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Insurance company Lancashire reported a sharp fall in profit following a hit from catastrophe and risk losses as well as Covid-19 related claims for the year.
For the year ended 31 December 2020, pre-tax profit fell to $5.9 million from $119.5 million year-on-year even as gross premiums written increased by 15.2% year on year to $814.1 million.
'The group's estimated ultimate net financial impact of COVID-19, including losses and reinstatement premiums, is consistent with that reported in July at approximately $42 million,' the company said.
Combined ratio improved to 107.8% from 80.9% despite the impact of COVID-19.
The company declared a final dividend of $0.10 per common share.
Looking ahead to 2021, the company said it expected to utilise the $340.3 million of capital raised in its equity placing in June 2020 to fund further growth in our business during 2021.
At 8:09am: (LON:LRE) Lancashire Holdings Limited share price was 0p at 717.5p