LANCASHIRE HOLDINGS LIMITED: Lancashire launches US$250 million "Saltire" facility

LANCASHIRE HOLDINGS LIMITED: Lancashire launches US$250 million "Saltire" 
facility
LANCASHIRE HOLDINGS LIMITED                           
6 November 2012
London, UK 
 Lancashire Holdings Limited launches US$250 million "Saltire" facility      
Lancashire Holdings Limited ("Lancashire") has today announced that it will
shortly launch Saltire Re I Limited ("Saltire Re I"), a fully collateralised
Bermuda incorporated special purpose insurer. Saltire Re I will have capacity
of up to US$250 million and the share capital will be owned by a syndicate of
investors. Lancashire itself will invest approximately $33 million in Saltire
Re I. Saltire Re I will underwrite a combined exposure ultimate net loss
aggregate reinsurance product for the January 2013 reinsurance renewal season. 
Lancashire has also launched Saltire Management Limited ("Saltire Management"),
which is wholly owned by Lancashire and will provide underwriting services to
Saltire Re I. 
Richard Brindle the Group Chief Executive Officer of Lancashire said: 
"The formation of Saltire Re I and Saltire Management marks an exciting new
chapter in Lancashire's story. Following the successful launch of the Accordion
sidecar in 2011, the creation of the Saltire vehicles represents a further
development of Lancashire's strategy to build partnerships with capital market
participants. It affords the investors in Saltire Re I access to Lancashire's
underwriting expertise, and allows Lancashire the ability to generate fee
income. We have listened to our clients and brokers and believe that there will
be an appetite for the Saltire Re I product." 
Elaine Whelan the Chief Financial Officer of Lancashire said: 
"The Saltire model will be capable of replication and should prove attractive
to both investors and clients in the future as opportunities arise. It will
give Lancashire the opportunity to leverage its underwriting expertise whilst
affording flexibility in the management and deployment of its own capital." 
All contracts underwritten by Saltire Re I will be collateralised for the
benefit of its reinsured customers to the full extent of Saltire Re I's
potential policy liability. Both Saltire Re I and Saltire Management have been
authorised by the Bermuda Monetary Authority. 
For further information, please contact: 
Lancashire Holdings Limited            +44 20 7264 4145                      
Christopher Head                       chris.head@lancashiregroup.com         
                                                                         
Jonny Creagh-Coen                      +44 20 7264 4066                       
                                   jcc@lancashiregroup.com                
                                                                         
Haggie Financial                       +44 20 7417 8989                      
Peter Rigby                            (Peter Rigby mobile +44 7803851426)    
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        Long Term Issuer Outlook        
                              Strength                                         
                                               Rating (2)                      
                              Rating (1)                                       


                                                                           
A.M. Best                     A                bbb              Stable          
                                                                           
Standard & Poor's             A-               BBB              Stable          
                                                                           
Moody's                       A3               Baa2             Stable          
(1)Financial Strength Rating applies to Lancashire Insurance Company Limited
and Lancashire Insurance Company (UK) Limited 
(2) Long Term Issuer Rating applies to Lancashire Holdings Limited 
Lancashire has capital in excess of $1 billion and its common shares trade on
the Main Market of the London Stock Exchange under the ticker symbol LRE.
Lancashire has its corporate headquarters and mailing address at Level 11,
Vitro, 60 Fenchurch Street, London EC3M 4AD, United Kingdom and its registered
office at Power House, 7 Par-la-Ville Road, Hamilton HM 11, Bermuda. 
For more information on Lancashire, visit the Company's website at
www.lancashiregroup.com 
Lancashire Insurance Company Limited is regulated by the Bermuda Monetary
Authority in Bermuda. 
Lancashire Insurance Company (UK) Limited is regulated by the Financial
Services Authority in the UK. 
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', '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 GROUP'S FINANCIAL
POSITION, RESULTS OF OPERATIONS, LIQUIDITY, PROSPECTS, GROWTH, CAPITAL
MANAGEMENT PLANS, 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 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 LOW FREQUENCY OF
LARGE EVENTS; UNUSUAL LOSS FREQUENCY; 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; THE EFFECTIVENESS OF OUR LOSS LIMITATION METHODS; LOSS OF KEY
PERSONNEL; A DECLINE IN OUR 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 AND SECURITIES PRICES; A RATING DOWNGRADE OF, OR A MARKET DECLINE IN,
SECURITIES IN OUR INVESTMENT PORTFOLIO; CHANGES IN GOVERNMENTAL REGULATIONS OR
TAX LAWS IN JURISDICTIONS WHERE LANCASHIRE CONDUCTS BUSINESS; LANCASHIRE
HOLDINGS LIMITED OR ITS BERMUDIAN SUBSIDIARY BECOMING SUBJECT TO INCOME TAXES
IN THE UNITED STATES OR THE BERMUDIAN SUBSIDIARY BECOMING SUBJECT TO INCOME
TAXES IN THE UNITED KINGDOM; THE UK TEMPORARY PERIOD EXEMPTION UNDER THE CFC
REGIME FAILING TO REMAIN IN FORCE FOR THE PERIOD INTENDED; THE OMISSION FROM
THE NEW CFC REGIME OF A SUITABLE EXCLUSION (E.G. RELATING TO INSURANCE OR
REINSURANCE OF THIRD PARTY RISKS WRITTEN IN THE INTERNATIONAL INSURANCE
MARKET); ANY CHANGE IN THE UK GOVERNMENT OR THE UK GOVERNMENT POLICY WHICH
IMPACTS THE NEW CFC REGIME. 
THESE FORWARD-LOOKING STATEMENTS SPEAK ONLY AS AT THE DATE OF PUBLICATION.
LANCASHIRE HOLDINGS LIMITED 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. 
END 
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