31st Jan 2007 07:01
Lancashire Holdings Limited31 January 2007 Lancashire Holdings Limited 31 January 2007 Lancashire comments on impact of Florida State hurricane reinsurance facility increase Lancashire Holdings Limited ("Lancashire" or the "Company") today commented onthe impact of the recent legislation which will significantly increase theunderwriting capacity of the Florida State hurricane insurance facility. TheFlorida Hurricane Catastrophe Fund was formed to provide cost-effectivereinsurance to underwriters of insurance in Florida, including the state-runinsurer of last resort, Citizens Property Insurance Corporation, which will alsoincrease its underwriting capacity and have greater freedom to charge lowerrates. Richard Brindle, Chief Executive Officer and Chief Underwriting Officer,commented: "Lancashire writes a diversified mix of short-duration insurance lines. Webelieve this approach will generate attractive returns for our shareholders overtime. "Lancashire's business plan did not include Florida property catastrophe treatyreinsurance and, to date, we have not written any such business. Further, we donot write Florida specific residential risks. Our Florida specific risks arelimited to commercial property business on a facultative basis, the premium onwhich represented a very small percentage of Lancashire's total gross written premium in 2006. The great majority of our book comprises risks outside Florida, or risks written on a national or worldwide basis, and mostly direct insurance business." Richard Brindle added: "Looking ahead for 2007, we are optimistic on the trading outlook forLancashire. Our core area of expertise has always been in direct specialistrisks and we are confident our particular model is positioned well to performthough the cycle. As always, regardless of any changes in our marketenvironment, underwriting will come first. " For further information, please contact: Lancashire HoldingsNeil McConachie +1 441 278 8950Greg Lunn +1 441 278 8953 Financial Dynamics +44 20 7269 7200Rob BailhacheNick Henderson www.lancashire.bm About Lancashire Lancashire, through its UK and Bermuda-based insurance subsidiaries, is a globalprovider of specialty insurance products. Its insurance subsidiaries carry theLancashire group rating of A minus (Excellent) from A.M. Best with a stableoutlook. Lancashire has capital in excess of $1 billion dollars and its CommonShares trade on AIM under the ticker symbol LRE. Lancashire is headquarteredat Mintflower Place, 8 Par-La-Ville Road, Hamilton HM 08, Bermuda. The mailingaddress is Lancashire Holdings Limited, P.O. Box HM 2358, Hamilton HM HX,Bermuda. NOTE REGARDING FORWARD-LOOKING STATEMENTS CERTAIN STATEMENTS MADE IN THIS ANNOUNCEMENT THAT ARE NOT BASED ON CURRENT ORHISTORICAL FACTS ARE FORWARD-LOOKING IN NATURE INCLUDING, WITHOUT LIMITATION,STATEMENTS CONTAINING WORDS 'BELIEVES', 'ANTICIPATES', 'PLANS', 'PROJECTS', 'INTENDS', 'EXPECTS', 'ESTIMATES', 'PREDICTS', 'MAY','WILL', 'SEEKS', 'SHOULD'OR, IN EACH CASE, THEIR NEGATIVE OR COMPARABLE TERMINOLOGY. ALL STATEMENTSOTHER THAN STATEMENTS OF HISTORICAL FACTS INCLUDING, WITHOUT LIMITATION, THOSE REGARDING MARKET CONDITIONS AND THE GROUP'S FINANCIAL POSITION, RESULTS OFOPERATIONS, LIQUIDITY, PROSPECTS, GROWTH, BUSINESS STRATEGY, PLANS ANDOBJECTIVES OF MANAGEMENT FOR FUTURE OPERATIONS ARE FORWARD-LOOKING STATEMENTS. SUCH FORWARD- LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIESAND OTHER IMPORTANT FACTORS THAT COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE ORACHIEVEMENTS OF THE GROUP TO BE MATERIALLY DIFFERENT FROM FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKINGSTATEMENTS, INCLUDING THE IMPACT OF LEGISLATIVE AND REGULATORY CHANGES ONLANCASHIRE'S BUSINESS, THE IMPACT OF COMPETITION ON MARKET TRENDS IN PREMIUM RATES AND THE CAPACITY PROVIDED BY COMMERICAL AND GOVERNMENTAL ENTITIES. THESEFORWARD-LOOKING STATEMENTS SPEAK ONLY AS AT THE DATE OF THIS ANNOUNCEMENT OROTHER INFORMATION CONCERNED. LANCASHIRE HOLDINGS LIMITED EXPRESSLY DISCLAIMS ANYOBLIGATION OR UNDERTAKING (SAVE AS REQUIRED TO COMPLY WITH ANY LEGAL ORREGULATORY OBLIGATIONS (INCLUDING THE AIM RULES)) TO DISSEMINATE ANY UPDATES ORREVISIONS TO ANY FORWARD-LOOKING STATEMENTS CONTAINED HEREIN TO REFLECT ANY CHANGES IN THE GROUP'S EXPECTATIONS WITH REGARD THERETO OR ANY CHANGE INEVENTS, CONDITIONS OR CIRCUMSTANCES ON WHICH ANY SUCH STATEMENT IS BASED. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Lancashire Holdings