Director/PDMR Shareholding

28 May 2009

Lancashire Holdings Limited (the "Company")

Notification of share transactions by Directors and Persons Discharging
Managerial Responsibility ("PDMRs")

This disclosure relates to transactions notified in accordance with DTR 3.1.4R(1)
(a).

1. Exercise of Long Term Incentive Plan (LTIP) options

The following Directors and PDMRs acquired shares as detailed below following a
cashless exercise of options over the common shares of US$0.50 each awarded
under the Company's Long Term Incentive Plan adopted by the Company's
shareholders on 7 December 2005 and subsequently amended by the Company's
shareholders on 4 January 2008 (the "Options").

Name         Status   Number of  Number of Exercise  Total        Total       
                      Options    shares    price     holding      percentage  
                      exercised  allotted            following    holding     
                                                     notification following   
                                                                  notification
                                                                              
Richard      Director   285,945   106,861  £2.69105      536,926      (0.31%)
Brindle                                                                       
                                                                              
Neil         Director   250,000   110,168  £2.69105      157,668      (0.09%)
McConachie                                                                    
                                                                              
Greg Lunn    PDMR        95,316    42,120  £2.69105          N/A         N/A
                                                                              
Alex Maloney PDMR        95,000    41,980  £2.69105          N/A         N/A

The Company was notified on 27 May 2009 that these transactions took place in
London on 27 May 2009.

Following this notification the Directors and PDMRs named above hold the
following options and warrants:

Total number of conditional share awards under the Restricted Share Scheme held
following notification:
Richard Brindle - 712,132
Neil McConachie - 222,661
Greg Lunn - 125,849
Alex Maloney - 161,556

Total number of options granted under Long Term Incentive Plan held following
notification:
Richard Brindle - 626,577
Neil McConachie - 458,348
Greg Lunn - 181,771
Alex Maloney - 307,087

Total number of time vesting warrants held following notification:
Richard Brindle - 7,625,217
Neil McConachie - 770,870
Greg Lunn - 317,717
Alex Maloney - 397,147

Total number of performance warrants held following notification:
Richard Brindle - 1,556,032
Neil McConachie - 389,008
Greg Lunn - 175,054
Alex Maloney - 199,366

2. Sale and Purchase of Shares

On 26 May 2009, John Bishop, a Non-executive Director of the Company, sold
2,458 common shares of US$0.50 each at a price of £4.8075 each, held in a SIPP
(Self-invested Personal Pension) and purchased 2,458 common shares of US$0.50
each at a price of £4.82 each, which are held in his main equity account.
Following this notification, John Bishop holds a total of 4,807 common shares
of US$0.50 each, representing 0.002% of the total voting rights of the Company.

The Company was notified on 27 May 2009 that these transactions took place in
London on 26 May 2009.

For further information, please contact:

Lancashire Holdings                                                          
Jonny Creagh-Coen              [phone]                  
Greg Lunn                      [phone]                       

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 the main market of the London Stock Exchange 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.lancashiregroup.com.