Lancashire posts profit, joins IUA

HAMILTON, Bermuda— Bermuda-based insurance company Lancashire Holdings Ltd. has seen its gross written premiums increase by a third in the second quarter of 2007 to $270.8 million.

Lancashire specializes in short-tail specialty risks written on a direct basis. The company's combined ratio for the second quarter of 2007 was 56.6% and profit before tax for the first six months of the year was $35.3 million, the company said.

The company has also announced that it is to join the London-based International Underwriting Association through its Financial Services Authority-authorized insurance company Lancashire Insurance Company (U.K.) Ltd.

In a statement, the company said that the reasons behind this decision were support for the IUA's priorities of developing business process reform and ensuring effective communication with the Financial Services Authority.