Lancashire announces Underwriting Promotions

Lancashire Holdings Limited                          

16th December 2008
Hamilton, Bermuda

                 LANCASHIRE ANNOUNCES UNDERWRITING PROMOTIONS                  

Lancashire Holdings Limited ("Lancashire" or "the Company") today announced the
following promotions in the underwriting team at the group and operating
company levels.

At the Lancashire group level Alex Maloney becomes Group Underwriting Director.

In London at Lancashire Insurance Company (UK) Limited ("LUK"), Paul Gregory
becomes Chief Underwriting Officer. Simon Thurgood has been promoted to Head of
Terrorism, War and Political Risk. Reporting to Simon, Chris Wilkinson has been
promoted to Underwriter, Terrorism, War and Political Risk. Clare Bailey has
been appointed Head of Property.

Simon Fascione has been promoted to Underwriting Manager at Lancashire
Insurance Company Limited ("LICL") in Bermuda. Simon will report to Charles
Mathias, LICL's Chief Underwriting Officer.

All appointments are subject to obtaining the relevant regulatory and
immigration approvals in Bermuda and London.

Richard Brindle, the Group Chief Executive Officer, commented:

"These appointments are a reflection of the faith we have in our people as we
move into our fourth year of operation. Alex Maloney has been with us since
Lancashire started in late 2005 and was formerly CUO of LUK. His diligence,
enthusiasm and leadership qualities can now be fully brought to bear on the
implementation of the Lancashire group underwriting strategy through the
hardening market and beyond.

Paul Gregory has demonstrated leadership potential and he is welcomed to the
management team at LUK. Clare Bailey's assumption of responsibility for the
property book at LUK is an endorsement of our confidence in her. The promotions
of Simon Thurgood and Chris Wilkinson are a reflection of the considerable
success they have had in building LUK's presence in the terrorism, war and
political risk arena.

Under Charles Mathias' experienced tutelage, Simon Fascione has emerged as a
key bridge between Lancashire's underwriters and modelers. In his new role as
Underwriting Manager at LICL we will be able to use Simon's grounding in the
analytical side of the business to greater effect."

For further information, please contact:

Lancashire Holdings                                                            
Jonny Creagh-Coen                       [phone]                   
Greg Lunn                               [phone]                        
                                                                               
Financial Dynamics                      [phone]                   
Rob Bailhache                                                                  
Nick Henderson                                                                 

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.