At a glance
- AM Best said the ratings reflect balance sheet strength it assesses as strongest, strong operating performance, a neutral business profile and appropriate enterprise risk management.
- For an investor holding Lancashire paper or relying on its capacity, the affirmation leaves the group's ratings unchanged.
- AM Best said reserve development has been favorable in every year since inception and stayed so through the group's 2023 move to IFRS 17.
AM Best affirmed an A (Excellent) financial strength rating and "a+" long-term issuer credit ratings for Lancashire Insurance Company in Bermuda and Lancashire Insurance Company (UK). The outlooks are stable.
AM Best said the ratings reflect balance sheet strength it assesses as strongest, strong operating performance, a neutral business profile and appropriate enterprise risk management. The parent, Lancashire Holdings Limited, kept a "bbb+" (Good) long-term issuer credit rating, also stable.
For an investor holding Lancashire paper or relying on its capacity, the affirmation leaves the group's ratings unchanged. The two underwriting companies carry "a+" and the listed parent carries "bbb+". Risk-adjusted capitalization sits at the strongest level on AM Best's BCAR measure.
AM Best said reserve development has been favorable in every year since inception and stayed so through the group's 2023 move to IFRS 17. It also cited improved combined ratios over the past five years against peers, helped by top-line growth, diversification and benign catastrophe years, and credited benign loss years for part of that improvement.
Lancashire writes primary insurance, reinsurance and retrocessional coverage globally through traditional capacity and a Lloyd's platform.
Reported by the Insurance regulation desk from AM Best News. Published . Corrections