Lancashire (LRE) Q3 2025 TU earnings summary

Executive summary

• Delivered strong Q3 2025 performance with gross premiums up 7.4% year-on-year to $1.8 billion and insurance revenue up 7.8% to $1.4 billion, driven by disciplined underwriting and a diversified portfolio.

• Successfully completed the minority buyout of Syndicate 2010, enhancing control, strategic flexibility, and future earnings potential.

• Maintained a robust capital position, supporting a special dividend of 75 cents per share ($182 million) and future growth.

• Achieved strong investment returns and positive results, reinforcing the ability to deliver sustainable returns.

Financial highlights

• Gross premiums written increased 7.4% year-on-year to $1.8 billion for the first nine months.

• Insurance revenue for the first nine months was $1.4 billion, up 7.8% year-on-year.

• Net investment return of 5.6% year-to-date, generating $170 million in investment income and gains.

• Managed investment portfolio stood at $3,207.2 million to $3,316.5 million as of 30 September 2025, with a duration of 2.1 years and average credit quality of A+.

• Special dividend of 75 cents per share declared, totaling $182 million.

Outlook and guidance

• Expects continued, but measured, rate softening in 2026, with healthy margins in most lines and premium growth anticipated to be low single-digit.

• Maintains a strong balance sheet and conservative capital base, with no change to return on equity guidance; formal 2026 ROE guidance to be provided with Q4 results.

• Strategy focuses on disciplined underwriting, navigating volatility, and capitalizing on attractive opportunities.