Lancashire (LRE) investor relations material

Executive summary

• Gross premiums written reached $668.4 million in Q1 2026, with insurance revenue up 2.1% year-over-year to $468.6 million and a Group Renewal Price Index (RPI) of 93%.

• Growth in insurance was driven by energy, marine lines, and US franchise expansion, while reinsurance saw a planned reduction in property retrocession.

• The quarter saw a benign loss environment, with no major industry loss events and limited exposure to Middle East conflict.

• Proposal to merge Lloyd's Syndicates 3010 and 2010 under Syndicate 3010 for 2027, with full acquisition of underwriting capacity and senior management transitions in Lloyd's and Bermuda platforms.

• Focus remains on sustainable returns, disciplined underwriting, and prudent capital management.

Financial highlights

• Insurance revenue increased by $9.7 million, or 2.1%, year-over-year in Q1 2026, reaching $468.6 million.

• Gross premiums written totaled $668.4 million, with a gross premiums earned to written ratio of 79.9%.

• Investment returns were positive at 0.3%, driven by income but offset by rising Treasury rates and modest credit spread widening.

• Managed investments totaled $3,218.8 million as of March 31, 2026, with a book and market yield of 4.6%.

• Final BSCR (Bermuda Solvency Capital Requirement) ratio was 254%.

Outlook and guidance

• Guidance for high teens ROE in 2026 reaffirmed, with stable top-line premiums and insurance revenue anticipated.

• Market softening is expected to remain orderly, with no major surprises anticipated for the remainder of the year.

• Operating expenses expected to remain consistent, and capital headroom to be maintained comfortably above 170% BSCR.

• Continued focus on maximizing growth opportunities and disciplined risk selection.