Lancashire Holdings Ltd – Director Appointment And Proposed Change Of Chief Financial Officer

Hamilton, Bermuda – 09 November, 2010 - Lancashire Holdings Limited (“Lancashire” or “the Company”; Ticker: LHL BH) announces the appointment of Alex Maloney as a director of Lancashire. The appointment was made on 5 November, 2010.  Alex joined Lancashire in December 2005 and, as the Group Chief Underwriting Officer, now leads underwriting operations.

Lancashire also announces that it will appoint Elaine Whelan as Chief Financial Officer (“CFO”) of Lancashire, with effect from 1 January 2011 for the new fiscal year, subject to the approval of the Bermuda Department of Immigration and a change to the Company’s Bye-laws*.  Elaine will replace Neil McConachie as CFO.  Neil became President of Lancashire in 2009 and will continue in that role. He will remain as CFO until Elaine’s formal appointment.

Martin Thomas, Lancashire´s Chairman, said:

 "I am very pleased to welcome Alex Maloney to the Board, where his underwriting expertise will be of great benefit to the conduct of our business.  Elaine Whelan’s appointment as CFO is a timely recognition of her talents, and marks a further strengthening of the senior management team.”

Richard Brindle, the Company’s Chief Executive Officer commented:

“We are delighted to announce that Elaine is to become Lancashire’s Chief Financial Officer and Alex's membership of the Lancashire Board. Both have been important to the success of Lancashire in its first five years. Alex has made an outstanding all round contribution, particularly in the area of underwriting, and our Board will benefit from his talents and insight. Elaine has been with us since just after Lancashire’s inception, and has demonstrated exceptional dedication and capability as Group Financial Controller and latterly as Deputy Group CFO. Over the past five years, Elaine has developed extensive experience in the range of skills required of a high caliber CFO and we look forward to her assumption of primary responsibility for the finance function. Elaine will continue to report to Neil McConachie, Group President, and her appointment allows Neil to concentrate more on his existing role as President, in particular the co-ordination of group-wide operations.”

*The Company's Bye-laws currently require that the Chief Financial Officer of the Company should also be a Director.  A proposal to amend the Bye-laws to allow for the appointment of a Chief Financial Officer who is not also a Director will be put to the shareholders at a Special General Meeting to be held before the end of 2010.

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About Lancashire

Lancashire, through its UK and Bermuda-based insurance subsidiaries, is a global provider of specialty insurance products. The Group companies carry the following ratings:

^{(1)Financial Strength Rating applies to Lancashire Insurance Company Limited and Lancashire Insurance Company (UK) Limited}

^{(2) Long Term Issuer Rating applies to Lancashire Holdings Limited}

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 Power House, 7 Par-la-Ville Road, Hamilton HM 11, 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

Lancashire Insurance Company (UK) Limited is regulated by the Financial Services Authority in the UK.

Lancashire Marketing Services (Middle East) Limited is authorised and regulated by the Dubai Financial Services Authority.

Lancashire Insurance Company Limited is regulated by the Bermuda Monetary Authority in Bermuda.