Share Repurchase

Lancashire Holdings Limited
12 November 2007



Lancashire Holdings Limited

Hamilton, Bermuda

12 November 2007


Share Repurchase


Lancashire Holdings Limited (the 'Company') announces today that following the
market close on 9 November 2007 it agreed to purchase for cancellation 6,026,925
of its common shares of US$0.50 par value per share (the 'Common Shares') at a
price of 354.5 pence per Common Share in an off-market transaction as part of
its $100 million share repurchase programme. The total purchase price was $45.1
million. Following the repurchase the issued share capital of the Company will
be 189,897,086 Common Shares.


The sellers are SAB Capital Partners, L.P., SAB Capital Partners II, L.P., and
SAB Overseas Master Fund, L.P. (together, 'SAB'). As a result of the repurchase
SAB is no longer a significant shareholder in the Company.


Richard Brindle, Chief Executive Officer, commented:


'We are pleased to have completed this transaction with one of our founding
shareholders. We have a further $54.9 million remaining under our existing share
repurchase authorisation. We will consider further opportunities to repurchase
shares at attractive prices, both from founding shareholders and through open
market transactions over the coming months.'



For further information, please contact:

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

Financial Dynamics                   [phone]
Nick Henderson


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.

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.








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