Lancashire (LRE) Q3 2025 TU earnings summary

Executive summary

• Delivered strong Q3 2025 performance with 7.4% year-on-year gross premium growth to $1.8 billion and 7.8% insurance revenue growth, supported by disciplined underwriting and a diversified portfolio.

• Maintained robust capital position, enabling a special dividend of $0.75 per share ($182 million) and completion of the minority buyout of Syndicate 2010, enhancing strategic flexibility and future earnings potential.

• Confident outlook for 2026 and beyond, emphasizing sustainable returns, franchise resilience, and ongoing commitment to shareholder returns.

Financial highlights

• Gross premiums written rose 7.4% year-over-year to $1.8 billion for the first nine months, with insurance revenue up 7.8% to $1.4 billion.

• Net investment return of 5.6% year-to-date, generating $170 million in investment income and gains, supported by strong private fund performance and favorable macroeconomic trends.

• Special dividend of $0.75 per share ($182 million) to be paid in December, reflecting strong capital generation.

• Managed investment portfolio stood at $3,207.2 million to $3,316.5 million as of 30 September 2025, with a duration of 2.1 years and average credit quality of A+.

Outlook and guidance

• Expect continued, but measured, rate softening in 2026, with healthy margins in most lines and premium growth anticipated to be low single-digit, aided by US platform and specialty reinsurance.

• No change to return on equity guidance; formal 2026 ROE guidance to be provided with Q4 results.

• Ongoing focus on disciplined underwriting, capital deployment, and navigating volatility with a diversified portfolio.