Lancashire HoldingsFRA:LNH -0.40%77 ROA % is 7.82% as of Dec. 2025, which is 197% above its 10-year median of 2.63. GuruFocus rates FRA:LNH with a GF Score™ of 77/100 and a GF Value™ of €9.36 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 506 Insurance companies, Lancashire Holdings ranks better than 82.61% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Lancashire Holdings's annualizedNet Income for the quarter that ended in Dec. 2025 was €315 Mil.
Lancashire Holdings's average Total Assets over the quarter that ended in Dec. 2025 was €4,024 Mil. Therefore, Lancashire Holdings's annualized ROA % for the quarter that ended in Dec. 2025 was 7.82%.
The historical rank and industry rank for Lancashire Holdings's ROA % or its related term are showing as below:
FRA:LNH'
s ROA % Range Over the Past 10 Years
Min: -2.43 Med: 2.63 Max: 8.5
Current: 6.29
During the past 13 years, Lancashire Holdings's highest ROA % was 8.50%. The lowest was -2.43%. And the median was 2.63%.
FRA:LNH's ROA % is ranked better than 82.61% of 506
companies
in the Insurance industry
Industry Median: 2.7
vs FRA:LNH: 6.29
Lancashire Holdings (FRA:LNH) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Lancashire Holdings ROA % Related Terms
Lancashire Holdings ROA % Historical Data
* Premium members only.
The historical data trend for Lancashire Holdings's ROA % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Insurance - Specialty subindustry, Lancashire Holdings's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lancashire Holdings ROA % vs Insurance Industry
For the Insurance industry and Financial Services sector, Lancashire Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Lancashire Holdings's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Lancashire Holdings (FRA:LNH) has a ROA % of 7.82% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Lancashire Holdings and its competitors. This is 197% above median its historical median of 2.63. According to the industry distribution chart, Lancashire Holdings ranks #88 out of 506 companies in the Insurance industry, placing it in the top 17.4%.
Is Lancashire Holdings' ROA % too high?
Lancashire Holdings' current ROA % of 7.82% is 197% above median its 10-year median of 2.63. The Insurance industry median ROA % is 2.70. Lancashire Holdings' value of 7.82% is 189.6% above this industry median. Based on the distribution chart, Lancashire Holdings ranks #88 out of 506 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, Lancashire Holdings has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lancashire Holdings' ROA % compare to FNF and AXS?
According to the Insurance industry distribution chart, Lancashire Holdings ranks #88 out of 506 companies for ROA %. This places Lancashire Holdings in the top 17% of its industry — outperforming the majority of peers. The industry median ROA % is 2.70. Lancashire Holdings' value of 7.82% is 189.6% above this benchmark. While the company's 10-year median is 2.63 vs. the industry median of 2.70, Lancashire Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for an Insurance company?
The median ROA % among Insurance companies is 2.70, based on 506 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lancashire Holdings's current ROA % of 7.82% is 189.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Lancashire Holdings and its competitors. For the Insurance industry, the median ROA % is 2.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lancashire Holdings's current ROA % is 7.82%, which is 197% above median its own 10-year median of 2.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lancashire Holdings stock overvalued right now?
Based on GuruFocus' analysis, Lancashire Holdings (FRA:LNH) is currently considered Modestly Undervalued. The stock's GF Value™ is €9.36, compared to a current price of €7.41 — trading 20.8% below its estimated fair value. The current ROA % is 7.82%, which is 197% above median its 10-year median of 2.63 and 189.6% above the Insurance industry median of 2.70. Lancashire Holdings' overall GF Score™ is 77/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Lancashire Holdings (FRA:LNH), the current ROA % is 7.82% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lancashire Holdings (FRA:LNH) Overvalued in 2026?
Based on GuruFocus' analysis, Lancashire Holdings stock appears to be undervalued.
The current stock price of €7.41 is trading 20.8% below its estimated GF Value™ of €9.36.
GuruFocus considers Lancashire Holdings to be Modestly Undervalued.
Key valuation signals for FRA:LNH:
ROA %: 7.82% (197% above median its 10-year median of 2.63)
GF Value™: €9.36 vs. price of €7.41 (20.8% below fair value)
Industry Position: 189.6% above the Insurance median (#88 of 506)
No single metric tells the full story. See the FRA:LNH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lancashire Holdings Ltd is a provider of specialty reinsurance products with operations in London, Bermuda, the United States, and Australia. The company has two principal segments: reinsurance and insurance. The company generates the majority of its revenue from the Insurance segment. The Group's reinsurance segment comprises property reinsurance, specialty reinsurance, and casualty reinsurance. The insurance segment is usually written on a direct or facultative basis and comprises aviation insurance, casualty insurance, energy and marine insurance, property insurance, and specialty insurance. Geographically, the company generates the majority of its revenue from the United States and Canada.
77GF Score
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