Half Year 2024 Lancashire Holdings Ltd Earnings Call Transcript
Key Points
- Lancashire Holdings Ltd (LCSHF) reported its best first-half performance since inception, with a return on equity of 14%.
- The company achieved an 8% growth in premiums, positioning it for the largest business footprint in 2024.
- The combined ratio was excellent at 73% on a discounted basis, indicating strong underwriting performance.
- Investment performance was robust, contributing significantly to the company's results with a 2.3% return.
- The company remains well-capitalized, with a BSCR ratio of over 300%, providing flexibility for future growth opportunities.
- The industry faced high catastrophe losses and large risk events, although none were individually material for Lancashire Holdings Ltd (LCSHF).
- The company anticipates a higher combined ratio in the second half of the year due to the North American hurricane season.
- There is increased competition in the property insurance market, which could impact future growth.
- The reinsurance spend as a percentage of insurance revenue decreased, indicating a potential increase in retained risk.
- The impact of the BMA model changes will increase capital requirements for man-made catastrophe exposures over the next three years.
Ladies and gentlemen, and welcome to the Lancashire Holdings Limited first-half 2024 earnings call. (Operator Instructions)
Please note this call is being recorded. I would now like to hand the conference over to your speakers today, Alex Maloney, Group CEO; Natalie Kershaw, Group CFO; Paul Gregory, Group CUO.
Thank you, Alex, please go ahead.
Thank you, operator. Good morning, everyone. Thank you for joining our call today. As always, I'll just give some brief highlights of the progress we've made so far this year and the priorities for our business. Paul will then focus on the underwriting trends and Natalie will cover the financials and then we'll go to Q&A.
We've delivered an outstanding result for the first-half of 2024. It's our best ever since the inception of Lancashire. Our return on equity as measured by the change in diluted book value per share of 14% is the strongest it has ever been for the first six months of any year since Lancashire was
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