Lancashire Holdings Ltd Transaction In Own Shares

Hamilton, Bermuda: 5 June 2008 -- Lancashire Holdings Ltd announces that it has purchased 200,000 Ordinary Shares at an average price of 322.97 pence per share.

The highest price and the lowest price paid for these shares were 324.00 pence and 321.50 pence respectively. All the purchased shares will be held as Treasury shares. 
 
Following the above purchase, the Company holds 2,818,590 Ordinary Shares in Treasury. 

The Company has 179,464,505 Ordinary Shares in issue (excluding Treasury shares).

The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Disclosure and Transparency Rules.

For further information, please contact:

Lancashire Holdings Limited

Greg Lunn                       +1 441 278 8950

Financial Dynamics                                                                  

Rob Bailhache                +44 20 7269 7200

Nick Henderson  

Merrill Lynch International

Marcus Jackson              +44 20 7628 1000

Numis Securities

Charles Farquhar            +44 20 7260 1233                       

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