Loss events to cost Lancashire up to $75m
Lancashire Holdings has warned of losses of up to $75 million from catastrophes and other events that will impact its third-quarter results.
About $30 million of the losses are in the insurer’s marine portfolio, while another $25 million to $45 million relate to natural disasters, including hurricane Florence and typhoons Jebi, Mangkhut and Trami.
“Given these loss estimates, the company expects that it will produce a negative return on equity for the third quarter of 2018,” Lancashire said in a statement released today. “Absent these events, the company would have been profitable for the third quarter.”
The loss estimates take into account anticipated recoveries from Lancashire’s outwards reinsurance programme and the impact of outwards and inward reinstatement premiums.
The loss estimates include Lancashire’s aggregate exposures through its Bermuda, UK and Lloyd’s operations.
Lancashire said that despite a third-quarter loss, it expected to remain profitable for the first nine months of 2018.
After the news was announced, Lancashire’s shares fell 34.5p, or 5.9 per cent, in London Stock Exchange trading to close the day on 552.5p.
Lancashire is due to release third-quarter results on November 1, 2018.
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