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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 06, 2024 09:40 AM (EST)
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a+” (Excellent) of Lancashire Insurance Company Limited (Hamilton, Bermuda) and Lancashire Insurance Company (UK) Limited (United Kingdom) (collectively referred to as Lancashire). Additionally, AM Best has affirmed the Long-Term ICR of “bbb+” (Good) of the parent company, Lancashire Holdings Limited (Hamilton, Bermuda) [LSE: LRE]. The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Lancashire’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
Lancashire continues to maintain the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). Its balance sheet strength is supported by solid levels of capital, which AM Best has assessed as strongest, as measured by BCAR. The company actively manages capital and excess funds that are returned to shareholders. Financial flexibility, aided by the ability to raise capital has allowed additional buffers as Lancashire continues to grow. Furthermore, initial reserves have consistently proved prudent, with releases over the years. Also reflected in the ratings is Lancashire’s historically strong overall operating performance, driven by underwriting results and complemented by investment and fee incomes. Combined ratios have improved over the last five years when compared to its peers, along with top line growth. This positive trend has benefited from benign catastrophic years and from the diversification of Lancashire’s lines of business, which have dampened volatility.
Lancashire is a specialty underwriter with a broad degree of geographic presence and product line, with offerings that include primary insurance, reinsurance and retrocessional coverages written on a global basis through traditional capacity, Lloyd’s and its Kinesis platform. The group’s ERM is considered embedded and appropriate for Lancashire’s elevated risk profile.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.