Lancashire Holdings Ltd on Thursday said profit grew in the first half of 2023 as gross premiums written increased, while it also noted an improved net insurance and investment result.

The Bermuda-based insurer said pretax profit multiplied to $167.2 million in the six months that ended June 30 from $34.1 million a year earlier.

Net insurance and investment result similarly multiplied to $228.4 million from $74.2 million. This was thanks to an insurance revenue rise of 24% to $720.9 million from $579.8 million, while net investment return swung to a positive $63.2 million from negative $85.8 million.

Gross premiums written were up 26% to $1.18 billion from $938.1 million.

Lancashire declared a interim dividend of $0.05 per share, resulting in aggregate payment of $11.9 million to shareholders. This is unchanged from a year earlier.

‘We are very pleased with our performance in the first half of 2023. Our long-term strategy to develop a more diversified and capital-efficient product portfolio is delivering the expected benefits, with a half year change in diluted book value per share of 12.2%,’ said Chief Executive Officer Alex Maloney.

‘Our philosophy has always been to grow when market conditions are favourable, while maintaining our approach to underwriting discipline. During the first six months of 2023 we continued to take advantage of the strong underwriting environment with gross premiums written increasing 26.2% year-on-year. The undiscounted combined ratio was a healthy 79.2%, or 71.4% on a discounted basis.’

A combined ratio below 100% indicates a profit on underwriting.

Looking ahead, Lancashire Holdings said the rating environment ‘remains positive’ across its product lines, and it does not see that changing during the remainder of the year.

‘We are excited by the opportunities ahead of us during the remainder of 2023 and into 2024,’ said Maloney.

‘Our capital position remains strong, giving us the headroom to continue to take advantage of the positive market conditions.’

Cash and cash equivalents on June 30 stood at $620.3 million, up 59% from $390.6 million a year earlier. Long-term debt was largely unchanged at $446.3 million from $446.1 million.

Shares in Lancashire Holdings were up 1.0% to 597.00 pence each in London on Thursday morning.

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