Bermuda-based global insurer and reinsurer Lancashire Holdings Limited reports that ratings agency S&P Global Ratings has upgraded the long-term issuer credit and financial strength ratings of the company’s core re/insurance operating subsidiaries to “A” from “A-“.
Meanwhile, S&P Global Ratings upgraded Lancashire Holdings’ long-term issuer credit rating to “BBB+” from “BBB” with a stable outlook.
The ratings agency highlighted that Lancashire continues to strengthen its competitive position through a wider product offering, greater geographical coverage and premium growth in less volatile business areas.
“This upgrade reflects our view of LRE’s strong competitive position, driven by improved diversification of revenue and profit metrics,” S&P said.
Adding: “The company’s gross written premiums (GPW) have expanded significantly over the past five years (2020-2024), reaching $2.15 billion in 2024. LRE has expanded its product and geographic coverage, benefiting from multi-year rate increases, managing Management believes underlying loss cost trends are now fully priced in and have followed a similar trajectory through the first nine months of 2025, and we expect this momentum to continue into 2026, albeit at a more moderate pace due to expected interest rate pressures in the short-tail reinsurance lines.”
In the first nine months of 2025, Lancashire’s total gross margin increased 7.4% year-on-year to $1.8 billion, while insurance revenue increased 7.8% to $1.4 billion.
S&P expects the company’s total gross margin to reach approximately $2.3 billion by 2027, supported by continued and more cautious growth opportunities.
S&P continued: “The greater scale of the business enhances LRE’s ability to absorb losses through earnings and further diversify its underwriting portfolio, particularly as the company expands into casualty reinsurance, U.S. excess and surplus lines, and other new lines. Overall, we believe these developments strengthen LRE’s competitive position.”
