LANCASHIRE HOLDINGS LIMITED THIRD QUARTER 2011 EARNINGS

Date4-Nov-2011

LANCASHIRE HOLDINGS LIMITED

GROWTH IN FULLY CONVERTED BOOK VALUE PER SHARE, ADJUSTED FOR

DIVIDENDS, OF 3.6%IN Q3 2011, 10.4% YEAR TO DATE

COMBINED RATIO OF 43.5% IN Q3 2011, 60.7% YEAR TO DATE

FULLY CONVERTED BOOK VALUE PER SHARE OF $8.20 AT 30 SEPTEMBER 2011

SPECIAL DIVIDEND AND EQUIVALENTS OF $152 MILLION OR $0.80 PER COMMON SHARE

4 November 2011

Hamilton, Bermuda

Lancashire Holdings Limited ("Lancashire" or "the Group") today announces its results for the

third quarter of 2011 and the nine month period ended 30 September 2011.

Financial highlights

As at As at 30 September 2011

30 September 2010

Fully converted book value per share

$8.20

$8.43

Return on equity* – Q3

3.6%

7.9%

Return on equity* – YTD

10.4%

15.9%

Operating return on average equity – Q3

6.2%

6.9%

Operating return on average equity – YTD

13.3%

12.9%

Special dividend per common share**

$0.80

$1.40