Bermudan-based insurer Lancashire has reported an impressive first-quarter performance. While the group's combined ratio (of claims to premiums) was dented by losses arising form the Costa Concordia accident, it still came in at a robustly profitable 74 per cent – ratios at many of its Lloyd's peers, in comparison, are often still in lossmaking territory.
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Lancashire reported good news on premiums, too. While rates on some classes such as energy and marine still look fairly flat, the property retrocession and reinsurance account saw rates rise 12 per cent on renewal in January. The investment book, which is focused on bonds and cash, is in reasonable shape, too – it delivered a 1.1 per cent return in the quarter.
