Lancashire Holdings Ltd - Transaction In Own Shares During Close Period

Hamilton, Bermuda - 21 December, 2009 - Lancashire Holdings Limited ("Lancashire" or "the Company") (Ticker: LHL.BH) announces that, as the Company will shortly be entering a close period, in connection with its share buy-back programmes which were announced on 29 April 2008 and 5 November 2009 (the "Repurchase Programme") the Company has entered into an irrevocable non-discretionary arrangement with Execution Limited ("Execution") to repurchase on its behalf and within certain pre-set parameters, Common Shares of US$0.50 each in the Company from 23 December 2009 until the earlier of the completion of the Repurchase Programme or the Company's announcement of its 2009 results. 

Execution has been granted the authority to repurchase shares up to an aggregate value, including costs, of $35 million. The repurchased shares will be held initially as Treasury Shares.

This arrangement is in accordance with Rules 12.2.1R and 12.4.4R of the Listing Rules and the Company's general authority to repurchase shares.

The Company confirms that it currently has no unpublished price sensitive information.

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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.