HCC REPORTS RECORD FIRST QUARTER RESULTS
WITH CONTINUING STRONG GROWTH IN ALL OPERATIONS

HOUSTON (May 8, 2003) . . .
HCC Insurance Holdings, Inc. (NYSE symbol: HCC) today released earnings for the first quarter of 2003.

Net earnings increased 30 percent for the first quarter of 2003 to $30.3 million or $0.48 per share from $23.3 million or $0.37 per share for the same period of 2002.

Stephen L. Way, Chairman and Chief Executive Officer said, “We are extremely pleased with our record first quarter results, which are in line with our 2003 business plan. We are now firing on all cylinders and the future looks very bright indeed.”

Total revenue grew substantially during the first quarter of 2003 to $210.7 million, a 39 percent increase from $151.7 million in the first quarter of 2002. This increase was primarily due to the growth in our insurance company subsidiaries’ earned premium, as market conditions in our specialty lines continue to show strength. Our underwriting agencies’ and intermediaries’ revenue also grew solidly and overall revenue is expected to continue to increase for the rest of this year and into 2004.

Gross written premium of our insurance company subsidiaries increased 53 percent to $379.4 million during the first quarter of 2003 compared to the first quarter of 2002. During the same period, net written premium increased by 57 percent to $192.5 million and net earned premium increased by 46 percent to $162.4 million. These record levels were achieved as a result of higher rates, increased retentions and strong growth, particularly in our Diversified Financial Products line of business.

The GAAP combined ratio was substantially the same for the first three months of 2003 at 88.8 percent compared to the corresponding period of 2002. Mr. Way stated that, “This continuing strong underwriting performance should be viewed as even more impressive, considering we maintained our margins on substantially increased earned premium.”

Due to the higher amount of ceded reinsurance in our Diversified Financial Products line of business, our overall recoverables grew in the first quarter of 2003 primarily in the IBNR category, although case loss recoverables were reduced and paid losses were only slightly increased. There were no new recoverable issues.

Management fees increased 28 percent during the first quarter of 2003 to $24.9 million, from $19.4 million in the first quarter of 2002, due to increased business and acquisitions completed in 2002. During the same period, commission income also returned to growth, as we promised it would, rising 13 percent to $11.5 million, due to growth in our non-affiliated business. We anticipate further growth in both segments.

Even our net investment income came through at last, increasing significantly in the quarter by 27 percent to $11.0 million, compared to the first quarter of 2002. Increased investment assets, primarily as a result of cash flow from operations, have fueled this increase and we anticipate this continuing for the rest of this year and into 2004.

As of March 31, 2003, total investments increased to $1.33 billion, total assets were over $4.0 billion for the first time, book value per share increased to $14.56 and the Company’s debt to total capital ratio was 25 percent. See attached tables.

HCC will hold an open conference call beginning at 4:00 p.m. Central Time on Thursday, May 8th to discuss these results. To participate, the number for domestic calls is (877) 679-9054 and the number for international calls is (952) 556-2807. A replay will be available until Friday, May 16, 2003, at (800) 615-3210, access code 114714.

In addition, there will be a live webcast available on a listen-only basis, that can be accessed through the HCC website at www.hcch.com. A replay of the webcast will be available on the website until Friday, May 16, 2003.

HCC is an international insurance holding company trading on the NYSE (symbol: HCC) and is one of the largest specialty insurance groups in the USA. HCC is rated AA (Very Strong) by Standard & Poor’s and A+ (Superior) by A. M. Best Company.

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

©2005 HCC Insurance Holdings, Inc.