Lancashire Holdings
Website:
Lancashire Holdings
Index:
FTSE 250
EPIC: LRE
Supersector:
Insurance
Sector:
Nonlife Insurance
Subsector:
Property and Casualty Insurance
Market Cap:
£1.44B
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.
Read more
Lancashire Holdings Annual Dividend Yield - 15.06%
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):
91.73p
(Using exchange rate on 12/12/2025
$ = £0.74878)
Dividend Yield =
Annual Dividends Per Share (91.73p)
÷ Share Price (609p)
= 15.06%
Lancashire Holdings Dividend History
| 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 |
11.530 |
| 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) |
-19.71%
|
| Dividend CAGR (5Y) |
53.32%
|
| Years of Growth |
3
|
| Payout Ratio |
23.64%
|
| Buyback Yield |
-1.19%
|
| Shareholder Yield |
14.3%
|
| P/E Ratio (TTM) | 8.8 |
|---|
| Forward P/E | 6.07 |
|---|
| P/FCF | 4.77 |
|---|
| Earnings Yield | 11.7% |
|---|
| FCF Yield | 20.95% |
|---|
| ROE | 14.94% |
|---|
| ROCE | 6.21% |
|---|
| Profit Margin | 15.04% |
|---|
| Operating Margin | 18.17% |
|---|
| Gross Margin | 28.06% |
|---|