Transaction in Own Shares

Lancashire Holdings Limited
14 December 2007

                          Lancashire Holdings Limited



Hamilton, Bermuda, 14 December 2007



                    Purchase of own shares for cancellation



Lancashire Holdings Ltd announces that on 14 December 2007 it purchased for
cancellation 425,000 ordinary shares at a price of 364p pence per share through
Numis Securities Limited.







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






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