Directorate Change

LANCASHIRE HOLDINGS LIMITED 3 February 2015London, UK Director Appointment Lancashire Holdings Limited ("Lancashire" or the "Company") announces theappointment of Tom Milligan as a Non-Executive Director ("NED") with effectfrom 3 February 2015. Tom joins the Board of Lancashire having recently retired as Co-Chief ExecutiveOfficer of Ariel Re Holdings Ltd ("Ariel"), following the completion of itssale to BTG Pactual. Tom has over 20 years' experience in the insuranceindustry having started his career at Guy Carpenter in 1991. Since then, he hasworked as both a broker and senior underwriter with a number of key playerswithin the property and casualty sector in both London and Bermuda. Tom joinedGoldman Sachs in 2005 to start Goldman Sachs' proprietary non-life insurancedesk. As a Managing Director of Goldman Sachs, Tom served as Chief UnderwritingOfficer of Arrow Capital Re in Bermuda, before starting Lloyds' Syndicate 1910in 2008 and serving as Active Underwriter until 2012. In 2012, Tom led GoldmanSachs' purchase of Ariel Re and served as Co-CEO from April 2012. During 2013,Tom played a leading role in the spin out of GS Reinsurance Group into GlobalAtlantic Financial Group ("GAFG"), before managing the sale of the Arielbusinesses in 2014. Martin Thomas, Lancashire's Chairman, said; "It is a great pleasure to be able to welcome Tom to our Board. I am confidentthat his industry knowledge and leadership experience will help us maintain aBoard with the appropriate range and depth of knowledge and skill." This announcement has been made in accordance with the Company's obligationswith Listing Rule 9.6.11 of the Listing Rules of the UK Listing Authority. For further information, please contact: Lancashire Holdings Limited Christopher Head +44 20 7264 4145 [email protected] Jonny Creagh-Coen +44 20 7264 4066 [email protected] Haggie Partners +44 20 7562 4444 Peter Rigby (Peter Rigby mobile +44 7803851426) About Lancashire Lancashire, through its UK and Bermuda-based operating subsidiaries, is aglobal provider of specialty insurance and reinsurance products. The Groupcompanies 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- Stable BBB Moody's A3 Stable Baa2 (1)Financial Strength Rating and Financial Strength Outlook apply to LancashireInsurance 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 onthe premium segment of the Main Market of the London Stock Exchange under theticker symbol LRE. Lancashire has its corporate headquarters and mailingaddress at 29th Floor, 20 Fenchurch Street, London EC3M 3BY, United Kingdom andits 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'ssegment, Cathedral Capital Limited ("Cathedral"), visit the Company's websiteat www.lancashiregroup.com Lancashire Insurance Company Limited is regulated by the Bermuda MonetaryAuthority in Bermuda. Lancashire Insurance Company (UK) Limited is authorised by the PrudentialRegulation Authority and regulated by the Financial Conduct Authority and thePrudential Regulation Authority in the UK. Kinesis Capital Management Limited is regulated by the Bermuda MonetaryAuthority in Bermuda. Cathedral Underwriting Limited is authorised by the Prudential RegulationAuthority and regulated by the Financial Conduct Authority and the PrudentialRegulation Authority in the UK. NOTE REGARDING FORWARD-LOOKING STATEMENTS: CERTAIN STATEMENTS AND INDICATIVE PROJECTIONS (WHICH MAY INCLUDE MODELED LOSSSCENARIOS) MADE IN THIS RELEASE OR OTHERWISE THAT ARE NOT BASED ON CURRENT ORHISTORICAL 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 ORCOMPARABLE TERMINOLOGY. ALL SUCH STATEMENTS OTHER THAN STATEMENTS OF HISTORICALFACTS INCLUDING, WITHOUT LIMITATION, THE GROUP'S FINANCIAL POSITION, LIQUIDITY,TAX RESIDENCY, RESULTS OF OPERATIONS, PROSPECTS, GROWTH, CAPITAL MANAGEMENTPLANS AND EFFICIENCIES, ABILITY TO CREATE VALUE, DIVIDEND POLICY, OPERATIONALFLEXIBILITY, COMPOSITION OF MANAGEMENT, BUSINESS STRATEGY, PLANS AND OBJECTIVESOF MANAGEMENT FOR FUTURE OPERATIONS (INCLUDING DEVELOPMENT PLANS AND OBJECTIVESRELATING TO THE GROUP'S INSURANCE BUSINESS) ARE FORWARD LOOKING STATEMENTS.SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIESAND OTHER IMPORTANT FACTORS THAT COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE ORACHIEVEMENTS OF THE GROUP TO BE MATERIALLY DIFFERENT FROM FUTURE RESULTS,PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKINGSTATEMENTS. THESE FACTORS INCLUDE, BUT ARE NOT LIMITED TO: THE GROUP'S ABILITY TO INTEGRATEITS BUSINESSES AND PERSONNEL; THE SUCCESSFUL RETENTION AND MOTIVATION OF THEGROUP'S KEY MANAGEMENT; THE INCREASED REGULATORY BURDEN FACING THE GROUP, THENUMBER AND TYPE OF INSURANCE AND REINSURANCE CONTRACTS THAT THE GROUP WRITES ORMAY WRITE; THE GROUP'S ABILITY TO IMPLEMENT SUCCESSFULLY ITS BUSINESS STRATEGYDURING `SOFT' AS WELL AS `HARD' MARKETS; THE PREMIUM RATES WHICH MAY BEAVAILABLE AT THE TIME OF SUCH RENEWALS WITHIN THE GROUP'S TARGETED BUSINESSLINES; THE POSSIBLE LOW FREQUENCY OF LARGE EVENTS; POTENTIALLY UNUSUAL LOSSFREQUENCY; THE IMPACT THAT THE GROUP'S FUTURE OPERATING RESULTS, CAPITALPOSITION AND RATING AGENCY AND OTHER CONSIDERATIONS MAY HAVE ON THE EXECUTIONOF ANY CAPITAL MANAGEMENT INITIATIVES OR DIVIDENDS; THE POSSIBILITY OF GREATERFREQUENCY OR SEVERITY OF CLAIMS AND LOSS ACTIVITY THAN THE GROUP'SUNDERWRITING, RESERVING OR INVESTMENT PRACTICES HAVE ANTICIPATED; THERELIABILITY OF, AND CHANGES IN ASSUMPTIONS TO, CATASTROPHE PRICING,ACCUMULATION AND ESTIMATED LOSS MODELS; INCREASED COMPETITION FROM EXISTINGALTERNATIVE CAPITAL PROVIDERS, INSURANCE LINKED FUNDS AND COLLATERALISEDSPECIAL PURPOSE INSURERS AND THE RELATED DEMAND AND SUPPLY DYNAMICS ASCONTRACTS COME UP FOR RENEWAL; THE EFFECTIVENESS OF THE GROUP'S LOSS LIMITATIONMETHODS; THE POTENTIAL LOSS OF KEY PERSONNEL; A DECLINE IN THE GROUP'SOPERATING SUBSIDIARIES' RATING WITH A.M. BEST, STANDARD & POOR'S, MOODY'S OROTHER RATING AGENCIES; INCREASED COMPETITION ON THE BASIS OF PRICING, CAPACITY,COVERAGE TERMS OR OTHER FACTORS; A CYCLICAL DOWNTURN OF THE INDUSTRY; THEIMPACT OF A DETERIORATING CREDIT ENVIRONMENT FOR ISSUERS OF FIXED INCOMEINVESTMENTS; THE IMPACT OF SWINGS IN MARKET INTEREST RATES AND SECURITIESPRICES; A RATING DOWNGRADE OF, OR A MARKET DECLINE IN, SECURITIES IN ITSINVESTMENT PORTFOLIO; CHANGES IN GOVERNMENTAL REGULATIONS OR TAX LAWS INJURISDICTIONS WHERE THE GROUP CONDUCTS BUSINESS; ANY OF THE GROUP'S BERMUDIANSUBSIDIARIES BECOMING SUBJECT TO INCOME TAXES IN THE UNITED STATES OR THEUNITED KINGDOM; THE INAPPLICABILITY TO THE GROUP OF SUITABLE EXCLUSIONS FROMTHE UK CFC REGIME; AND ANY CHANGE IN THE UK GOVERNMENT OR UK GOVERNMENT POLICYWHICH IMPACTS THE CFC REGIME. ALL FORWARD-LOOKING STATEMENTS IN THIS RELEASE SPEAK ONLY AS AT THE DATE OFPUBLICATION. LANCASHIRE EXPRESSLY DISCLAIMS ANY OBLIGATION OR UNDERTAKING (SAVEAS REQUIRED TO COMPLY WITH ANY LEGAL OR REGULATORY OBLIGATIONS INCLUDING THERULES OF THE LONDON STOCK EXCHANGE) TO DISSEMINATE ANY UPDATES OR REVISIONS TOANY FORWARD-LOOKING STATEMENTS TO REFLECT ANY CHANGES IN THE GROUP'SEXPECTATIONS OR CIRCUMSTANCES ON WHICH ANY SUCH STATEMENT IS BASED.