HCC ESTIMATES RITA LOSS
AND COMMENTS ON EARNINGS OUTLOOK
HOUSTON (October 10, 2005) . . .
HCC Insurance Holdings, Inc. (NYSE symbol: HCC) announced today that
the Company estimates a gross loss of $70 million from Hurricane Rita
arising primarily from onshore and offshore energy, property, marine and
other specialty lines of business. This loss is estimated to be $20 million
net of reinsurance including reinsurance reinstatement costs, $13 million
after tax, and will reduce third quarter earnings of the Company by
approximately $0.12 per diluted share.
Stephen L. Way, Chairman and Chief Executive Officer, said, “Rita represents
a significant energy insurance claim and once again highlights the
inadequacy of current rating levels in this class to pay for such losses.”
Mr. Way added, “Despite two major hurricane losses and a reinsurance
commutation charge, we still expect to make a small profit in the third
quarter and anticipate achieving record earnings for the full year due to
the continuing strength of our other lines of business.”
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 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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