Lancashire Holdings Ltd (CHIX:LREl)
£ 6.23 -0.030 (-0.48%) Market Cap: 1.50 Bil Enterprise Value: 1.34 Bil PE Ratio: 6.06 PB Ratio: 1.26 GF Score: 75/100
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Full Year 2024 Lancashire Holdings Ltd Earnings Call Transcript

Mar 06, 2025 / 01:00PM GMT
Release Date Price: £5.87 (-5.93%)

Key Points

Positve
  • Lancashire Holdings Ltd (LCSHF) achieved a remarkable ROE of 23.4% in 2024, despite a challenging year with high industry insured losses.
  • The company grew its premiums by 11% in 2024, continuing a trend of significant growth since 2017.
  • Lancashire Holdings Ltd (LCSHF) maintained a strong combined ratio of 80% on a discounted basis, demonstrating effective risk management.
  • The company successfully returned $294 million to shareholders through regular and special dividends, maintaining a strong balance sheet.
  • Lancashire Holdings Ltd (LCSHF) expanded its underwriting portfolio with over 20 new sub-products, enhancing diversification and reducing volatility.
Negative
  • The company anticipates a net loss of $145 million to $165 million from the LA wildfires, impacting 2025 results.
  • 2025 is expected to be a costly year for insured losses, potentially affecting profitability.
  • Lancashire Holdings Ltd (LCSHF) expects marginal rate softening in 2025, which could impact premium growth.
  • The company faces increased competition and supply in the market, potentially affecting pricing dynamics.
  • The California wildfires have eroded a significant portion of the company's aggregate deductible, posing a risk for future large loss events.
Operator

Hello and welcome to Lancashire full year 2024 earnings conference call. The speakers today will be Alex Maloney, Group CEO; Natalie Kershaw, Group CFO, and Paul Gregory, Group Chief Underwriting Officer. I'll now turn to pull over to Alex. Please go ahead.

Alexander Maloney
Lancashire Holdings Ltd - Group Chief Executive Officer, Executive Director

Good morning, everyone and thank you for joining our call today. We're going to do things a little bit differently today. I'd like to take a moment first of all to reiterate our strategy. I'll then follow on with some brief highlights from 2024 and our priorities for our business for 2025. Paul then will then focus on the underwriting trends. Natalie will cover the financials, and then we will go to Q&A.

We adapt to our strategy to where we are in the cycle, but our DNA remains the same. We leave with underwriting looking to maximize growth opportunities at this stage of the cycle, and we actively manage our capital and risk exposures to deliver attractive returns through cycle. We do that with

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