HCC FORMS “EARTHQUAKE” INSURANCE DIVISION;
ALSO ESTABLISHES “CRIME COVERAGE” BOND UNIT

HOUSTON (June 23, 2008) . . .
HCC Insurance Holdings, Inc. (NYSE: HCC) announced today that Todd Ruyak and Eric Mihailovich have been appointed as Senior Vice Presidents of the Company’s newly formed Professional Indemnity Agency, Inc. (PIA) Property Division, reporting to PIA Holdings, Inc. Chief Executive Officer Cory L. Moulton. Headquartered in Mount Kisco, New York, PIA is a subsidiary of HCC.

The new division will focus on Difference in Conditions (DIC) business, also known as “earthquake” business, in the Western United States and will write on behalf of both affiliated and non-affiliated carriers, according to HCC President and Chief Operating Officer John N. Molbeck, Jr.

Ruyak and Mihailovich bring more than 20 years of experience in the DIC market, most recently with Arrowhead General Agency. While at Arrowhead they underwrote on behalf of several insurance carriers and maintained direct underwriting responsibility for large blocks of DIC business. Ruyak holds a B.A. from the University of Virginia and is a Chartered Property and Casualty Underwriter (CPCU). Mihailovich is a graduate of Eastern Illinois University and began his underwriting career in 1988 before joining Arrowhead in 1995.

“The creation of the PIA Property Division is another good example of HCC’s strategy to enter new classes of business by hiring and developing leading underwriting talent. Todd Ruyak and Eric Mihailovich come to PIA with the experience, underwriting expertise and distribution relationships needed to build a profitable business. While we anticipate a measured and controlled market entry, we believe the DIC segment will contribute significantly to HCC’s future earnings,” Molbeck said.

In addition, two senior executives in Fidelity Bonds, also referred to as “crime coverage,” have joined HCC to establish the company’s Fidelity business unit, which will focus on both financial institution and commercial overages. They are: George Blume, who has been named Senior Vice President of PIA, and Stephen Buhl, who has been appointed Vice President.

Blume began his insurance career in 1981, subsequently working 16 years in executive assignments with American International Group before joining PIA. He is a graduate of Bernard M. Baruch College in New York City. Buhl, who was with AIG since 2000, is also a graduate of Bernard M. Baruch College.

“We are also very pleased to announce that George Blume and Stephen Buhl have agreed to bring their combined 50 years of experience in the Fidelity bonding business to the HCC team,” Molbeck said. “This is one more demonstration of how the financial strength and entrepreneurial culture of HCC continue to enable us to attract the top professional talent in a wide variety of fields.”

Headquartered in Houston, Texas, HCC Insurance Holdings, Inc. (HCC) is a leading international specialty insurance group with offices across the United States and in Belgium, Bermuda, Ireland, Spain and the United Kingdom. HCC has assets of nearly $8.2 billion, shareholders’ equity in excess of $2.5 billion and is rated AA (Very Strong) by Standard & Poor’s and AA (Very Strong) by Fitch Ratings. In addition, HCC’s domestic property and casualty insurance companies are rated A+ (Superior) by A.M. Best Company.

For more information, visit our website at www.hcc.com.

©2005 HCC Insurance Holdings, Inc.