Lancashire Holdings has announced net income after tax of $87.9m or $0.43 diluted earnings per common share for the first quarter 2007, compared to $9.3m or $0.05 per common share for the same quarter of 2006.
The company also generated operating income of $88.1m, or $0.43 diluted operating earnings per common share, and a combined ratio of 47.3%.
The results benefited from light loss activity in the majority of classes. The first quarter of 2006 was the company's first operational quarter after its formation in late 2005.
Richard Brindle, group chief executive officer, said: “Our UK underwriting platform, which was launched in the fourth quarter of 2006, has made a notable contribution to our growing market position over the past several months. The increase in submissions in the first quarter of 2007 compared to the same period in 2006 has been very strong, resulting in 60% growth in our gross written premiums year on year. As always, we will remain committed to strong underwriting discipline.
“Substantial premium growth, combined with better than expected loss experience, was the primary driver behind Lancashire's ROE of 7.2% for the first quarter. Year on year premium growth in subsequent quarters will likely be lower than 60%; however, our previously stated 2007 ROE estimate of between 20% and 25%, assuming a normal level of losses, and premium growth estimate of at least 20%, based on anticipated pricing and terms, remain unchanged.”
