Lancashire Holdings Ltd. reported a 10 percent fall in first-half profit amid “pricing pressure” in the Lloyd’s of London insurance market.
The company said pretax profit decreased to $88.6 million in the six months through June, while gross written premiums fell by 33 percent to $423.6 million, according to a statement Wednesday. Net investment income declined by 0.7 percent to $14.6 million, the company said.
“It is not all one-way traffic but there’s no hiding the fact that this is a difficult market,” Lancashire Group Chief Executive Officer Alex Maloney said in a statement. “We have to work hard and, if necessary, decline inadequately priced business.”
Lancashire gained access to the world’s oldest insurance market in 2013 after buying Cathedral Capital Ltd.
Analysts speculated earlier this year that the insurer, valued at 1.3 billion pounds ($2 billion), could be a takeover target following a number of deals in the Lloyd’s of London market.
Lancashire’s combined ratio, a measure of profitability, worsened to 75.1 percent from 70.6 percent a year earlier. The firm, which counts Invesco Ltd. as its largest shareholder, announced an interim dividend of 5 cents a share.
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