Lancashire Holdings Limited
Lancashire Holdings Limited, together with its subsidiaries, provides specialty insurance and reinsurance products in London, Bermuda, and Australia. The company operates in two segments, Reinsurance and Insurance. It offers property direct and facultative, property political risk and sovereign ris…
Lancashire Holdings Limited, together with its subsidiaries, provides specialty insurance and reinsurance products in London, Bermuda, and Australia. The company operates in two segments, Reinsurance and Insurance. It offers property direct and facultative, property political risk and sovereign risk, and property terrorism and political violence insurance products, as well as property reinsurance services. The company also provides energy insurance products covering upstream, downstream and onshore operational, and upstream construction all risks business; marine hull, total loss only, mortgagees interests insurance, mortgagees additional perils, excess protection and indemnity, marine war, and builder's risks; and aviation AV52, aviation consortium, airline hull and liability, and satellite insurance products. In addition, it offers general insurance, support, insurance agent, and insurance mediation services. The company was incorporated in 2005 and is headquartered in Hamilton, Bermuda.Looks undervalued
5-year outlook: Not shown because confidence is low: Dividend discount model disagrees strongly.
Other models: GBP 0.87–14.92 (median 13.73). The recommended value is in line with them.
Why: Dividends are small or missing, and cash-flow models do not suit financials, so value is based on reinvestment-adjusted earnings.
Details and the full model are below.
Market price below modeled range
Earnings-based DCF using TTM through 30 Jun 2026 net income, of which 70% is treated as distributable after reinvestment, with no extra debt or cash adjustment because net income is already after interest. Used because free cash flow or dividends do not give a usable base. Base assumptions are 8.95% growth, 2.4% terminal growth, and 9.6% discount; this illustrative range is not a statistical confidence interval or investment advice.
Assumptions: growth 8.95%, discount rate 9.60%, terminal growth 2.40% (sector defaults). See a worked example.
Blended growth assumption: 8.9% (sector default 5.4%, own revenue history 33.9%, analyst revenue consensus -1.8%).
Analyst consensus expects revenue growth of -1.8% a year; the growth assumption used is 9.0%.
Adjust assumptions
Why this model: Dividends are small or missing, and cash-flow models do not suit financials, so value is based on reinvestment-adjusted earnings.
Compare models- Recommended: Earnings-based DCF — GBP 12.65 (+83.8%)
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EPS-based Gordon proxy
— GBP 13.73 (+99.5%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— GBP 19.49 (+183.2%)
Not used: Cash-flow models do not suit banks and insurers, whose cash flow is mostly funding and deposits.
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FCFF (steady state)
— GBP 14.92 (+116.9%)
Not used: Cash-flow models do not suit banks and insurers, whose cash flow is mostly funding and deposits.
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EV/EBITDA (12x)
— GBP 0.87 (-87.3%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— GBP 19.33 (+181.0%)
Not used: Cash-flow models do not suit banks and insurers, whose cash flow is mostly funding and deposits.
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EV/Sales (Rule of 40)
— GBP 9.19 (+33.6%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear GBP 9.36 | 26.5% |
| Base GBP 12.65 | 45.6% |
| Bull GBP 18.56 | 62.9% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At GBP 6.88 the market implies about this annual free-cash-flow growth for 5 years (terminal 2.4%, discount 9.6%).
Compare: the market implies -5.2% a year, this model assumes 9.0%. The model is more optimistic than the price, which is why it reads as undervalued.
How the Earnings-based DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
| Growth \ Discount | 7.6% | 8.6% | 9.6% | 10.6% | 11.6% |
|---|---|---|---|---|---|
| 4.9% | 14.88 | 12.46 | 10.71 | 9.39 | 8.35 |
| 6.9% | 16.23 | 13.56 | 11.64 | 10.19 | 9.06 |
| 9.0% | 17.67 | 14.75 | 12.65 | 11.06 | 9.81 |
| 11.0% | 19.22 | 16.02 | 13.72 | 11.98 | 10.62 |
| 13.0% | 20.88 | 17.39 | 14.87 | 12.97 | 11.49 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 76 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 4 of 5 years profitable | 16 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue +17.9% a year | 20 / 20 |
| Balance sheet | net cash | 20 / 20 |
| Margins | EBITDA margin 1% | 0 / 20 |
Peers in Financials
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| LRE.L (this company) | GBP 6.88 | 45.6% | 7.1 | 1.6 | 3.3% | 76 |
| PSH.L Pershing Square Holdings, Ltd. | GBP 38.44 | 68.5% | 3.6 | 0.6 | 1.3% | 76 |
| ACA.PA Credit Agricole S.A. | EUR 15.73 | 36.6% | 6.7 | 0.7 | 7.0% | 78 |
| V Visa Inc. | USD 414.00 | 34.6% | 8.7 | – | 0.2% | 100 |
| PRU.L Prudential plc | GBP 9.24 | 34.3% | 8.0 | 1.6 | 1.9% | 78 |
| AGS.BR ageas SA/NV | EUR 76.95 | 33.0% | 8.1 | 1.5 | 5.0% | 76 |
| NWG.L NatWest Group plc | GBP 5.86 | 30.3% | 8.2 | 1.3 | 5.0% | 88 |
| ACGL Arch Capital Group | USD 108.49 | 30.3% | 8.5 | 1.6 | 0.1% | 100 |
| SYF Synchrony Financial | USD 73.92 | 30.0% | 7.2 | 1.4 | 2.1% | 100 |
| Peer median | 8.0 | 1.4 | ||||
Dividends
Paid in the last 12 months: GBP 0.01 per share · yield 0.16% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 0.005 |
| 2025 | 0.009 |
| 2024 | 0.011 |
| 2023 | 0.005 |
| 2022 | 0.001 |
| 2021 | 0.001 |
Trailing 12-month financials
TTM through 30 Jun 2026 · quarterly EODHD data · data downloaded 05 Nov 2026 21:20
| Revenue | GBP 1,130,059,217 |
|---|---|
| EBITDA | GBP 8,178,060 |
| EBIT | GBP 0 |
| Net income | GBP 242,293,618 |
| Free cash flow | GBP 254,858,092 |
| Capital expenditures | GBP 2,750,802 |
| Debt | GBP 332,847,047 |
| Cash | GBP 453,584,953 |
| Working capital | GBP |
| Shares outstanding | 251,010,486 |
| Reported dividends per share | GBP 0.2250 |