Lancashire Holdings Ltd – Japanese Earthquakes and Tsunami Update - Preliminary loss estimates

Hamilton, Bermuda – 22 April, 2011 - Lancashire Holdings Limited (“Lancashire” or “the Company”; Ticker: LHL BH) announced that it currently estimates the net impact on its first quarter financial results from the Tohoku earthquake and resulting tsunami will be approximately $75 million. This estimate is based on an industry loss of $25 billion, Lancashire’s own internal assessment and the limited amount of information received to date from brokers and clients. Lancashire’s estimated loss represents 68% and 37% of its 1 in 100 year and 1 in 250 year Japan earthquake net probable maximum losses, respectively, based on its portfolio at 1^st January 2011 (as disclosed in the Company's financial supplement, available on its website).

As additional information emerges, the Company’s actual ultimate loss may vary, perhaps materially, from today’s estimate. In particular, the ultimate loss incurred by Japanese co-operative mutual companies could significantly impact the industry loss, and the ultimate loss incurred by Lancashire.

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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.