Lancashire Holdings Limited Notifiable Interest, Director Dealing

Hamilton, Bermuda: 5 October 2007 -- Lancashire Holdings Limited ("Lancashire") was advised on 2nd October 2007 that The Cawood Foundation, Inc., Frank W. Cawood & Associates, Inc. and certain other related private trusts, have a notifiable ownership interest in aggregate in 7,665,624 shares of Lancashire's common shares of US$0.50 par value each ("common shares") representing approximately 3.91% of the total issued share capital of Lancashire.

Lancashire was separately advised on 4th October 2007 that a member of William Spiegel's family purchased 7,000 Lancashire common shares. The purchase took place on 20th September 2007.

William Spiegel is a non-executive Director of Lancashire who holds 63,240 common shares and founder's warrants over 481,182 common shares.

Rob Bailhache

Nick Henderson

Michael Herley +1 212 521 4897

Mark Semer +1 212 521 4802

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.