HCC ESTIMATES KATRINA LOSS
HOUSTON (September 14, 2005) . . .
HCC Insurance Holdings, Inc. (NYSE symbol: HCC) announced today that
anticipated claims from Hurricane Katrina are expected to result in the
Company’s largest gross loss in its history, estimated at $160 million
arising from aviation, onshore and offshore energy, property, marine and
other specialty lines of business. This loss is estimated to be $50 million
net of reinsurance including reinsurance reinstatement costs, $32.5 million
after tax, and will reduce third quarter earnings of the Company by
approximately $0.30 per diluted share.
Stephen L. Way, Chairman and Chief Executive Officer, said, “Our exposure is
predominantly to energy and large commercial property accounts and is
substantially protected by catastrophe reinsurance.” Mr. Way added, “From an
industry standpoint, premium rates will need to rise significantly in these
lines of business to reflect both the increased frequency and severity of
catastrophic events that have occurred over the past five years.”
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.
|
Contact:
|
L. Byron Way, Vice
President
HCC Insurance Holdings, Inc.
Telephone: (713) 690-7300
|
|
|
|
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. |
|
* *
* * |
|
