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Lancashire H1 combined ratio improves as catastrophe losses fall
The undiscounted combined ratio fell to 90.8% in the first half of 2026, from 97.8% a year earlier, helped by catastrophe and large loss net losses dropping to $60.1 million.
Lancashire Holdings Limited reported an improvement in profitability for the first half of 2026 as a lighter catastrophe and large loss environment reduced pressure on results. The company said its undiscounted combined ratio fell to 90.8% for the six months ended June 30, a seven percentage point improvement from 97.8% in the same period of 2025.
Lancashire attributed the year-on-year change mainly to lower net losses from catastrophe, weather, and large loss events, which totaled $60.1 million in the first half of 2026 versus $211.2 million a year earlier. It noted that the prior year included the California wildfires as the majority contributor to losses.
Alongside the underwriting improvement, Lancashire reported higher insurance service profit of $198.8 million, up from $155.7 million, and profit after tax of $141.7 million compared with $109.2 million. Diluted earnings per share rose to $0.56 from $0.44, while gross premiums written declined to $1.315 billion from $1.356 billion, and the renewal price index for the period was 92%, down from 96% a year earlier.
In its reinsurance segment, gross premiums written decreased to $749.2 million from $815.6 million, with Lancashire pointing to lower inwards reinstatement premiums and a planned reduction in property retrocession. The company said it recorded growth in energy, marine, and aviation treaty lines, and it added that it acquired 100% of the underwriting capacity of Syndicate 2010 for the 2026 underwriting year to help offset softening market conditions.