Lancashire Holdings shares surge to the top of the FTSE 250 after special dividend announced
Lloyd’s of London insurer Lancashire Holdings has announced another special dividend in its results for the three months to 30 September.
Shares in the company jumped 9.2 per cent in early deals to the top of the FTSE 250 after the results were published.
The company reported a nine per cent jump in gross written premiums to $1.7bn (£1.3bn) while insurance revenue increased by 16.8 per cent year-on-year to $1.3bn (£1bn).
Lancashire said net losses relating to recent weather events are expected to be between $110m (£85m) to $140m (£109m).
Based on the numbers, the company reiterated its target for a combined ratio in the mid-80s for the full year.
The carrier reported an undiscounted combined ratio of 82.2 per cent for the first half of 2024. Anything below 100 per cent indicates an underwriting profit, while anything above is an underwriting loss.
With the company set to hit its target for the year, management has outlined plans to pay yet another special dividend.
Lancashire declared a special dividend of $0.75 (0.60p) a share or $180m (£140m) following its “strong operating performance year-to-date.”
Alex Maloney, chief executive officer, said: “In the year-to-date, the industry has seen an elevated catastrophe and risk loss environment, but we still expect our undiscounted combined ratio to be at the higher end of our range for the full year. This is testament to our diversification strategy, and the quality of the business we have written.
“Our estimated ultimate net losses incurred in relation to recent weather events including hurricanes Milton, which occurred in the fourth quarter, Helene, Debby and storm Boris, and the Calgary hailstorms, are expected to be in the range of $110m to $140m.
“Our strong underwriting results during the period have continued to be supported by our growing investment portfolio, which has now reached $3.2bn, and has delivered a healthy return of five per cent for the year to date.
“Following our strong operating performance, I am pleased to announce the approval of a special dividend of 75 cents per share, which will result in an aggregate payment of approximately $180m. We continue to hold an extremely robust capital position to underwrite the growth opportunities we expect to see in 2025.”