Lancashire Holdings Limited · LSE:LRE
Lancashire — Q1 2022 Earnings Presentation
22 slides from Lancashire's earnings presentation, 2022
Slide 1: Investor presentation Q1 2022 update
Investor presentation Q1 2022 update www.lancashiregroup.com
Slide 2: Safe harbour statements
Safe harbour statements NOTE REGARDING FORWARD-LOOKING STATEMENTS: NOTE REGARDING ALTERNATIVE PERFORMANCE MEASURES: Certain statements and indicative projections (which The Group uses alternative performance measures to help explain may include modelled loss scenarios) made in this business performa
Slide 3: Contents
Contents Q1 2022 Trading Statement Q1 2022 Trading Statement Q1 2022 Trading Statement Loss environment Business Update Q1 Update Q1 2022 Trading Statement Q1 2022 Trading Statement Q1 2022 Trading Statement Investments Outlook Appendix Investor Presentation Q1 2022 Update I lancashiregroup.com 3
Slide 4: Q1 2022 Update
Q1 2022 Trading Statement Q1 2022 Update Investor Presentation Q1 2022 Update I lancashiregroup.com 4
Slide 5: In a challenging geopolitical environment, trading conditions remain constructive
Q1 2022 Update In a challenging geopolitical environment, trading conditions remain constructive • Challenging geopolitical environment; continuing to monitor events across Ukraine and Russia (including sanctions). • Ultimate net loss estimates from the Ukraine / Russia conflict incurred within Ukra
Slide 6: Business update
Q1 2022 Trading Statement Business update Investor Presentation Q1 2022 Update I lancashiregroup.com 6
Slide 7: Strong premium growth in Q1 2022
Strong premium growth in Q1 2022 Gross premiums written ($m) and cumulative RPI for first quarter: 2018 to 2022 Total $600 150% $500 140% $400 130% $300 120% GPW increased by $200 110% 34.7% year-on-year $100 100% $0 90% 2018 2019 2020 2021 2022 Investor Presentation Q1 2022 Update I lancashiregroup
Slide 8: Strong premium growth in Q1 2022
Strong premium growth in Q1 2022 Gross premiums written ($m) and cumulative RPI for first quarter: 2018 to 2022 Property and casualty reinsurance Property and casualty insurance Aviation $350 150% $60 150% $40 160% $300 140% $50 140% 150% $30 $250 140% 130% $40 130% $200 130% 120% $30 120% $20 $150
Slide 9: Strong premium growth in Q1 2022
Strong premium growth in Q1 2022 Gross premiums written ($m) and cumulative RPI for first quarter: 2018 to 2022 Energy Marine $60 150% $40 160% $50 140% 150% $30 140% $40 130% 130% $30 120% $20 120% $20 110% $10 110% $10 100% 100% $0 90% $0 90% 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 • Pre
Slide 10: Loss environment
Q1 2022 Trading Statement Loss environment Investor Presentation Q1 2022 Update I lancashiregroup.com 10
Slide 11: Q1 2022 loss environment
Q1 2022 loss environment • Ultimate net loss estimates from the conflict incurred within Ukraine in the All Q1 losses within risk tolerances and range of $20-30 million. underwriting performance was profitable for • Loss estimates for Ukraine and potential losses in Russia continue to be the quarter
Slide 12: Investments
Q1 2022 Trading Statement Investments Investor Presentation Q1 2022 Update I lancashiregroup.com 12
Slide 13: 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 Private investment Other government funds bonds and debt 5% 3% Hedge Funds 4% AA, 43% Index Linked Securities A, 22% 1% US gover
Slide 14: Strongly capitalised to take advantage of the improving market
Strongly capitalised to take advantage of the improving market Increase Decrease Regulatory ECR ratio of approximately 255% as at 31 December 2021. We retain meaningful regulatory headroom to fund further growth. Applying a stress scenario which incorporates a net loss cat event (representative of o
Slide 15: 2022 guidance
2022 guidance Guidance 2021 Achieved 2021 Guidance FY 2022 GPW contribution from new teams $40m - $60m $95m $50m - $60m Attritional loss ratio 35% - 40% 36% 33% - 37% Reserve releases $40m - $60m $86.5m $70m - $80m broadly the same as Acquisition cost ratio 1-2%pt benefit vs 2020 1.7%pt benefit 2021
Slide 16: Outlook
Q1 2022 Trading Statement Outlook Investor Presentation Q1 2022 Update I lancashiregroup.com 16
Slide 17: Outlook: positioned for growth
Outlook: positioned for growth There is no change to our long • We remain strongly capitalised to deliver on our strategy. We term strategy. continue to navigate the insurance cycle, manage the business for the Disciplined growth is important long term, ignore the herd and be bold when we see true o
Slide 18: Appendix
Q1 2022 Trading Statement Appendix Investor Presentation Q1 2022 Update I lancashiregroup.com 18
Slide 19: ESG themes
ESG themes Responsible investment Demonstrating our commitment to ESG through management of investments. Operating responsibly Running our business as a good corporate citizen, a responsible preserver of resources, and engaging OUR constructively with all our stakeholders to the benefit ESG of socie
Slide 20: Our ESG journey
Our ESG journey People and culture Operating responsibly • 2021 employee survey score of 88% (+3% on 2019) • Climate Change Working Group and ESG Committee established in 2021 • Named ‘Top 10 Employer’ in Bermuda in October 2021 • 100% off-setting of calculated own greenhouse gas emissions • Active
Slide 21: Lancashire Foundation
Lancashire Foundation • We believe that the success of the Foundation in making a real difference to the lives of those Ukraine humanitarian aid less fortunate is due to the enthusiasm of our people. £30,000 donated to Red Cross • Whether actively getting involved in helping others through volunteer
Slide 22: For more information
For more information Investor Relations Media Jelena Bjelanovic FTI Consulting Peter Krinks Lancashire Holdings Limited 200 Aldersgate, Lancashire Holdings Limited 29th Floor, Aldersgate Street, 29th Floor, 20 Fenchurch Street, London, EC1A 4HD 20 Fenchurch Street, London, EC3M 3BY E Tom.Blackwell@f