Share Repurchase

Lancashire Holdings Limited
16 November 2007



Lancashire Holdings Limited

Hamilton, Bermuda

16 November 2007


Share Repurchase


Lancashire Holdings Limited (the 'Company') announces today that following the
market close on 15th November 2007 it agreed to purchase for cancellation 5
million of its common shares of US$0.50 par value per share (the 'Common 
Shares') at a price of 350 pence per Common Share in an off-market transaction
as part of its $100 million share repurchase programme. The total purchase price
was £17.5 million or approximately $35.8 million. Following cancellation of the
shares as a result of the repurchase the issued share capital of the Company
will be 184,897,086 Common Shares.


As part of the transaction, the Company has repurchased 3 million Common Shares
from Och-Ziff Management, L.P. and affiliated investment funds (together, 
'Och-Ziff')  As a result of the repurchase Och-Ziff will own 15,336,176 Common
Shares representing 8.29% of the Company's issued share capital after the
repurchased shares are cancelled.


The balance, 2 million Common Shares, have been repurchased from other founding
shareholders, none of whom has a notifiable interest in the Company.


Richard Brindle, Chief Executive Officer, commented:


'We are pleased once again to have completed these transactions with some of our
founding shareholders. Our existing share repurchase program has approximately
$19.1 million remaining and we will consider further opportunities to repurchase
shares at attractive prices, both from founding shareholders and through open
market transactions.'


For further information, please contact:


Lancashire Holdings

Neil McConachie                                       [phone]
Greg Lunn                                             [phone]

Financial Dynamics                                    [phone]

Robert Bailhache

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.


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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