Lancashire Holdings (LRE) AI Stock Analysis

• Market Cap: £1.56B
• Dividend Yield: 11.86%
• Average Volume (3M): 517.87K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 1.05
• Revenue Growth: 14.46%
• EPS Growth: -2.98%
• Country: UK
• Employees: 426
• Sector: Financial
• Sector Strength: 67
• Industry: Insurance - Specialty
• EPS (TTM): N/A
• Shares Outstanding: 244,010,010
• 10 Day Avg. Volume: 1,003,152
• 30 Day Avg. Volume: 517,874
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £707.67
• Price Target Upside: 11.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 83 Outperform
• Price Target: 738.00p ▲(16.59% Upside)

Lancashire Holdings receives a strong overall score due to its robust financial performance, attractive valuation, and positive earnings call sentiment. The company's strategic growth and disciplined management further enhance its investment appeal.

Lancashire Holdings Business Overview & Revenue Model

Company Description

Lancashire Holdings Limited, together with its subsidiaries, provides specialty insurance and reinsurance products in London, Bermuda, and Australia. The company operates through five segments: Property and Casualty Reinsurance, Property and Casualty Insurance, Aviation, Energy, and Marine. It offers property direct and facultative, property political risk and sovereign risk, and property terrorism and political violence insurance products, as well as property reinsurance services; and aviation AV52, aviation consortium, airline hull and liability, and satellite insurance products. The company also provides marine hull, total loss only, mortgagees interests insurance, mortgagees additional perils, excess protection and indemnity, marine war, and builder's risks; and energy insurance products covering upstream, downstream and onshore operational, and upstream construction all risks business. In addition, it offers general insurance, support, insurance agent, and insurance mediation services. The company was incorporated in 2005 and is headquartered in Hamilton, Bermuda.

How the Company Makes Money

Lancashire Holdings makes money through the underwriting of specialty insurance and reinsurance contracts, generating revenue from premiums paid by its clients. The company focuses on niche markets where it can leverage its expertise to assess and price complex risks, often involving high-value assets or unique exposures. Key revenue streams include property insurance for natural catastrophes, energy sector coverage for oil and gas operations, and marine and aviation insurance for shipping and aircraft risks. Additionally, the company invests its premium income in a diversified portfolio of financial instruments, which provides investment income. Significant partnerships with brokers and distribution networks help Lancashire to access a broad range of clients and maintain a competitive edge in the market.

Lancashire Holdings Financial Statement Overview

Summary

Lancashire Holdings exhibits a robust financial position with strong revenue growth and cash flow generation. Profitability metrics are solid, with a net profit margin of 21.5%, although the lack of EBIT in the latest year could raise concerns. The balance sheet remains stable with controlled leverage, and cash flow metrics indicate effective cash management.

Income Statement

Lancashire Holdings has shown strong revenue growth with a Revenue Growth Rate of 19.5% year-over-year from 2023 to 2024. The Gross Profit Margin remains robust at 100% due to the nature of the insurance industry. However, the absence of EBIT in the latest year could be a concern, though EBITDA Margin holds at 24.8%. Net Profit Margin is solid at 21.5%, indicating profitability improvements.

Balance Sheet

The company's balance sheet shows a solid equity position with an Equity Ratio of 34.1%. The Debt-to-Equity Ratio is stable at 0.31, indicating manageable leverage. ROE stands at 21.5%, demonstrating effective equity utilization. However, the overall asset base has slightly decreased, which could be a point of concern.

Cash Flow

Cash flow performance is strong with a Free Cash Flow Growth Rate of 33.2% from 2023 to 2024. The Operating Cash Flow to Net Income Ratio is 1.79, indicating efficient operations generating cash. Free Cash Flow to Net Income Ratio is 1.76, reflecting strong cash conversion capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.20B	1.50B	1.25B	1.01B	751.10M	540.80M
Gross Profit	1.20B	1.50B	1.25B	1.01B	751.10M	540.80M
EBITDA	-37.10M	371.30M	364.50M	12.40M	-42.90M	26.20M
Net Income	321.50M	321.30M	321.50M	-3.30M	-61.60M	4.20M
Balance Sheet
Total Assets	3.90B	4.38B	3.90B	4.75B	4.07B	3.55B
Cash, Cash Equivalents and Short-Term Investments	2.88B	3.13B	2.88B	548.80M	517.70M	432.40M
Total Debt	471.30M	469.30M	471.30M	469.40M	463.60M	348.40M
Total Liabilities	2.39B	2.89B	2.39B	3.48B	2.66B	2.01B
Stockholders Equity	1.51B	1.49B	1.51B	1.27B	1.41B	1.54B
Cash Flow
Free Cash Flow	432.30M	566.40M	425.30M	312.80M	239.90M	80.90M
Operating Cash Flow	441.90M	573.80M	441.90M	323.80M	243.80M	80.90M
Investing Cash Flow	-54.30M	-251.90M	-54.30M	-194.90M	-186.80M	-260.10M
Financing Cash Flow	-185.40M	-386.10M	-185.40M	-90.80M	32.80M	287.30M

Lancashire Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 633.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LRE, the sentiment is Positive. The current price of 633 is above the 20-day moving average (MA) of 621.75, above the 50-day MA of 598.06, and above the 200-day MA of 589.38, indicating a bullish trend. The MACD of 10.49 indicates Negative momentum. The RSI at 60.54 is Neutral, neither overbought nor oversold. The STOCH value of 62.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:LRE.

Lancashire Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LRE	83 Outperform	£1.56B	6.10	21.23%	11.86%	14.46%	-2.98%
CRE	76 Outperform	£485.10M	4.96	12.25%	8.97%	27.08%	-34.38%
Sector *	67 Neutral	$17.02B	11.60	9.79%	3.95%	10.61%	2.06%
HUW	―	£150.23M	8.22	13.74%	2.86%	―	―
SAGA	65 Neutral	£250.45M	―	-127.10%	―	-20.62%	-44.96%
SBRE	65 Neutral	£372.41M	9.45	16.39%	5.94%	32.88%	99.17%
VANQ	61 Neutral	£258.19M	―	-16.30%	9.29%	1.10%	-1831.40%

Lancashire Holdings Corporate Events

Lancashire Holdings Reports Strong H1 2025 Results Amid Challenging Market

Lancashire Holdings Limited reported a strong profit after tax of $109.2 million for the first half of 2025, demonstrating increased resilience in its business model. The company saw a 5.8% increase in gross premiums written and an 8.9% rise in insurance revenue year-on-year. Despite the challenging loss environment, including significant losses from the California wildfires, Lancashire maintained a healthy combined ratio and investment return. The company expects a high-teens return on equity for 2025, reflecting its strategic growth and disciplined underwriting approach. Lancashire’s robust balance sheet and capital base support its growth and shareholder returns, positioning it well in a competitive market.

The most recent analyst rating on (GB:LRE) stock is a Buy with a £7.09 price target. To see the full list of analyst forecasts on Lancashire Holdings stock, see the GB:LRE Stock Forecast page.

Lancashire Holdings to Announce 2025 Half-Year Results

Lancashire Holdings Limited announced it will release its 2025 half-year results on August 6, 2025, followed by an analyst and investor conference call. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic positioning in the specialty insurance and reinsurance market.

The most recent analyst rating on (GB:LRE) stock is a Buy with a £7.09 price target. To see the full list of analyst forecasts on Lancashire Holdings stock, see the GB:LRE Stock Forecast page.

BlackRock Adjusts Stake in Lancashire Holdings

Lancashire Holdings Limited, a non-UK issuer, has been involved in a significant change in its voting rights structure due to an acquisition or disposal by BlackRock, Inc., a major asset management firm based in the USA. As of June 20, 2025, BlackRock’s total voting rights in Lancashire Holdings have slightly decreased to 4.96%, down from a previous position of 5.00%. This change reflects a minor adjustment in BlackRock’s investment strategy, which could have implications for its influence over the company’s decisions.

The most recent analyst rating on (GB:LRE) stock is a Buy with a £7.09 price target. To see the full list of analyst forecasts on Lancashire Holdings stock, see the GB:LRE Stock Forecast page.

Lancashire Holdings Director Increases Shareholding

Lancashire Holdings Limited, a company operating in the insurance sector, announced a transaction involving Sally Williams, a Non-Executive Director and Chair of the Audit Committee. On June 17, 2025, Williams purchased 868 common shares of the company, increasing her total shareholding to 11,950 shares, which represents 0.0049% of the company’s total voting rights. This transaction, disclosed in accordance with UK MAR requirements, reflects a personal investment by a key figure in the company’s governance, potentially signaling confidence in the company’s future prospects.

The most recent analyst rating on (GB:LRE) stock is a Buy with a £7.09 price target. To see the full list of analyst forecasts on Lancashire Holdings stock, see the GB:LRE Stock Forecast page.

BlackRock Increases Stake in Lancashire Holdings to 5%

Lancashire Holdings Limited, a non-UK issuer, has seen a change in its voting rights structure due to an acquisition or disposal by BlackRock, Inc., a major shareholder based in Wilmington, USA. This notification indicates that BlackRock’s total voting rights in Lancashire Holdings have increased to 5.00%, up from a previous position of 4.36%. This change in voting rights could potentially impact Lancashire Holdings’ governance and decision-making processes, as BlackRock holds a significant influence over the company’s strategic direction.

The most recent analyst rating on (GB:LRE) stock is a Buy with a £7.09 price target. To see the full list of analyst forecasts on Lancashire Holdings stock, see the GB:LRE Stock Forecast page.