Lancashire Holdings

Website: Lancashire Holdings
Index: FTSE 250
EPIC: LRE
Supersector: Insurance
Sector: Nonlife Insurance
Subsector: Property and Casualty Insurance
Market Cap: £1.64B
Payout Frequency: Quarterly

Lancashire Holdings Dividend Analysis and Summary

Dividend declaration (Lancashire Holdings Limited, LSE: LRE)

Type: Special dividend
Amount: $0.75 per common share (approximately 57p at the quoted exchange rate in the RNS)
Currency: Paid in GBP; USD amount for reference only. FX set at 12:00 (UK) on the Record Date
Aggregate distribution: ~$182m

Key dates

Record date: 14/11/2025
Ex-dividend date: 13/11/2025 (derived as one business day before the Record Date)
Payment date: 12/12/2025

Other mechanics

DRIP: Available (via MUFG Corporate Markets)
Notes: Final GBP per-share amount will vary with the GBP/USD spot at noon on 14 Nov 2025

Context from trading statement

9M 2025 gross premiums written: $1.83bn, up 7.4% y/y; insurance revenue up 7.8% to $1.40bn
Group RPI: 96% (indicative of some rate softening on renewals)
Total investment return YTD: 5.6%; investment portfolio: $3.32bn, duration 2.1 years, A+ average credit quality

Structural changes and capital allocation

Minority buy-out of Lloyd’s Syndicate 2010 capacity for the 2026 underwriting year, increasing retained economics and capital commitment to the syndicate platform
Special dividend framed as a return of surplus capital alongside continued investment in underwriting opportunities
No share consolidation, demerger, or M&A (beyond the syndicate capacity buy-out) disclosed

Analysis: sustainability, growth trajectory, and payout support

Sustainability: The payment is a discretionary special, not a reset of the ordinary dividend. It reflects a strong capital position and solid YTD performance (benign Q3 cat activity and 5.6% investment return). By nature, specials are non-recurring and depend on capital surplus and market conditions.
Growth trajectory: Premium and insurance revenue growth remain healthy, but an RPI of 96% points to moderating pricing into 2026, which could temper margin expansion and, by extension, the likelihood or size of future specials if underwriting conditions soften further.
Coverage/support: The company is simultaneously funding the Syndicate 2010 buy-out and returning $182m, indicating headroom in solvency/capital buffers. The $3.3bn investment portfolio and positive YTD returns support earnings capacity; however, investment income is sensitive to rates and spreads. Overall, the special appears well-supported by current performance and capital, but should not be extrapolated as ongoing policy.

Risks and flags relevant to dividend stability

Cycle softening: RPI below 100% signals rate pressure; sustained softening could compress underwriting margins and reduce future surplus capital.
Catastrophe and large loss volatility: While Q3 nat-cat was benign, management notes an active large single-risk environment; earnings and capital can be volatile for specialty (re)insurers.
Capital deployment to Lloyd’s: The Syndicate 2010 capacity buy-out increases retained exposure and may raise capital needs in adverse scenarios, potentially competing with future distributions.
FX mechanics: Dividend is paid in GBP with USD reference; the GBP amount will vary with spot on the Record Date.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
13/03/2025	11/04/2025	Special	25.00¢	USX
15/05/2025	13/06/2025	Final	15.00¢	USX
14/08/2025	15/09/2025	Interim	7.50¢	USX
13/11/2025	12/12/2025	Special	75.00¢	USX

Total (Annual Dividends Per Share): 92.99p (Using exchange rate on 11/11/2025 $1 = £0.75913)

Dividend Yield = Annual Dividends Per Share (92.99p) ÷ Share Price (654p) = 14.22%

Ex Dividend Date	Payment Date	Type	Amount	Currency
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	Special	50.00¢	USX
19/03/2015	15/04/2015	Final	10.00¢	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	Special	20.00¢	USX
19/03/2014	16/04/2014	Final	10.00¢	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	11.53
2023	5.000	10.000	50.000	USX	65.000	333.33
2022	5.000	10.000		USX	15.000	0.00
2021	5.000	10.000		USX	15.000	0.00
2020	5.000	10.000		USX	15.000	200.00
2019	5.000			USX	5.000	-85.71
2018	5.000	10.000	20.000	USX	35.000	133.33
2017	5.000	10.000		USX	15.000	-83.33
2016	5.000	10.000	75.000	USX	90.000	-43.75
2015	5.000	10.000	145.000	USX	160.000	3.22
2014	5.000	10.000	140.000	USX	155.000	933.33
2013	5.000	10.000		USX	15.000

Number of Shares:

Payment	Paid	Amount
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