Lancashire (LRE) investor relations material

Executive summary

• Delivered resilient results in 2025 despite significant catastrophe losses, including California wildfires, demonstrating the strength and durability of the business model.

• Achieved a third consecutive year of ROE above 20%, with a more balanced and diversified underwriting portfolio and robust investment returns.

• Profit after tax reached $293.4 million, with a return on equity (ROE) of 20.9%.

• S&P rating upgraded from A- to A, validating business strategy and capital strength.

• Total dividends for 2025 amounted to $357.0 million, including a $0.50 per share special dividend.

Financial highlights

• Undiscounted combined ratio of 93.1% and investment return of 7% for 2025.

• Profit after tax of $293.4 million, down 8.7% year-over-year, due to higher operating expenses and discounting impacts.

• Insurance revenue grew 5.4% year-over-year to $1,860.4 million; gross premiums written rose 5.1% to $2,259.3 million.

• Diluted book value per share increased by 20.9%, marking three consecutive years of over 20% return.

• Operating expenses increased 20% year-over-year to $265.5 million.

Outlook and guidance

• Expecting ROE in the high teens for 2026, with a stable top line and slightly lower net catastrophe footprint.

• Anticipate rate reductions in the high single digits across the portfolio in 2026, with casualty classes stable and property/specialty lines seeing more pressure.

• Strategy focuses on sustainable returns, continued US platform build-out, and simplification of Lloyd's syndicate structure.

• Operating expenses projected to remain consistent; positive investment returns anticipated.

• Reserves to stay within 80-90% confidence level; capital headroom above 170% BSCR.