Lancashire Holdings Limited provides specialty insurance and reinsurance products worldwide.
Proven track record with adequate balance sheet.
Share Price & News
How has Lancashire Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LRE's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: LRE exceeded the UK Insurance industry which returned -38.6% over the past year.
Return vs Market: LRE exceeded the UK Market which returned -25.9% over the past year.
Price Volatility Vs. Market
How volatile is Lancashire Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall StThose Who Purchased Lancashire Holdings (LON:LRE) Shares Five Years Ago Have A 11% Loss To Show For It
4 weeks ago | Simply Wall StCould The Lancashire Holdings Limited (LON:LRE) Ownership Structure Tell Us Something Useful?
1 month ago | Simply Wall StShould You Be Tempted To Sell Lancashire Holdings Limited (LON:LRE) Because Of Its P/E Ratio?
Is Lancashire Holdings undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LRE (£6.05) is trading below our estimate of fair value (£11.56)
Significantly Below Fair Value: LRE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LRE is poor value based on its PE Ratio (12.6x) compared to the Insurance industry average (11.8x).
PE vs Market: LRE is poor value based on its PE Ratio (12.6x) compared to the UK market (12.3x).
Price to Earnings Growth Ratio
PEG Ratio: LRE is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: LRE is overvalued based on its PB Ratio (1.3x) compared to the GB Insurance industry average (1.2x).
How is Lancashire Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LRE's forecast earnings growth (9.2% per year) is above the savings rate (0.5%).
Earnings vs Market: LRE's earnings (9.2% per year) are forecast to grow slower than the UK market (15.4% per year).
High Growth Earnings: LRE's earnings are forecast to grow, but not significantly.
Revenue vs Market: LRE's revenue (10.9% per year) is forecast to grow faster than the UK market (2.6% per year).
High Growth Revenue: LRE's revenue (10.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: LRE's Return on Equity is forecast to be low in 3 years time (12.5%).
How has Lancashire Holdings performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LRE has high quality earnings.
Growing Profit Margin: LRE's current net profit margins (23.9%) are higher than last year (8.4%).
Past Earnings Growth Analysis
Earnings Trend: LRE's earnings have declined by -40.3% per year over the past 5 years.
Accelerating Growth: LRE's earnings growth over the past year (214.4%) exceeds its 5-year average (-40.3% per year).
Earnings vs Industry: LRE earnings growth over the past year (214.4%) exceeded the Insurance industry 4.5%.
Return on Equity
High ROE: LRE's Return on Equity (9.9%) is considered low.
How is Lancashire Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: LRE's short term assets ($1.5B) exceed its short term liabilities ($1.1B).
Long Term Liabilities: LRE's short term assets ($1.5B) exceed its long term liabilities ($777.1M).
Debt to Equity History and Analysis
Debt Level: LRE's debt to equity ratio (27.2%) is considered satisfactory.
Reducing Debt: LRE's debt to equity ratio has increased from 24.4% to 27.2% over the past 5 years.
Debt Coverage: LRE's debt is not well covered by operating cash flow (10.6%).
Interest Coverage: LRE's interest payments on its debt are well covered by EBIT (6.9x coverage).
What is Lancashire Holdings's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: LRE's dividend (2.02%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.66%).
High Dividend: LRE's dividend (2.02%) is low compared to the top 25% of dividend payers in the UK market (7.4%).
Stability and Growth of Payments
Stable Dividend: LRE's dividend payments have been volatile in the past 10 years.
Growing Dividend: LRE's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (25.6%), LRE's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: LRE's dividends in 3 years are forecast to be covered by earnings (80.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Alex Maloney (45yo)
Mr. Alexander Terence Maloney, also known as Alex, served as the Chief Executive Officer at Cathedral Capital Holdings Limited. Mr. Maloney has been the Group Chief Executive Officer of Lancashire Holdings ...
CEO Compensation Analysis
Compensation vs Market: Alex's total compensation ($USD3.05M) is above average for companies of similar size in the UK market ($USD1.85M).
Compensation vs Earnings: Alex's compensation has increased by more than 20% in the past year.
|Group CEO & Director||6yrs||US$3.05m||0.34% $4.4m|
|Group CFO||0.083yr||no data||no data|
|Chief Investment Officer||no data||no data||no data|
|Investor Relations & Corporate Communications||no data||no data||no data|
|Director of Compliance||no data||no data||no data|
|Head of Corporate Affairs & Legal Counsel and Company Secretary||no data||no data||no data|
|Group Chief Underwriting Officer||5.92yrs||no data||no data|
|Group Chief Actuary||no data||no data||no data|
|Chief Underwriting Officer & Reinsurance Manager of Lancashire||no data||no data||no data|
|Group Head of Claims||no data||no data||no data|
Experienced Management: LRE's management team is seasoned and experienced (5.9 years average tenure).
|Group CEO & Director||6yrs||US$3.05m||0.34% $4.4m|
|Group CFO||0.083yr||no data||no data|
|Non-Executive Director||3.75yrs||US$175.00k||0.0040% $51.1k|
|Non-Executive Chairman of the Board||3.92yrs||US$350.00k||0.030% $383.4k|
|Senior Independent Non-Executive Director||6yrs||US$255.00k||0.00050% $6.4k|
|Non-Executive Director||3.42yrs||US$175.00k||0.0075% $95.9k|
|Non-Executive Director||7.17yrs||US$238.64k||0.0027% $34.2k|
|Non-Executive Director||1.25yrs||US$168.88k||0.00071% $9.1k|
Experienced Board: LRE's board of directors are considered experienced (3.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Lancashire Holdings Limited's company bio, employee growth, exchange listings and data sources
- Name: Lancashire Holdings Limited
- Ticker: LRE
- Exchange: LSE
- Founded: 2005
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Market Cap: UK£1.287b
- Shares outstanding: 201.45m
- Website: https://www.lancashiregroup.com
Number of Employees
- Lancashire Holdings Limited
- Power House
- 7 Par-la-Ville Road
- HM 11
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|LRE||LSE (London Stock Exchange)||Yes||Ordinary Shares||GB||GBP||Dec 2005|
|LCSH.F||OTCPK (Pink Sheets LLC)||Yes||Ordinary Shares||US||USD||Dec 2005|
|LREL||BATS-CHIXE (BATS 'Chi-X Europe')||Yes||Ordinary Shares||GB||GBP||Dec 2005|
|LNH||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||Dec 2005|
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.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/10 02:24|
|End of Day Share Price||2020/04/09 00:00|
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.