Lancashire Holdings Ltd – Q1 2011 Reported Losses and Japanese Earthquakes and Tsunami Update

Hamilton, Bermuda – 15 March, 2011 - Lancashire Holdings Limited (“Lancashire” or “the Company”; Ticker: LHL BH) announces that to date in the first quarter of 2011  the Company's operating subsidiaries have pre-tax net losses estimated to be in the range of US$45 million to US$55 million  (net of reinstatement premiums and reinsurance) for prospective property losses arising from the 22 February 2011 Christchurch, New Zealand earthquake, the recent Australian weather related events (the New Zealand and Australian  events combined account for estimated losses in the range of US$15 million to US$25 million), an energy loss in the UK sector of the North Sea, and losses in the group's terrorism portfolio arising from the recent political unrest in Egypt.  Actual losses may differ from the estimated range.

The Company is monitoring its  potential underwriting exposures in Japan and the Pacific region to the earthquakes and tsunami centred off the north east coast of Japan, which took place on 11 March 2011, and  which have resulted in the tragic loss of life  and significant property damage.  The Company believes that it is premature to estimate a meaningful indicative reserving range for these events or the resulting impact on first quarter results, reinstatement premiums or market pricing.  A further announcement will be made once information becomes available to make a more informed estimate of the expected losses.

For further information, please contact:

Lancashire Holdings Limited

Christopher Head        +44 (0)20 7264 4145              chris.head@lancashiregroup.com

Jonny Creagh-Coen   +44 (0)20 7264 4066             

jonny.creagh-coen@lancashiregroup.com

Haggie Financial         +44 (0)20 7417 8989

Peter Rigby     (Peter Rigby mobile 07803851426)

About Lancashire

Lancashire, through its UK and Bermuda-based insurance subsidiaries, is a global provider of specialty insurance products.

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.