Lancashire Holdings Limited · LSE:LRE
Lancashire — H1 2024 Earnings Presentation
14 slides from Lancashire's earnings presentation, Aug 8, 2024
Slide 1: Investor Presentation: H1 2024
Investor Presentation: H1 2024 I lancashiregroup.com
Slide 2: 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 3: Contents
Contents Highlights Financials Outlook H1 2024 I lancashiregroup.com 3
Slide 4: Highlights
Highlights H1 2024 I lancashiregroup.com 4
Slide 5: H1 2024 highlights: Excellent profit growth of 26% to $200 million
H1 2024 highlights: Excellent profit growth of 26% to $200 million • Profit after tax of $200.8 million resulting in Change in DBVS of 14.0% • Gross premiums written increased 8.3% to $1,282.2 million • Insurance revenue increased 18.5% to $854.1 million • Insurance service result of $222.8 million
Slide 6: Outstanding performance demonstrates success of long-term strategy
Outstanding performance demonstrates success of long-term strategy Gross premiums written ($m) and cumulative RPI (%) for the first half: 2020 to 2024 1,400.0 145% 140% 1,200.0 135% 1,000.0 130% • Gross premiums written increased 8.3% 800.0 125% year-on-year. • Combined ratio (discounted) of 73.0%.
Slide 7: Financials
Financials H1 2024 I lancashiregroup.com 7
Slide 8: H1 2024 financial results summary
H1 2024 financial results summary Six months to Six months to Variance 30 June 2024 30 June 2023 $m $m $m Insurance revenue 854.1 720.9 133.2 Insurance service expenses (472.2) (288.5) (183.7) Insurance service result before reinsurance contracts held 381.9 432.4 (50.5) Allocation of reinsurance pre
Slide 9: Net claims environment
Net claims environment • Net losses (undiscounted, including reinstatement premiums) from large loss events of $45.5 million. None of these events were individually material for the Group, with the MV Dali Baltimore bridge Prior year development collision disaster loss being most significant. • Favo
Slide 10: Investments: conservative portfolio structure with a focus on quality
Investments: conservative portfolio structure with a focus on quality Asset Allocation Credit Quality total investment portfolio and managed cash fixed maturities and managed cash Other government Private investment bonds and debt funds 2% 7% AA, 38% US government bonds A, 23% and agency debt 22% Du
Slide 11: Strongly capitalised
Strongly capitalised The Q2 BSCR coverage ratio is estimated and not the final result. Increase Decrease • Very strong capital position going into windseason. • Applying a stress scenario which incorporates a net loss catastrophe event (representative of our 1 in 100 Gulf of Mexico wind PML at $338.
Slide 12: Outlook
Outlook H1 2024 I lancashiregroup.com 12
Slide 13: Outlook
Outlook • No change to our long-term strategy. No change to 2024 guidance Disciplined growth is important to balance returns over the longer term. This approach to growth will allow Lancashire to mitigate the weaker years through portfolio optimisation • In an average loss year we would and we expec
Slide 14: 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 Tom.Blackwell T +44 (0) 20 7264 40