Bermuda-based re/insurer Lancashire Holdings (Lancashire, Lancashire Insurance Co (UK), Lancashire Syndicates Ltd) has reported a 10.8% decline in marine gross written premiums, down to $47.7m, from $53.5m in H1 2020, although part of the reason for the fall was technical. GWP for the group was up 40.7% year on year to $697.2m, from $495.5m for the corresponding period last year, with the most significant growth in dollar terms occurring in the property and casualty reinsurance segment.
Marine represented the only segment that experienced a reduction in premium in the first six months of 2021 compared to the same period in 2020. Lancashire said that, although it did write some new marine business across most classes, this was offset by timing differences in the marine liability and marine hull classes, where a number of policies were written in 2020 on a multi-year or non-annual basis were not yet up for renewal. There were also some non-renewals where terms were unsatisfactory.
The group also reported reserve deterioration on a couple of marine claims in the 2017 and 2019 accident years.
The group’s profit before tax was $54.1m, up from a loss of $23.0m in H1 2020. The combined ratio improved to 80.7%, from 106.9% in H1 2020.
The average increase in premium rates was 11%, with marine recording a 10% increase in rates year on year.