As an insurance company, we place the operational aim of excellence in underwriting. Each risk underwritten must bear scrutiny on an individual basis and as part of the overall portfolio. If we can achieve this year in, year out, consistently, we believe this will achieve a superior risk-adjusted return for shareholders.
Objective met: In 2008 there were lots of losses from lots of places in many of the segments in which we have significant participation. There was an unusually level of large property risk losses, and there was an unusually high level of large energy losses. And of course there was the third largest insured hurricane loss since records began. Lancashire’s loss ratio in 2008 was 61.8 per cent, one of the best results in the industry, and a testament to our underwriting team.
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