Lancashire Holdings Limited (LRE)

Sector:

Insurance

Index:

FTSE 250

831.50p
   
  • Change Today:
      5.50p
  • 52 Week High: 850.00
  • 52 Week Low: 528.00
  • Currency: UK Pounds
  • Shares Issued: 242.51m
  • Volume: 538,560
  • Market Cap: £2,016.47m
  • RiskGrade: 217

Lancashire Holdings profit drops in 'more cautious' underwriting environment

By Michele Maatouk

Date: Thursday 25 Jul 2019

LONDON (ShareCast) - (Sharecast News) - First-half profit at Lancashire Holdings fell, the insurer said on Thursday, amid a "more cautious" underwriting environment.
In the six months to the end of June, pre-tax profit dropped to $40.5m from $74.9m in the first half of last year due to lower reserve releases and higher claims activity.

RBC Capital Markets said pre-tax profit was 37.5% below consensus expectations, largely driven by the underwriting result, with Lancashire reporting a combined ratio of 86.8% compared to 67.1% the year before and versus consensus of 82.5%.

Gross premiums written were up 9.5% during the half to $429.6m.

Chief executive officer Alex Maloney said: "I am pleased with our performance in the first half of 2019. I am also encouraged by the emerging evidence that the (re)insurance market is now experiencing the long anticipated improvements in discipline and pricing in many of the group's core business lines.

"We have seen good new business momentum in the first half of 2019, as we were able to benefit from our longstanding disciplined underwriting approach. In the face of a more cautious underwriting environment and evidence of market retrenchment in the specialty lines in which we write, we were able to take advantage of improving terms and demand. While the market overall was characterised by a number of attritional losses in the first half of 2019 and substantial loss creep on prior year events, it is worth noting that our ultimate net loss estimates for the 2018 and 2017 catastrophe events have remained largely stable, allowing us to deliver a solid combined ratio of 86.6% for the half year."

At 1045 BST, the shares were up 2.9% at 717.50p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

LRE Market Data

Currency UK Pounds
Share Price 831.50p
Change Today 5.50p
% Change 0.67 %
52 Week High 850.00
52 Week Low 528.00
Volume 538,560
Shares Issued 242.51m
Market Cap £2,016.47m
RiskGrade 217

LRE Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
81.29% below the market average81.29% below the market average81.29% below the market average81.29% below the market average81.29% below the market average
83.33% below the sector average83.33% below the sector average83.33% below the sector average83.33% below the sector average83.33% below the sector average
Price Trend
83.70% above the market average83.70% above the market average83.70% above the market average83.70% above the market average83.70% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Income
8.32% below the market average8.32% below the market average8.32% below the market average8.32% below the market average8.32% below the market average
45.45% below the sector average45.45% below the sector average45.45% below the sector average45.45% below the sector average45.45% below the sector average
Growth
91.20% above the market average91.20% above the market average91.20% above the market average91.20% above the market average91.20% above the market average
50.00% above the sector average50.00% above the sector average50.00% above the sector average50.00% above the sector average50.00% above the sector average

What The Brokers Say

Strong Buy 10
Buy 0
Neutral 3
Sell 0
Strong Sell 0
Total 13
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

LRE Dividends

  Latest Previous
  Final Interim
Ex-Div 07-May-20 08-Aug-19
Paid 05-Jun-20 06-Sep-19
Amount 10.00¢ 5.00¢

Trades for 03-Jul-2020

Time Volume / Share Price
16:38 13 @ 831.50p
16:38 1,738 @ 831.50p
16:35 7,134 @ 831.50p
16:35 147,171 @ 831.50p
16:29 51 @ 829.50p

LRE Key Personnel

CEO Alex Maloney
CFO Natalie Kershaw

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