HCC CONTINUES TO OUTPERFORM
WITH RECORD THIRD QUARTER 2003 RESULTS

HOUSTON (November 06, 2003) . . .
HCC Insurance Holdings, Inc. (NYSE symbol: HCC) today released earnings for the third quarter and first nine months of 2003.

Net earnings for the third quarter of 2003 increased 58% to $38.4 million or $0.59 per diluted share from $24.3 million or $0.39 per diluted share for the third quarter of 2002. For the first nine months of 2003, net earnings increased 39% to $103.3 million or $1.61 per diluted share from $74.3 million or $1.18 per diluted share for the same period of 2002.

Stephen L. Way, Chairman and Chief Executive Officer, said, “We had a very strong performance by all of our operating units, indicative of the continuing improved market conditions, and we expect strong earnings growth to continue through 2004.”

Total revenue showed significant growth, increasing 42% for the third quarter 2003 to $248.6 million from $175.7 million and increasing 45% for the first nine months of 2003 to $700.6 million from $483.3 million, both compared to the corresponding period in 2002. This increase was due to the growth in all of our business segments, acquisitions completed late in 2002 and an increase in investment income.

The GAAP net combined ratio of our insurance company subsidiaries for the first nine months of 2003 was relatively flat at 88.8% compared to 87.3% in the corresponding period of 2002, but on substantially higher net earned premium.

Premium of our insurance company subsidiaries continued to grow substantially, with gross written premium increasing 53% to $1.3 billion during the first nine months of 2003 compared to $852.1 million during the first nine months of 2002. During the same period, net written premium increased 66% to $666.1 million from $402.2 million and net earned premium increased by 48% to $535.4 million from $362.4 million. These increases are as a result of higher rates, increased retentions and strong growth particularly in our Diversified Financial Products segment.

Mr. Way added, “Revenue and margins in our fee and commission business segments are also very strong and we expect this to continue through next year.”

Management fees increased 38% during the first nine months of 2003 to $79.0 million from $57.1 million in the same period of 2002. As promised, commission income increased 35% to $42.8 million during the first nine months of 2003 from $31.6 million in the same period of 2002. These increases are due to organic growth and acquisitions.

Cash flow from operating activities increased substantially during the first nine months of 2003 rising 165% to $325.9 million from $122.8 million during the first nine months of 2002, as a result of increased revenue and higher net earnings.

Net investment income increased 26% in the first nine months of 2003 to $34.9 million, from $27.8 million in the same period of 2002. This increase was primarily as a result of greater invested assets, which grew 30% as of September 30, 2003 to $1.52 billion compared to $1.17 billion at December 31, 2002. The Company continues to follow a conservative investment philosophy with a very short duration in our portfolio, little or no high yield bonds, no derivatives and few equity investments. Investment income growth is expected to continue through 2004 and accelerate if rates rise.

As of September 30, 2003, total assets grew 25% to $4.6 billion and book value per share increased 11% to $15.77 both compared to December 31, 2002, shareholders’ equity exceeded $1.0 billion for the first time in the Company’s history and the Company’s debt to total capital ratio was 23.6%.

See attached tables.

HCC will hold an open conference call beginning at 4:00 p.m. Central Time on Thursday, November 6, 2003. To participate, the number for domestic calls is (877) 679-9051 and the number for international calls is (952) 556-2804. 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 .The webcast replay will be available until Friday, November 14, 2003.

HCC is an international insurance holding company and a leading specialty insurance group since 1974, with offices in Bermuda, Spain, the UK and across the USA. HCC is traded on the NYSE (Symbol: HCC), has assets of $4.6 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.