olivLaw · European equity research
Lancashire Holdings Limited LRE.L
United Kingdom · London Stock Exchange · Vertical: Listed companies from United Kingdom
Lancashire Holdings Limited is an insurer and reinsurer specialising in property and catastrophe risks, with operations in London and through Lloyd's. Its current relevance lies in large exposure to US hurricanes and windstorms, where modelled 100-year losses reach significant shares of tangible capital.
At the close of 05 Nov 2026, Lancashire Holdings Limited (LRE.L) stock was 7.01 GBP (−0.50% on the day), with beta 0.35, 52-week range 5.65–7.05 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 68.4
- strong (55–70)
- Bollinger (20, 2)
- 6.58 – 7.08
- in the upper half of the band · %B 0.86 · band width 7.3%
- SMA 50 / 200
- 6.54 / 6.27
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.13 / 0.12
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +10.3% | −0.6% | +11.0 pp | — |
| 3 months | +18.1% | −4.2% | +22.3 pp | — |
| 6 months | +19.3% | +4.3% | +15.0 pp | — |
| Year to date | +9.4% | +7.5% | +1.8 pp | — |
| 1 year | +4.3% | +9.9% | −5.6 pp | +6.7% |
| 3 years | +19.0% | +49.8% | −30.8 pp | +24.8% |
| 5 years | +35.6% | +42.8% | −7.2 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
the price (USD) and the reports are in different currencies
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | unavailable | unavailable | unavailable |
| Revenue YoY | unavailable | unavailable | unavailable |
| Net income | 321.5 m | 321.3 m | 293.4 m |
| Net income YoY | unavailable | −0.1% | −8.7% |
| Diluted EPS | 1.32 | 1.30 | 1.17 |
| Diluted EPS YoY | unavailable | −1.5% | −10.0% |
| net % | unavailable | unavailable | unavailable |
| Free cash flow | 432.3 m | 572.3 m | 320.0 m |
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 561.4 m USD
- Financial debt
- 447.5 m USD
- Net debt
- -113.9 m USD
- Equity
- 1.5 bn USD
- Total assets
- 4.8 bn USD
- Debt / equity
- 0.30x
- Current ratio
- unavailable
- ROE
- 19.5%
- ROA
- 6.4%
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (USD)
Income statement · USD
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Interest expense | 31.6 m | 33.0 m | 33.8 m | esef· 07 Apr 2026verified |
| Pre-tax income | 332.7 m | 336.7 m | 304.9 m | esef· 07 Apr 2026verified |
| Income tax | 11.2 m | 15.4 m | 11.5 m | esef· 07 Apr 2026verified |
| Net income | 321.5 m | 321.3 m | 293.4 m | esef· 07 Apr 2026verified |
| Diluted EPS | 1.32 | 1.30 | 1.17 | esef· 07 Apr 2026verified |
Balance sheet · USD
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Cash | 756.9 m | 684.3 m | 561.4 m | esef· 07 Apr 2026verified |
| Property, plant & equipment, net | 9.8 m | 8.7 m | 8.2 m | esef· 07 Apr 2026verified |
| Total assets | 3.9 bn | 4.4 bn | 4.8 bn | esef· 07 Apr 2026verified |
| Long-term debt | 446.6 m | 447.0 m | 447.5 m | esef· 07 Apr 2026verified |
| Total liabilities | 2.4 bn | 2.9 bn | 3.3 bn | esef· 07 Apr 2026verified |
| Equity | 1.5 bn | 1.5 bn | 1.5 bn | esef· 07 Apr 2026verified |
| Shares outstanding at year end | 238.1 m | 239.8 m | 242.5 m | esef· 07 Apr 2026derived |
Cash flow · USD
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 441.9 m | 573.8 m | 322.3 m | esef· 07 Apr 2026verified |
| Capex | 9.6 m | 1.5 m | 2.3 m | esef· 07 Apr 2026verified |
| Free cash flow | 432.3 m ≈ | 572.3 m ≈ | 320.0 m ≈ | esef· 07 Apr 2026derived |
| Investing cash flow | -54.3 m | -251.9 m | -133.6 m | esef· 07 Apr 2026verified |
| Financing cash flow | -185.4 m | -386.1 m | -333.4 m | esef· 07 Apr 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 1 of at least 6
- score weight coverage: 6.2% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: unavailable
Price and reporting are in different currencies; market indicators are unavailable.
Key indicators
Coverage and freshness
Score by group
6% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 13.86 – 25.09 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/E13.86 – 25.09 (Mid 17.95)18 companies used · median multiple 15.3x · quartiles 11.8x – 21.4x0EV1.L, ABDN.L, ABF.L, AIRE.L, AJB.L, ALFA.L, AMIF.L, APN.L, APTD.L, ASHM.L, AUTO.L, BAB.L, BAG.L, BATS.L, BBY.L, BCG.L, BKG.L, BME.L
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 1 of at least 6; score weight coverage: 6.2% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | unavailable | unavailable | — |
| FCF conversion · Quality | 109.1% | 100 (on a fixed band) | 100% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | unavailable | unavailable | — |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partialunavailable · 0/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality· partial100/100 · 1/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partialunavailable · 0/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
LANCASHIRE HOLDINGS LIMITED (LRE.L). Latest full fiscal year: 2025; data up to 2025-12-31.
Figures computed from the financial statements: ROE 19.5%.
The estimated value range is 13.86–25.09 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (indicators available: 1 of at least 6; score weight coverage: 6.2% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 109.1%
What contradicts it
No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.
Not assessed (insufficient data or a ratio without meaning): ROIC, Net margin, Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, Current ratio, P/E (TTM), EV/EBITDA, FCF yield, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 40 companies
Multiples and returns vs the median
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| BMS.LBraemar PLC | 78.3 m | 39.2 | 2.7% | 1.7% | −4.4% | +13% / −11% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
1- and 3-year price returns: for LRE.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Scenarios are not available. input data missing
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Lancashire Holdings Limited is an insurer and reinsurer specialising in property and catastrophe risks, with operations in London and through Lloyd's. Its current relevance lies in large exposure to US hurricanes and windstorms, where modelled 100-year losses reach significant shares of tangible capital 1.
SWOT
Strengths
- The group has a formal risk management framework, with the Board involved and independent control functions, according to the annual report 1.
- The investment portfolio is largely made up of fixed income securities, which provides a relatively predictable structure 1.
- Modelled losses are monitored quarterly against approved tolerances, and all entities were operating within their limits as at 31 December 2025 1.
Weaknesses
- Exposure to US hurricanes and windstorms is large relative to capital, making results sensitive to a single major event 1.
- The report acknowledges that ESG and climate risk measurement tools are imperfect, which limits the precision of the analysis 1.
- Operational emissions have risen with geographic expansion, and their reduction is still at an early stage 1.
Opportunities
- Deeper integration of climate risk into pricing and line-of-business selection could improve risk-adjusted returns 1.
- Article 8 private funds and other sustainable funds could diversify the portfolio if allocation is completed 1.
- Developing new products that reflect current risks could open more attractive business segments 1.
Threats
- A major catastrophic event in the Gulf of Mexico region could significantly affect capital and financial results 1.
- Sophisticated cyber attacks, including those amplified by artificial intelligence, could disrupt operations 1.
- Regulatory changes on climate and operational resilience could increase compliance costs 1.
Risks
- Catastrophe exposure in the UShigh
Modelled losses from windstorms in the Gulf of Mexico and the rest of the US are the largest in the portfolio. A major event could significantly affect group capital 1.
- Natural catastrophe underwriting riskhigh
Property underwriting depends on third-party models that the report itself describes as imperfect. If risk assessments are understated, actual losses could exceed expectations 1.
- Operational and cyber riskmedium
Growing IT complexity and internal processes expose the group to cyber attacks and operational errors, a risk that has intensified as the business has expanded 1.
- Investment and liquidity riskmedium
The fixed income portfolio is sensitive to interest rate and credit spread movements. If markets deteriorate, investment values could fall 1.
- Reinsurance counterparty risklow
Reinsurance protects the balance sheet, but reliance on reinsurers could expose the group to non-payment if a partner fails to meet its obligations 1.
Investment thesis
What would need to be true (bull case)
- The group has a mature risk management framework, with stress tests and limits approved by the Board, which could support stability of long-term results 1.
- An investment portfolio dominated by fixed income securities and monitored quarterly could limit volatility if the interest rate environment remains stable 1.
- If underwriting prices continue to reflect climate risks better, the group could improve returns relative to exposed capital 1.
What would break the thesis
- Large exposure to US windstorms could produce losses that consume a significant part of capital in a single year 1.
- The acknowledged limits of ESG and climate models could make risk assessments optimistic, affecting margins 1.
- Rising compliance costs and cyber risk could reduce operational efficiency if IT investment is insufficient 1.
What to watch
- Actual outcomes of the US hurricane and windstorm season against reported PMLs2026
- Annual ORSA report approved by the Board at its first meeting of 2026Q1 2026
- Progress on the sustainable fund allocation planned for implementation in 20262026
- Trend in operational emissions and coverage through carbon creditsnext annual report
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
According to the annual report for the year ended 31 December 2025, the group organises its activity around risk management and capital allocation, with a focus on underwriting property risks. The business strategy is reviewed annually by the Board, and the business plan is stress tested against severe scenarios, including climate scenarios 1.
The group operates through regulated entities, including LSL, a Lloyd's managing agent that prepares ORSA reports for each syndicate. The report describes a three lines of defence framework in which the Board keeps final responsibility for all risk 1.
Investment policy is run by the Investment Committee, which tracks the ESG profile and carbon intensity of the portfolio. Fixed maturity securities form the dominant part of investments, which limits market risk as long as the portfolio stays within approved parameters 1.
Segments
Property and catastrophe underwriting
The main segment covers property risks exposed to hurricanes, typhoons and extratropical storms. Probable maximum losses (PMLs) for the US and Japan set underwriting limits and reinsurance policy 1.
Investments
The investment portfolio is dominated by fixed income securities, and a small part of private funds is classified as Article 8 under SFDR. External managers must respect guidelines on durations, credit quality and sector restrictions 1.
Reinsurance and risk transfer
Reinsurance is used to limit exposure and protect the balance sheet, and its structure is adjusted based on stress test results and catastrophe models. It is an important lever when exposure in a region grows 1.
Market context
The market in which the group operates is sensitive to the frequency and severity of weather events, and the report explicitly notes that climate change may alter both. Reinsurance prices and premium rates increasingly reflect modelled risks 1.
Market dynamics also depend on regulatory pressures: the BMA, PRA and Lloyd's have updated requirements on operational resilience, outsourcing and climate risk. Compliance may raise operating costs but could strengthen the long-term position 1.
Trends
- Intensification of extreme weather eventsheadwind
The report notes that weather events with an impact on losses could grow in frequency and severity, which could increase underwriting losses. The group responds through third-party models, capital limits and adjusting exposure 1.
- Shift towards sustainable investmentsmixed
The group has restricted investments in companies dependent on thermal coal and oil sands, and some private funds are classified under SFDR. These changes could alter portfolio returns if markets reward other assets 1.
- Regulatory pressure on operational resiliencemixed
Requirements on operational resilience, outsourcing and cyber risk expanded during 2025. For the group this means higher compliance costs but also an opportunity to strengthen its internal framework 1.
- Artificial intelligence as an emerging riskheadwind
Artificial intelligence was the top emerging risk monitored in 2025, both through more sophisticated phishing attacks and through its own internal processes. If these risks materialise, they could affect operations and reputation 1.
Competitive position
The analysed source does not explicitly identify the group's competitors. The annual report indicates that its activity takes place in competitive property and catastrophe underwriting markets, where price and underwriting discipline are key factors 1.
Competitive position depends on the ability to model risks correctly, access to reinsurance and compliance with Lloyd's standards. Differentiation could come from capital management and underwriting discipline, aspects presented in the report 1.
- Other property and catastrophe underwriters in the Lloyd's market
The source does not name specific competitors; the group operates in markets where several underwriters are active in the same lines of business.
- Global property and catastrophe reinsurers
Reinsurers are cited as risk transfer partners; the source does not specify their identity or market share.
- Catastrophe risk funds and capital-markets alternatives
The source mentions the reinsurance strategy but does not detail capital-markets alternatives.
- Specialist underwriters focused on climate and weather risk
The source does not identify competitors with a ticker, so no further details are listed.
News & filings
In the press
- Lancashire exit came as shock, says AndersonCNA (Channel NewsAsia) · 30 Oct 2026 · EN
- Anderson disappointed to see 25-year Lancashire journey come to an endCNA (Channel NewsAsia) · 25 Oct 2026 · EN
- Lancashire businesses warned despite insolvency dropSurge — GDELT DOC · 23 Oct 2026 · RO
- High levels of 'forever chemicals' found in Lancashire residents' blood in ten-year study of exposed communitiesMedical Xpress · 28 Sept 2026 · EN
- United Utilities fined £1m after discharging raw sewage into Lancashire coastThe Guardian World · 08 Sept 2026 · EN
- Lancashire chemicals factory facing potential legal claim announces closureThe Guardian World · 13 Jul 2026 · RO
- ‘Like a miracle’: hidden gold saves Lancashire church from closureThe Guardian World · 07 Jul 2026 · RO
- Kidney cancer rates near Pfas factory in Lancashire a ‘major source of concern’The Guardian World · 19 Jun 2026 · RO
Annual reports (ESEF)
- Annual report 202507 Apr 2026
- Annual report 202415 Apr 2025
Sources
- [1] Annual report, fiscal year ended 2025-12-31 (ESEF) · SEC / Lancashire Holdings Limited · 31 Dec 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.