24th Jul 2014 08:29
LONDON (Alliance News) - Specialist insurer Lancashire Holdings Ltd Thursday reported a fall in second-quarter pretax profit due a rise in expenses.
In a statement, Lancashire said it made a USD41.5 million pretax profit in the quarter ended June 30, compared with a USD58.3 million pretax profit in the corresponding quarter last year.
Net revenue increased by USD50.5 million to USD195.8 million, driven by a 52% increase in gross written premiums to USD318.4. The increase in gross written premiums was driven by the new Lloyd's segment following the acquisition of Cathedral last year.
Expenses swelled by USD58.5 million to USD147.3 million. Overall, first-half pretax profit decreased to USD98.9 million from USD137.2 million.
"With the continued pressure on the trading environment, we expect to manage our risk levels accordingly. As ever, the balance of capital we hold will match the underwriting opportunities we foresee. If there are no major events, and no change in the market, it remains likely that we will return the majority, if not all, of our earnings to our shareholders later in the year," Chief Financial Officer Elaine Whelan said in a statement.
The reiteration of the plan to return the bulk of its earnings to shareholders comes after Lancashire in May said that it is likely to return a "substantial" amount of earnings later in the year.
Lanchashire maintained its interim dividend at USD0.05 per share.
Lancashire shares were Thursday quoted up 5.6% at 639.50 pence.
By Samuel Agini; [email protected]; @samuelagini
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