Lancashire could cut gross cat exposure if retro rates continue to surge

Analysts at investment banking firm Jefferies International Ltd. expect that Bermuda-based insurer and reinsurer Lancashire Holdings Ltd. could cut its gross catastrophe exposure in 2023 if retrocession rates continue to soar and it is unable to procure coverage at a good rate, Reinsurance News reported. Lancashire’s net catastrophe exposure is likely to remain broadly flat in 2023, although rate hikes could drive up its net premium growth, resulting in improved margins.