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FTSE 250 insurer Lancashire Holdings (LON:LRE) has seen its shares fall by 6.05% to 551.50p (as of 10:35 BST) after the firm announced that it was exposed to loss events within its marine portfolio with estimated aggregate ultimate net losses of $30 million. These are in addition to losses linked with recent natural disasters including hurricane Florence and typhoon Jebi, which are themselves likely to have caused losses of $25-45 million.
The final claims are expected to take some time and all the above estimates are based on assumptions and market data including recoveries from the company’s outward reinsurance.
Management said that it expects Lancashire to report a negative return of equity for the third quarter as a result of these events.