Lancashire Holdings
Website:
Lancashire Holdings
Index:
FTSE 250
EPIC: LRE
Supersector:
Insurance
Sector:
Nonlife Insurance
Subsector:
Property and Casualty Insurance
Market Cap:
£1.51B
Payout Frequency: Quarterly
Lancashire Holdings Dividend Analysis and Summary
Headline Dividend Details (ex-date 14/05/2026)
- Final ordinary dividend: $0.15 per share (c. £0.12), subject to shareholder approval at the AGM on 29/04/2026.
- Ex-dividend date: 14/05/2026
- Record date: 15/05/2026
- Payment date: 12/06/2026 (paid in GBP at spot on the record date)
- Indicative aggregate cash outlay: ~$36m
Other Declared Dividend
- Special dividend: $0.50 per share (c. £0.37)
- Ex-dividend date: 19/03/2026
- Record date: 20/03/2026
- Payment date: 17/04/2026 (paid in GBP at spot on the record date)
- Indicative aggregate cash outlay: ~$121m
Context and Payout
- FY25 profit after tax: $293.4m; ROE (change in DBVS): 20.9%.
- Total dividends “with respect to 2025” stated at $357.0m, including the above final ordinary and special dividends.
- Ordinary final dividend coverage: robust (~8x earnings coverage: $293m vs c.$36m).
- Special dividend reflects return of excess capital; combined ordinary + special outlay exceeds FY25 earnings, consistent with the Group’s philosophy of distributing surplus capital.
- Dividends per common share paid in FY25: $1.225.
Analysis: Sustainability and Growth Trajectory
- Baseline sustainability: The $0.15 final ordinary looks well-supported by earnings and cash generation. Underwriting remained profitable (discounted combined ratio 83.7%; undiscounted 93.1%) and investment return was strong (7.0%).
- Specials are opportunistic: Management again signals willingness to return excess capital; total dividends linked to 2025 exceed net income, implying specials are not structural. Future special payouts will depend on capital headroom, underwriting conditions, loss activity and investment returns.
- Coverage and capital: Capital remains solid (total capital ~$2.0bn, leverage 22.9%). The S&P upgrade to A supports financial flexibility, aiding the capacity to fund distributions while investing.
- Growth outlook: Management expects more competitive markets in 2026 (Group RPI 96%; insurance segment 95%). That suggests ordinary dividends are sustainable at current levels, but the cadence/size of specials could moderate unless supported by benign losses and continued investment income.
Structural/Strategic Considerations Affecting Dividends
- Lloyd’s capacity buy-out (Syndicate 2010): Lancashire now provides all capacity for both its syndicates, increasing platform optionality and capital deployment flexibility—potentially positive for long-term capital returns but links distributions more closely to Lloyd’s performance/volatility.
- Growth investment in Lancashire US: Near-term capital deployment toward expansion may compete with surplus distributions at the margin, but management reiterates disciplined capital use.
- Credit rating upgrade (S&P A): Enhances resilience and could lower capital costs, indirectly supportive of ongoing dividends.
Risks and Flags to Dividend Stability
- Market softening: Management signals a more competitive 2026; lower pricing can compress margins and reduce scope for specials.
- Catastrophe volatility: 2025 included net cat/large losses of $277m (notably California wildfires). Elevated loss activity could curtail future excess-capital returns.
- Reserve releases and discounting: Favourable prior-year releases ($122.8m) aided results; the net discounting benefit fell to $32.5m (from $66.4m). If discount rates fall and reserve releases normalise, reported earnings could soften.
- Cost inflation: Operating expenses rose to $265.5m with higher headcount and project costs; sustained cost growth can pressure margins.
- FX and tax: Dividends declared in USD but paid in GBP at record-date spot—GBP receipts may vary. Ongoing regulatory/tax developments (incl. Bermuda tax regime changes) introduce uncertainty to future distributable capacity.
Read more
Lancashire Holdings Annual Dividend Yield - 7.8%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 19/03/2026 |
17/04/2026 |
Special |
50.00¢ |
USX |
| 14/05/2026 |
12/06/2026 |
Final |
15.00¢ |
USX |
Total (Annual Dividends Per Share):
48.46p
(Using exchange rate on 12/06/2026
$ = £0.74555)
Dividend Yield =
Annual Dividends Per Share (48.46p)
÷ Share Price (621p)
= 7.8%
Lancashire Holdings Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 14/05/2026 |
12/06/2026 |
Final |
15.00¢ |
USX |
| 19/03/2026 |
17/04/2026 |
Special |
50.00¢ |
USX |
| 13/11/2025 |
12/12/2025 |
Special |
75.00¢ |
USX |
| 14/08/2025 |
15/09/2025 |
Interim |
7.50¢ |
USX |
| 15/05/2025 |
13/06/2025 |
Final |
15.00¢ |
USX |
| 13/03/2025 |
11/04/2025 |
Special |
25.00¢ |
USX |
| 15/08/2024 |
13/09/2024 |
Interim |
7.50¢ |
USX |
| 09/05/2024 |
07/06/2024 |
Final |
15.00¢ |
USX |
| 14/03/2024 |
12/04/2024 |
Special |
50.00¢ |
USX |
| 16/11/2023 |
15/12/2023 |
Special |
50.00¢ |
USX |
| 17/08/2023 |
15/09/2023 |
Interim |
5.00¢ |
USX |
| 04/05/2023 |
02/06/2023 |
Final |
10.00¢ |
USX |
| 04/08/2022 |
02/09/2022 |
Interim |
5.00¢ |
USX |
| 12/05/2022 |
10/06/2022 |
Final |
10.00¢ |
USX |
| 05/08/2021 |
03/09/2021 |
Interim |
5.00¢ |
USX |
| 06/05/2021 |
04/06/2021 |
Final |
10.00¢ |
USX |
| 13/08/2020 |
11/09/2020 |
Interim |
5.00¢ |
USX |
| 07/05/2020 |
05/06/2020 |
Final |
10.00¢ |
USX |
| 08/08/2019 |
06/09/2019 |
Interim |
5.00¢ |
USX |
| 21/02/2019 |
27/03/2019 |
Final |
10.00¢ |
USX |
| 08/11/2018 |
12/12/2018 |
Special |
20.00¢ |
USX |
| 16/08/2018 |
12/09/2018 |
Interim |
5.00¢ |
USX |
| 22/02/2018 |
21/03/2018 |
Final |
10.00¢ |
USX |
| 10/08/2017 |
06/09/2017 |
Interim |
5.00¢ |
USX |
| 23/02/2017 |
22/03/2017 |
Final |
10.00¢ |
USX |
| 17/11/2016 |
14/12/2016 |
Special |
75.00¢ |
USX |
| 04/08/2016 |
31/08/2016 |
Interim |
5.00¢ |
USX |
| 25/02/2016 |
23/03/2016 |
Final |
10.00¢ |
USX |
| 26/11/2015 |
18/12/2015 |
Special |
95.00¢ |
USX |
| 27/08/2015 |
25/09/2015 |
Interim |
5.00¢ |
USX |
| 19/03/2015 |
15/04/2015 |
Final |
10.00¢ |
USX |
| 19/03/2015 |
15/04/2015 |
Special |
50.00¢ |
USX |
| 27/11/2014 |
19/12/2014 |
Special |
120.00¢ |
USX |
| 27/08/2014 |
24/09/2014 |
Interim |
5.00¢ |
USX |
| 19/03/2014 |
16/04/2014 |
Final |
10.00¢ |
USX |
| 19/03/2014 |
16/04/2014 |
Special |
20.00¢ |
USX |
| 21/08/2013 |
25/09/2013 |
Interim |
5.00¢ |
USX |
| Year |
Interim |
Final |
Special |
Currency |
Total |
Change |
| 2024 |
7.500 |
15.000 |
50.000 |
USX |
72.500 |
11.530 |
| 2023 |
5.000 |
10.000 |
50.000 |
USX |
65.000 |
333.330 |
| 2022 |
5.000 |
10.000 |
|
USX |
15.000 |
0.000 |
| 2021 |
5.000 |
10.000 |
|
USX |
15.000 |
0.000 |
| 2020 |
5.000 |
10.000 |
|
USX |
15.000 |
200.000 |
| 2019 |
5.000 |
|
|
USX |
5.000 |
-85.710 |
| 2018 |
5.000 |
10.000 |
20.000 |
USX |
35.000 |
133.330 |
| 2017 |
5.000 |
10.000 |
|
USX |
15.000 |
-83.330 |
| 2016 |
5.000 |
10.000 |
75.000 |
USX |
90.000 |
-43.750 |
| 2015 |
5.000 |
10.000 |
145.000 |
USX |
160.000 |
3.220 |
| 2014 |
5.000 |
10.000 |
140.000 |
USX |
155.000 |
933.330 |
| 2013 |
5.000 |
10.000 |
|
USX |
15.000 |
|
Lancashire Holdings Dividend Calculator
Lancashire Holdings Dividend Growth
| Dividend Growth (1Y) |
16.35%
|
| Dividend CAGR (5Y) |
58.81%
|
| Years of Growth |
–
|
| Payout Ratio |
18.54%
|
| Buyback Yield |
-1.38%
|
| Shareholder Yield |
16.34%
|
| P/E Ratio (TTM) | 7.13 |
|---|
| Forward P/E | 7.1 |
|---|
| P/FCF | 6.33 |
|---|
| Earnings Yield | 14.5% |
|---|
| FCF Yield | 15.81% |
|---|
| ROE | 19.54% |
|---|
| ROCE | 9.57% |
|---|
| Profit Margin | 18.78% |
|---|
| Operating Margin | 22.23% |
|---|
| Gross Margin | 32.95% |
|---|