Lancashire Holdings (LRE) AI Stock Analysis

• Market Cap: £1.58B
• Dividend Yield: 11.72%
• Average Volume (3M): 740.00K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 1.07
• Revenue Growth: 8.78%
• EPS Growth: -38.83%
• Country: UK
• Employees: 426
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Specialty
• EPS (TTM): N/A
• Shares Outstanding: 244,010,010
• 10 Day Avg. Volume: 593,521
• 30 Day Avg. Volume: 740,005
• PEG Ratio: -8.52
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 1.36
• P/FCF Ratio: 3.58
• 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: £690.17
• Price Target Upside: 16.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: 649.00p ▲(9.63% Upside)

Lancashire Holdings demonstrates strong financial performance and attractive valuation metrics, with a low P/E ratio and high dividend yield. Despite technical indicators suggesting a bearish trend, the company's strategic growth initiatives and insider confidence provide a positive outlook. Challenges from industry losses and market conditions are mitigated by a robust capital position.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Lancashire's insurance products, enhancing its market position and financial stability.

Cash Flow Generation

Strong cash flow generation supports operational flexibility and strategic investments, underpinning long-term business sustainability.

Strategic Growth Initiatives

Expanding capacity at Lloyd's positions Lancashire for future growth, enhancing its competitive edge in specialty insurance markets.

Negative Factors

High Industry Losses

Significant industry losses from natural catastrophes can strain financial resources and impact profitability, posing long-term challenges.

Increased Operating Expenses

Rising operating expenses may pressure margins and reduce profitability, affecting the company's ability to invest in growth initiatives.

Softening Market Conditions

Increased competition in the insurance market could lead to pricing pressures, challenging Lancashire's ability to maintain its market share.

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 generates revenue primarily through the underwriting of insurance and reinsurance policies. The company earns premiums from clients seeking coverage in its core sectors, which include property, marine, and aviation insurance. Additionally, Lancashire may receive investment income from its asset portfolio, which is managed to support its underwriting activities. Key revenue streams include premium income from written policies and reinsurance contracts. The company's financial performance is influenced by its ability to accurately assess and price risk, as well as its investment strategies. Significant partnerships with brokers and other insurance entities help to expand its market reach and client base, thus contributing to its overall earnings.

Lancashire Holdings Financial Statement Overview

Summary

Lancashire Holdings exhibits strong financial performance with robust revenue growth and cash flow generation. Profitability metrics are solid, 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	1.53B	1.70B	1.40B	783.90M	747.70M	540.80M
Gross Profit	1.53B	1.22B	1.01B	522.70M	590.70M	425.80M
EBITDA	0.00	371.30M	364.50M	12.40M	-26.60M	26.20M
Net Income	229.70M	321.30M	321.50M	-15.50M	-62.20M	4.20M
Balance Sheet
Total Assets	4.55B	4.38B	3.90B	4.75B	4.07B	3.55B
Cash, Cash Equivalents and Short-Term Investments	653.20M	3.13B	2.88B	2.38B	517.70M	432.40M
Total Debt	468.90M	469.30M	471.30M	469.40M	463.60M	348.40M
Total Liabilities	3.04B	2.89B	2.39B	3.48B	2.66B	2.01B
Stockholders Equity	1.51B	1.49B	1.51B	1.33B	1.41B	1.54B
Cash Flow
Free Cash Flow	411.20M	566.40M	425.30M	312.80M	239.90M	80.90M
Operating Cash Flow	412.50M	573.80M	441.90M	323.80M	243.80M	80.90M
Investing Cash Flow	-148.20M	-251.90M	-54.30M	-194.90M	-186.80M	-260.10M
Financing Cash Flow	-330.40M	-386.10M	-185.40M	-90.80M	32.80M	287.30M

Lancashire Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 592.00
• 50DMA: Negative
• 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 592 is above the 20-day moving average (MA) of 579.95, below the 50-day MA of 594.72, and above the 200-day MA of 553.07, indicating a neutral trend. The MACD of -2.99 indicates Negative momentum. The RSI at 56.24 is Neutral, neither overbought nor oversold. The STOCH value of 76.72 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
CRE	77 Outperform	£538.78M	49.50	1.39%	7.49%	15.83%	-93.41%
LRE	76 Outperform	£1.58B	8.77	15.18%	11.72%	8.78%	-38.83%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SAGA	65 Neutral	£378.95M	-9.95	-76.14%	―	-35.05%	74.73%
SBRE	65 Neutral	£319.04M	8.15	16.39%	5.05%	7.77%	35.65%
VANQ	61 Neutral	£289.15M	―	-16.30%	―	-3.77%	-147.20%
HUW	58 Neutral	£141.08M	8.06	―	2.91%	―	―

Lancashire Holdings Corporate Events

Lancashire Holdings Director Increases Shareholding

Lancashire Holdings Limited announced that Robert Cox, a Non-Executive Director, purchased 2,000 common shares of the company at a price of £5.82 per share on November 14, 2025. This transaction represents a 0.0008% interest in the company’s total voting rights, indicating a modest increase in insider ownership which may reflect confidence in the company’s future performance.

Lancashire Holdings to Announce Q3 2025 Results and Host Conference Call

Lancashire Holdings Limited announced it will release its third quarter 2025 trading statement on November 5, 2025, followed by a conference call for analysts and investors. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

Lancashire Holdings Director Increases Shareholding

Lancashire Holdings Limited announced that Philip Broadley, the Non-Executive Director and Chair of the Board of Directors, purchased 4,700 common shares of the company at £6.3713 per share. This transaction increases his total shareholding to 58,115 common shares, representing 0.0238% of the total voting rights in the company. This move may indicate confidence in the company’s future prospects and could influence stakeholder perceptions positively.