Lancashire Holdings Limited · LSE:LRE
Lancashire — Q4 2015 Earnings Presentation
13 slides from Lancashire's earnings presentation, March 2016
Slide 1: Appendices
Appendices Investor Presentation March 2016 Q4 2015 www.lancashiregroup.com
Slide 2: Lancashire: Property catastrophe reinsurance
Lancashire: Property catastrophe reinsurance Mitigating impact of falling rates Ability to compete • We buy more retrocession cover, attaching lower down • Offer reinstatement (We don’t need fronting) • We monetize our access to business by ceding some tail • Willing to offer more multi-layer suppor
Slide 3: Lancashire: Energy
Lancashire: Energy Mitigating impact of falling rates Ability to compete • Deepwater GOM portfolio still requires high limits and • Large lines make us a relevant and important component of client demand maintained so far leadership panel • Oil price issues continuing to suppress activity levels • W
Slide 4: Lancashire: Property terrorism and political violence
Lancashire: Property terrorism and political violence Mitigating impact of falling rates Ability to compete • Instability around the world continues to highlight the • Lancashire’s line size ensures our relevance and value perils of Terrorism and Political Violence and drive as a key market to broke
Slide 5: Lancashire: Property political and sovereign risk
Lancashire: Property political and sovereign risk Mitigating impact of falling rates Ability to compete • Demand driven by continued perception of threat of • Proven ability and willingness to lead business political and sovereign risk from geo-political and • We provide transparency, good service,
Slide 6: Lancashire: Marine
Lancashire: Marine Mitigating impact of falling rates Ability to compete • We write the risks with large limit requirements which • Large lines make us relevant and dangerous to ignore are more insulated from the lows of rating trend in as a quoting market to brokers respect of Hull • We have an abi
Slide 7: Lancashire: Aviation and satellite
Lancashire: Aviation and satellite Mitigating impact of falling rates Ability to compete AV52 • Large lines on AV52 make us relevant and dangerous to • No attritional losses ever ignore as a quoting market to other brokers • Large line size therefore all opportunities made available and • We have th
Slide 8: Lancashire: RPI and underwriting statistics
Lancashire: RPI and underwriting statistics Cumulative RPI 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Property catastrophe 100 100 97 100 92 100 116 114 99 88 reinsurance Energy GOM 100 80 64 137 139 140 140 136 125 118 Energy WW offshore 100 80 68 84 88 97 100 97 91 81 Terrorism 100 86 71 66
Slide 9: Cathedral: Property reinsurance
Cathedral: Property reinsurance Core Non-core / Opportunistic U.S. Portfolio – Small to medium Mutuals • US Nationwide mega accounts • Home owners • Farm owners • Florida private reinsurance market prefers D&F • Automobile (physical damage) • Small commercial properties • Super Regional US accounts
Slide 10: Cathedral: Property direct & facultative
Cathedral: Property direct & facultative Core Non-core / Opportunistic U.S. open market - Average line size circa $2m • Aggregate and underwriting appetite remain ready • Small to midsized ‘soft’ occupancy focus for post loss opportunities • Low to mid level excess of loss • We will withdraw from te
Slide 11: Cathedral: Aviation reinsurance & satellite
Cathedral: Aviation reinsurance & satellite Core Non-core / Opportunistic Airline XL - Core part of the account exposed to major Bigger direct clients catastrophes but aggregate focused on small to medium • No pay back / do they need to buy? size direct insurers enabling better portfolio management
Slide 12: Cathedral: Aviation direct & war
Cathedral: Aviation direct & war Aviation Hull & Liabilities Market Support • Established market leading team in General Aviation Consortia (particularly rotor-wing) and lower tier Airlines • Our War underwriting is conducted for us and on behalf • Team is getting good broker and client support desp
Slide 13: Cathedral: Cargo
Cathedral: Cargo Core Non-core / Opportunistic Marine Cargo Marine Cargo • Established, relationship driven, profitable, marine • Cargo stock-throughput – where non catastrophe cargo accounts with good risk management exposed • Complementary rather than clashing exposures and • Cargo consequential l