Lancashire Holdings Limited - 3rd Quarter Results

Lancashire Holdings Limited (“Lancashire” or “the Group”) today announces its trading statement for the nine months ended 30 September 2026.

Trading statement highlights

• On track to deliver a high-teens RoE in 2026, and the Group is well positioned for 2027
• Strong underwriting and financial performance in the year to date
• Active capital management: special dividend of 75 cents per share ($182 million) reflects strong operational performance and a robust capital position
• Focus on managing the cycle. A diversified portfolio and balance sheet strength provide flexibility

Alex Maloney, Group Chief Executive Officer, commented:

“Lancashire delivered another strong underwriting performance in the first nine months of the year.

While pricing has moderated in some parts of the market, we benefit from a diversified portfolio and rates continued to remain adequate across much of our business. Gross premiums written were broadly stable year-on-year at $1,806 million.

The loss environment in the third quarter was also relatively benign, particularly for natural catastrophes, and our exposure to the conflict in the Middle East remains manageable and not material to the Group.

Our conservatively-positioned investment portfolio continues to deliver an attractive level of investment income, although this was offset by the mark-to-market impact of higher government bond yields in the third quarter. Given the relatively short duration of the portfolio, the prevailing environment of higher yields should benefit investment income in future periods.

The Group’s healthy performance for the year to date means that we remain on track to meet our 2026 full year guidance of a high-teens RoE.

The positive operational performance of the Group, and our strong capital position, means we are able to declare a special dividend of 75 cents per common share, resulting in an aggregate distribution of approximately $182 million.

Managing the cycle is central to how Lancashire has always operated and our increased diversification across products and geographies gives us additional flexibility. As pricing conditions vary across markets, the breadth of our portfolio enables us to remain disciplined and selective, directing appetite and capital to areas where returns remain most attractive. Where there are opportunities to build momentum, we will take them and we have continued to add talent to our bench strength and invest in new products that are complementary to our existing portfolio.

We head into 2027 from a position of strength. I am confident that our outstanding teams, collective expertise, increased relevance to our clients and brokers, distinctive culture, and robust capital base will ensure we continue to deliver attractive returns across the cycle.”

Business update

Gross premiums written and insurance revenue

Nine months ended

Gross premiums written

Gross premiums written decreased by $19.4 million, or 1%, in the first nine months of 2026, compared with the same period in 2025. On an underlying basis, excluding the impact of reinstatement premiums related to the California wildfires last year, gross premiums written were flat. In the reinsurance segment we executed a planned reduction in inwards property retrocession. In the insurance segment growth was primarily driven by energy and marine lines, and the continued build-out of the Lancashire US franchise. The overall RPI for the Group was 93%.

Insurance revenue

Insurance revenue increased by $9.9 million, or 1%, in the first nine months of 2026 compared with the same period in 2025. Gross premiums earned, the key driver of insurance revenue, as a percentage of gross premiums written, was 91.5% for the first nine months of 2026, which is consistent with the ratio for the equivalent period in 2025. The modest increase in insurance revenue reflects premium earnings from prior underwriting years where the business saw substantial growth.

Loss environment

Overall, the loss environment during the third quarter of 2026 was relatively benign with few catastrophe events and the Group’s exposure to the ongoing conflict in the Middle East is limited and within our risk appetite.

Investments

The Group’s investment portfolio, including unrealised gains and losses, delivered a 0.6% return over the first nine months of 2026. Performance was primarily driven by investment income, which contributed 3.3%, offset by the unrealised, mark-to-market impact of price declines resulting from rising Treasury rates and modest widening of investment grade credit spreads. Private investment funds contributed positively to overall portfolio performance during the quarter.

Dividends

Reflecting the Group’s continued strong operational performance and robust capital position, Lancashire’s Board of Directors has declared a special dividend of 75 cents per common share (approximately 56 pence per common share at the current exchange rate), which will result in an aggregate payment of approximately $182 million. The dividend will be paid in Pounds Sterling on 11 December 2026 (the “Dividend Payment Date”) to shareholders of record on 13 November 2026 (the “Record Date”) using the £ / $ spot market exchange rate at 12 noon London time on the Record Date. Shareholders interested in participating in the dividend reinvestment plan (“DRIP”), or other services including international payment, are encouraged to contact the Group’s registrars, MUFG Corporate Markets, for more details.

Analyst and investor conference call

There will be an analyst and investor conference call on the trading statement at 8.30am UK time / 4.30am Bermuda time / 3.30am EST on Wednesday 4 November 2026. 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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