The FTSE 250 insurance group reported pre-tax profits of US$42.4mln in the first quarter, up from US$28.7mln in the same period last year, on gross premiums of US$215.8mln, rising from US$196.5mln the year before.
The company’s combined ratio also improved to 65.2% from 85.6% (a score under 100% indicates underwriting profitability).
However, the positive financials were slightly dented by Lancashire’s investment portfolio, which declined by 14 basis points because of “volatile equity markets, and a further rate increase by the [US] Federal Reserve”.
Despite this, the company reported a return on equity (ROE) of 2.9% in the period.
In a separate announcement, the firm also said that over 98% of shareholder votes cast at its annual general meeting had given authority in principle to issue up to 15% of its share capital on a non-pre-emptive basis.
Alex Maloney, group chief executive for Lancashire, said: "I am pleased with an ROE of 2.9% for the first quarter which is a product of a strong underwriting result, helped by a relatively benign loss quarter, whilst successfully limiting the impact of a challenging investment environment.
He added: “Overall we are pleased with our first quarter: The underwriting result is strong; our 2017 catastrophe loss reserves remain robust; and our investment portfolio performed in line with expectations given the environment."
In 2017 the group swung to a US$72.9mln loss from a US$150.4mln profit in 2016 as California wildfires and a litany of other natural disasters weighed heavily on its finances.
In early trading Thursday, Lancashire Holdings shares were up 6.3% at 636.5p.