LONDON (Reuters)-London’s Lloyd’s said on Wednesday that the London insurance company Lancashire had a pre-tax profit of $54.1 million in the first half of the year, driven by rising insurance rates, but the results were lower than analysts expected.
Due to the COVID-19 pandemic, Lancashire recorded a pre-tax loss of $23 million a year ago.
Lancashire County’s performance benefited from a 41% increase in gross underwritten premiums and an 11% increase in renewal premiums, it said in a statement.
“Looking forward, we expect the rating environment to remain positive,” said CEO Alex Maloney.
Lancashire said that despite the significant impact of Uri Winter Storm in the United States, underwriting profits are still as high as US$127.1 million.
The property insurance company’s composite ratio rose to 80.7% from 106.9% a year ago. Levels below 100% represent underwriting profits.
However, according to the company’s consistent forecast, pre-tax profit figures were lower than analysts’ expectations of $117.7 million.
Lancashire said it will pay an interim dividend of $0.05 per share, the same as a year ago.
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