- Insurer Lancashire Holdings reported a slump in half-yearly profits amid a 'more cautious' underwriting environment.

For the six months ended 30 June 2019. pre-tax profits fell to $40.5m from $74.9m a year earlier even as gross written premiums rose to $429.6m from $392.5m.

The company saw its combined ratio weaken to 86.6% in the half from 67.1% a year earlier as its loss ratio increased to 34.5% from 15.1% a year earlier,

The jump in the loss ratio was blamed on some additional losses in the period and “substantial” loss creep on prior year events.

'Looking ahead, the recent evidence of better market discipline and pricing will take time to feed through to our bottom line,' said Alex Maloney, Group Chief Executive Officer.

'However, I believe that we have the talent and capability to capitalise on the next stage of the (re)insurance cycle, and our strategy has positioned us well to maximise the improving underwriting opportunity.'

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