Appointment of CEO

Lancashire Holdings Limited
08 January 2007


                          Lancashire Holdings Limited


Hamilton, Bermuda, 8th January 2007


               LANCASHIRE APPOINTS CEO OF MIDDLE EAST OPERATIONS

Lancashire Holdings Limited ('Lancashire' or 'the Company') today announced the
appointment of John Melcon as Chief  Executive Officer of the Company's Middle
East marketing operations. John has over 35 years of experience in the 
international insurance and reinsurance markets, including eight years based in
the Middle East, most recently as  General Manager of Al Khazna Insurance
Company in the United Arab Emirates. John, who speaks fluent Arabic, will be 
based in Dubai where Lancashire recently announced it intends to incorporate a
subsidiary in the Dubai International  Financial Centre ('DIFC').

Lancashire has submitted an application to the Dubai Financial Services
Authority ('DFSA') seeking status for the new  subsidiary as an authorised
insurance intermediary firm. The appointment of John Melcon is subject to
Lancashire  obtaining the necessary authorizations from the DFSA and the DIFC
Authority for the establishment of its new subsidiary  in the DIFC.

Richard Brindle, Chief Executive Officer, commented: 'We are delighted that John
has agreed to join Lancashire. His experience in the insurance industry and in
the Middle  East should enable Lancashire to take full advantage of the
opportunities to grow a solid book of business from the  region.'

For further information, please contact:

Lancashire Holdings                         [phone]
Greg Lunn

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.lancashire.bm.





                 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.










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