HCC INSURANCE HOLDINGS, INC. UPDATES STATUS OF DELAYED FILING OF SECOND QUARTER 2006 FORM 10-Q
HOUSTON (August 14, 2006) . . .
HCC Insurance Holdings, Inc. (NYSE symbol: HCC) announced that
it will delay filing its quarterly report on Form 10-Q for the quarter ended
June 30, 2006 until completion of an independent review of its stock option
granting practices. As previously disclosed in a Form 12b-25 filed with the
Securities and Exchange Commission on August 9, 2006, the Company’s
management initiated a voluntary internal review of its stock option
granting practices. The voluntary review found that in some instances the
grant date may differ from the date used to record certain prior option
grants, which could mean those grants may have been recorded incorrectly.
Thereafter, the Board of Directors authorized its Audit Committee to conduct
a comprehensive independent review of the Company’s stock option granting
practices from 1995 to the present. The Audit Committee has engaged
independent counsel to assist in the review. This review is ongoing and no
conclusions have been reached. The Company voluntarily notified the staff of
the SEC of its review and the SEC has initiated an informal inquiry into
this matter. The Company intends to fully cooperate.
Upon completion of the Audit Committee’s review, the Company will announce
what, if any, adjustments to its consolidated financial statements are
necessary, whether restatement of any previously filed financial statements
is required and whether any material weaknesses in the system of internal
control over financial reporting have been identified. Although there can be
no assurance as to when the Audit Committee will complete its review, they
currently expect their review to be substantially completed and a report of
their findings to be made to the Board of Directors before the Company’s
Form 10-Q for third quarter 2006 is required to be filed with the SEC.
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 $7 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.hcc.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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