Lancashire Holdings Limited · LSE:LRE
Lancashire — FY2024 Earnings Presentation
24 slides from Lancashire's earnings presentation, Mar 6, 2025
Slide 1: Investor Presentation: Full-year 2024 Results
Investor Presentation: Full-year 2024 Results
Slide 2: Contents
Contents 2024 highlights Financials Outlook Appendix Note: Safe harbour statements are included at the end of this presentation. Full-year 2024 I lancashiregroup.com 2
Slide 3: Lancashire's DNA
Lancashire’s DNA 2. Balance risk and return 3. Insurance market employer 1. Underwriting comes first through the cycle of choice Maximise risk-adjusted Positive culture enables Profitable growth returns sustainability Actively manage our Maximise the capital and risk opportunities for growth Maintai
Slide 4: 2024 highlights
2024 highlights
Slide 5: 2024 highlights
2024 highlights Excellent performance with change in DBVS of 23.4% and profit after tax of $321.3 million Gross premiums written Insurance revenue Insurance service result of increased by 11.3% year- increased 16.1% to $1.8 $379.9 million on-year to $2.1 billion billion Total investment return of Co
Slide 6: Continued focus on writing profitable business
Continued focus on writing profitable business Gross premiums written ($m) and cumulative Renewal Price Index (RPI) (%) for the years ended 2020 to 2024 2,500.0 150% 145% 2,000.0 140% 135% • Gross premiums written increased by Gross premiums written ($m) 1,500.0 130% 11.3% year-on-year to $2.1 billi
Slide 7: Underwriting comes first
Underwriting comes first 2018 2023 2024 1,600 100% 1,400 92% 89% 90% Outstanding result in a year of high industry losses 80% 83% 1,200 70% • A broader business since 2018, allowing for a 1,000 higher level of underwriting profits. With a 60% similar combined ratio to 2018, 2024 underwriting profits
Slide 8: Aggregate reinsurance cover
Aggregate reinsurance cover Helps protect our returns against volatility in years of large catastrophe losses • Worldwide cover for the Property Treaty and Direct and Facultative books • Each event is subject to an occurrence layer with a per event deductible and limit • As-if recoveries from the oc
Slide 9: Financials
. Lancashire Financials
Slide 10: 2024 financial results summary
2024 financial results summary 2024 2023 Variance $m $m $m Insurance revenue 1,765.1 1,519.9 245.2 Insurance service expenses (1,186.1) (696.2) (489.9) Insurance service result before reinsurance contracts held 579.0 823.7 (244.7) • 16.1% increase in insurance Allocation of reinsurance premiums (439
Slide 11: 2024 net claims environment
2024 net claims environment Active loss environment in 2024 Global losses from natural disasters (US$ bn, inflation-adjusted) • Net losses from catastrophe, weather and large loss events of $214.1 million. 400 350 • Catastrophe and weather losses included hurricanes 300 Milton, Helene and Debby; sto
Slide 12: Balance risk and return through the cycle
Balance risk and return through the cycle We aim for: • More efficient use of capital, delivered through accretive diversification, with the premium Premium to capital ratio 1.4 to capital ratio more than doubling. 1.2 • A broader business, with improved ability to absorb large losses, with a better
Slide 13: Discounting
Discounting 2024 2023 Change • Growth in the business and an active loss For the year ended 31 December $m $m $m environment in a high discount rate environment Initial discount included in insurance service result drives the increase in initial discount. 120.3 84.7 35.6 Unwind of discount • Increas
Slide 14: Balance sheet strength
Balance sheet strength Continued conservative approach to reserving 100% 80% • Reserving confidence level of 86%, in line with the expected range of 60% 80%-90%. 40% • Net discounted risk adjustment 14.7% of total net insurance contract 20% liabilities. 0% 2022 2023 2024 • We continue the conservati
Slide 15: Investments: conservative portfolio structure – quality focus
Investments: conservative portfolio structure – quality focus Asset Allocation Credit Quality Total investment portfolio and managed cash Fixed maturities and managed cash Other government Private investment bonds and debt funds 3% 8% AA, 38% US government bonds and debt 17% A, 26% Duration 2.0 year
Slide 16: Remaining strongly capitalised
Remaining strongly capitalised BSCR Coverage ratio Balance sheet sensitivity to 1% increase in yield curves 400% 40 20 350% 0 -20 $m 300% -40 -60 250% -80 2023 2024 200% Positive impact from decrease in net insurance contract liabilities 150% Negative impact from decrease in fixed maturity portfolio
Slide 17: Outlook
Outlook
Slide 18: Why invest in Lancashire?
Why invest in Lancashire? Strong focus on our people We are delivering lower volatility and more and culture sustainable results due to: • Strong underwriting and capital management. Owner Excellent • Ability to attract quality people and the breadth of manager steward of mentality capital our franc
Slide 19: Appendix
Appendix
Slide 20: 2024: Reinsurance segment
2024: Reinsurance segment Gross premiums written ($m) and cumulative Renewal Price Index (RPI) (%) for the years ended 2020 to 2024 1,200.0 160% 1,000.0 150% • New business within the property 800.0 140% Gross premiums written ($m) reinsurance and specialty reinsurance lines was the most significant
Slide 21: 2024: Insurance segment
2024: Insurance segment Gross premiums written ($m) and cumulative Renewal Price Index (RPI) (%) for the years ended 2020 to 2024 1,200.0 140% 135% 1,000.0 • Increase was primarily driven by new business 130% within the property class, including business written through both our Lancashire US and La
Slide 22: Safe harbour statements
Safe harbour statements NOTE REGARDING FORWARD-LOOKING STATEMENTS: CERTAIN STATEMENTS AND INDICATIVE PROJECTIONS (WHICH MAY INCLUDE MODELLED LOSS SCENARIOS) MADE IN THIS PRESENTATION OR OTHERWISE THAT ARE NOT BASED ON CURRENT OR HISTORICAL FACTS ARE FORWARD-LOOKING IN NATURE INCLUDING, WITHOUT LIMIT
Slide 23: Safe harbour statements
Safe harbour statements 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 BA
Slide 24: Contacts
Contacts Investor Relations Media Jelena Bjelanovic Peter Krinks FTI Consulting Lancashire Holdings Limited Lancashire Holdings Limited 200 Aldersgate, 20 Fenchurch Street, 20 Fenchurch Street, Aldersgate Street, London, EC3M 3BY London, EC3M 3BY London, EC1A 4HD E peter.krinks@lancashiregroup.com E