Lancashire Holdings — Substantial shareholder distributions

Lancashire Holdings released its FY24 results on 6 March and declared another 25c/share special dividend on top of the 75c/share declared in November 2024. This brings combined special dividend declarations since FY23 to 200c/share, which equates to 36% of NAV per share at the start of FY23. Lancashire introduced a more liberal dividend policy in FY24, which resulted in a full ordinary dividend declared for FY24 of 22.5c/share compared with 15c/share for FY23 (combined dividend yield of 15.3%). Year-end NAV/share was 612c compared with 617c in FY23 and a return on equity (RoE) of 23.4% compared with 24.7% in FY23. A pull-back in the share price on the back of the results and FY25 RoE guidance in the mid-teens gives a price to NAV of 1.22x, well below the 1.3–1.6x range before interest rates increased in 2022.