Lancashire Holdings predicts loss for third quarter as it counts cost of natural disasters

Insurer Lancashire Holdings Limited (LON:LRE) is expecting a negative return in the third quarter after it suffered losses of around US$75mln from several natural disasters as well as events in its marine portfolio.

The FTSE 250 firm said attritional losses had been accumulated due to exposure to a number of recent natural catastrophes including hurricane Florence and typhoons Jebi, Mangkhut, and Trami with net losses from these events expected to be between US$25mln and US$45mln.

READ: Lancashire shares sink as second quarter profits miss expectations

In its marine portfolio, the company estimated net losses at around US$30mln.

Given the latest estimated, the group said it now expected to produce “a negative return on equity” for the third quarter, although added that the period would have been profitable if the events did not occur.

The company also expected to remain profitable for the first 9 months of 2018.

The new figures will cause new disappointment for investors after the company reported profits for the second quarter in July that missed analysts’ expectations.

The firm will release its third quarter results on 1 November.

Story by ProactiveInvestors