Credit Facility

23rd May 2006 12:42

Lancashire Holdings Limited23 May 2006 Lancashire Holdings Limited Hamilton, Bermuda, 23 May 2006 LANCASHIRE ANNOUNCES US$350 MILLION CREDIT FACILITY Lancashire Holdings Limited today announced that it and its wholly ownedsubsidiary Lancashire Insurance Company Limited have entered into a US$350million three year letter of credit facility (the "Facility"). The letters of credit will be used to support obligations under reinsuranceliabilities of Lancashire Insurance Company Limited. The Facility also has aUS$75 million sub-limit for revolving loans which will be used for workingcapital and other corporate purposes. Neil McConachie, Chief Financial Officer and Chief Operating Officer, commented:"We are very pleased to have these leading financial institutions showing theirsupport for the Lancashire group. This facility boosts the long-term financialflexibility and strength we have committed to our clients." The Facility was arranged by Banc of America Securities LLC as Sole LeadArranger and Sole Book Manager. HSBC Bank USA, National Association and TheBank of New York are Co-Syndication agents. ING Bank N.V., London Branch andBarclays Bank PLC are Co-Documentation Agents. Bank of America, N.A. isAdministrative Agent, Fronting Bank and L/C Administrator. JPMorgan Chase Bank,N.A. and Bayerische Hypo und Vereinsbank AG, New York Branch are also lendersunder the Facility. For further information, please contact: Lancashire Holdings +1 441 278 8950Neil McConachie Financial Dynamics +44 20 7269 7200Rob BailhacheNick Henderson www.lancashire.bm About Lancashire Lancashire was established in 2005 as a new insurance and reinsurance businessto take advantage of the favourable underwriting conditions expected to arisefrom the large insured losses incurred in 2004 and 2005. The Company has anA.M. Best rating of A- (Excellent) with a stable outlook. Lancashire was admitted to AIM on 16 December 2005 following an Offer of CommonShares to investors. The Common Shares trade on AIM under the ticker symbolLRE. NOTE REGARDING FORWARD-LOOKING STATEMENTS CERTAIN STATEMENTS MADE IN THIS ANNOUNCEMENT OR ON THE CONFERENCE CALL THAT ARENOT BASED ON CURRENT OR HISTORICAL FACTS ARE FORWARD-LOOKING IN NATUREINCLUDING, WITHOUT LIMITATION, STATEMENTS CONTAINING WORDS "BELIEVES","ANTICIPATES", "PLANS", "PROJECTS", "INTENDS", "EXPECTS", "ESTIMATES","PREDICTS", "MAY", "WILL", "SEEKS", "SHOULD" OR, IN EACH CASE, THEIR NEGATIVE ORCOMPARABLE TERMINOLOGY. ALL STATEMENTS OTHER THAN STATEMENTS OF HISTORICALFACTS INCLUDING, WITHOUT LIMITATION, THOSE REGARDING THE GROUP'S FINANCIALPOSITION, RESULTS OF OPERATIONS, LIQUIDITY, PROSPECTS, GROWTH, BUSINESSSTRATEGY, PLANS AND OBJECTIVES OF MANAGEMENT FOR FUTURE OPERATIONS (INCLUDINGDEVELOPMENT PLANS AND OBJECTIVES RELATING TO THE GROUP'S INSURANCE BUSINESS) AREFORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN ANDUNKNOWN RISKS, UNCERTAINTIES AND OTHER IMPORTANT FACTORS THAT COULD CAUSE THEACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE GROUP TO BE MATERIALLYDIFFERENT FROM FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIEDBY SUCH FORWARD-LOOKING STATEMENTS. THESE FORWARD-LOOKING STATEMENTS SPEAK ONLYAS AT THE DATE OF THIS ANNOUNCEMENT OR OTHER INFORMATION CONCERNED. LANCASHIREHOLDINGS LIMITED EXPRESSLY DISCLAIMS ANY OBLIGATION OR UNDERTAKING (SAVE ASREQUIRED TO COMPLY WITH ANY LEGAL OR REGULATORY OBLIGATIONS (INCLUDING THE AIMRULES)) TO DISSEMINATE ANY UPDATES OR REVISIONS TO ANY FORWARD-LOOKINGSTATEMENTS CONTAINED HEREIN TO REFLECT ANY CHANGES IN THE GROUP'S EXPECTATIONSWITH REGARD THERETO OR ANY CHANGE IN EVENTS, CONDITIONS OR CIRCUMSTANCES ONWHICH ANY SUCH STATEMENT IS BASED. This information is provided by RNS The company news service from the London Stock Exchange

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Lancashire Holdings