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Prices & Quotes - UK Markets - Lancashire Holdings Limited (LRE)

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Share Price:
Up 738.00p
Change Today:
2.50p
Market Cap:
1,789.72m
Sector:
Insurance (non-life)

Lancashire Holdings raises 277m to take advantage of rate rises

By Michele Maatouk

Date: Wednesday 10 Jun 2020

LONDON (ShareCast) - (Sharecast News) - Lancashire Holdings has raised around 277m in a placing to take advantage of rate rises across the majority of its business lines.
The company placed just under 39.6 million new common shares at 700p each, which is a 3.6% discount to the closing share price on Tuesday. It represents approximately 19.5% of Lancashire's existing issued common share capital.

In a statement announcing the placing late on Tuesday, Lancashire said it plans to use the proceeds to fund organic growth and take advantage of rate rises.

"Lancashire expects these growth opportunities to be strongly aligned to Lancashire's core areas of underwriting expertise and relationships," it said. "Lancashire's long-term strategy is to deploy more capital into a 'hardening' market, in which pricing strengthens due to market capital constraints, and to lower the amount of capital it deploys in 'softer' markets, where pricing is weaker due to an over-supply of risk capital."

The company also provided a brief update on trading, saying that since its update for the first quarter at the end of April, it has continued to trade in line with, or better than, its expectations, with a marked improvement in pricing as the second quarter progresses.

"The Covid-19 pandemic is still an ongoing situation, making it exceptionally difficult to predict what the ultimate impact for the group will be. As previously announced, Lancashire's provisional loss estimate for Covid-19 is $35m, net of reinsurance and reinstatement provision, based on claims notified and expected to be notified. Lancashire has not seen any trends in claims activity since 30 April 2020 that would indicate any material change to this estimate at this time."

At 1215 BST, the shares were up 10.2% at 800.00p.

JPMorgan Cazenove said: "Unlike its London Market peers (Hiscox and Beazley, who have also raised equity), we do not see Lancashire as having significant exposure to classes of business affected by Covid-19, nor to casualty lines that have been affected by adverse claims trends.

"We therefore see this raise as a stronger-than-expected indication of forward looking growth, and reiterate our overweight rating."

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LRE Market Data

Currency UK Pounds
Price 738.00p
Change Today 2.50p
52 Week High 850.00p
52 Week Low 528.00p
Volume 562,232
Shares Issued 242.51m
Market Cap 1,789.72m

Performance Indicators

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What The Brokers Say

Strong Buy 10
Buy 0
Neutral 3
Sell 0
Strong Sell 0
Total 13
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

LRE Dividends

  Latest Previous
  Interim Final
Ex-Div 13-Aug-20 07-May-20
Paid 11-Sep-20 05-Jun-20
Amount 5.00¢ 10.00¢

Trades for 27-Nov-2020

Time Volume / Share Price
16:35 428,656 @ 738.00p
16:29 271 @ 730.00p
16:29 5 @ 728.50p
16:29 8 @ 728.50p
16:29 9 @ 728.50p

LRE Key Personnel

CEO Alex Maloney
CFO Natalie Kershaw