Lancashire Holdings announced that the UK Financial Services Authority (FSA) has notified the company that it is minded to grant authorisation to a new underwriting company, to be called Lancashire Insurance Company (UK) Limited (LUK).

LUK will initially be capitalised at £20m (approximately $37m), rising to 60m (approximately $110m) by 1 January 2007. LUK will enter into a quota share agreement with LICL for a whole account session of a percentage of risks written in the UK.