Lancashire unveils special divi after solid third quarter

(Sharecast News) - Lancashire's share price rose strongly on Wednesday after third-quarter results from the Bermuda-based insurance company pleased investors, with premiums on the rise as it announced a special dividend worth $182m.

The loss environment over the three months to 30 September was said to be "relatively benign" for natural catastrophe losses, the company said.

Gross written premiums were 7.4% higher than last year at $1.8bn over the third quarter, with insurance revenue up 7.8% at $1.4bn.

Chief executive Alex Maloney said market dynamics remained "robust" despite some asset classes having seen "some softening from recent highs", with pricing "healthy" across most of the business.

Meanwhile, the third-quarter performance was supported by strong investment returns, which have reached 5.6% including unrealised gains and losses over the year-to-date.

"Our performance over the first nine months of the year - particularly in light of the California wildfires early on - demonstrates the strength and resilience of our business model," Maloney said.

"It highlights the value of our strategy, our capacity to navigate volatility, and the advantages of our diversified portfolio across both product lines and geographies."

Due to the strong performance so far this year, Lancashire announced a 75cents-a-share special dividend, paying to shareholders of record on 14 November.

The stock was up 4.2% at 673p by 1116 GMT.