Lancashire’s 2023 profit soars to $321.5m as GPW hit $1.9bn

Lancashire Holdings has revealed its overall profit after tax for 2023 was $321.5 million, resulting in a change in diluted book value per share of 24.7% and marking a massive improvement compared to 2022’s loss of $15.5 million.

The firm’s 2023 gross premiums written (GPW) also increased 16.9% year-on-year to $1.9 billion, while insurance revenue increased 23.9% year-on-year to $1.5 billion.

Meanwhile, Lancashire’s insurance service result for 2023 was $382.1 million with a combined ratio (undiscounted) of 82.6% and a combined ratio (discounted) of 74.9%.

The firm’s investment portfolio also had a strong year, reportedly benefiting from higher interest rates.

The portfolio returned 5.7%, resulting in a net investment return of $160.5 million for 2023.

Alex Maloney, Group Chief Executive Officer, commented, “Lancashire delivered an outstanding performance in 2023. We continued to focus on writing profitable business in the best market conditions we have seen for a decade.

“Aligned to our belief in managing the market cycle, we have built a better balanced and more diverse underwriting portfolio over the past five years, which is generating more profit against our capital base. This has been one of our core strategic goals and will continue to be a focus going forward.

“Lancashire is always led by the underwriting opportunity. We believe there are significant opportunities going into 2024 and we are well capitalised to be able to fund these through existing resources and internal earnings growth.”

Maloney continued, “In light of the excellent financial performance in 2023, we are returning the majority of our earnings to shareholders.

“While we did not complete the share buyback of up to $50 million announced in the third quarter of 2023, we are today announcing a special dividend of $0.50 per common share in part to reflect this as well as the strong operating performance and supportive outlook. This dividend follows the special dividend of $0.50 per common share paid in December 2023.

“Additionally, given the increased resilience of our business model, we are announcing a change to our regular final and interim dividend policy. Our Board has declared a final dividend of $0.15 per common share, an increase of 50% from last year (and which is subject to shareholder approval at our AGM in May).

“It is also our current intention to increase the Group’s ordinary interim dividend to $0.075 per common share. Our interim dividends are usually paid after the announcement of our results for the first six months of the year.

“Lancashire remains focused on delivering its strategic objectives and continuing the growth and momentum we have built during 2023. Our franchise remains strong and we have fantastic teams across the Group who are dedicated to achieving our goals.”

The post Lancashire’s 2023 profit soars to $321.5m as GPW hit $1.9bn appeared first on ReinsuranceNe.ws.