Lancashire unaffected by Florida hurricane fund overhaul

Lancashire has today released its comment on the impact of the recent legislation in the US which will significantly increase the underwriting capacity of the Florida State hurricane insurance facility. The Florida Hurricane Catastrophe Fund was formed to provide cost-effective
reinsurance to underwriters of insurance in Florida.

Richard Brindle, chief executive and chief underwriting officer, said: “Lancashire's business plan did not include Florida property catastrophe treaty reinsurance and, to date, we have not written any such business. Further, we do not write Florida specific residential risks. Our Florida specific risks are limited to commercial property business on a facultative basis, the premium on which represented a very small percentage of Lancashire's total gross written premium in 2006. The great majority of our book comprises risks outside Florida, or risks written on a national or worldwide basis, and mostly direct insurance business."

Brindle added: “Looking ahead for 2007, we are optimistic on the trading outlook for Lancashire. Our core area of expertise has always been in direct specialist risks and we are confident our particular model is positioned well to perform though the cycle. As always, regardless of any changes in our market environment, underwriting will come first.”