Lancashire sets range for hurricane and earthquake losses

Lancashire has set its range for estimated net losses from the recent Mexico earthquakes and hurricanes Harvey, Irma and Maria at $106m- $212m (£81m-£161m).

According to Lancashire, the losses “fall well within” its modelled loss ranges for catastrophe events.

Shore Capital director Eamonn Flanagan anticipates that Lancashire’s 2017 pre-profits will be adjusted by  $120m and it will still deliver a “nominal” profit.

Flanagan suggests that Lancashire has “performed admirably well” despite the recent spate of catastrophes that have taken place across the Caribbean and Americas.

Its balance sheet is still “robust” and Flanagan says Lancashire is now ready to capitalise on expected rate hardening, which he anticipates will lead to it writing a “greater level of business” from the beginning of 2018.

Fellow Lloyd’s insurer Hiscox updated its hurricane loss estimate for hurricanes Harvey and Irma last week. It anticipated a combined net claims bill of $225m (£168m).

RSA’s UK unit also suffered from a Q3 natural catastrophe hit due to hurricane and earthquake losses through its marine and international portfolios.