Gold bars to be exempt from tariffs, White House clarifies
Investing.com -- Lancashire Holdings Limited (LON:LRE) on Wednesday raised its full-year return on equity guidance after reporting first-half earnings that beat market expectations by 24%.
The insurance company upgraded its fiscal year 2025 ROE forecast from mid-teens to high-teens, assuming a similar second-half loss environment to 2024, when it reported total large losses of about $169 million.
Lancashire’s profit before tax came in 27% above expectations, while profit after tax exceeded consensus by 24%.
The company’s strong performance was primarily driven by better underwriting margins and, to a lesser extent, improved investment returns.
The undiscounted combined operating ratio was 1.3 percentage points better than expected, while net investment return was 8% ahead of consensus estimates.
Despite the positive earnings results, gross premiums written were 2.2% behind consensus, and insurance revenue was 0.6% below market expectations. Insurance service result, however, was 39% ahead of consensus.
Diluted book value per share was 2% above expectations, and the interim dividend per share was in line at 7.5 cents.
The timing of Lancashire’s guidance upgrade ahead of peak U.S. windstorm season suggests confidence in its underwriting quality, which could support the shares that have been weak year-to-date.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.