Lancashire Holdings Warns on Political, Natural Catastrophe Losses

By Sabela Ojea

Lancashire Holdings Ltd. warned Thursday that it will suffer more than $200 million in losses due to recent political and natural catastrophe events.

The Bermuda-based, U.K.-listed insurance company said it should incur aggregate net ultimate losses in the range of $165 million and $185 million due to Hurricane Ida and severe weather in Europe.

Political violence and unrest in South Africa during 2021 will also translate into estimated ultimate net losses of around $40 million, it said.

The London-listed company noted that these estimates, which are in line with its expectations for these types of events, are after anticipated recoveries from its outwards reinsurance program and the impact of outwards and inwards reinstatement premiums.

"Looking ahead, the company remains strongly capitalized to be able to take advantage of the improving market, both in the rest of this year and in order to achieve our ambitious underwriting plans for 2022. The rating environment continues to improve, premiums continue to grow, and we are well-positioned to achieve our strategic goals," Chief Executive Alex Maloney said.

Shares at 0830 GMT were down 28.00 pence, or 5.1%, at 526.00 pence.

Write to Sabela Ojea at [e-mail]; @sabelaojeaguix

(END) Dow Jones Newswires

October 21, 2021 05:06 ET (09:06 GMT)

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