12th Feb 2015 07:59
LONDON (Alliance News) - Insurance and reinsurance provider Lancashire Holdings Ltd Thursday that it is in a "very good place for 2015", as it posted a rise in pretax profit for 2014.
The FTSE 250-listed company proposed a further special dividend of 50 cents, takings total special dividends for the year to USD1.70, compared to 65 cents in 2013. It also maintained its final dividend of 10 cents, taking its total standard dividends for the year to 15 cents.
Lancashire Holdings posted a pretax profit of USD226.5 million, up from USD218.1 million a year before, as a rise in total net revenue to USD764.8 million, from USD642.6 million was partly offset by higher net insurance losses and insurance acquisition expenses.
Lancashire posted a return on equity - meaning growth in its fully converted book value per share adjusted for dividends, of 5.4% in its fourth quarter, taking its return on equity for 2014 to 13.9%, compared to 18.9% a year before.
Lancashire said that Cathedral Capital Ltd, which it acquired in November 2013, contributed 1.0% to its return on equity in the fourth quarter, and 1.6% for the total year after acquisition adjustments.
The company said that it did see some pressure on signings throughout the year, as "too much capacity in many of the reinsurance and speciality arenas" drove competition in price and terms and conditions, but said it maintained its core books.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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