LANCASHIRE HOLDINGS LIMITED                          

    27 January 2017

    London, UK

        Appointment of Chief Executive Officer of Cathedral Underwriting Limited   

    Lancashire Holdings Limited ("Lancashire") has today announced the appointment
    of Andrew McKee as Chief Executive Officer of Cathedral Underwriting Limited
    ("CUL") (with effect from 26 June 2017), subject to Lloyd's and relevant
    regulatory approvals.

    Andrew has more than 30 years' experience in the insurance industry, having
    started his career as a graduate trainee property underwriter at Sun Alliance
    in Bristol. He spent 18 years at Chubb Insurance in various senior underwriting
    positions. In 2009, he became the Chief Executive Officer of MSIG at Lloyd's,
    the underwriting agency managing Syndicate 3210, which specialises in
    corporate, commercial and specialty insurance. Most recently, Andrew was CEO of
    MS Amlin's Lloyd's business.

    Marion Madden will continue in her role as interim Managing Director of CUL
    pending the commencement of Andrew's appointment.

     Alex Maloney, Lancashire Group CEO, said:

    "I am delighted to welcome Andrew who brings to his new role as CEO of CUL long
    experience of managing a major Lloyd's underwriting agency. He will lead that
    business and be a welcome addition to Lancashire's executive management team. I
    would also like to thank Marion for holding the reins during the period of
    transition."

    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                        
                                                                                    
    S&P Global Ratings        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); S&P Global
    Ratings: 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

    The UK Prudential Regulation Authority ("PRA") is the Group Supervisor of the
    Lancashire Group.

    Lancashire Insurance Company Limited is regulated by the Bermuda Monetary
    Authority ("BMA") in Bermuda.

    Lancashire Insurance Company (UK) Limited is authorised by the PRA and
    regulated by the Financial Conduct Authority ("FCA") and the PRA in the UK.

    Kinesis Capital Management Limited is regulated by the BMA in Bermuda.

    Cathedral Underwriting Limited is authorised by the PRA and regulated by the
    FCA and the PRA in the UK. It is also authorised and regulated by Lloyd's.

    This release contains information, which may be of a price sensitive nature,
    that Lancashire is making public in a manner consistent with the EU Market
    Abuse Regulation and other regulatory obligations.  The information was
    submitted for publication, through the agency of the contact persons set out
    above, at 7.00 GMT on 27 January 2017

    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, CURRENCY EXCHANGE
    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;
    ANYCHANGE IN UK GOVERNMENT POLICY WHICH IMPACTS THE CFC REGIME OR OTHER TAX
    CHANGES; AND THE IMPACT OF THE "BREXIT" VOTE AND FUTURE NEGOTIATIONS REGARDING
    THE U.K'S RELATIONSHIP WITH THE E.U. IN THE RECENT IN-OR-OUT REFERENDUM ON OUR
    BUSINESS, REGULATORY RELATIONSHIPS, UNDERWRITING PLATFORMS OR THE INDUSTRY
    GENERALLY.

    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.