Lancashire’s ratings reflect the group’s robust risk-adjusted capitalization and excellent operating performance. Lancashire continues to produce strong overall returns and underwriting results that consistently outperform its peer group. The group’s results are attributed to its experienced management team that has tightly managed the underwriting cycle by keeping growth flat in addition to prudent use of its retrocession program. The group’s operating activities focus on a specialist approach to writing core accounts and targeting dislocated classes of business. Additionally, the ratings continue to reflect the group’s strong and comprehensive enterprise risk management framework. This customized risk management framework also has contributed to Lancashire’s ability to consistently produce excellent underwriting results and in turn to generate return measures at the high end of the peer group.
Lancashire maintains good financial flexibility, with the ability to access capital from equity and debt markets. In addition to its traditional capacity provided through its
Partially offsetting these positive rating factors are the difficult current market conditions across most lines of business written and the persistent low interest rate environment, making the underwriting and investment environments that Lancashire operates in very challenging and Lancashire’s exposure to low-frequency, high-severity events due to its targeted lines of business. Additionally,
The following issue ratings have been affirmed:
-- “bbb” on
-- “bbb-” on
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Senior Financial Analyst
Assistant Vice President
Manager, Public Relations
Assistant Vice President, Public Relations