HCC ANNOUNCES STRATEGIC INVESTMENT IN
LONDON BASED ILLIUM INSURANCE GROUP LTD

HOUSTON (November 5, 2003) . . .
HCC Insurance Holdings, Inc. (NYSE symbol: HCC) announced today that the Company had agreed to invest in UK based holding company Illium Insurance Group Ltd., owner of a new Lloyd’s managing agency and syndicate specializing in UK third party and employers’ liability.

Subject to regulatory approval, HCC has agreed to purchase 20% of Illium to provide working capital and to provide £25,000,000 of underwriting capacity to Syndicate 4040 for the 2004 underwriting year.

Stephen L. Way, Chairman and Chief Executive Officer of HCC, said, “Illium and its experienced management team provide HCC a conservative platform to participate in the UK liability market.” He added, “This opportunistic investment compliments our existing involvement in UK professional indemnity through our London based underwriting agency subsidiary, HCC Diversified Financial Products.”

The Illium Board said that, “Illium is very pleased to enter into a strategic relationship with a company of HCC’s caliber and standing in the marketplace. We look forward to developing a mutually beneficial long-term partnership and believe that the experience and professionalism of HCC will bring valuable benefits to Illium.”

HCC is an international holding company and a leading specialty insurance group since 1974, with operations in Bermuda, Spain, the UK and across the USA. HCC trades on the NYSE (Symbol: HCC), has assets exceeding $4.5 billion, shareholders equity of more than $1 billion and 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.