Kinesis Capital Management

Lancashire Holdings third-party reinsurance capital management unit Kinesis Capital Management held back on distributing profit commission to its parent in the third-quarter while it awaits the confirmation of loss estimates from earlier this year.

Third-party reinsurance capital management activities at Kinesis Capital Management have once again increased their contribution to the bottom-line at specialist re/insurer parent Lancashire Holdings during the second-quarter of 2016.

Insurance and reinsurance firm Lancashire Group Holdings anticipates receiving an additional $4m of profit commission from its third-party capital and reinsurance-linked asset management division Kinesis over future quarters, as the reserves we discussed earlier are released.

Prudent reserving for potential losses that have not yet fully crystalised has reduced the amount of profit commission that insurance and reinsurance firm Lancashire Group Holdings received from its third-party capital and reinsurance-linked asset management division Kinesis in the first-quarter.

Kinesis Capital Management Limited, the third-party capital and reinsurance-linked asset management division of insurer and reinsurer Lancashire Group Holdings, will provide its investors with an impressive 15% return for 2014 and roughly the same expected for 2015.

The increasing contribution made from third-party reinsurance capital management activities at Kinesis Capital Management has helped to boost the full-year 2015 return on equity (RoE) at specialist re/insurer Lancashire Holdings.

The share of profits and fee income that specialty insurance and reinsurance company Lancashire Holdings earned from its third-party reinsurance capital unit Kinesis Capital Management grew again in the latest quarter.

Once again, third-party reinsurance capital unit Kinesis Capital Management has provided an increased profit contribution to specialty insurance and reinsurance company Lancashire Holdings, which will be welcome as the re/insurer remained disciplined in challenging specialty market conditions.

Specialty insurance and reinsurance company Lancashire Holdings reported further growth in the contribution from its third-party reinsurance capital unit Kinesis Capital Management today, as it revealed the first full-year profit commission to be booked from the vehicle.

Staying relevant is a running theme and constant topic of discussion in the currently challenging reinsurance market, but relevance isn’t just about market capital and scale, according to Lancashire Group’s senior executives.