Lancashire pays another special divi after 'solid performance'
Third-quarter figures from Lancashire Holdings were rosy, with the insurance broker admitting it got off fairly lightly in the Atlantic wind season.
Third-quarter figures from Lancashire Holdings were rosy, with the insurance broker admitting it got off fairly lightly in the Atlantic wind season.
"Lancashire has delivered another solid performance this quarter. The Atlantic wind season threatened serious losses with the US landfall of Hurricane Irene, but a fall in the intensity of the wind speeds resulted in thankfully lower losses to life and property than might have been anticipated," said Richard Brindle, group chief executive officer of Lancashire.
"More importantly, the quarter saw very challenging financial markets, where global uncertainty led to rapid fluctuations in the asset side of our balance sheet. We believe we have taken the appropriate actions to protect our assets through these very difficult times," Brindle said.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Elaine Whelan, the group's chief financial officer, confirmed that the Lancashire had dumped all of its remaining equity holdings.
Gross premiums written in the third quarter of 2011 rose to $142.9m versus $135.0m the year before, while net premiums written rose to $133.6m from $134.0m the year before.
Profit before tax retreated to $79.0m from $107.6m last year, but that did not stop the board from recommending a special dividend payment of 80 cents, although, in the circumstances, it was understandable that this failed to match the $1.40 special dividend announced with the third-quarter results last year.
Looking at the financial ratios, the total investment return in the quarter was negative, at -0.6%, versus a positive 2.0% return in the third quarter of last year.
The combined ratio, which measures underwriting performance (a lower number is better, and a number above 100% indicates negative return) was 43.5%, versus 39.2%, but well below the level seen in the first six months of the year. The combined ratio for the first nine months of 2011 was 60.7%, down from 65.1% in the corresponding period of last year.
The shares rose 30p to 740p on the day of the results.
--
jh
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?
Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
By Kalpana Fitzpatrick Published
-
What does Rachel Reeves’s plan for growth mean for UK investors?
Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
By Katie Williams Published