Notifiable Interest

Lancashire Holdings Limited                          

20 November 2008
Hamilton, Bermuda

                              Notifiable Interest                              

Lancashire Holdings Limited ("Lancashire") was advised on 19 November 2008
that, as of 18 November 2008, SAB Capital Partners, L.P., SAB Capital Partners
II, L.P. and SAB Overseas Master Fund, L.P. (collectively, the "SAB Funds") has
a notifiable ownership interest in aggregate of 10,494,829 of Lancashire's
common shares of US$0.50 par value each. Consequently, SAB Funds' shareholding
in Lancashire represents approximately 6.07% of the total current issued share
capital.

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 AIM 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 AIM 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.