5th May 2016 07:29
LONDON (Alliance News) - Lancashire Holdings Ltd on Thursday reported a drop in pretax profit in the first quarter of 2016 as gross premiums written also fell in a "tough" underwriting market.
The insurance company said pretax profit in the three months ended March 31 dropped to USD26.5 million from USD51.5 million in the same period the year before, as gross premiums written fell to USD230.8 million from USD244.3 million, in what Chief Executive Alex Maloney described as "a very tough underwriting environment".
Lancashire said a 15% increase in property premiums was offset by a 16% reduction in energy premiums and a 27% decrease in marine premiums. New business in the political risk class helped to boost property premiums, but energy was hit by lower oil prices while marine came under pressure from the timing of non-annual contract renewals.
Meanwhile, aviation premiums were consistent with the first quarter of 2015, while the gross premiums written in the Lloyd's segment decreased by 14% due to pressure on property rates as a result of overcapacity in the market.
In a separate statement, Lancashire said it has appointed Heather McKinlay as chief financial officer of Cathedral Underwriting Ltd, which is part of the Lancashire group.
McKinlay has worked in both executive and non-executive roles in the Lloyd's and London insurance markets.
Shares in Lancashire were trading down 3.6% at 525.00 pence on Thursday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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