Holding(s) in Company

Lancashire Holdings Limited
25 July 2006


                          Lancashire Holdings Limited


Hamilton, Bermuda, 25 July 2006


   LANCASHIRE HOLDINGS LIMITED TRANSFERS OF OWNERSHIP, NOTIFICATION OF MAJOR
                              INTERESTS IN SHARES


Lancashire Holdings Limited (the 'Company') today announced that on 24 July 2006
it received a request from Cypress Lancashire Partners LP to distribute to its
beneficial owners 9,690,000 of the Company's Common Shares of US$0.50 each (the
'Common Shares') held by the partnership. Cypress Lancashire Partners L.P. is a
private equity fund that was established specifically for the purpose of
investing in the Company.

The requested transfers were routine distributions to the beneficial owners of
Cypress Lancashire Partners L.P., following the termination of certain lock-up
restrictions over the Common Shares that were lifted on 16 June 2006. The
transfers do not result in a change of beneficial ownership in the Common
Shares.

As a result of the transfers Cypress Lancashire Partners L.P. no longer has a
disclosable interest in the issued Common Shares of the Company either under the
Company's bye-laws or the AIM Rules. The transfers took place on 25 July 2006.

For further information, please contact:

Lancashire Holdings 
Greg Lunn            [phone]

Financial Dynamics 
Robert Bailhache     [phone]
Nick Henderson       [phone] 

www.lancashire.bm


About Lancashire

The Company was established in 2005 as a new insurance and reinsurance business
to take advantage of the favorable underwriting conditions expected to arise
from the large insured losses incurred in 2004 and 2005. The Company has an A.M.
Best rating of A- (Excellent) with a stable outlook.


Lancashire was admitted to AIM on 16 December 2005 following an offer of Common
Shares to investors. The Common Shares trade on AIM under the ticker symbol LRE.


                   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 ACHIEVMENTS
EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. THESE FORWARD-LOOKING
STATEMENTS SPEAK ONLY AS AT THE DATE OF 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 OR CIRCUMSTANCES ON WHICH ANY SUCH STATEMENT IS BASED.



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