Lancashire Holdings Limited (LRE) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello and welcome to the Lancashire Holdings Limited full-year 2025 results conference call. Throughout the call, all participants will be in listen-only mode and afterwards there will be a question and answer session. On the call today, we have Alex Maloney, Group CEO, Natalie Kershaw, Group CFO, and Paul Gregory, Group CEO. I will now hand the call over to Alex. Please go ahead with your meeting. Thank you operator. Good afternoon everyone and thank you for joining our call today. It's our usual approach and I will give some highlights on the progress of our business, Paul will focus on the underwriting trends, Natalie will cover financials and then we will go to Q&A. Lancashire today is a stronger and more balanced franchise. Whilst our DNA remains the same, 2025 was a year that demonstrated the strength and durability of our model, one that blends disciplined underwriting, active cycle management, and efficient capital management. Against the year that started with the California wildfires, one of the largest catastrophe losses the business has ever faced, we delivered another set of resilient results. We delivered an undiscounted combined ratio of 93.1%, an investment return of 7%, and most importantly, an ROE of nearly 21%. whilst continuing to improve the quality and durability of our earnings. Our underwriting portfolio today is more balanced, more diversified and more capable of generating attractive returns throughout the cycle. This is the third consecutive year of above 20% returns and marks yet another proof point of our strategy. It is a testament to our strategy in action over the last three years that we have on average paid out 100% of our earnings, whilst growing our business at about 8% on average. Looking at the market backdrop more broadly, we ha...