATIVE PERFORMANCE MEASURES TO HELP EXPLAIN BUSINESS PERFORMANCE AND FINANCIAL POSITION. THESE MEASURES HAVE BEEN CALCULATED CONSISTENTLY WITH THOSE AS DISCLOSED IN THE GROUP’S ANNOUNCEMENT OF ITS RESULTS FOR THE YEAR ENDED
NOTE REGARDING FORWARD-LOOKING STATEMENTS:
CERTAIN STATEMENTS AND INDICATIVE PROJECTIONS (WHICH MAY INCLUDE MODELLED LOSS SCENARIOS) MADE IN THIS RELEASE OR OTHERWISE THAT ARE NOT BASED ON CURRENT OR HISTORICAL FACTS ARE FORWARD-LOOKING IN NATURE INCLUDING, WITHOUT LIMITATION, STATEMENTS CONTAINING THE WORDS “BELIEVES”, “AIMS”, “ANTICIPATES”, “PLANS”, “PROJECTS”, “FORECASTS”, “GUIDANCE”, “INTENDS”, “EXPECTS”, “ESTIMATES”, “PREDICTS”, “MAY”, “CAN”, “LIKELY”, “WILL”, “SEEKS”, “SHOULD”, OR, IN EACH CASE, THEIR NEGATIVE OR COMPARABLE TERMINOLOGY. SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND
