Transaction in Own Shares

Lancashire Holdings Limited
19 December 2007



Lancashire Holdings Limited
19 December 2007


        Completion of Share Repurchases, Change to Dividend Payment Date


Lancashire Holdings Limited (the 'Company') announces that on 18 December 2007
it purchased for cancellation 83,572 common shares of $0.50 par value per share
('Common Shares') at a price of 355 pence per share through Numis Securities
Limited. This purchase marks the successful completion of the Company's $100
million share-repurchase programme announced on 29th October 2007. Following the
conclusion of the share repurchase programme the company has purchased a total
of 13,640,916 Common Shares for cancellation. The Company's issued share capital
after cancellation of all repurchased shares will be 182,283,095.


The above figure may be used by shareholders as the denominator for the
calculations by which they will determine if they are required to notify their
interest in, or a change to their interest in, the Company under applicable
disclosure and transparency rules.


In addition, following the declaration of a strategic dividend of $1.10 per
common share and warrant on 10th December 2007, the Company announces a change
to the Dividend payment date. The payment date will now be 25th January 2008.
The ex-dividend date (9th January 2008) and record date (11th January 2008)
remain unchanged.


The dividend payment will be made by the Company in pounds sterling at the pound
/US dollar exchange rate fixed on the record date, 11th January 2008, allowing
time for the Company's Registrar and Paying Agent to finalize the payments to
shareholders.




For further information, please contact:


Lancashire Holdings Limited [phone]
Neil McConachie
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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