Lancashire profit jumps, sees higher energy insurance demand

(Reuters) — Property/casualty insurer Lancashire Holdings Ltd. reported on Thursday a near 48% percent jump in first-quarter pretax profit as it brought in more premiums, and said a sustained period of stable oil prices would boost energy insurance demand through 2018 and 2019.

The company, a provider of insurance cover for heavy-duty assets such as oil rigs, ships and aircraft, said energy gross premiums written increased 17.8% to $30.4 million in the quarter ended March 31.

Gross premiums written rose 18.1% in the Lloyd's segment in the quarter.

Lancashire's total quarterly gross written premiums rose about 9.8% to $215.8 million from a year earlier, while its combined ratio improved to 65.2% from 85.6%.

The pretax profit came in at $42.4 million in the quarter, compared with $28.7 million a year earlier.