Director/PDMR Shareholding

Notification of Transactions of Directors/Persons Discharging Managerial
Responsibility and Connected Persons

1.    Name of the issuer                2.    State whether the notification   
                                              related to (i) a transaction     
      Lancashire Holdings Limited             notified in accordance with DTR  
                                              3.1.2 R, (ii) a disclosure made  
      (the "Company")                         in accordance with LR 9.8.6R(1)  
                                              or (iii) a disclosure made in    
                                              accordance with section 793 of   
                                              the Companies Act (2006)         
                                                                               
                                              (i) a transaction notified in    
                                              accordance with DTR 3.1.2 R      
                                                                               
3.    Name of the person discharging    4.    State whether notification       
      managerial responsibilities/            relates to a person connected    
      director                                with a person discharging        
                                              managerial responsibilities/     
       1. Richard Brindle (Executive          director named in 3 and identify 
          Director and Group CEO)             connected person                 
                                                                               
       2. Alex Maloney (Executive             N/A                              
          Director and Group Chief                                             
          Underwriting Officer)                                                
                                                                               
5.    Indicate whether the notification 6.    Description of shares (including 
      is in respect of a holding of the       class), debentures or derivatives
      person referred to in 3 or 4            or financial instruments relating
      above or in respect of a                to shares                        
      non-beneficial interest                                                  
                                               1. Lancashire Holdings Limited  
      Persons referred to at 3 above.             ("LHL")Restricted Share Scheme 
                                                  Award and LHL Restricted Share
                                                  Scheme Awwards Bonus Deferral
                                                  Plan. 
                                               2. Lancashire Holdings Limited  
                                                  ("LHL")Restricted Share Scheme 
                                                  Award    
                                                                               
7.    Name of registered shareholder(s) 8.    State the nature of the          
      and, if more than one, the number       transaction                      
      of shares held by each of them                                           
                                               1. Exercise of 417,848          
       1. Richard Brindle                         Restricted Share             
                                                                               
       2. Alex Maloney                        Awards granted as nil-cost       
                                              options over                     
                                                                               
                                              common shares of US$0.50 each, of
                                                                               
                                              which (350,625) were granted     
                                              under                            
                                                                               
                                              the Lancashire Holdings Limited  
                                                                               
                                              Restricted Share Scheme and      
                                              (67,223)                         
                                                                               
                                              were granted under the Lancashire
                                                                               
                                              Holdings Limited Restricted Share
                                                                               
                                              Scheme Awards Bonus Deferral Plan
                                                                               
                                              and subsequent related sale of   
                                              217,716                          
                                                                               
                                              resultant shares to cover tax    
                                              liabilities                      
                                                                               
                                               2. Exercise of 70,125 Restricted
                                                  Share                        
                                                                               
                                              Awards granted as nil-cost       
                                              options over                     
                                                                               
                                              common shares of US$0.50 each    
                                                                               
                                              which were granted under the     
                                                                               
                                              Lancashire Holdings Limited      
                                                                               
                                              Restricted Share Scheme and the  
                                                                               
                                              subsequent related sale of 36,538
                                                                               
                                              resultant shares to cover tax    
                                              liabilities                      
                                                                               
9.    Number of shares, debentures or   10.   Percentage of issued class       
      financial instruments relating to       acquired (treasury shares of the 
      shares acquired                         class should not be taken into   
                                              account when calculating         
      (1) 417,848                             percentage)                      
                                                                               
      (2) 70,125                              (1) 0.2625%                      
                                                                               
                                              (2) 0.0441%                      
                                                                               
11.   Number of shares, debentures or   12.   Percentage of issued class       
      financial instruments relating to       disposed (treasury shares of the 
      shares disposed                         class should not be taken into   
                                              account when calculating         
      (1) 217,716 (sold in order to           percentage)                      
      cover tax                                                                
                                               1. 0.1368%                      
      liabilities arising out of the                                           
      exercise                                 2. 0.0230%                      
                                                                               
      of the shares as noted in 8 (1)                                          
                                                                               
      above)                                                                   
                                                                               
      (2) 36,538 (sold in order to                                             
      cover tax                                                                
                                                                               
      liabilities arising out of the                                           
      exercise                                                                 
                                                                               
      of the shares as noted in 8 (2)                                          
      above)                                                                   
                                                                               
13.   Price per share or value of       14.   Date and place of transaction    
      transaction                                                              
                                              (1) 27 February 2012 - London,   
      (1) £7.763208 per share                 England                          
                                                                               
      (2) £7.763208 per share                 (2) 27 February 2012 - London,   
                                              England                          
                                                                               
15.   Total holding following           16.   Date issuer informed of          
      notification and total percentage       transactions                     
      holding following notification                                           
      (any treasury shares should not         27 February 2012                 
      be taken into account when                                               
      calculating percentage)                                                  
                                                                               
      (1) 924,732 common shares 0.5810%                                        
      *                                                                        
                                                                               
      (2) 191,415 common shares 0.1203%                                        
      **                                                                       
                                                                               
      *of which 23,521 shares represent                                        
      forfeitable shares awarded on 25                                         
      March 2010 pursuant to a                                                 
      Lancashire Holdings Limited bonus                                        
      deferral scheme                                                          
                                                                               
      **of which 10,252 shares                                                 
      represent forfeitable shares                                             
      awarded on 25 March 2010 pursuant                                        
      to a Lancashire Holdings Limited                                         
      bonus deferral scheme                                                    

If a person discharging managerial responsibilities has been granted options by
the issuer complete the following boxes

17.   Date of grant                     18.   Period during which or date on   
                                              which exercisable                
                                                                               
19.   Total amount paid (if any) for    20.   Description of shares or         
      grant of the option                     debentures involved (class and   
                                              number)                          
                                                                               
21.   Exercise price (if fixed at time  22.   Total number of shares or        
      of grant) or indication that            debentures over which options    
      price is to be fixed at the time        held following notification      
      of exercise                                                              

23.   Any additional information        24.   Name of contact and telephone    
                                              number for queries               
      In addition to the securities                                            
      noted in question 15 above,             Jonny Creagh-Coen + 44 (0) 207   
      Richard Brindle also holds the          264 4066                         
      following interests in the                                               
      Company:                                                                 
                                                                               
      Restricted Share Scheme Awards                                           
      Bonus Deferral Plan- 191,938                                             
      (subject to time and employment                                          
      conditions only)                                                         
                                                                               
      Restricted Share Scheme Awards-                                          
                                                                               
      687,741***                                                               
                                                                               
      Time vesting warrants - 5,625,                                           
      217                                                                      
                                                                               
      Performance warrants - 741,965                                           
                                                                               
      Founder Warrants - 46,260                                                
                                                                               
      In addition to the securities                                            
      noted in question 15 above, Alex                                         
      Maloney also holds the following                                         
      interests in the Company:                                                
                                                                               
      Restricted Share Scheme Awards                                           
      Bonus Deferral Plan- 41,105                                              
      (subject to time and employment                                          
      conditions only)                                                         
                                                                               
      Restricted Share Scheme Awards-                                          
                                                                               
      332,448***                                                               
                                                                               
      ***Pursuant to the Rules of the                                          
      Restricted Share Scheme, the                                             
      number of shares that will                                               
      actually vest depends on the                                             
      satisfaction of certain                                                  
      conditions including employment,                                         
      performance and time conditions.                                         
                                                                               
      N.B: Richard Brindle and Alex                                            
      Maloney have only sold the number                                        
      of shares required to cover tax                                          
      liabilities and both have                                                
      retained the remainder of the                                            
      resulting shares.                                                        

Name of authorised official if issuer making notification                      
                                                                               
Christopher Head                                                               
                                                                               
Assistant Company Secretary                                                    
                                                                               
28 February 2012