Warrant Exercise / AIM 26

Lancashire Holdings Limited
17 August 2007





Lancashire Holdings Limited

17 August 2007



                Exercise of Warrants and AIM Rule 26 Information


Lancashire Holdings Limited (the 'Company') applied on 15 August 2007 for
148,025 new common shares of US$0.50 each in the Company to be admitted to AIM.
The new shares have been issued pursuant to an exercise of warrants to purchase
the Company's common shares. Admission of the new shares is expected to occur
on 21 August 2007.

Following the issue of the new shares, the Company's issued share capital
consists of 195,924,011 common shares.

The Company confirms, for the purposes of AIM Rule 26, that its website address
is www.lancashiregroup.com




For further information, please contact:

Lancashire Holdings
Neil McConachie                                       [phone]
Greg Lunn                                             [phone]

Financial Dynamics
Robert Bailhache                                      [phone]



www.lancashiregroup.com



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.





                      This information is provided by RNS
            The company news service from the London Stock Exchange