Notifiable Interest

Lancashire Holdings Limited
05 October 2007


                          Lancashire Holdings Limited

Hamilton, Bermuda, 5 October 2007

                     NOTIFIABLE INTEREST, DIRECTOR DEALING


Lancashire Holdings Limited ('Lancashire') was advised on 2nd October 2007 that
The Cawood Foundation, Inc., Frank W. Cawood & Associates, Inc. and certain
other related private trusts, have a notifiable ownership interest in aggregate
in 7,665,624 shares of Lancashire's common shares of US$0.50 par value each
('common shares') representing approximately 3.91% of the total issued share
capital of Lancashire.

Lancashire was separately advised on 4th October 2007 that a member of William
Spiegel's family purchased 7,000 Lancashire common shares. The purchase took
place on 20th September 2007. William Spiegel is a non-executive Director of
Lancashire who holds 63,240 common shares and founder's warrants over 481,182
common shares.

For further information, please contact:

Lancashire Holdings Limited                       [phone]
Greg Lunn

Financial Dynamics                                [phone]
Rob Bailhache
Nick Henderson

Kekst & Company Inc.
Michael Herley                                    [phone]
Mark Semer                                        [phone]

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.





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