Lancashire Holdings

Website: Lancashire Holdings
Index: FTSE 250
EPIC: LRE
Supersector: Insurance
Sector: Nonlife Insurance
Subsector: Property and Casualty Insurance
Market Cap: £1.42B
Payout Frequency: Quarterly

Next Lancashire Holdings Dividend

Lancashire Holdings next goes ex-dividend on 14/05/2026. This will be the Final dividend for 2026.

The dividend per share amount is 15.00¢ (USD) and the payment date is 12/06/2026.

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

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.

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): 48.69p (Using exchange rate on 26/03/2026 $ = £0.74901)

Dividend Yield = Annual Dividends Per Share (48.69p) ÷ Share Price (580p) = 8.39%

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	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

Number of Shares:

Payment	Paid	Amount
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