Statement from the CEO and President & CFO

We value our relationships and believe that success is unlikely to be achieved without a significant amount of effort put into those relationships. We are placing greater emphasis on marketing, which we believe will continue to afford us access to virtually all major risks placed in the market in the classes underwritten by Lancashire.

Lancashire:

• Staff add tremendous value and are encouraged to stretch themselves and strive for high performance standards.
• Enjoys a positive relationship with its rating agencies and the Group has a financial strength rating of A minus (Excellent) with a stable outlook from A.M. Best.
• Shares were admitted to the Official List and to trading on the Main Market of the London Stock Exchange on 16 March 2009.
• Business is connected to insuring against natural catastrophes. The Lancashire Foundation supports Médecins Sans Frontières which provides immediate aid to people affected by catastrophes.

BENEFITS

$52.0million

Cost of providing employee benefits during 2009.

LANCASHIRE FOUNDATION

$1.1million

Donation made to The Lancashire Foundation during 2009.