BUZZ-Lancashire: down on RBC Capital Markets TP cut

** UK property and casualty insurer Lancashire down 1.5 pct after RBC Capital Markets analysts cut TP to 500p from 550p ("underperform")

** The analysts expect market conditions to be more difficult for co in 2016

** Cut 2016 net income estimate by 4 pct and 7 pct for 2017

** Say co would require more capital and a recovery in the oil price to reach profitability of the past

** Co, which insures heavy-duty assets such as oil rigs, ships and aircraft, posted a 53.2 pct fall in FY gross premiums written in the energy sector

** The analysts say co has been the weakest performer amongst the 4 Lloyd's insurers YTD (other Lloyd's insurers Beazley (Other OTC: BEAZF - news) , Hiscox (Berlin: H2X3.BE - news) and Novae )

** Expect further bad news on its Cathedral underwriting arm as previous members of the management team emerge at competitors or new ventures

** Unit's CEO, CFO and 3 underwriters have resigned recently

** Lancashire acquired the underwriter in 2013 for £266 mln. (http://bit.ly/1OPRHiV)

** Stock -11.3 pct YTD, bottom of the FTSE All Share Nonlife Index (Reuters Messaging: noor.hussain.thomsonreuters.com@reuters.net)