Lancashire dented by hailstorms
Shares in London-listed Lancashire fell 3 per cent during trading, making the stock the biggest percentage loser on the FTSE-250 index.
The Lloyds of London insurer, which writes policies for heavy-duty assets such as oil rigs, ships and aircraft, said that pricing remained under pressure and that market conditions for 2014 looked stable.
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Hide AdPre-tax profit fell to $25.7m in the three months ended September 30 from $78m a year earlier.
Quarterly claims more than tripled to $75.6m.
Severe floods that inundated parts of central Europe in June are set to cost insurers between $3.5bn to $4.5bn, the world’s second biggest reinsurer Swiss Re forecast in July.
Analysis from the reinsurance arm of broker Willis – which has an office in Leeds – estimated that insurers would face paying out a similar amount again after areas of Germany and France were repeatedly pounded by grapefruit-sized hail stones over the summer.
However, Numis reiterated its “hold” rating on stock, saying that the underlying trading environment and potential benefits from Lancashire’s £266m acquisition of Cathedral are set to drive returns in the medium term.