LANCASHIRE SLIPS TO LOSS OF $136.4M IN THIRD QUARTER

Lancashire produced a combined ratio of 213.3% for the third quarter as it reported a loss before tax of $136.4m. For the first nine-months of the year, Lancashire slipped to a loss of $69.7m, on the back of a combined ratio of 126.4%. The results were driven by a third-quarter catastrophe impact of $165m. The company said it would not be declaring a special dividend this year, with capital instead deployed towards writing more business in what the company anticipates will be an improved pricing environment. Gross written premiums increased 32.2% to $143m in the quarter, driven in part by $7m of reinstatement premiums related to the hurricanes in the group’s property segment and $10m in its Lloyd’s segment. Lancashire chief executive Alex Maloney said: “After many years of soft pricing conditions we are at last seeing some evidence of an increase in pricing, particularly in catastrophe exposed lines.”