Lancashire Holdings Ltd - Transaction In Own Shares

Hamilton, Bermuda - 09 December, 2009 - Lancashire Holdings Limited ("Lancashire" or "the Company") (Ticker: LHL.BH) announces that on 8 December 2009, it purchased 185,000 Common Shares at an average price of 425.67 pence per share ($6.94 per share at the current exchange rate).

The highest price and the lowest price paid for these shares were 428.9 pence and 423.4 pence, respectively. All the purchased shares will be held as Treasury shares.

The Company further announces that on 9 December 2009, it purchased 140,000 Common Shares at an average price of 424.08 pence per share ($6.87 per share at the current exchange rate).

The highest price and the lowest price paid for these shares were 429.5 pence and 420.1 pence, respectively. All the purchased shares will be held as Treasury shares.

 
Following the above purchases, the Company holds 11,477,168 Common Shares in Treasury.

The Company has 171,025,895 Common 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.

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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 and its Common Shares trade on the main market of the London Stock Exchange 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