Press Release

AM Best Affirms Credit Ratings for Lancashire Holdings Limited and Its Subsidiaries

OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of ā€œa+ā€ (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 ā€œbbb+ā€ (Good) of the parent company, Lancashire Holdings Limited (Hamilton, Bermuda) [LSE: LRE]. The outlook of these Credit Ratings (ratings) is stable.


The ratings reflect Lancashireā€™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 Bestā€™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 Lancashireā€™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 Lancashireā€™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, Lloydā€™s and its Kinesis platform. The groupā€™s ERM is considered embedded and appropriate for Lancashireā€™s elevated risk profile.

This press release relates to Credit Ratings that have been published on AM Bestā€™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 Bestā€™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 Bestā€™s Credit Ratings, Bestā€™s Performance Assessments, Bestā€™s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Bestā€™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. For more information, visit www.ambest.com.

Copyright Ā© 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Antonietta Iachetta
Senior Financial Analyst

+1 908 882 1901

antonietta.iachetta@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com

Guilherme Monteiro Simoes, CFA
Senior Financial Analyst
+1 908 882 2317
guy.simoes@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com

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