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Lancashire Holdings

LSE:LRE
Snowflake Description

Reasonable growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LRE
LSE
£1B
Market Cap
  1. Home
  2. GB
  3. Insurance
Company description

Lancashire Holdings Limited provides specialty insurance and reinsurance products worldwide. The last earnings update was 66 days ago. More info.


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LRE Share Price and Events
7 Day Returns
1.3%
LSE:LRE
3.5%
GB Insurance
0.6%
GB Market
1 Year Returns
14.3%
LSE:LRE
-5%
GB Insurance
1.1%
GB Market
LRE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Lancashire Holdings (LRE) 1.3% 5% 14.8% 14.3% 23.5% -1%
GB Insurance 3.5% 7.8% 9.9% -5% 14.9% 23.7%
GB Market 0.6% 3.6% 6.9% 1.1% 15.6% 6.2%
1 Year Return vs Industry and Market
  • LRE outperformed the Insurance industry which returned -5% over the past year.
  • LRE outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 1.1% over the past year.
Price Volatility
LRE
Industry
5yr Volatility vs Market

Value

 Is Lancashire Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Lancashire Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Lancashire Holdings.

LSE:LRE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 6 analysts.
= Stable Book Value * Return on Equity
= $5.46 * 13.5%
$0.73
Book Value of Equity per Share Weighted future Book Value estimates from 7 analysts. $5.46
Discount Rate (Cost of Equity) See below 6.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:LRE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.724 (1 + (1- 21%) (18.3%))
0.885
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.89
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.885 * 5.96%)
6.5%

Discounted Cash Flow Calculation for LSE:LRE using Excess Returns Model Model

The calculations below outline how an intrinsic value for Lancashire Holdings is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:LRE Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (13.5% – 6.5%) * $5.46)
$0.38
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.38 / (6.5% - 1.23%)
$7.19
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $5.46 + $7.19
$12.66
LSE:LRE Discount to Share Price
Calculation Result
Exchange Rate USD/GBP
(Reporting currency to currency of LSE:LRE)
0.77
Value per Share
(GBP)
= Value per Share in USD x Exchange Rate (USD/GBP)
= $12.66 x 0.77
£9.75
Value per share (GBP) From above. £9.75
Current discount Discount to share price of £6.81
= -1 x (£6.81 - £9.75) / £9.75
30.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Lancashire Holdings is available for.
Intrinsic value
30%
Share price is £6.81 vs Future cash flow value of £9.75
Current Discount Checks
For Lancashire Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Lancashire Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Lancashire Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Lancashire Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Lancashire Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:LRE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.19
LSE:LRE Share Price ** LSE (2019-04-18) in GBP £6.81
LSE:LRE Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.298 $8.83
United Kingdom of Great Britain and Northern Ireland Insurance Industry PE Ratio Median Figure of 19 Publicly-Listed Insurance Companies 16.26x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 797 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Lancashire Holdings.

LSE:LRE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:LRE Share Price ÷ EPS (both in USD)

= 8.83 ÷ 0.19

47.27x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lancashire Holdings is overvalued based on earnings compared to the GB Insurance industry average.
  • Lancashire Holdings is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Lancashire Holdings's expected growth come at a high price?
Raw Data
LSE:LRE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 47.27x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
31.2%per year
United Kingdom of Great Britain and Northern Ireland Insurance Industry PEG Ratio Median Figure of 16 Publicly-Listed Insurance Companies 1.54x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 564 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

LSE:LRE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 47.27x ÷ 31.2%

1.52x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lancashire Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Lancashire Holdings's assets?
Raw Data
LSE:LRE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $5.31
LSE:LRE Share Price * LSE (2019-04-18) in GBP £6.81
LSE:LRE Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.298 $8.83
United Kingdom of Great Britain and Northern Ireland Insurance Industry PB Ratio Median Figure of 24 Publicly-Listed Insurance Companies 2.12x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,367 Publicly-Listed Companies 1.51x
LSE:LRE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:LRE Share Price ÷ Book Value per Share (both in USD)

= 8.83 ÷ 5.31

1.66x

* Primary Listing of Lancashire Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lancashire Holdings is good value based on assets compared to the GB Insurance industry average.
X
Value checks
We assess Lancashire Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Lancashire Holdings has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Lancashire Holdings expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
31.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Lancashire Holdings expected to grow at an attractive rate?
  • Lancashire Holdings's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Lancashire Holdings's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Lancashire Holdings's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:LRE Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:LRE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 31.2%
LSE:LRE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 14%
United Kingdom of Great Britain and Northern Ireland Insurance Industry Earnings Growth Rate Market Cap Weighted Average 11.8%
United Kingdom of Great Britain and Northern Ireland Insurance Industry Revenue Growth Rate Market Cap Weighted Average 18.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:LRE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:LRE Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 693 153 5
2020-12-31 694 143 6
2019-12-31 664 135 6
LSE:LRE Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 444 -3 38
2018-09-30 451 46
2018-06-30 466 -26 -64
2018-03-31 464 -59
2017-12-31 477 -39 -71
2017-09-30 516 4 -15
2017-06-30 526 16 163
2017-03-31 542 48 156
2016-12-31 548 49 154
2016-09-30 538 59 157
2016-06-30 556 44 148
2016-03-31 583 83 156

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Lancashire Holdings's earnings are expected to grow significantly at over 20% yearly.
  • Lancashire Holdings's revenue is expected to grow by 14% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:LRE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Lancashire Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:LRE Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.75 0.80 0.70 5.00
2020-12-31 0.70 0.78 0.63 6.00
2019-12-31 0.66 0.73 0.62 6.00
LSE:LRE Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.19
2018-09-30 0.23
2018-06-30 -0.32
2018-03-31 -0.30
2017-12-31 -0.36
2017-09-30 -0.07
2017-06-30 0.82
2017-03-31 0.78
2016-12-31 0.77
2016-09-30 0.79
2016-06-30 0.75
2016-03-31 0.79

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Lancashire Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Lancashire Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Lancashire Holdings has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Lancashire Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Lancashire Holdings's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Lancashire Holdings's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Lancashire Holdings has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Lancashire Holdings has become profitable in the last year making it difficult to compare the GB Insurance industry average.
Earnings and Revenue History
Lancashire Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Lancashire Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:LRE Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 444.20 37.50 11.30
2018-09-30 450.90 46.20 8.90
2018-06-30 466.40 -63.80 4.00
2018-03-31 463.70 -59.20 4.70
2017-12-31 476.50 -71.10 3.00
2017-09-30 516.00 -14.60 2.80
2017-06-30 526.00 162.50 7.40
2017-03-31 541.50 155.80 9.30
2016-12-31 548.00 153.80 13.00
2016-09-30 537.50 157.10 17.10
2016-06-30 556.20 148.30 22.80
2016-03-31 582.60 155.70 18.40
2015-12-31 616.80 181.10 19.20
2015-09-30 666.20 213.50 24.90
2015-06-30 711.50 217.00 21.20
2015-03-31 753.40 222.90 29.10
2014-12-31 764.90 229.30 27.10
2014-09-30 760.20 205.50 21.70
2014-06-30 706.60 193.30 22.60
2014-03-31 655.40 204.70 18.00
2013-12-31 620.80 222.50 19.10
2013-09-30 595.60 211.90 18.00
2013-06-30 615.40 265.30 20.00
2013-03-31 630.70 267.60 18.80
2012-12-31 635.30 234.90 18.70
2012-09-30 624.50 221.50 20.50
2012-06-30 626.10 218.40 14.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Lancashire Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Lancashire Holdings used its assets more efficiently than the GB Insurance industry average last year based on Return on Assets.
  • Lancashire Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Lancashire Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Lancashire Holdings has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Lancashire Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Lancashire Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Lancashire Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Lancashire Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Lancashire Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 4.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Lancashire Holdings Company Filings, last reported 3 months ago.

LSE:LRE Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,067.50 324.70 543.70
2018-09-30 1,122.00 324.90 588.00
2018-06-30 1,153.10 325.20 576.50
2018-03-31 1,119.40 328.30 586.90
2017-12-31 1,107.30 328.30 448.00
2017-09-30 1,116.70 328.40 532.40
2017-06-30 1,261.30 327.50 523.00
2017-03-31 1,218.50 324.80 491.50
2016-12-31 1,207.80 324.60 435.50
2016-09-30 1,321.20 330.40 464.10
2016-06-30 1,288.60 331.30 502.50
2016-03-31 1,246.20 331.40 297.30
2015-12-31 1,220.80 327.10 457.60
2015-09-30 1,361.00 329.90 518.30
2015-06-30 1,334.00 327.10 523.40
2015-03-31 1,302.90 327.90 475.50
2014-12-31 1,357.30 331.50 492.90
2014-09-30 1,530.60 331.90 364.50
2014-06-30 1,504.80 335.90 595.30
2014-03-31 1,459.10 334.10 562.50
2013-12-31 1,460.40 332.50 621.10
2013-09-30 1,490.50 261.10 663.70
2013-06-30 1,266.30 260.00 466.10
2013-03-31 1,235.70 265.00 507.60
2012-12-31 1,387.40 266.70 394.80
2012-09-30 1,508.30 136.30 412.40
2012-06-30 1,421.80 134.40 328.10
  • Lancashire Holdings's level of debt (30.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (22.8% vs 30.4% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 3.2x coverage).
X
Financial health checks
We assess Lancashire Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Lancashire Holdings has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Lancashire Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.7%
Current annual income from Lancashire Holdings dividends. Estimated to be 7.46% next year.
If you bought £2,000 of Lancashire Holdings shares you are expected to receive £34 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Lancashire Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).
  • Lancashire Holdings's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.19%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:LRE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Insurance Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:LRE Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.70 5.00
2020-12-31 0.68 8.00
2019-12-31 0.61 8.00
LSE:LRE Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-14 0.150 1.745
2018-02-15 0.150 1.931
2017-07-27 0.900 9.889
2017-02-16 0.900 10.189
2016-11-03 0.900 10.637
2016-02-18 1.100 13.505
2015-11-05 1.600 16.874
2015-08-06 1.850 17.721
2015-07-29 1.850 18.408
2015-07-15 1.850 17.682
2015-03-19 1.850 18.985
2015-02-12 1.850 18.383
2014-11-05 1.550 17.363
2014-05-02 0.800 7.594
2013-11-06 1.650 13.458
2013-07-25 2.100 17.228
2013-02-21 2.100 16.825
2012-11-08 1.050 8.089
2012-03-16 0.950 7.508
2012-02-23 0.950 7.859
2011-11-04 0.950 8.366
2011-02-24 1.550 14.711
2011-02-21 1.550 15.845
2010-11-08 1.550 16.835
2010-08-05 0.150 1.732
2010-03-01 0.200 2.717
2010-02-26 0.200 2.709
2009-11-05 0.100 1.381
2009-07-29 0.100 1.272
2009-06-30 0.100 1.373
2009-05-15 0.000 0.000
2009-04-23 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Lancashire Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.1x coverage).
X
Income/ dividend checks
We assess Lancashire Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Lancashire Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Lancashire Holdings has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Lancashire Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Alex Maloney
COMPENSATION $1,431,306
AGE 44
TENURE AS CEO 5 years
CEO Bio

Mr. Alexander Terence Maloney, also known as Alex, served as the Chief Executive Officer at Cathedral Capital Holdings Limited. Mr. Maloney has been the Group Chief Executive Officer of Lancashire Holdings Limited since April 2014 and its Executive Director since November 5, 2010. Mr. Maloney served as the Chief Executive Officer of Cathedral Capital Limited since April 1, 2016 until July 12, 2017. Mr. Maloney has over 20 years underwriting experience and has also worked in the New York and Bermuda markets. He served as Chief Executive Officer of Lancashire Insurance Company (UK) Limited since 2012. He served as Group Chief Underwriting Officer of Lancashire Holdings Limited from May 2009 to April 30, 2014 and served as its Group Underwriting Director since December 2008. He served as the Chief Underwriting Officer of Lancashire Insurance Company (UK) Limited, a subsidiary of Lancashire Holdings Limited since March 27, 2007. He spent 14 years with Zurich Financial Services and managed the london exploration and production division of Zurich Global energy. He was a Director at Cathedral Capital Holdings Limited from February 17, 2016 to February 13, 2019. He serves as a Director of Lancashire Insurance Company (UK) Limited and Lancashire Marketing Services (Middle East) Limited.

CEO Compensation
  • Alex's compensation has been consistent with company performance over the past year.
  • Alex's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Lancashire Holdings management team in years:

5
Average Tenure
44
Average Age
  • The tenure for the Lancashire Holdings management team is about average.
Management Team

Alex Maloney

TITLE
Group CEO & Director
COMPENSATION
$1M
AGE
44
TENURE
5 yrs

Elaine Whelan

TITLE
Group CFO & Director
COMPENSATION
$1M
AGE
43
TENURE
8.3 yrs

Denise O'Donoghue

TITLE
Chief Investment Officer

Sophie Serjeant

TITLE
Investor Relations & Corporate Communications

Colin Alexander

TITLE
Director of Compliance

Christopher Head

TITLE
Head of Corporate Affairs & Legal Counsel and Company Secretary
AGE
51

Paul Gregory

TITLE
Group Chief Underwriting Officer
TENURE
4.9 yrs

Ben Readdy

TITLE
Group Chief Actuary

Steve Yeo

TITLE
Group Head of Claims

Louise Wells

TITLE
Group Chief Risk Officer
TENURE
3.8 yrs
Board of Directors Tenure

Average tenure and age of the Lancashire Holdings board of directors in years:

4
Average Tenure
54
Average Age
  • The tenure for the Lancashire Holdings board of directors is about average.
Board of Directors

Peter Clarke

TITLE
Non-Executive Chairman of the Board
COMPENSATION
$350K
AGE
58
TENURE
2.9 yrs

Alex Maloney

TITLE
Group CEO & Director
COMPENSATION
$1M
AGE
44
TENURE
8.4 yrs

Elaine Whelan

TITLE
Group CFO & Director
COMPENSATION
$1M
AGE
43
TENURE
6.3 yrs

Sam Hoe-Richardson

TITLE
Non-Executive Director
COMPENSATION
$242K
AGE
47
TENURE
6.2 yrs

Simon William Fraser

TITLE
Senior Independent Non-Executive Director
COMPENSATION
$255K
AGE
54
TENURE
5 yrs

Robert Lusardi

TITLE
Non-Executive Director
COMPENSATION
$175K
AGE
61
TENURE
2.8 yrs

Michael Dawson

TITLE
Non-Executive Director
COMPENSATION
$175K
AGE
56
TENURE
2.4 yrs

Sally Williams

TITLE
Non-Executive Director
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
X
Management checks
We assess Lancashire Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Lancashire Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Lancashire Holdings (LON:LRE) Shareholders Booked A 23% Gain In The Last Three Years

For example, Lancashire Holdings Limited (LON:LRE) shareholders have seen the share price rise 23% over three years, well in excess of the market return (17%, not including dividends). … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers)?

Simply Wall St -

Why I Like Lancashire Holdings Limited (LON:LRE)

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … financial health as well as

Simply Wall St -

Should Lancashire Holdings Limited (LON:LRE) Focus On Improving This Fundamental Metric?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every £1 worth of shareholders' equity, it generated £0.035 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Our Take On Lancashire Holdings Limited's (LON:LRE) CEO Salary

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … View our latest analysis for Lancashire Holdings? … How Does Alex Maloney's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Should You Be Worried About Lancashire Holdings Limited's (LON:LRE) 4.1% Return On Equity?

Lancashire Holdings has a ROE of 4.1%, based on the last twelve months. … That means that for every £1 worth of shareholders' equity, it generated £0.041 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Lancashire Holdings Limited (LON:LRE) Is Trading At A 21.22% Discount Right Now

Pricing LRE, a financial stock, can be difficult since these insurance businesses have cash flows that are affected by regulations that are not imposed upon other sectors. … For example, insurance companies are required to hold more capital to reduce the risk to shareholders.

Simply Wall St -

At UK£05.675, Is Lancashire Holdings Limited (LON:LRE) A Buy?

A question to answer is whether Lancashire Holdings's current trading price of £5.68 reflective of the actual value of the? … Let’s take a look at Lancashire Holdings’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change! … View out our latest analysis for Lancashire Holdings.

Simply Wall St -

LSE Companies Insiders Are Buying

In total, individual insiders own over 11 million shares in the business, which makes up around 5.33% of total shares outstanding. … Insiders that have recently bought more shares are: Himanshu Raja (management and board member). … In total, individual insiders own over 5 million shares in the business, which makes up around 0.77% of total shares outstanding.

Simply Wall St -

Is It Time To Buy Lancashire Holdings Limited (LON:LRE)?

Lancashire Holdings Limited (LSE:LRE), a insurance company based in United Kingdom, saw significant share price volatility over the past couple of months on the LSE, rising to the highs of £6.63 and falling to the lows of £5.57. … Let’s take a look at Lancashire Holdings’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … According to my valuation model, Lancashire Holdings seems to be fairly priced at around 11.43% below my intrinsic value, which means if you buy Lancashire Holdings today, you’d be paying a reasonable price for it.

Simply Wall St -

Who Really Owns Lancashire Holdings Limited (LON:LRE)?

Insider Ownership Another important group of shareholders are company insiders. … With 5.33% ownership, LRE insiders is an important ownership type. … Next Steps: LRE's considerably high level of institutional ownership calls for further analysis into its margin of safety.

Simply Wall St -

Company Info

Description

Lancashire Holdings Limited provides specialty insurance and reinsurance products worldwide. The company operates through five segments: Property, Energy, Marine, Aviation, and Lloyd’s. It offers aviation insurance solutions; coverage for upstream operational and construction all risks related to wind, earthquakes, and floods, as well as standalone business interruption coverage; and coverage in marine portfolio, including marine hull, total loss only, mortgagees interests insurance, mortgagees additional perils, excess protection and indemnity, marine war, and builder’s risks to high-profile accounts, cruise vessels, and liquid natural gas carriers. The company also provides property reinsurance solutions comprising worldwide property catastrophe excess of loss and territorial specific retrocession; and terrorism and political risk solutions consisting of war and strike, riots, civil commotion, confiscation, expropriation, nationalization, deprivation, political violence, and currency inconvertibility/non transfer, as well as contract frustration cover against sovereign and quasi sovereign entities. In addition, it offers general insurance, insurance management, support, and insurance mediation services. The company was founded in 2005 and is headquartered in Hamilton, Bermuda.

Details
Name: Lancashire Holdings Limited
LRE
Exchange: LSE
Founded: 2005
£1,366,700,807
200,837,738
Website: http://www.lancashiregroup.com
Address: Lancashire Holdings Limited
Power House,
7 Par-la-Ville Road,
Hamilton,
HM 11,
Bermuda
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE LRE Ordinary Shares London Stock Exchange GB GBP 13. Dec 2005
OTCPK LCSH.F Ordinary Shares Pink Sheets LLC US USD 13. Dec 2005
DB LNH Ordinary Shares Deutsche Boerse AG DE EUR 13. Dec 2005
BATS-CHIXE LREL Ordinary Shares BATS 'Chi-X Europe' GB GBP 13. Dec 2005
Number of employees
Current staff
Staff numbers
204
Lancashire Holdings employees.
Industry
Property and Casualty Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/22 20:59
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/20
Last earnings filing: 2019/02/15
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.