Lancashire reveals Ukraine net losses up to $30m

Lancashire has revealed that gross written premiums increased by 34.7% year-on-year to $477.9 million in the first quarter of 2022 and that it is expecting net losses from the conflict in Ukraine of between $20m and $30m.

Alex Maloney, group chief executive, commented: “Lancashire continues to be shocked and saddened by the tragic human costs and wider destructive impacts of the conflict in Ukraine.

”From a business perspective, we continue to monitor events across Ukraine and Russia with respect to potential exposure to losses in our political violence, aviation war and marine insurance classes, as well as our aviation and specialty reinsurance classes.

”We estimate that our ultimate net losses incurred within Ukraine are in the range of $20 million to $30 million. This continues to be a complex and evolving situation and we will give an update at the announcement of our half year results in July.

”While we continue to analyse our potential exposure scenarios in Russia, we consider that any potential losses would be within our risk tolerances, and would not impact our ability to deliver on our ambitious growth plans for 2022.

”Against this backdrop, underlying trading conditions remain favourable and Lancashire has continued to deliver strong premium growth in the first quarter, with a 34.7% increase in gross premiums written year-on-year.

”In light of the potential for broader market dislocation, we remain confident that our strong balance sheet, robust capital position and talented underwriting teams, will give us further opportunities for profitable growth during 2022.”