Brindle predicts rate pressure in January
BERMUDA-based Lancashire Holdings has reported net written premiums of $475.4m for the first nine months of the year, up from $462.7m in the same period last year. Gross written premiums grew significantly, to $628.3m from $522.7m, reflecting Lancashire’s recent strategy of establishing relationships with external capital providers and utilizing sidecars to take on risk. The total cession to Accordion for the year to date is $64.8m, up from $12.2m for the first nine months of 2011. Net operating profit declined to $176.7m from $180.9m, with the combined ratio rising to 61.1% from 60.7%. Favourable development was $42.5m for 2012 YTD, down from $118.0m for the same period last year. Part of the reason for the decline was that last year there were “exceptionally low” reported prior-year losses. Return on Equity for the year to date was 13.2%.