Exercise Of Warrants

Lancashire Holdings Limited
10 May 2007


Lancashire Holdings Limited
10 May 2007

                              Exercise of Warrants

Lancashire Holdings Limited (the 'Company') has applied for 32,640 new
common shares of US$0.50 each in the Company to be admitted to AIM. The new
shares have been issued pursuant to an exercise of warrants to purchase the
Company's common shares. Admission of the new shares is expected to occur on 15
May 2007.

Following the issue of the new shares, the Company's issued share capital
consists of 195,775,986 common shares.

For further information, please contact:

Lancashire Holdings
Neil McConachie                             [phone]
Greg Lunn                                   [phone]

Financial Dynamics                          [phone]
Robert Bailhache

www.lancashiregroup.com

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 US$1 billion 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.




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