Rating Agency Review

Lancashire Holdings Limited
15 March 2006


                          Lancashire Holdings Limited


Hamilton, Bermuda, 15 March 2006


          LANCASHIRE HOLDINGS LIMITED RESPONDS TO RATING AGENCY REVIEW


HAMILTON, Bermuda (15th March 2006) - Lancashire Holdings Limited today
announced that it has been notified that A.M. Best has placed its financial
strength rating of A- (Excellent) and its issuer credit rating of bbb- under
review with negative implications.

A.M. Best have undertaken this rating review following our announcement of the
1st April, 2006 departure by mutual consent of J. Alex Richards, Retrocession
Underwriter and Vice President of Lancashire Insurance Company Limited.

Lancashire recently announced the appointment of Simon Burton as Deputy Chief
Underwriting Officer of Lancashire Insurance Company Limited, subject to
approval from the Bermuda Department of Immigration. This follows the recent
announcement of the appointment of Bryan Bumsted, Vice President and
Retrocession Underwriter in February 2006.

Richard Brindle, Chief Executive Officer said, 'We are confident that this is a
temporary situation and that A.M. Best will be fully satisfied and conclude
their review shortly. Based on the tremendous skills and experience brought by
our new appointments, we believe that the strength of our underwriting team in
Bermuda will be significantly enhanced. We do not expect the A.M. Best review to
materially impact our ability to write new business'.

Simon brings extensive technical and practical underwriting experience to
Lancashire Insurance Company Limited, in a wide range of short tail property
classes on an insurance, reinsurance and retrocessional basis. In addition,
Simon brings additional management and actuarial expertise to our team in
Bermuda. Simon will join Lancashire from the ACE Group, where he was most
recently employed as President, ACE Financial Solutions International. Prior to
joining ACE Simon worked as a consulting actuary at Tillinghast in London and
Bermuda where he specialised in the development of models for reinsurance
portfolios. Simon has 15 years of experience in the reinsurance industry and
holds a Bachelor of Science degree in Mathematics from Imperial College, London
and a Diploma of Actuarial Techniques from the U.K. Institute of Actuaries.

Bryan Bumsted joined Lancashire Insurance Company Limited as Retrocession
Underwriter and Vice President from Everest Reinsurance Company, where he
underwrote a wide range of property programs including retrocession, catastrophe
excess of loss and per risk excess of loss.

Lancashire Holdings                     [phone]
Neil McConachie

Financial Dynamics                      [phone]
Rob Bailhache
Nick Henderson


www.lancashire.bm



About Lancashire


Lancashire was established in 2005 as a new insurance and reinsurance business
to take advantage of the favourable underwriting conditions expected to arise
from the large insured losses incurred in 2004 and 2005.


Lancashire was admitted to AIM on 16 December 2005 following an Offer of Common
Shares to investors. The Common Shares trade on AIM under the ticker symbol LRE.




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