Lancashire Holdings Ltd (GB:LRE)
LSE:LRE
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Lancashire Holdings
(LSE:LRE)
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Rating:76Outperform
Price Target:
735.00 p
▲(20.79% Upside)
Action:Reiterated
Date:04/04/26
The score is driven primarily by solid financial performance (post-loss recovery, controlled leverage, and generally strong cash conversion) and very attractive valuation (low P/E and high dividend yield). Technicals are moderately positive but mixed, with neutral momentum and a slightly negative MACD limiting upside in the overall score.
Positive Factors
Earnings recovery & revenue growth
Lancashire's post-loss recovery and sustained revenue expansion through 2023–2025 indicate management restored underwriting discipline and market positioning. A durable turn from loss-making years to consistent profits supports rebuilding capital, restoring pricing leverage and financing underwriting capacity across future cycles.
Negative Factors
Margin compression
Material margin compression from ~23% to ~14% over two years signals weakening underwriting profitability or investment contribution. If sustained, lower margins will reduce retained earnings and capital accumulation, constrain future underwriting capacity and pressure long-term return on equity absent rate recovery or cost improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Earnings recovery & revenue growth
Lancashire's post-loss recovery and sustained revenue expansion through 2023–2025 indicate management restored underwriting discipline and market positioning. A durable turn from loss-making years to consistent profits supports rebuilding capital, restoring pricing leverage and financing underwriting capacity across future cycles.
Read all positive factors
Lancashire Holdings (LRE) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.59B
Dividend Yield11.03%
Average Volume (3M)740.00K
Price to Earnings (P/E)7.0
Beta (1Y)1.09
Revenue Growth2.58%
EPS Growth-12.71%
CountryUK
Employees426
SectorFinancial
Sector Strength70
IndustryInsurance - Specialty
Share Statistics
EPS (TTM)0.96
Shares Outstanding244,010,010
10 Day Avg. Volume593,521
30 Day Avg. Volume740,005
Financial Highlights & Ratios
PEG Ratio-0.94
Price to Book (P/B)1.39
Price to Sales (P/S)0.98
P/FCF Ratio4.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£634.33Price Target Upside4.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)1.18
Revenue Forecast (FY)£2.11B
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 Casua...
How the Company Makes Money
Lancashire makes money primarily by underwriting specialty insurance and reinsurance policies and retaining a portion of the premiums as profit when claims, expenses, and loss-adjustment costs are lower than the premiums collected (i.e., underwrit...
Lancashire Holdings Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance and strategic growth initiatives, with increased profitability and upgraded ROE expectations. However, the company faces challenges from high industry losses and a softening market, which are balanced by their robust capital position and strategic discipline.Positive Updates
Record Q2 Profitability
Q2 2025 was the most profitable second quarter in Lancashire's history, demonstrating the effectiveness of their strategy and resilience to catastrophic losses such as the California wildfires.
Negative Updates
High Industry Losses from Natural Catastrophes
The first half of 2025 recorded the highest H1 insured losses since 2011, with Lancashire incurring net catastrophe and weather losses of GBP 172 million.
Read all updates
Q2-2025 Updates
Positive
Negative
Record Q2 Profitability
Q2 2025 was the most profitable second quarter in Lancashire's history, demonstrating the effectiveness of their strategy and resilience to catastrophic losses such as the California wildfires.
Read all positive updates
Company Guidance
During the Lancashire Q2 2025 Earnings Conference Call, the company provided an optimistic outlook for the year, upgrading their ROE expectations to the high teens, buoyed by a record-breaking Q2 performance. Despite significant losses from the California wildfires, the company achieved an annualized ROE of 15% and an insurance service result of GBP 156 million, with insurance revenue rising by 8.9% to $930 million compared to the first half of 2024. The combined ratio stood at 97.8%, and investment returns reached 3.7%. The company emphasized disciplined growth amid a competitive market, with a focus on maintaining a robust capital position, evidenced by a BSCR ratio of just over 257%. They noted ongoing market opportunities, particularly in marine, energy, and U.S. liability segments, and highlighted a strategic purchase of additional Lloyd's syndicate capacity, positioning them for future growth without expanding their catastrophe footprint.Lancashire Holdings Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.53B | 2.13B | 1.70B | 1.40B | 783.90M | 747.70M |
| Gross Profit | 1.53B | 2.13B | 1.22B | 1.01B | 522.70M | 590.70M |
| EBITDA | 0.00 | 356.32M | 371.30M | 364.50M | 12.40M | -26.60M |
| Net Income | 229.70M | 299.56M | 321.30M | 321.50M | -15.50M | -62.20M |
Balance Sheet | ||||||
| Total Assets | 4.55B | 4.81B | 4.38B | 3.90B | 4.75B | 4.07B |
| Cash, Cash Equivalents and Short-Term Investments | 653.20M | 561.60M | 3.13B | 2.88B | 2.38B | 517.70M |
| Total Debt | 468.90M | 477.37M | 469.30M | 471.30M | 469.40M | 463.60M |
| Total Liabilities | 3.04B | 3.30B | 2.89B | 2.39B | 3.48B | 2.66B |
| Stockholders Equity | 1.51B | 1.51B | 1.49B | 1.51B | 1.33B | 1.41B |
Cash Flow | ||||||
| Free Cash Flow | 411.20M | 465.16M | 566.40M | 425.30M | 312.80M | 239.90M |
| Operating Cash Flow | 412.50M | 467.51M | 573.80M | 441.90M | 323.80M | 243.80M |
| Investing Cash Flow | -148.20M | -301.19M | -251.90M | -54.30M | -194.90M | -186.80M |
| Financing Cash Flow | -330.40M | -314.05M | -386.10M | -185.40M | -90.80M | 32.80M |
Lancashire Holdings Technical Analysis
Positive
608.50
Price Trends
582.95
Positive
581.43
Positive
560.95
Positive
Market Momentum
16.80
Negative
70.87
Negative
91.22
Negative
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 608.5 is above the 20-day moving average (MA) of 592.57, above the 50-day MA of 582.95, and above the 200-day MA of 560.95, indicating a bullish trend. The MACD of 16.80 indicates Negative momentum. The RSI at 70.87 is Negative, neither overbought nor oversold. The STOCH value of 91.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:LRE.
Lancashire Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | £1.59B | 6.98 | 11.24% | 11.03% | 2.58% | -12.71% | |
75 Outperform | £401.12M | 4.18 | 11.29% | 4.89% | -10.30% | 6.15% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
58 Neutral | £150.65M | 9.54 | 10.08% | 2.90% | ― | ― | |
52 Neutral | £773.57M | -28.14 | -15.72% | ― | 12.19% | ― |
* Financial Sector Average
GB:LRE
Lancashire Holdings
639.50
145.34
29.41%
GB:HUW
Helios Underwriting
213.50
2.59
1.23%
GB:SAGA
Saga plc
555.00
412.60
289.75%
GB:SBRE
Sabre Insurance Group plc
158.80
44.73
39.22%
Lancashire Holdings Corporate Events
Regulatory Filings and Compliance
Lancashire Corrects Figure in CEO Share Transaction Disclosure
Neutral
May 20, 2026
Lancashire Holdings has corrected a previously announced figure relating to a share transaction by its group chief executive officer, Alex Maloney. The company clarified that the total proceeds from the sale of shares to cover tax liabilities and ...
Regulatory Filings and Compliance
Lancashire CEO increases stake after exercising restricted share awards
Neutral
May 20, 2026
Lancashire Holdings has disclosed a management share transaction involving its Group Chief Executive Officer, Alex Maloney, who exercised 465,675 restricted share awards granted as nil-cost options under the company’s performance and bonus d...
Other
Lancashire Executive Boosts Stake After Exercising Restricted Share Awards
Neutral
May 11, 2026
Lancashire Holdings has disclosed a management share transaction involving Executive Director and Group Chief Underwriting Officer Paul Gregory. On 7 May 2026, Gregory exercised 359,245 restricted share awards granted as nil-cost options under the...
Regulatory Filings and Compliance
Lancashire Chair Broadley Increases Shareholding with London Market Purchase
Positive
May 1, 2026
Lancashire Holdings has disclosed that its Non-Executive Director and Chair of the Board, Philip Broadley, purchased 4,225 common shares in the company on 30 April 2026 at a price of £5.660032 per share on the London Stock Exchange. Following...
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
Lancashire Wins Full Shareholder Backing at 2026 AGM
Positive
Apr 30, 2026
Lancashire Holdings reported that all 22 resolutions put to shareholders at its Annual General Meeting in Bermuda on 29 April 2026 were duly passed. Further details of the voting outcomes and the text of special business resolutions will be made a...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Lancashire Holds Course in Q1 2026 as Underwriting Shifts and Capital Strength Offset Softer Rates
Positive
Apr 30, 2026
Lancashire Holdings reported a steady start to 2026, with gross premiums written of $668.4 million in the first quarter and insurance revenue up 2.1% year-on-year to $468.6 million, supported by growth in energy, marine and its expanding U.S. fran...
Regulatory Filings and Compliance
Lancashire Director Increases Personal Stake with Share Purchase
Positive
Mar 30, 2026
Lancashire Holdings Limited has reported that non-executive director Nathalie Rachou purchased 8,635 common shares in the company on 26 March 2026 at a price of £5.78 per share. Following the transaction, she now holds 8,635 shares, represent...
Business Operations and StrategyExecutive/Board Changes
Lancashire Grants Over 1.5 Million Nil-Cost Share Awards to Senior Executives
Positive
Mar 18, 2026
Lancashire Holdings has granted significant tranches of nil-cost Restricted Share Scheme awards to its top executives, reinforcing long-term equity-based incentives at the senior leadership level. Chief executive Alex Maloney, chief financial offi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.