HCC REPORTS STRONG
FIRST QUARTER 2006 RESULTS

HOUSTON (May 4, 2006) . . .
HCC Insurance Holdings, Inc. (NYSE symbol: HCC) today released earnings for the first quarter of 2006.

Net earnings increased significantly for the first quarter of 2006 rising 37% to $78.6 million from $57.3 million for the first quarter of 2005. During the same period, net earnings per diluted share grew 24% to $0.67 per share from $0.54 per share.

Stephen L. Way, Chairman and Chief Executive Officer, said, “Our first quarter results reflect the continuing strong margins from our underwriting activities and increasing investment income, which were achieved despite dilution of approximately $0.03 from the equity offering in December 2005, $0.01 from stock option expense and $0.03 from our convertible notes.”

Total revenue grew 23% during the first quarter of 2006 to $466.1 million from $379.7 million, in the first quarter of 2005. This increase continues to be primarily due to the growth in our insurance company subsidiaries’ earned premium and increases in overall investment income. Revenue is expected to continue to show strong growth throughout 2006.

Although our insurance company subsidiaries’ gross written premium growth slowed as expected during the first three months of 2006, net written premium increased by 10% to $393.1 million and net earned premium by 19% to $380.6 million, both compared to the first quarter of 2005. Premiums are rising in part due to the strong energy market and growth in surety, offset by softening in the international D&O market and our non-renewal of an A&H program, on which we had no retention. Overall, market conditions in our specialty lines continue to be fairly stable.

The GAAP combined ratio for the first three months of 2006 was 85.2% compared to 84.5% in the corresponding period of 2005. No net loss reserve releases were taken in the quarter.

Mr. Way added, “To date, there has been no adverse reserve development from the catastrophe losses of 2005 and none is anticipated, as is our past record for all previous catastrophe losses.”

Fee and commission income was down during the first quarter of 2006 to $31.5 million from $33.1 million during the same period in 2005. Although this reduction was contemplated, we expect this revenue source to stabilize during 2006 and anticipate it will begin to increase again next year.

Net investment income continues to increase rapidly, growing 64% in the first quarter of 2006 to $36.6 million compared to the first quarter of 2005. We anticipate investment income to continue to grow.

As of March 31, 2006, total investments increased to $3.4 billion, total assets exceeded $7.1 billion, book value per share increased to $15.82, shareholders’ equity was $1.8 billion and the Company’s debt to total capital ratio was 15.0%. See attached tables.

HCC will hold an open conference call beginning at 4:00 p.m. Central Time on Thursday, May 4. To participate, the number for domestic calls is (800) 374-0290 and the number for international calls is (706) 634-1303. In addition, there will be a live webcast available on a listen-only basis, that can be accessed through the HCC website at www.hcc.com. A replay of the webcast will be available on the website until Thursday, May 11, 2006.

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.

©2005 HCC Insurance Holdings, Inc.