UK Markets open in 2 hrs 49 mins

Lloyd's insurer Lancashire sees $65-$75 million catastrophe losses

·1-min read

(Reuters) - Insurer Lancashire <LRE.L> on Thursday estimated catastrophe losses of $65 million (50.2 million pounds) -$75 million for the third quarter due to North Atlantic hurricanes and the California wildfires, while keeping expected coronavirus-linked losses unchanged.

Lancashire said it has suffered losses across its speciality business lines from recent events and estimated ultimate loss of $30 million above its usual guidance for them.

"As insurers, we expect to support our clients and to pay covered losses when they occur, and the sequence of both natural catastrophe and risk loss events during the year so far has impacted our, and the industry's, profitability for the year to date," Chief Executive Alex Maloney said.

The UK-listed company, part of the oldest insurance market in the world, said pricing increased significantly, with rates and terms of coverage expected to improve throughout 2021 in most of its core lines. Gross premiums written jumped 14% to $658.7 million for the nine months ended Sept. 30.

The property and casualty insurer slipped into the red for the first half in July because of the pandemic, and had then raised its loss estimate by $7 million to $42 million due to the crisis.

Larger rival Hiscox <HSX.L> earlier in the week said it has reserved $75 million for catastrophe claims and flagged further exposure to event cancellations if COVID-19 curbs continue into the new year.

(Reporting by Muvija M in Bengaluru; Editing by Krishna Chandra Eluri)