AM Best Ratings Affirmed

Lancashire Holdings Limited
24 March 2006



Lancashire Holdings Limited Ratings by A.M. Best Affirmed

HAMILTON, Bermuda (24th March 2006) - Lancashire Holdings Limited ('Lancashire')
today announced that A.M. Best Co. has affirmed the financial strength rating of
A- (Excellent) and the issuer credit rating (ICR) of 'a-' of Lancashire
Insurance Company Limited. Concurrently, A.M. Best has affirmed the ICR of
'bbb-' of Lancashire. All ratings have been removed from under review with
negative implications and assigned a stable outlook.

A.M. Best placed the group's ratings under review on 15th March 2006 to assess
the impact on the business plan of the announced departure of J. Alex Richards,
who was Retrocession Underwriter and Senior Vice President and the appointment
of Simon Burton, Deputy Chief Underwriting Officer and Bryan Bumsted, Vice
President and Retrocession Underwriter.

Richard Brindle, Chief Executive Officer said, 'We are very pleased that A.M.
Best is satisfied with the appointments of Simon and Bryan and have affirmed our
ratings.'

Simon Burton has now officially joined Lancashire Insurance Company Limited as
Deputy Chief Underwriting Officer following clearance from the Bermuda
Department of Immigration.

About Lancashire

Lancashire Holdings Limited, through its operating subsidiary, Lancashire
Insurance Company Limited, is a Bermuda-based provider of reinsurance and
insurance. Lancashire Holdings Limited is admitted to AIM under the ticker
symbol LRE.

Contacts:

Neil McConachie

Chief Financial Officer     [phone]


Financial Dynamics

Robert Bailhache            [phone]

Nick Henderson              [phone]



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