Lancashire (LRE) investor relations material

Executive summary

• Delivered strong first-half profit after tax of $142 million, up from $109.2 million year-over-year, with a 19.6% annualized ROE, supported by portfolio diversification, disciplined underwriting, and prudent capital management.

• Maintained capital strength with A ratings from A.M. Best and S&P, a BSCR coverage ratio of 254%, and declared an interim dividend of $0.075 per share.

• Expanded U.S. and London product lines, invested in underwriting talent, and continued cost control.

Financial highlights

• Insurance revenue stable at $930 million year-over-year; gross premiums written at $1,315 million, down 1–3% due to planned property retrocession reduction.

• Profit after tax increased to $142 million from $109.2 million; diluted EPS rose to $0.56 from $0.44.

• Undiscounted combined ratio improved to 90.8% from 97.8% year-over-year.

• Investment income at $78 million, with total investment returns lower due to $30 million unrealized losses and market volatility.

• Interim dividend of $0.075 per share, totaling $18 million, with total dividends paid in the year at $0.65 per share including a special dividend.

Outlook and guidance

• On track to deliver high-teens ROE for full year 2026, barring major U.S. wind events, with focus on disciplined underwriting and capital deployment.

• Premium guidance remains stable, prioritizing underwriting profitability over top-line growth.

• No expectation of rate pickup in H2; specialty insurance to dominate second half.