FY17 was expected to be negative given its US cat-focus, but the -US$72.9m disappointed vs. consensus. Nevertheless, the share price reaction is overdone, in our view and hence we move to Buy from Add. Lancashire is not facing a serious impairment issue and its short tail and direct focus leave it well positioned for this slow market turn with c75% of the book already seeing price rises. Rates in its core classes have already improved YoY (+5% on average). We reiterate ourslow burn view, seei
19 Feb 2018
Looking past the 2017 loss
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Looking past the 2017 loss
Lancashire Holdings Limited (LRE:LON) | 622 -15.5 (-0.4%) | Mkt Cap: 1,517m
- Published:
19 Feb 2018 -
Author:
Joanna Parsons -
Pages:
6
FY17 was expected to be negative given its US cat-focus, but the -US$72.9m disappointed vs. consensus. Nevertheless, the share price reaction is overdone, in our view and hence we move to Buy from Add. Lancashire is not facing a serious impairment issue and its short tail and direct focus leave it well positioned for this slow market turn with c75% of the book already seeing price rises. Rates in its core classes have already improved YoY (+5% on average). We reiterate ourslow burn view, seei