HCC COMMENTS ON HURRICANES
FRANCES AND CHARLEY
 

HOUSTON (September 9, 2004) . . .
HCC Insurance Holdings, Inc. (NYSE symbol: HCC) announced today that based upon current estimates, it did not expect a loss net of reinsurance from Hurricane Frances of the same magnitude as Hurricane Charley and that the amount of the previously announced reserve on Hurricane Charley appears to remain adequate.

Due to the proximity of the events, the developing nature of the claims and the complicated application to the Company’s reinsurance protection, the Company has determined to set an aggregate reserve for both losses at $15 million, or $0.15 per share, after tax in the third quarter 2004. This amount includes the previously announced $0.10 per share in respect of Hurricane Charley.

Stephen L. Way, Chairman and Chief Executive Officer, commenting on the loss said, "Our aviation losses of Hurricane Charley were not repeated in Frances due to lower intensity and less concentrated winds in key locations." Mr. Way added, "Our operating results remain strong and we feel confident that we can overcome the effects of both hurricanes and still achieve earnings within the range of our original guidance issued on February 19, 2004 of $2.65 to $2.75 per share, a 23% rise from record earnings in 2003.”

HCC is an international insurance holding company and a leading specialty insurance group since 1974, based in Houston, Texas with offices across the USA and in Bermuda, England and Spain. HCC has assets of more than $5 billion, shareholders’ equity of over $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.