Business
Q2 2010 Results
Q2 2010 Results.
About this update from Lancashire Holdings Limited
[{"type":"text","content":"\n \n LANCASHIRE HOLDINGS LIMITED \n\n GROWTH IN FULLY CONVERTED BOOK VALUE PER SHARE, ADJUSTED FOR\n\n DIVIDENDS, OF 6.5% IN Q2 2010, 7.5% YEAR TO DATE \n\n COMBINED RATIO OF 51.5% IN Q2 2010, 77.4% YEAR TO DATE \n\n INTERIM DIVIDEND OF 5.0 CENTS PER COMMON SHARE \n\n FULLY CONVERTED BOOK VALUE PER SHARE OF $7.86 AT 30 JUNE 2010 \n\n 5 August 2010 \n\n Hamilton, Bermuda \n\nLancashire Holdings Limited (\"Lancashire\" or \"the Group\") today announces its\nresults for the second quarter of 2010 and the six month period ended 30 June\n2010.\n\nFinancial highlights as at 30 June 2010:\n\n 30 June 2010 30 June 2009\n \nFully converted book value per $7.86 $7.58\nshare \n \nReturn on equity* - Q2 6.5% 6.9%\n \nReturn on equity - YTD 7.5% 10.0%\n \nOperating return on equity - Q2 5.7% 7.6%\n \nOperating return on equity - YTD 6.3% 10.3%\n \nInterim dividend per common share** 5.0¢ 5.0¢\n\n* Return on equity is defined as growth in fully converted book value per\nshare, adjusted for dividends.\n\n** See \"Dividends\" below for Record Date and Dividend Payment Date.\n\nFinancial highlights:\n\n Three months ended Six months ended \n \n 30 June 30 June 30 June 30 \n 2010 2009 2010 June \n 2009 \n \nHighlights($m) \n \nGross premiums written 232.1 241.9 460.1 384.7 \n \nNet premiums written 218.7 238.7 422.2 337.9 \n \nNet profit after tax 84.8 106.4 93.0 147.1 \n \nNet operating profit 77.8 103.3 85.7 139.2 \n \nShare repurchases 87.4 nil 100.3 nil \n \nPer share data \n \nFully diluted earnings per $0.48 $0.57 $0.52 $0.80 \nshare \n \nFully diluted earnings per $0.44 $0.56 $0.48 $0.75 \nshare - operating \n \nFinancial ratios \n \nTotal investment return 1.4% 0.6% 2.6% 1.7% \n \nAnnualised total investment 5.6% 2.4% 5.3% 3.5% \nreturn \n \nNet loss ratio 18.7% 5.8% 50.9% 29.3% \n \nCombined ratio 51.5% 35.4% 77.4% 57.9% \n \nAccident year loss ratio 41.8% 30.7% 66.2% 29.8% \n \n\n\n\nRichard Brindle, Group Chief Executive Officer, commented:\n\n\"Lancashire has performed well this quarter and, despite being one of the\nlargest insurers of energy risks, had only modest exposure to the Deepwater\nHorizon drilling unit loss - one of the largest losses ever to hit the energy\nmarket. We insured against the physical loss of the platform and had only de\nminimus exposure to the casualty side of the loss, which we believe will prove\ncomple...