29th Jul 2015 08:28
LONDON (Alliance News) - Lancashire Holdings Ltd on Wednesday reported an 11% drop in second-quarter pretax profit, with the value of gross premiums written by the specialty insurer down and a key indicator of underwriting profit weakening.
The FTSE 250 company said its pretax profit decreased to USD37.1 million in the three months to the end of June, compared with USD41.5 million in the corresponding quarter the prior year, as gross written premiums fell by 44% to USD179.3 million. Net investment income was down by 8.0% to USD7.0 million.
Its combined ratio, a key measure of underwriting profit, increased to 78.2% in the second quarter, compared with 74.6% last year,
"While the trading environment continues to be challenging, our performance through the first half of the year demonstrates our ability to manage the cycle and the quality of our portfolio. As ever, we will match our capital to our underwriting opportunities and we will continue to manage our risk levels in accordance with market conditions," Chief Financial Officer Elaine Whelan said in a statement.
Lancashire's interim dividend remained at 5 cents per share.
Shares in Lancashire were down 2.8% at 652.50 pence on Wednesday morning in London.
By Samuel Agini; [email protected]; @samuelagini
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