Annual Report & Accounts 2008

Shareholder information

Annual General Meeting

Notice of this year’s Annual General Meeting and the form of proxy accompany this annual report. If you have any queries regarding the notice or return of the proxy please contact Greg Lunn, (Company Secretary and General Counsel) at Lancashire Holdings Limited, Mintflower Place, 8 Par-la-Ville Road, Hamilton HM 08, Bermuda, Tel: + 1 441 278 8950 and email: greg.lunn@lancashiregroup.com

Further information

Lancashire Holdings Limited is registered in Bermuda under company number EC 37415 and has its registered office at Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda.

Further information about the Group including this annual report, press releases and the Company’s share price is available on our website at www.lancashiregroup.com. Please address any enquiries to info@lancashiregroup.com.

Note regarding forward–looking statements

Certain statements and indicative projections made that are not based on current or historical facts are forward-looking in nature including without limitation, statements containing words “believes”, “anticipates”, “plans”, “projects”, “intends”, “expects”, “estimates”, “predicts”, “may”, “will”, “seeks”, “should”, or, in each case, their negative or comparable terminology. All statements other than statements of historical facts including, without limitation, those regarding the Croup’s financial position, results of operations, liquidity, prospects, growth, 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 Croup 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 number and type of insurance and reinsurance contracts that we write; the premium rates available at the time of such renewals within our targeted business lines; the absence of large or unusually frequent loss events; the impact that our future operating results, capital position and rating agency and other considerations have on the execution of any capital management initiatives; the possibility of greater frequency or severity of claims and loss activity than our underwriting, reserving or investment practices have anticipated; the reliability of, and changes in assumptions to, catastrophe pricing, accumulation and estimated loss models; loss of key personnel; a decline in our operating subsidiaries’ rating with A.M. Best Company; increased competition on the basis of pricing, capacity, coverage terms or other factors; a cyclical downturn of the industry; changes in governmental regulations or tax laws in jurisdictions where Lancashire conducts business; Lancashire or its Bermudian subsidiary becoming subject to income taxes in the United States or the United Kingdom; and the effectiveness of our loss limitation methods.

These forward-looking statements speak only as at the date of publication of this document. Lancashire Holdings Limited expressly disclaims any obligation or undertaking (save as required to comply with any legal or regulatory obligations (including the Listing Rules of the Financial Services Authority)) 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.

Some of the statements in this document include forward-looking statements which reflect the Directors’ current views with respect to financial performance, business strategy, plans and objectives of management for future operations (including development plans relating to the Group’s products and services). These statements include forward-looking statements both with respect to the Group and the sectors and industries in which the Group operates. Statements which include the words “believes”, “anticipates”, “plans”, “projects”, “intends”, “expects”, “estimates”, “predicts”, “may”, “will”, “seeks”, “should” or, in each case, their negative or comparable terminology and similar statements are of a future or forward-looking nature. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause the Group’s actual results to differ materially from those indicated in these statements. These factors include but are not limited to those described in the part of this document entitled ‘‘Risk Factors’’, which should be read in conjunction with the other cautionary statements that are included in this document. Any forwardlooking statements in this document reflect the Directors’ current views with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to the Group’s operations, results of operations, growth strategy and liquidity. Given these uncertainties investors are cautioned not to place any undue reliance on such forward-looking statements.

These forward-looking statements speak only as of the date of this document. Subject to any obligations under the Prospectus Rules, the Listing Rules, the Disclosure and Transparency Rules or as otherwise required by law, the Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. All subsequent written and oral forward-looking statements attributable to the Group or individuals acting on behalf of the Group are expressly qualified in their entirety by this paragraph. Prospective investors should specifically consider the factors identified in this document which could cause actual results to differ before making an investment decision.