HCC Reports Limited Exposure for Charley

August 20, 2004

Houston-based HCC Insurance Holdings Inc. announced that the company has limited exposure to Hurricane Charley and did not expect its net loss after reinsurance to exceed more than $10 million, or approximately $0.10 per share after tax in the third quarter of 2004.

Stephen Way, chairman and CEO, said, "We do not appear to have a large number of claims as we do not write homeowners or automobiles. Most of our exposure would likely come from damage to small, privately owned aircraft written by our insurance company subsidiary, Avemco."