Director/PDMR Shareholding

Lancashire Holdings Limited                          

                                (the "Company")                                

23 June 2009

Hamilton, Bermuda

    Notification of share transactions by Directors and Persons Discharging    
          Managerial Responsibility ("PDMRs") and Connected Persons.           

This disclosure relates to transactions notified to the Company on 19 June 2009
in accordance with DTR 3.1.4R(1)(a).

On 16 and 19 June 2009, the following entities which were by virtue of their
connection with Barry Volpert, a Non-executive Director of the Company,
considered to be "Connected Persons" sold a total of 1,200,000 common shares of
US$0.50 each as summarised in the table below.

Name                  Shares disposed  Shares disposed Total        Total       
                      on 16 June 2009  on 19 June 2009 holding      percentage  
                      and average sale and average     following    holding     
                      price            sale price      notification following   
                                                                    notification
                                                                                
Crestview Partners,   625,675          125,136         8,634,325    4.99%       
LP                    -£4.730          -£4.715                                    
                                                                                
Crestview Offshore    167,462          33,492          2,310,981    1.34%       
Holdings (Cayman), LP -£4.730          -£4.715                                         
                                                                                
Crestview Partners    111,059          22,212          1,532,607    0.89%       
(PF), LP              -£4.730          -£4.715                                         
                                                                                
Crestview Partners    51,587           10,317          711,895      0.41%       
(ERISA), LP           -£4.730          -£4.715                                         
                                                                                
Crestview Holdings    44,217           8,843           610,192      0.35%       
(TE), LP              -£4.730          -£4.715                                          
                                                                                
Total                 1,000,000        200,000         13,800,000   7.97%       
                      -£4.730          -£4.715                                    

These transactions took place in London.

For further information, please contact:

Lancashire Holdings                                                            
                                                                               
Jonny Creagh-Coen                       [phone]                   
Greg Lunn                               [phone]                        
                                                                               
Financial Dynamics                      [phone]                   
                                                                               
Rob Bailhache                                                                  
Nick Henderson                                                                 

About Lancashire

Lancashire, through its UK and Bermuda-based insurance subsidiaries, is a
global provider of specialty insurance products. Its insurance subsidiaries
carry the Lancashire group rating of A minus (Excellent) from A.M. Best with a
stable outlook. Lancashire has capital in excess of $1 billion dollars and its
Common Shares trade on the main market of the London Stock Exchange under the
ticker symbol LRE. Lancashire is headquartered at Mintflower Place, 8
Par-La-Ville Road, Hamilton HM 08, Bermuda. The mailing address is Lancashire
Holdings Limited, P.O. Box HM 2358, Hamilton HM HX, Bermuda. For more
information on Lancashire, visit the company's website at 
www.lancashiregroup.com.

                   NOTE REGARDING FORWARD-LOOKING STATEMENTS                   

CERTAIN STATEMENTS MADE IN THIS ANNOUNCEMENT THAT ARE NOT BASED ON CURRENT OR
HISTORICAL FACTS ARE FORWARD-LOOKING IN NATURE INCLUDING, WITHOUT LIMITATION,
STATEMENTS CONTAINING WORDS 'BELIEVES', 'ANTICIPATES', 'PLANS', 'PROJECTS',
'INTENDS', 'EXPECTS', 'ESTIMATES', 'PREDICTS', 'MAY','WILL', 'SEEKS', 'SHOULD'
OR, IN EACH CASE, THEIR NEGATIVE OR COMPARABLE TERMINOLOGY.  ALL STATEMENTS
OTHER THAN STATEMENTS OF HISTORICAL FACTS INCLUDING, WITHOUT LIMITATION, THOSE
REGARDING THE GROUP'S FINANCIAL POSITION, RESULTS OF OPERATIONS, LIQUIDITY,
PROSPECTS, GROWTH, BUSINESS STRATEGY, PLANS AND OBJECTIVES OF MANAGEMENT FOR
FUTURE OPERATIONS (INCLUDING DEVELOPMENT PLANS AND OBJECTIVES RELATING TO THE
GROUP'S INSURANCE BUSINESS) ARE FORWARD-LOOKING STATEMENTS.  SUCH
FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND
OTHER IMPORTANT FACTORS THAT COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR
ACHIEVEMENTS OF THE GROUP TO BE MATERIALLY DIFFERENT FROM FUTURE RESULTS,
PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING
STATEMENTS.  THESE FORWARD-LOOKING STATEMENTS SPEAK ONLY AS AT THE DATE OF THIS
ANNOUNCEMENT OR OTHER INFORMATION CONCERNED. LANCASHIRE HOLDINGS LIMITED
EXPRESSLY DISCLAIMS ANY OBLIGATION OR UNDERTAKING (SAVE AS REQUIRED TO COMPLY
WITH ANY LEGAL OR REGULATORY OBLIGATIONS (INCLUDING the Prospectus Rules, the
Listing Rules, the Disclosure and Transparency Rules)) TO DISSEMINATE ANY
UPDATES OR REVISIONS TO ANY FORWARD-LOOKING STATEMENTS CONTAINED HEREIN TO
REFLECT ANY CHANGES IN THE GROUP'S EXPECTATIONS WITH REGARD THERETO OR ANY
CHANGE IN EVENTS, CONDITIONS OR CIRCUMSTANCES ON WHICH ANY SUCH STATEMENT IS
BASED.