Share Repurchase Programme Update
Lancashire Holdings Limited
("Lancashire" or the "Company")
13 September 2010
Hamilton, Bermuda
Share Repurchase Programme Update
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES,
CANADA, AUSTRALIA OR JAPAN OR IN OR INTO ANY JURISDICTION WHERE SUCH ACTION
WOULD BREACH ANY APPLICABLE LAW
On 5 May 2010 it was announced that the Company's shareholders had at the
Annual General Meeting held on 4 May 2010 (the "AGM"), approved Lancashire
making one or more purchases of its issued Common Shares of US$0.50 each in the
Company ("Shares") up to a maximum number of 18,250,306 Shares (representing
approximately 10% of issued Share capital of the Company or $150 million as at
the date of the notice of the AGM) (the "Repurchase Programme"). Since the AGM
the Company has repurchased 10,208,480 of its issued common shares under the
Repurchase Programme.
Further to the aforementioned announcement, Lancashire today announces that it
has entered into an arrangement with Numis Securities Limited ("Numis") to
repurchase Shares on its behalf and within certain pre-set parameters under the
Repurchase Programme from 13 September 2010. Numis has been granted the
authority to repurchase shares up to an aggregate value, including costs, of
$25 million. The repurchased shares will be cancelled.
The maximum price (exclusive of expenses payable by the Company) which may be
paid for a Share shall be the higher of:(i) 5% above the average of the closing
middle market quotations for a Share for the 5 business days immediately
preceding the day on which the Share is contracted to be purchased; and (ii)
the higher of the price of the last independent trade and the highest current
independent bid for the Shares on the London Stock Exchange at the time of
purchase as stipulated by Article 5(1) of the Commission Regulation (EC)
No.2273/2003 of 22 December 2003 implementing the Market Abuse Directive
(Directive 2003/6/EC of the European Parliament and of the Council) as regards
exemptions for buy-back programmes and stabilisation of financial instruments.
Given the low level of liquidity of the Shares on the London Stock Exchange,
the Company's broker has informed the Financial Services Authority and the
Company hereby announces that it may purchase more than the threshold of 25% of
the average daily volume traded of the Shares over the 20 trading days
preceding the date of purchase ("Volume") up to a maximum of 50% of the Volume.
This arrangement is in accordance with Listing Rules 12.2.1R and 12.4 of the
Listing Rules and the Company's general authority to repurchase shares.
For further information, please contact:
Lancashire Holdings + 44 (0)20 7264 4066
Jonny Creagh-Coen
Greg Lunn
Numis Securities Limited +44 (0)20 7260 1000
Charles Farquhar
Ben Stoop
Haggie Financial +44 (0)20 7417 8989
Peter Rigby
Charlotte Ens
This announcement does not constitute an invitation or offer to buy any
securities of the Company. None of the securities referred to in this
announcement shall be sold, issued, exchanged or transferred in any
jurisdiction in contravention of applicable laws.
This announcement is not an offer in or into the United States.
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 positive outlook and an A minus financial strength rating from Standard
& Poor's ("S&P") with a stable outlook. Lancashire has capital in excess of
$1 billion and its Common Shares trade on the main market of the London Stock
Exchange under the ticker symbol LRE. Lancashire is headquartered at Power
House, 7 Par-la-Ville Road, Hamilton HM 11Bermuda. 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
NOTE REGARDING FORWARD-LOOKING STATEMENTS:
CERTAIN STATEMENTS AND INDICATIVE PROJECTIONS (WHICH MAY INCLUDE MODELED LOSS
SCENARIOS) MADE THAT ARE NOT BASED ON CURRENT OR HISTORICAL FACTS ARE
FORWARD-LOOKING IN NATURE INCLUDING WITHOUT LIMITATION, STATEMENTS CONTAINING
THE WORDS 'BELIEVES', 'ANTICIPATES', 'PLANS', 'PROJECTS', 'FORECASTS',
'GUIDANCE', 'INTENDS', 'EXPECTS', 'ESTIMATES', 'PREDICTS', 'MAY', 'CAN',
'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, CAPITAL MANAGEMENT PLANS,
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 FACTORS INCLUDE, BUT ARE NOT LIMITED TO: THE NUMBER AND TYPE OF INSURANCE
AND REINSURANCE CONTRACTS THAT WE WRITE; THE PREMIUM RATES AVAILABLE AT THE
TIME OF SUCH RENEWALS WITHIN OUR TARGETED BUSINESS LINES; THE LOW FREQUENCY OF
LARGE EVENTS; UNUSUAL LOSS FREQUENCY; THE IMPACT THAT OUR FUTURE OPERATING
RESULTS, CAPITAL POSITION AND RATING AGENCY AND OTHER CONSIDERATIONS HAVE ON
THE EXECUTION OF ANY CAPITAL MANAGEMENT INITIATIVES; THE POSSIBILITY OF GREATER
FREQUENCY OR SEVERITY OF CLAIMS AND LOSS ACTIVITY THAN OUR UNDERWRITING,
RESERVING OR INVESTMENT PRACTICES HAVE ANTICIPATED; THE RELIABILITY OF, AND
CHANGES IN ASSUMPTIONS TO, CATASTROPHE PRICING, ACCUMULATION AND ESTIMATED LOSS
MODELS; LOSS OF KEY PERSONNEL; A DECLINE IN OUR OPERATING SUBSIDIARIES' RATING
WITH A.M. BEST COMPANY AND/OR OTHER RATING AGENCIES; INCREASED COMPETITION ON
THE BASIS OF PRICING, CAPACITY, COVERAGE TERMS OR OTHER FACTORS; A CYCLICAL
DOWNTURN OF THE INDUSTRY; THE IMPACT OF A DETERIORATING CREDIT ENVIRONMENT
CREATED BY THE FINANCIAL MARKETS; A RATING DOWNGRADE OF, OR A MARKET DECLINE
IN, SECURITIES IN OUR INVESTMENT PORTFOLIO; CHANGES IN GOVERNMENTAL REGULATIONS
OR TAX LAWS IN JURISDICTIONS WHERE LANCASHIRE CONDUCTS BUSINESS; LANCASHIRE OR
ITS BERMUDIAN SUBSIDIARY BECOMING SUBJECT TO INCOME TAXES IN THE UNITED STATES
OR THE UNITED KINGDOM; AND THE EFFECTIVENESS OF OUR LOSS LIMITATION METHODS.
ANY ESTIMATES RELATING TO LOSS EVENTS INVOLVE THE EXERCISE OF CONSIDERABLE
JUDGEMENT AND REFLECT A COMBINATION OF GROUND-UP EVALUATIONS, INFORMATION
AVAILABLE TO DATE FROM BROKERS AND INSUREDS, MARKET INTELLIGENCE, INITIAL AND/
OR TENTATIVE LOSS REPORTS AND OTHER SOURCES. JUDGEMENTS IN RELATION TO LOSS
ARISING FROM NATURAL CATASTROPHE AND MAN MADE EVENTS INVOLVE COMPLEX FACTORS
POTENTIALLY CONTRIBUTING TO THESE TYPES OF LOSS, AND WE CAUTION AS TO THE
PRELIMINARY NATURE OF THE INFORMATION USED TO PREPARE ANY SUCH ESTIMATES.
THESE FORWARD-LOOKING STATEMENTS SPEAK ONLY AS AT THE DATE OF PUBLICATION.
LANCASHIRE HOLDINGS LIMITED EXPRESSLY DISCLAIMS ANY OBLIGATION OR UNDERTAKING
(SAVE AS REQUIRED TO COMPLY WITH ANY LEGAL OR REGULATORY OBLIGATIONS (INCLUDING
THE RULES OF THE LONDON STOCK EXCHANGE)) TO DISSEMINATE ANY UPDATES OR
REVISIONS TO ANY FORWARD-LOOKING STATEMENTS TO REFLECT ANY CHANGES IN THE
GROUP'S EXPECTATIONS OR CIRCUMSTANCES ON WHICH ANY SUCH STATEMENT IS BASED.
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