Bermuda-based insurer and reinsurer Lancashire Holdings Limited has announced financial results for the first quarter of 2026, with gross written premiums (GPW) falling 6.1% year-on-year to $668.4 million.
The reinsurer pointed out that excluding the impact of recovery premiums related to the California wildfires, the underlying decline in gross written premiums was only 1.2%.
The reinsurance segment contributed $411 million to total gross margin in the quarter, a decrease of 14.8% compared to the first quarter of 2025. For the sector, Lancashire has implemented a program to reduce retrocession of inward properties, the company noted.
The Insurance segment contributed $257.4 million in gross written premiums, an increase of 12% compared to the first quarter of 2025. This growth was primarily driven by continued construction of energy and marine lines and the US Lancashire concession.
The group’s renewal price index (RPI) was 93% and revenue was stable.
Insurance revenue increased slightly more than 2.1% in the first quarter of 2026 to $468.6 million compared with the same period last year.
Gross premiums, the main driver of insurance revenue, accounted for 79.9% of total premiums in the quarter, consistent with the proportion in the same period in 2025.
Lancashire said insurance revenue continued to grow, reflecting significant growth in premiums from underwriting in previous years.
The reinsurer sees a relatively benign loss environment in the first quarter of 2026, with the group experiencing limited exposure to conflict in the Middle East.
The group’s portfolio returned 0.3% in the first quarter of 2026, including realized and unrealized gains and losses, driven primarily by investment income.
However, gains were partially offset by lower prices due to rising Treasury rates and a slight widening in investment-grade credit spreads. The positive contribution to overall portfolio performance during the quarter came from private investment funds.
Group chief executive Alex Maloney said: “Lancashire has made a positive start to 2026, adhering to the core principles of active cycle management. With a strong performance in the first quarter, we are on track to deliver results in line with our full year guidance.”
Adding: “We will continue to maximize opportunities where they make sense as we move into 2026, and we have the teams and talent across the group to do this. The work we have done in recent years to expand our product portfolio and expand our geographic coverage puts us in a strong position to continue to generate attractive risk-adjusted underwriting returns throughout the cycle.”
Maloney also said in his comments that Lancashire planned to merge Lancashire Syndicate 3010 and 2010 into Syndicate 3010 from the 2027 financial year, subject to approval by Lloyd’s.
The decision follows Lancashire’s acquisition of 100% of Syndicate 2010’s underwriting capacity, effective from the 2026 financial year. Since then, the company has been evaluating the additional options offered by Full Alignment.
