Lancashire shareholders back UK move, share issue

Shareholders in UK-listed (re)insurer Lancashire have approved the company’s plans to shift its tax residence to the UK from Bermuda.

Shareholders also voted in favour of a share issue of 10% of Lancashire’s issued share capital to fund future growth opportunities.

At an extraordinary general meeting held yesterday, 95.62% of the votes cast were in favour of the share issue, while 99.68% were in favour of the UK move.

The shareholder approval allows Lancashire to change its by-laws to allow the conduct of board and shareholder business in the UK. Lancashire said it has engaged in “positive discussions” with the UK tax authorities on the proposed move.

"The board is pleased that the Company's shareholders have given their strong backing for these two important proposals,” Lancashire chairman Martin Thomas said in a statement. He said the share issue approval “gives the company the ability to raise capital rapidly to take best advantage of underwriting opportunities, whilst avoiding the inevitable procedural delay of a UK rights issue. This helps place the Company on a more even footing with its international competitors, and is an important tool in the Company's capital management strategy.”