SOURCE: Lancashire Holdings Limited

November 28, 2006 08:13 ET

Lancashire Holdings Limited announces Dubai Subsidiary

Bermuda -- (MARKET WIRE) -- November 28, 2006 --

                          Lancashire Holdings Limited


Hamilton, Bermuda, 28th November 2006


                  LANCASHIRE MIDDLE EAST MARKETING SUBSIDIARY
Lancashire Holdings Limited ("Lancashire" or "the Company") today announced that it intends to incorporate a subsidiary in the Dubai International Financial Centre ("DIFC") and submit an application to the Dubai Financial Services Authority ("DFSA") seeking status for the new subsidiary as an authorised insurance intermediation firm.

The new company will allow Lancashire to market its UK and Bermuda-based insurance subsidiaries more effectively and efficiently in the region. Richard Brindle, Chief Executive Officer, commented:

"This application demonstrates our commitment to building the Lancashire brand. In the short term we do not anticipate any change to our existing forecasts. In the longer term having a presence in the Middle East will allow the Lancashire Group to grow a solid book of business that will complement our existing underwriting. Using the DIFC as our marketing centre to source the business, we intend to write non-catastrophe exposed engineering risks in the region and other lines such as energy. We have chosen the DIFC because it is the regional domicile of choice."

The application is subject to DFSA and DIFCA approval.

For further information, please contact:

Lancashire Holdings                         +1 441 278 8950
Greg Lunn

Financial Dynamics                          +44 20 7269 7200
Rob Bailhache
Nick Henderson

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 dollars and its Common Shares trade on AIM 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.lancashire.bm.

NOTE REGARDING FORWARD-LOOKING STATEMENTS

CERTAIN STATEMENTS MADE IN THIS ANNOUNCEMENT THAT ARE NOT BASED ON CURRENT OR HISTORICAL FACTS ARE FORWARD-LOOKING IN NATURE INCLUDING, WITHOUT LIMITATION, STATEMENTS CONTAINING WORDS 'BELIEVES', 'ANTICIPATES', 'PLANS', 'PROJECTS', 'INTENDS', 'EXPECTS', 'ESTIMATES', 'PREDICTS', 'MAY','WILL', 'SEEKS', 'SHOULD' OR, IN EACH CASE, THEIR NEGATIVE OR COMPARABLE TERMINOLOGY. ALL STATEMENTS OTHER THAN STATEMENTS OF HISTORICAL FACTS INCLUDING, WITHOUT LIMITATION, THOSE REGARDING THE GROUP'S FINANCIAL POSITION, RESULTS OF OPERATIONS, LIQUIDITY, PROSPECTS, GROWTH, BUSINESS STRATEGY, PLANS AND OBJECTIVES OF MANAGEMENT FOR FUTURE OPERATIONS (INCLUDING DEVELOPMENT PLANS AND OBJECTIVES RELATING TO THE GROUP'S INSURANCE BUSINESS) ARE FORWARD-LOOKING STATEMENTS. SUCH FORWARD- LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER IMPORTANT FACTORS THAT COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE GROUP TO BE MATERIALLY DIFFERENT FROM FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. THESE FORWARD-LOOKING STATEMENTS SPEAK ONLY AS AT THE DATE OF THIS ANNOUNCEMENT OR OTHER INFORMATION CONCERNED. LANCASHIRE HOLDINGS LIMITED EXPRESSLY DISCLAIMS ANY OBLIGATION OR UNDERTAKING (SAVE AS REQUIRED TO COMPLY WITH ANY LEGAL OR REGULATORY OBLIGATIONS (INCLUDING THE AIM RULES)) TO DISSEMINATE ANY UPDATES OR REVISIONS TO ANY FORWARD-LOOKING STATEMENTS CONTAINED HEREIN TO REFLECT ANY CHANGES IN THE GROUP'S EXPECTATIONS WITH REGARD THERETO OR ANY CHANGE IN EVENTS, CONDITIONS OR CIRCUMSTANCES ON WHICH ANY SUCH STATEMENT IS BASED.

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