Shareholding Disclosure

Lancashire Holdings Limited
11 April 2006


NOTIFICATION OF MAJOR INTERESTS IN SHARES

1. Name of company

LANCASHIRE HOLDINGS LIMITED

...............................................................

2. Name of shareholder having a major interest

SAB Capital

3. Please state whether notification indicates that it is in respect of holding 
of the shareholder named in 2 above or in respect of a non-beneficial interest 
or in the case of an individual holder if it is a holding of that person's spouse 
or children under the age of 18

Holdings in respect of SAB Capital Partners, L.P., SAB Overseas Master Fund, L.P., 
and SAB Capital Partners II, L.P..

4. Name of the registered holder(s) and, if more than one holder, the number of 
shares held by each of them

Name                                                     Shareholding
SAB Capital Partners, L.P.                               7,611,713
SAB Overseas Master Fund, L.P.                           7,734,428
SAB Capital Partners II, L.P.                            153,859
TOTAL                                                    15,500,000


5. Number of shares / amount of stock acquired

2,500,000 ordinary shares

6. Percentage of issued class

1.28%

7. Number of shares / amount of stock disposed

N/A

8. Percentage of issued class

N/A

9. Class of security

COMMON SHARES OF $0.50 EACH

10. Date of transaction

Holdings purchased since 21 March 2006

11. Date company informed

4 April 2006

12. Total holding following this notification

15,500,000

13. Total percentage holding of issued class following this notification

7.92%

14. Any additional information

Issued shares now owned by SAB Capital are 15,500,000, an increase of 2,500,000 
since 21st March 2006

15. Name of contact and telephone number for queries

Greg Lunn [phone]

16. Name and signature of authorised company official responsible for making this 
notification

Greg Lunn, General Counsel & Company Secretary

Date of notification

10 April 2006





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