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Lancashire reports strong trading but suffers pay revolt
29th Apr 2021 09:53
(Sharecast News) - Lancashire Holdings reported a strong increase in premiums for the first quarter but the insurer suffered a revolt over executive pay at its annual general meeting.
Gross premiums written jumped 46% to $354.8m (£254m) in the three months to the end of March from a year earlier with a renewal price index of 112%, the FTSE 250 group said in a trading update.
The Bermuda-based company wrote more business mainly in property and casualty reinsurance, where premiums almost doubled to €223m from $113m, as it deployed new capital in a hardening market. New business was the main driver of the increase, it said. Lancashire said it started underwriting casualty reinsurance during the quarter, adding specialist teams.
Lancashire estimated claims for Storm Uri in the US at between $35m and $45m and said Covid-19 loss estimates were unchanged. The company's shares rose 4.7% to 712p at 10:45 BST.
Alex Maloney, Lancashire's chief executive, said: "This increase in our top line premium income represents our strongest ever first quarter premium and has been supported by the equity capital which we raised in June 2020. Our growth was driven by the improved market conditions."
Lancashire said a "significant number of votes" went against its remuneration report at Wednesday's AGM and that almost 33% of votes opposed its pay policy. The company said that before the AGM it spoke to some of its major shareholders and proxy advisers about executive pay.
Maloney's total pay rose 35% in 2020 to $4.14m as he received bonuses worth $3.13m. Lancashire raised almost £280m from shareholders in 2020 though the company said this was to fund growth rather than strengthen its finances.
"The board will continue to engage with shareholders to fully understand their views on this matter and, in accordance with the requirements of the UK Corporate Governance Code, the company will publish an update on the outcome of that engagement within six months of the AGM," Lancashire said.
Gross premiums written jumped 46% to $354.8m (£254m) in the three months to the end of March from a year earlier with a renewal price index of 112%, the FTSE 250 group said in a trading update.
The Bermuda-based company wrote more business mainly in property and casualty reinsurance, where premiums almost doubled to €223m from $113m, as it deployed new capital in a hardening market. New business was the main driver of the increase, it said. Lancashire said it started underwriting casualty reinsurance during the quarter, adding specialist teams.
Lancashire estimated claims for Storm Uri in the US at between $35m and $45m and said Covid-19 loss estimates were unchanged. The company's shares rose 4.7% to 712p at 10:45 BST.
Alex Maloney, Lancashire's chief executive, said: "This increase in our top line premium income represents our strongest ever first quarter premium and has been supported by the equity capital which we raised in June 2020. Our growth was driven by the improved market conditions."
Lancashire said a "significant number of votes" went against its remuneration report at Wednesday's AGM and that almost 33% of votes opposed its pay policy. The company said that before the AGM it spoke to some of its major shareholders and proxy advisers about executive pay.
Maloney's total pay rose 35% in 2020 to $4.14m as he received bonuses worth $3.13m. Lancashire raised almost £280m from shareholders in 2020 though the company said this was to fund growth rather than strengthen its finances.
"The board will continue to engage with shareholders to fully understand their views on this matter and, in accordance with the requirements of the UK Corporate Governance Code, the company will publish an update on the outcome of that engagement within six months of the AGM," Lancashire said.