Lancashire Holdings Limited Announces US$350 Million Credit Facility

Hamilton, Bermuda: 10 April 2012 - Lancashire Holdings Limited ("Lancashire") today announced that on 05 April 2012, it and its wholly owned subsidiary Lancashire Insurance Company Limited entered into a new US$350 million five year letter of credit and revolving facility (the “Facility”) with Lloyds TSB Bank PLC (“Lloyds TSB”) as administrative agent and issuing bank and Barclays Bank PLC  ("Barclays") as syndication agent.  The Facility is a renewal of expiring capacity for the group.

The letters of credit will be used to support obligations under reinsurance liabilities of Lancashire Insurance Company Limited.

Denise O’Donoghue, Lancashire's Corporate Finance Officer, commented “The Lancashire group is very pleased to have the continued support of Lloyds TSB and Barclays, both leading financial institutions. This renewal allows Lancashire to maintain financial flexibility and strength for our clients.”

Richard Askey, Relationship Director at Lloyds TSB, added: “We are delighted to have worked with Lancashire on this transaction and to continue to provide a financing structure to support the Lancashire group. This new facility represents a further consolidation of our relationship with the Lancashire group.”

For further information, please contact:

Regards,

Shavon Edwards

Assistant Company Secretary

Lancashire Insurance Company Limited

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

Direct: 1-441-278-8405

Blackberry: 1-441-535-8915