Lancashire company's Property segment offers market-leading capabilities and significant capacity to provide client solutions across a range of product lines. These encompass Property Reinsurance, Property Direct and Facultative, Terrorism and Political and Sovereign risk.
Financial Strengths Ratings
In 2019, Lancashire expanded its Property offering to include a Property Direct and Facultative line. This provides meaningful capacity to primarily commercial clients mainly on an excess of loss basis with a focus on North America.
Lancashire's Political Risk and Sovereign Risk products protect clients from government or state action when they operate abroad. The Political Risk product is primarily an asset-based protection covering against perils such as Confiscation, Expropriation, Nationalisation and Deprivation in foreign countries. The Sovereign Risk product covers clients against the non-performance of contractual obligations by state or majority state-owned counterparties. This may be the obligation to repay a loan, deliver a product or to honour a guarantee over an underlying transaction. Clients across the portfolio range from large commercial and industrial insureds to commodity traders and banks. Lancashire does not provide coverage for private obligor credit risk.
The Property catastrophe excess of loss reinsurance portfolio covers specific perils and is written on either a regional, country-wide or global basis. Coverage may include a reinstatement of the limit following a loss. The Property Reinsurance segment also includes Property Retrocession, written on an excess of loss basis covering elemental risks. Coverage may be provided on a UNL basis, meaning that loss payments are linked directly to the ceding company's own loss, or on an ILW basis, meaning that loss payments are linked to the overall industry loss as measured by independent third-party loss index providers. The Property risk excess of loss covers non-elemental perils.
The Terrorism and Political Violence portfolio is global in scope and written on either a primary, excess of loss or quota share basis. Cover is generally provided to medium to large commercial and industrial entities. Policies are typically issued for scheduled locations and exposure controlled through setting exposure limits within a blast zone radius. The portfolio includes some national terrorism pool arrangements.
|Gross Premiums Written||$1.652.3m||$1,225.2m||$814.1m||$706.7m||$638.5m|
|Net Premiums Written||$1.188m||$816.1m||$519.4m||$424.7m||$417.7m|
|Net Premiums Earned||$988.4m||$696.5m||$475.8m||$421.7m||$413.5m|
|Net Total Return on Investments||(3.5)%||0.1%||3.9%||4.9%||0.8%|
|Change in Fully Converted Book Value per Share (FCBVS) (previously termed Return of Equity)||(6.7)%||(5.8%)||10.2%||14.1%||2.4%|
|Net Loss Ratio||58.3%||67.6%||59.6%||30.8%||40.0%|
The Lancashire Syndicates specialise in property both on a reinsurance and a direct basis.
Syndicate 2010 is a long standing, major Lloyd's lead for Property Reinsurance and Direct and Facultative Property, possessing significant underwriting capability and expertise.
Syndicate 3010 underwrites the Terrorism and Political Violence portfolio, drawing on the experience of seasoned market practitioners to offer meaningful client solutions.
FINANCIAL STRENGTHS RATINGS
Syndicate 2010 specialises in writing a broad book of Worldwide commercial property business on both a direct and facultative reinsurance basis. The account is written in the open market and under binding authorities and has a geographical emphasis towards North America business. The open market business encompasses property risks and commercial clients across the spectrum from large, complex, multi-location schedules to single location assureds. The binding authority element of the account focuses on small, largely commercial property risks.
Lancashire Syndicate 2010 specialises in non-proportional treaty business and is a major Lloyd's lead for this business. The portfolio is global in scope, split between North America and International clients. The Syndicate also has significant underwriting capability and expertise in Property Retrocession, International Catastrophe and Risk Excess business.
Lancashire Syndicate 3010's Terrorism and Political Violence account is written in conjunction with Lancashire company's market-leading portfolio. The focus of the account is on property damage and business interruption coverages for commercial assureds, ranging from single site interests to global location schedules. Clients include energy, real estate, utility, manufacturing, leisure, entertainment and hotel-related entities.
|Gross Premiums Written||$1,225.2m||$814.1m||$706.7m||$638.5m||$591.6m|
|Net Premiums Written||$816.1m||$519.4m||$424.7m||$417.7m||$398.0m|
|Net Premiums Earned||$696.5m||$475.8m||$421.7m||$413.5m||$427.9m|
|Net Total Return on Investments||0.1%||3.9%||4.9%||0.8%||2.5%|
|Change in Fully Converted Book Value per Share (FCBVS) (previously termed Return of Equity)||(5.8%)||10.2%||14.1%||2.4%||(5.9%)|
|Net Loss Ratio||67.6%||59.6%||30.8%||40.0%||78.4%|