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LRE Q2


nwoodman
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http://www.lancashiregroup.com/lre_group/media/releases/2010/2010-08-05/

 

Qtrly EPS 0.48

CR 51.5%

 

 

"Following the Deepwater Horizon loss, premium rates in the worldwide energy market have increased by between 10% and 30%. Demand for Gulf of Mexico deep water energy wind coverage has strengthened, resulting in a corresponding improvement in premium rates.

 

As anticipated at the beginning of the year, our property catastrophe book, particularly in Florida, came under sustained rating pressure in recent weeks. We have therefore reduced our property catastrophe exposure to windstorm in the South East and Gulf regions at both the June and July renewals. Pricing pressures also led us to decline, or reduce our participation on, several of our retrocessional accounts and we have also scaled back our direct and facultative account exposures."

 

A thing of joy and beauty!

 

Cheers

nwoodman

 

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  • 2 weeks later...

Caught the tail end of the call. Seems like business as usual. Can't really ask for much more as a long term holder of this business.

 

lre seems like a really wonderful, well-run co. but are any of you guys here concerned about the currency risk of the dollar vs the british pound? and if so, do you hedge the currency risk, & how?

 

what about you, TWA?

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Not really , for the most of the most part even their Emerging Markets investment exposure is hedged back to USD.  I tend to think of them as a Bermuda based US company that just happens to be listed  on the LSE .

 

As always happy to be corrected by far more knowledgeable board members

 

FWIW

nwoodman

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thanks, nwoodman.

 

do you know whether they are active hedgers of their currency exposures based on shifting perceptions of relative exchange rate values, or do they pretty much statically hedge all currency exposures back to USD?

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Not really , for the most of the most part even their Emerging Markets investment exposure is hedged back to USD.  I tend to think of them as a Bermuda based US company that just happens to be listed  on the LSE .

 

As always happy to be corrected by far more knowledgeable board members

 

FWIW

nwoodman

 

 

Their financials are kept in dollars.  The great majority of their assets are in dollars.  Most of their policies are written in dollars.

 

But their stock trades in pence.  Their board doesn't like Sarbox, so they chose to list on the LSE.

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