LONDON (Reuters) – British insurer Lancashire said it expected to return cash to shareholders this year as it reported a 33 percent drop in its quarterly profit, blaming bigger payouts related to the Costa Concordia shipwreck and dwindling investment returns.
Lancashire, which insures heavy-duty assets such as oil rigs, ships and aircraft, made a pretax profit of $60.6 million in the three months to June, it said on Wednesday.
That was down from $91 million a year earlier, but still ahead of $52 million pencilled in by analysts in a company poll.
The decline came as Lancashire revised upwards by $24.6 million its exposure to the Costa Concordia, the cruise liner that ran aground off the Italian coast in January, taking its total estimated hit from the shipwreck to $58.7 million.
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