• AIM
    A sub-market of the LSE
  • AIR
    AIR Worldwide
  • Additional case reserves (ACR)
    Additional reserves deemed necessary by management
  • Aggregate
    Accumulations of insurance loss exposures which result from underwriting multiple risks that are exposed to common causes of loss
  • AGM
    Annual General Meeting
  • AHL
    Accordion Holdings Limited
  • A.M. Best Company (A.M. Best)
    A.M. Best is a full-service credit rating organisation dedicated to serving the financial services industries, focusing on the insurance sector
  • ARL (Accordion)
    Accordion Reinsurance Limited


  • Best Lancashire Assessment of Solvency over Time (BLAST)
    The Group’s economic capital model
  • BMA
    Bermuda Monetary Authority
  • BSX
    Bermuda Stock Exchange


  • Catastrophe reinsurance
    A form of excess of loss reinsurance which, subject to a specified limit, indemnifies the reinsured company for the amount of loss in excess of a specified retention with respect to an accumulation of losses resulting from a catastrophic event or series of events
  • Ceded
    To Transfer insurance risk from a direct insurer to a reinsurer and/or from a reinsurer to a retrocessionaire
  • Code
    UK Corporate Governance Code published by the UK Financial Reporting Council
  • Combined ratio
    Ratio, in per cent, of the sum of net insurance claims, net acquisition expenses and other operating expenses to net earned premiums
  • CEO
    Chief Executive Officer
  • CFO
    Chief Financial Officer
  • CFC
    Controlled Foreign Company 
  • CRO
    Chief Risk Officer
  • CSX
    Cayman Islands Stock Exchange
  • CUO
    Chief Underwriting Officer


  • Deferred acquisition costs
    Costs incurred for the acquisition or the renewal of insurance policies (e.g. brokerage and premium taxes) which are deferred and amortised over the term of the insurance contracts to which they relate
  • Duration
    Duration is the weighted average maturity of a security’s cash flows, where the present values of the cash flows serve as the weights. The effect of the convexity, or sensitivity, of the portfolio’s response to changes in interest rates is also factored in to the calculation


  • Earnings per share (EPS) – Basic (EPS)
    Calculated by dividing the net profit for the year attributable to shareholders by the weighted average number of common shares outstanding during the year, excluding treasury shares and shares held by the EBT
  • Diluted EPS
    Calculated by dividing the net profit for the year attributable to shareholders by the weighted average number of common shares outstanding during the year plus the weighted average number of common shares that would be issued on the conversion of all potentially dilutive common shares into common shares under the treasury stock method
  • EBT
    Lancashire Holdings Employee Benefit Trust
  • EMD
    Emerging Market Debt
  • ERM
    Enterprise Risk Management
  • Excess of loss
    Reinsurance or insurance that indemnifies the reinsured or insured against all or a specified portion of losses on an underlying insurance policy in excess of a specified amount
  • Expense ratio
    Ratio, in per cent, of other operating expenses to net earned premiums


  • Facultative reinsurance
    A reinsurance risk that is placed by means of a separately negotiated contract as opposed to one that is ceded under a reinsurance treaty
  • Fully converted book value per share (FCBVS)
    Calculated by dividing the value of the total shareholders’ equity plus the proceeds that would be received from the exercise of all outstanding dilutive options, dilutive warrants, and diluted RSS awards by the sum of all shares, including dilutive options, dilutive warrants, and dilutive RSS awards, assuming all are exercised
  • FDIC Guaranteed Corporate Bonds
    Corporate bonds protected by the Federal Deposit Insurance Corporation, an agency of the U.S. government
  • FCA
    United Kingdom, Financial Conduct Authority
  • FPSO
    Floating Production Storage and Offloading vessel


  • Gross premiums written
    Amounts payable by the insured, excluding any taxes or duties levied on the premium, including any brokerage and commission deducted by intermediaries
  • the Group
    LHL and its subsidiaries


  • HMRC
    Her Majesty's Revenue & Customs


  • International Accounting Standard(s) (IAS)
    Standards, created by the IASB, for the preparation and presentation of financial statements
  • International Accounting Standards Board (IASB) 
    An international panel of accounting experts responsible for developing IAS and IFRS
  • Incurred but not reported (IBNR) 
    These are anticipated or likely claims that may result from insured events which have taken place, but for which no claims have yet been reported. IBNR also includes a reserve for possible adverse development of previously reported claims.
  • ICA
    Individual capital assessment
  • ICG
    Individual capital guidance
  • IFRS
    International Financial Reporting Standard(s)
  • Industry loss warranty (ILW)
    A type of reinsurance or derivative contract through which one party will purchase protection based on the total loss arising from an event to the entire insurance industry rather than their own losses
    International Financial Reporting Interpretations Committee
  • IRR
    Internal rate of return


  • Lancashire Foundation
    The Lancashire Foundation is a Bermuda registered charitable trust
  • Lancashire UK group of companies
    Includes LHL, LUK, LIHL, LISL and LIMSL
  • LHL
    Lancashire Holdings Limited
  • LHFT
    Lancashire Holdings Financing Trust I
  • LICL
    Lancashire Insurance Company Limited
  • LIHL
    Lancashire Insurance Holdings (UK) Limited
    Lancashire Insurance Marketing Services Limited
  • LISL
    Lancashire Insurance Services Limited
    Lancashire Management Services (Canada) Limited
  • LOC
    Letters of credit
  • Losses
    Demand by an insured for indemnity under an insurance contract
  • LSE 
    London Stock Exchange
  • LTIP
    Long term incentive plan
  • LUK
    Lancashire Insurance Company (UK) Limited


  • MBRT
    Multi-beneficiary reinsurance trust
  • Moody’s Investors Service (Moody’s)
    Moody’s is a leading provider of credit ratings, research and risk analysis


  • NBS
    New Bridge Street (a brand of Aon Hewitt Limited)
  • Net Acquisition Cost Ratio
    Ratio, in per cent, of net acquisition expenses to net premiums earned
  • Net Loss Ratio
    Ratio, in per cent, of net insurance losses to net premiums earned
  • Net Operating Profit
    Net operating profit excludes net realised gains and losses, equity based compensation expenses for warrants issued at IPO, net foreign exchange gains and losses and tax charges
  • Net premiums written
    Net premiums written is equal to gross premiums written less outwards reinsurance premiums written


  • OTC
    Over the counter


  • PML
    Probable maximum loss
  • Pro-rata/proportional
    Reinsurance or insurance where the reinsured or insured shares a proportional part of the original premiums and losses of the reinsured of insured
  • PRA
    United Kingdom, Prudential Regulation Authority


  • Retrocession
    The reinsurance of the reinsurance account
  • Return on equity (ROE)
    The IRR of the change in FCBVS in the period plus accrued dividends
  • RDS
    Realistic Disaster Scenarios
  • RPI
    Renewal Price Index
  • RMS
    Risk Management Solutions
  • RRC
    Risk and Return Committee
  • RSS
    Restricted share scheme


  • Sidecar
    A specialty reinsurance company designed to provide additional capital to another (re)insurance company. Investors invest in a sidecar to reinsure specific risks for a specific (re)insurance company
  • SHL
    Saltire Holdings I Limited
  • SML
    Saltire Management Limited
  • SRL
    Saltire Re I Limited
  • Standard & Poor’s Rating Serivces (S&P) 
    Standard & Poor's is a worldwide insurance rating and information agency whose ratings are recognised as an ideal benchmark for assessing the financial strength of insurance related organisations.


  • TBAs
    Mortgage backed “to be announced” securities
  • Total shareholder return (TSR)
    The IRR of the increase in share price, in the period, measured in U.S. dollars, adjusted for dividends
  • Treaty reinsurance
    A reinsurance contract under which the reinsurer agrees to offer and to accept all risks of a certain size within a defined class


  • UMCC
    Underwriting and Marketing Conference Call
  • Unearned premium
    The portion of premium income that is attributable to periods after the balance sheet date is deferred and amortised to future accounting periods
  • UNL
    Ultimate net loss
  • U.S. GAAP
    Accounting principles generally accepted in the United States


  • Value at Risk (VaR)
    A measure of the risk of loss a specific portfolio of financial assets