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LANCASHIRE Q1 PROFITS SOAR Lancashire Holdings Limited made more in the first three months of this year than it did in the first quarter of 2011, despite the fact that the company’s performance was hurt by the Costa Concordia shipwreck. The company reported its first quarter 2012 financial results last week, revealing it made a net profit after tax of $45.2 million — that’s about five times the amount ($8.6 million) the firm made in the first quarter of last year. It also exceeds the $39 million it made in the last quarter of 2011. Net operating profit soared from $6.9 million in the first three months of 2011 to $42.9 million in Q1 of this year. The group’s total investment return improved from 0.6 percent in 2011 to 1.1 percent so far this year. Lancashire’s net loss ratio for the first quarter of 2012 was 35.7 percent, compared to 67 percent for the same period of 2011. The firm incurred $34.1 million in claims costs from the Costa Concordia. This compares to the net losses of $116.5 million in the first quarter of 2011 related to the earthquake and tsunami in Japan and the Christchurch earthquake. Gross written premiums rose, year-on-year, from $171.9 million to $234 million but net premiums declined from $137.7 million to $132.1 million. Lancashire’s combined ratio for the first quarter however, was 74 percent — better than the 97.4 percent for the same period last year, but up from 73.1 percent at the end of 2011 and the 63.7 percent seen over the whole of 2011 (anything below 100 percent implies a company is making a profit through underwriting risk as opposed to making money from investments). In other words, things were marginally worse on the underwriting front in the first quarter of 2012, partly due to the claims related to the Costa Concordia disaster in January of this year. The company’s CEO complained that Lancashire and others are unable to charge more despite the Costa Concordia grounding costing the industry perhaps as much as $1 billion. “While the Costa Concordia loss affected our combined ratio, as it has many others in the industry, it has been frustrating to see industry-wide pricing in marine lines failing to show the improvements that might have been expected following such a loss,” said Richard Brindle, Lancashire’s CEO. Mr Brindle otherwise described Lancashire’s Q1 results as solid, and thanked the firm’s shareholders for approving plans to allot it to issue up to ten percent of issued share capital on a non pre-emptive basis. Source: http://www.royalgazette.com/article/20120507/BUSINESS04/705079971 P.S. Here's a couple of links about SCLP, one of the hottest stocks at the moment: http://www.euroinvestor.com/community/discussionthread.aspx?threadid=252803 http://www.euroinvestor.com/community/discussionthread.aspx?threadid=253089
INVESTORS MUST LOOK BEYOND 'THE USUAL SUSPECTS' TO EARN A SOLID INCOME FROM UK EQUITIES Investments with attractive and sustainable yields and the potential for robust dividend growth can produce substantial results. Of course the benefits of this approach rely on the dividends not being cut. It is therefore important to investigate whether a company’s dividends are sustainable. This means researching the role the company plays in a particular industry, its position in the market, its ability to sustain and raise prices and support its profits and cashflows. In the non-life insurance sector, one example of a high yielding stock that fulfils these criteria is Lancashire Holdings. Lancashire is a specialist insurer which has delivered above-average returns for investors. Over the past five years, in fact, returns on the firm’s equity have averaged 25 per cent. This has supported significant growth in the company’s value in relation to its net tangible assets, as well as substantial dividends. Shareholders have also reaped an outstanding total return from Lancashire. The share price has quadrupled over the past four years, and the company continues to represent the best opportunity for investors within the non-life insurance sector. In spite of this exceptional financial performance, however, the company remains less well known and as such offers a greater chance to prosper. Without taking a wider view than simply looking for high yield, investors run the risk of missing such an opportunity. In an environment of low yields and persistent inflation many clients are also looking for ways to prevent the value of their income from being eroded in real terms. Source: http://www.ftadviser.com/2012/05/14/investments/equities/beyond-the-usual-suspects-68U9VDK64Hs0rkWTVU3ihO/article.html?refresh=true
INTERVIEW WITH RICHARD BRINDLE, CEO ON 4TH MAY 2012 http://www.lancashiregroup.com/investor-relations/annual-report-2011-interview.aspx
Canaccord Genuity maintained its "buy" recommendation for Lancashire Holdings (LRE), but with a reduced target price of 780p, from 800p. The insurance company reported first quarter pre-tax profits of 46.5 million dollars (28.8 million pounds), which the broker noted beat consensus forecasts by 8%. Canaccord also pointed out that these results did not include Japanese renewals in April, which it said achieve strong prices for catastrophe insurance.
Shore Capital kept its "buy" stance on Lancashire Holdings (LRE), astonished that the insurance company was able to increase its net tangible asset value to 752 cents (474p) per share in 2011 despite the high level of natural disasters. The broker added that group has one of the strongest balance sheets in the sector, with a conservative portfolio containing 6% emerging market debt and no peripheral European sovereign debt. The shares edged up by 5.5p to 767.5p.
Nomura initiates buy on Lancashire Holdings, target price 794p.
Lancashire LRE)reiterated as buy by Collins Stewart - price target raised to 715p
Today's iii episode: http://www.iii.co.uk/tv/episode/lancashire-holdings-lre
http://www.investegate.co.uk/Article.aspx?id=20110421070000PD14A
Earthquake to cost Lancashire about $75m Date: Thursday 21 Apr 2011 LONDON (ShareCast) - Insurance underwriter Lancashire Holdings, which has more than recovered from the share price tumble it suffered in the wake of the Japanese earthquake, said it expects to take a $75m hit from claims arising from the natural disaster. The estimate of the net impact from the Tohoku earthquake and subsequent tsunami is based on an industry loss of $25bn, plus Lancashire's own internal assessment and the limited amount of information received to date from brokers and clients. Lancashire's estimated loss represents 68% and 37% of its “1 in 100 year” and “1 in 250 year” Japan earthquake net probable maximum losses, respectively, based on its portfolio at the beginning of 2011. The company warned that the figure could still change quite a lot. In particular, the ultimate loss incurred by Japanese co-operative mutual companies could significantly affect the industry loss, and the ultimate loss incurred by Lancashire.
Too soon to estimate Japan losses, says Lancashire Date: Tuesday 15 Mar 2011 LONDON (ShareCast) - Insurance underwriter Lancashire Holdings said it is too early to give a meaningful estimate of costs relating to the tragic loss of life and significant property damage in Japan following the earthquake and tsunami. A further announcement will be made once information becomes available to make a more informed estimate of the expected losses, the company said. However, the company was able to give an update on losses in a first quarter which has seen the earthquake in Christchurch, New Zealand, floods in Australia, an energy loss in the UK sector of the North Sea and political unrest in Egypt. These losses are estimated to fall in the range of $45m to $55m (net of reinstatement premiums and reinsurance) at the pre-tax level, with the Australian weather related events accounting for around $15m to $25m of those losses. All figures are in US dollars.
Good news today credit facility secured
Lovely rise today
Out of curiosity anyone know why these are based in tropical Barmy Bermuda and not cold wet damp northern lancs -
Wonder what the dividend payout will be for this year?
Is there anybody there? Nobody comments on this cracker
Lots of steady buying going on
looked on iii and lre is quote unquote "lre group rating of A minus(Excellent} stable outlook
How did you call that?
fill your stockings - buying in
today nudging up abit
anybody an opinion on price at moment ? thinking of buying but no updates
Positive reviews about this share from Naked Trader. Let's hope he is right.