LANCASHIRE HOLDINGS LIMITED                          

    7 July 2016

    London, UK

                    Director Changes at Lancashire Holdings Limited                

    Lancashire Holdings Limited ("Lancashire" or the "Company") today announces the
    appointment of Robert Lusardi as a Non-Executive Director to take effect on 8
    July 2016. Lancashire also announces that Emma Duncan has decided to step down
    as a Non-Executive Director on the Lancashire Board at the same time, following
    the completion of almost six years' service on the Board.

    Robert Lusardi has spent his career as a senior executive in the financial
    services industry. Having started his career with Lehman Brothers, ultimately
    as Managing Director in charge of the insurance and asset management practices,
    between 1998 and 2005 Robert was a member of the Executive Management Board of
    XL Group plc ("XL"), serving variously as Group CFO and as CEO of one of XL's
    three operating divisions. From 2005 until 2010 he was an executive vice
    president of White Mountains and CEO of certain subsidiaries. Between 2010 and
    2015 Robert served as CEO of PremieRe Holdings LLC, a private insurance
    entity.  He is a director of Symetra Financial Corporation, which was listed on
    the New York Stock Exchange until February 2016. He has been a director of a
    number of insurance related entities including the prior New York Stock
    Exchange listed Primus Guaranty Ltd and currently listed OneBeacon Insurance
    Group Ltd. Robert has also been Chairman of Pentelia Ltd. (a third party
    capital insurance investment manager) and Pareto Partners Ltd. (a currency
    overlay investment manager) and is on the board of Oxford University's US
    charitable 501(c)3 entity.

    Peter Clarke, Lancashire's Chairman, said:

    "We are delighted to welcome Robert to Lancashire as a Non-Executive Director.
    Robert further strengthens the Lancashire Board with his in-depth experience of
    the insurance markets and his first hand leadership skills and experience. The
    Board has appointed Robert as a member of our Audit, Remuneration and
    Investment Committees.

    I would also like to thank Emma for her loyal service and insightful
    contributions as a member of our Board over many years and in helping to direct
    and shape Lancashire as a business which has achieved sector leading results. 
    We have benefitted from Emma's deep knowledge of economic affairs and her
    frequent seminars with our employees in both London and Bermuda to discuss
    current global issues.  We wish Emma well for the future."

    For further information, please contact:

    Lancashire Holdings Limited                                            
    Christopher Head                    +44 20 7264 4145                   
                                        chris.head@lancashiregroup.com     
                                                                           
    Jonny Creagh-Coen                   +44 20 7264 4066                   
                                        jcc@lancashiregroup.com            
                                                                           
    Haggie Partners                     +44 20 7562 4444                   
                                                                           
    David Haggie                        (David Haggie mobile +44           
                                        7768332486)                        

    About Lancashire

    Lancashire, through its UK and Bermuda-based operating subsidiaries, is a
    global provider of specialty insurance and reinsurance products. The Group
    companies carry the following ratings:

                              Financial     Financial    Long Term                  
                              Strength      Strength     Issuer                     
                              Rating (1)    Outlook(1)   Rating (2)                 
                                                                                    
    A.M. Best                 A (Excellent) Stable       bbb                        
                                                                                    
    Standard & Poor's         A-            Positive     BBB                        
                                                                                    
    Moody's                   A3            Stable       Baa2                       

    (1)Financial Strength Rating and Financial Strength Outlook apply to Lancashire
    Insurance Company Limited and Lancashire Insurance Company (UK) Limited.

    (2) Long Term Issuer Rating applies to Lancashire Holdings Limited.

    Cathedral benefits from Lloyd's ratings: A.M. Best: A (Excellent); Standard &
    Poor's: A+ (Strong); and Fitch: AA- (Very Strong).

    Lancashire has capital in excess of $1.5 billion and its common shares trade on
    the premium segment of the Main Market of the London Stock Exchange under the
    ticker symbol LRE. Lancashire has its corporate headquarters and mailing
    address at 29th Floor, 20 Fenchurch Street, London EC3M 3BY, United Kingdom and
    its registered office at Power House, 7 Par-la-Ville Road, Hamilton HM 11,
    Bermuda.

    For more information on Lancashire and Lancashire's subsidiary and Lloyd's
    segment, Cathedral Capital Limited ("Cathedral"), visit Lancashire's website at
    www.lancashiregroup.com

    Lancashire Insurance Company Limited is regulated by the Bermuda Monetary
    Authority in Bermuda.

    Lancashire Insurance Company (UK) Limited is authorised by the Prudential
    Regulation Authority and regulated by the Financial Conduct Authority and the
    Prudential Regulation Authority in the UK.

    Kinesis Capital Management Limited is regulated by the Bermuda Monetary
    Authority in Bermuda.

    Cathedral Underwriting Limited is authorised by the Prudential Regulation
    Authority and regulated by the Financial Conduct Authority and the Prudential
    Regulation Authority in the UK. It is also authorised and regulated by Lloyd's.

    NOTE REGARDING FORWARD-LOOKING STATEMENTS:

    CERTAIN STATEMENTS AND INDICATIVE PROJECTIONS (WHICH MAY INCLUDE MODELED LOSS
    SCENARIOS) MADE IN THIS RELEASE OR OTHERWISE 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", "LIKELY",  "WILL", "SEEKS", "SHOULD", OR, IN EACH CASE, THEIR NEGATIVE
    OR COMPARABLE TERMINOLOGY. ALL SUCH STATEMENTS OTHER THAN STATEMENTS OF
    HISTORICAL FACTS INCLUDING, WITHOUT LIMITATION, THE GROUP'S FINANCIAL
    POSITION,  LIQUIDITY,  RESULTS OF OPERATIONS,  PROSPECTS,  GROWTH, CAPITAL
    MANAGEMENT PLANS AND EFFICIENCIES, ABILITY TO CREATE VALUE, DIVIDEND POLICY,
    OPERATIONAL FLEXIBILITY, COMPOSITION OF MANAGEMENT, 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 GROUP'S ABILITY TO INTEGRATE
    ITS BUSINESSES AND PERSONNEL; THE SUCCESSFUL RETENTION AND MOTIVATION OF THE
    GROUP'S KEY MANAGEMENT; THE INCREASED REGULATORY BURDEN FACING THE GROUP, THE
    NUMBER AND TYPE OF INSURANCE AND REINSURANCE CONTRACTS THAT THE GROUP WRITES OR
    MAY WRITE; THE GROUP'S ABILITY TO IMPLEMENT SUCCESSFULLY ITS BUSINESS STRATEGY
    DURING 'SOFT' AS WELL AS 'HARD' MARKETS; THE PREMIUM RATES WHICH MAY BE
    AVAILABLE AT THE TIME OF SUCH RENEWALS WITHIN THE GROUP'S TARGETED BUSINESS
    LINES; THE POSSIBLE LOW FREQUENCY OF LARGE EVENTS; POTENTIALLY UNUSUAL LOSS
    FREQUENCY; THE IMPACT THAT THE GROUP'S FUTURE OPERATING RESULTS, CAPITAL
    POSITION AND RATING AGENCY AND OTHER CONSIDERATIONS MAY HAVE ON THE EXECUTION
    OF ANY CAPITAL MANAGEMENT INITIATIVES OR DIVIDENDS; THE POSSIBILITY OF GREATER
    FREQUENCY OR SEVERITY OF CLAIMS AND LOSS ACTIVITY THAN THE GROUP'S
    UNDERWRITING, RESERVING OR INVESTMENT PRACTICES HAVE ANTICIPATED; THE
    RELIABILITY OF, AND CHANGES IN ASSUMPTIONS TO, CATASTROPHE PRICING,
    ACCUMULATION AND ESTIMATED LOSS MODELS; INCREASED COMPETITION FROM EXISTING
    ALTERNATIVE CAPITAL PROVIDERS, INSURANCE LINKED FUNDS AND COLLATERALISED
    SPECIAL PURPOSE INSURERS AND THE RELATED DEMAND AND SUPPLY DYNAMICS AS
    CONTRACTS COME UP FOR RENEWAL; THE EFFECTIVENESS OF THE GROUP'S LOSS LIMITATION
    METHODS; THE POTENTIAL LOSS OF KEY PERSONNEL; A DECLINE IN THE GROUP'S
    OPERATING SUBSIDIARIES' RATING WITH A.M. BEST, STANDARD & POOR'S, MOODY'S 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 FOR ISSUERS OF FIXED INCOME
    INVESTMENTS; THE IMPACT OF SWINGS IN MARKET INTEREST RATES AND SECURITIES
    PRICES; CHANGES BY CENTRAL BANKS REGARDING THE LEVEL OF INTEREST RATES; THE
    IMPACT OF INFLATION OR DEFLATION IN RELEVANT ECONOMIES IN WHICH WE OPERATE; THE
    EFFECT, TIMING AND OTHER UNCERTAINTIES SURROUNDING FUTURE BUSINESS COMBINATIONS
    WITHIN THE INSURANCE AND REINSURANCE INDUSTRIES; THE IMPACT OF TERRORIST
    ACTIVITY IN THE COUNTRIES IN WHICH WE WRITE RISKS; A RATING DOWNGRADE OF, OR A
    MARKET DECLINE IN, SECURITIES IN ITS INVESTMENT PORTFOLIO; CHANGES IN
    GOVERNMENTAL REGULATIONS OR TAX LAWS IN JURISDICTIONS WHERE THE GROUP CONDUCTS
    BUSINESS; ANY OF THE GROUP'S BERMUDIAN SUBSIDIARIES BECOMING SUBJECT TO INCOME
    TAXES IN THE UNITED STATES OR THE UNITED KINGDOM; THE INAPPLICABILITY TO THE
    GROUP OF SUITABLE EXCLUSIONS FROM THE UK CFC REGIME; AND ANY CHANGE IN UK
    GOVERNMENT POLICY WHICH IMPACTS THE CFC REGIME OR OTHER TAX CHANGES.

    ALL FORWARD-LOOKING STATEMENTS IN THIS RELEASE SPEAK ONLY AS AT THE DATE OF
    PUBLICATION. LANCASHIRE 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.