Q1 Trading Statement

Lancashire Holdings Limited (“Lancashire” or “the Group”) today announces its trading statement for the three months ended 31 March 2025.

Trading statement highlights

• Gross premiums written increased by 12.7% year-on-year to $712.1 million, with a Group Renewal Price Index (RPI) of 97%.
• Insurance revenue increased by 8.7% year-on-year to $458.9 million.
• No change to the previously communicated range for the California wildfires, between $145 million and $165 million.
• Total investment return of 1.9%, including unrealised gains and losses.
• Regulatory ECR ratio of 271% as at 31 December 2024.

Alex Maloney, Group Chief Executive Officer, commented:

“For the first three months of 2025 gross premiums written increased by 12.7% year-on-year to $712.1 million. The underlying increase, excluding the impact of reinstatement premiums, was 6.6%.

Across our portfolio, we have continued to take advantage of underwriting opportunities, while maintaining our usual discipline and focus on risk and positive returns.

In a challenging environment, the resilience of the business is clear, with our greater scale and diversification, across classes and geographies, giving us the ability to better withstand volatility and deliver consistently healthy returns for our shareholders.

Insurance revenue increased by 8.7% year-on-year to $458.9 million, with the Group RPI for the quarter at 97%. We continue to focus on profitable growth and rating levels remain more than adequate, albeit slightly lower than the highs of recent years.

Our investment portfolio remains relatively conservative and returned 1.9% for the quarter. In an increasingly unpredictable global financial climate, we will continue to maintain a short duration and high quality portfolio.

The estimated impact of the wildfires in California, which occurred in January, remains unchanged at between $145 million to $165 million. No other loss events were individually material for the Group in the quarter. Absent the wildfires the underlying performance of the business is strong.

As we outlined in March, in a severe loss year with a similar level of catastrophe and large risk losses as 2024, as well as the California wildfires, we would still expect to deliver an RoE in the mid-teens for 2025.

Our performance, and outlook, set against the loss environment the sector has seen in the last twelve months demonstrates the relevance of our strategy and the quality of our underwriting teams and distribution relationships.

We are in a very strong position overall and we remain extremely well capitalised.”

Business update

Gross premiums written and insurance revenue

Three months ended

Gross premiums written

Gross premiums written increased by $80.4 million, or 12.7%, in the first three months of 2025 compared to the same period in 2024. The reinsurance segment saw new business growth in property, casualty, and the energy and marine classes, as well as increased reinstatement premiums, largely related to the California wildfire losses. Growth in the insurance segment, primarily from the US platform, was offset by reductions across the aviation classes.

Insurance revenue

Insurance revenue increased by $36.9 million, or 8.7%, in the first three months of 2025 compared to the same period in 2024. Overall, growth was lower than for gross premiums written, primarily due to the reallocation of reinstatement premiums under IFRS 17.

Loss environment

As previously communicated, the Group estimates its aggregate net ultimate losses (undiscounted, including reinstatement premiums) related to the California wildfires to be in the range of $145 million to $165 million. The estimate falls within the Group’s modelled loss ranges for this type of catastrophe event. Loss information after these types of events can take some time to emerge. As additional information becomes available, the Group’s actual ultimate net losses may vary, perhaps materially, from current estimates. No other loss events were individually material for the Group in the quarter.

Investments

The Group’s investment portfolio, including unrealised gains and losses, returned 1.9% in the first quarter of 2025. The positive returns were driven by investment income as our portfolio benefited from higher yields in conjunction with higher prices from falling treasury rates, buffering the slight widening of investment grade credit spreads. Additionally, our private investment funds had very strong returns during the quarter.

Analyst and Investor Conference Call

There will be an analyst and investor conference call on the trading statement at 1:00pm UK time / 9:00am Bermuda time / 8:00am EDT on Thursday 1 May 2025. The conference call will be hosted by Lancashire management and a presentation will be made available on the Group’s website prior to the call.

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