Speaking on Lancashire’s Q3 2025 earnings call, Paul Gregory, Group Chief Underwriting Officer, suggested that as a significantly larger and more diversified business than at the same stage of the previous softening cycle, the firm has greater reinsurance options and, thanks to its strong relationships with reinsurers, enjoys the flexibility to better navigate future market cycles.
He added that Lancashire is a strong believer in the insurance cycle, noting that capital supply is likely to outpace rising demand, which could create competitive pressure.
“However, importantly, we still believe that underwriting margins across the majority of business lines will remain healthy and attractive, much like this year,” Gregory said.
He also noted that as a sizeable buyer of reinsurance, a softening market is not necessarily entirely negative.
“We’ll benefit from broader, more competitive reinsurance that helps protect our net margin,” Gregory observed.
Also speaking in the earnings call, Alex Maloney, Group Chief Executive Officer of Lancashire, stated, “Our strategy remains central to our success. We continue to deliver disciplined, profitable growth.
“Margins remain favourable, and most lines of business are fundamentally well priced. After many years of rate increases, we’re now seeing a more competitive market.
“The quality of the business we’ve built and the talent we have with the organisation together mean that we can continue to deliver on our strategy of delivering more sustainable returns for our shareholders.
“I’m extremely pleased that at this stage in the cycle, we have a healthy balance sheet to allow us plenty of flexibility to underwrite the opportunities we see.”
In its results for the nine months ended 30 September 2025, Lancashire revealed that gross premiums written rose 7.4% year-on-year to $1.8 billion, while insurance revenue increased by 7.8% to $1.4 billion.
Lancashire’s reinsurance segment contributed $1.031 billion to the total gross premiums written figure, while the insurance segment contributed $794.3 million.
In the reinsurance segment, the firm said that there has been measured growth across most lines, including planned growth in areas of specialty reinsurance such as aviation, marine and energy treaty.
Meanwhile, in the insurance segment, the continued build-out of the Lancashire US franchise has reportedly seen classes such as energy liability and property insurance grow, as well as premium growth in marine hull and war and political risk lines of business via the firm’s London platforms.
As for total insurance revenue, the insurance segment contributed $728.1 million, while the reinsurance segment contributed $671.7 million, reflecting a balanced performance across both areas of the business.
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