HCC ANNOUNCES A 32% INCREASE IN CASH
DIVIDEND AND A THREE FOR TWO STOCK SPLIT
HOUSTON (May 19, 2005) . . .
HCC
Insurance Holdings, Inc. (NYSE symbol: HCC) today announced that its
Board of Directors had approved a 32% increase in its cash dividend and a
three for two stock split in the form of a stock dividend on its shares of
$1.00 par value common stock.
The cash dividend will increase from an annual rate of $0.34 per share to
$0.45 per share, which on a post split basis will be $0.30 per share
annually ($0.075 per share quarterly), and with the stock dividend would be
payable to shareholders of record on July 1, 2005, to be distributed on or
about July 15, 2005. In lieu of issuing any fractional shares of Common
Stock as a part of the stock dividend, the Company will pay the holder
thereof an amount in cash equal to such fraction times the closing price of
the Common Stock on the record date.
Stephen L. Way, Chairman and Chief Executive Officer of HCC, commenting on
the announcement said, “This larger than usual rise in dividend is part of
our efforts to increase the overall investment return to shareholders as the
Company’s financial strength grows, while still maintaining capital
flexibility for future growth.” Mr. Way added, “The increased dividend
represents less than 15% of projected 2005 earnings and leaves room for
anticipated future increases.”
Following the stock split, the number of issued and outstanding shares will
be increased to approximately 104,967,000 from 69,978,000. HCC has increased
its dividend every year since the Company went public in 1992 and this is
expected to continue.
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 is traded on the NYSE (symbol:
HCC), has assets exceeding $6.0 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.
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Contact:
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L. Byron Way, Vice
President
HCC Insurance Holdings, Inc.
Telephone: (713) 690-7300
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Forward-looking statements contained in this press
release are made under “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995 and involve a number of risks
and uncertainties. The types of risks and uncertainties which may
affect the Company are set forth in its periodic reports filed with
the Securities and Exchange Commission. |
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