A.M. Best Assigns Ratings to HCC Insurance Holdings, Inc.'s New Shelf Registration

A.M. Best Co. has assigned indicative ratings of "a" on senior debt and "a-" on the subordinated debt of the recently filed shelf registrationof HCC Insurance Holdings, Inc. (HCC) (Dover, De) [NYSE: HCC]. Additionally, A.M. Best has assigned indicative ratings of "a-" to the preferred securities of HCC Capital Trusts I and II, which may be issued under HCC's shelf registration statement. The outlook assigned to these ratings is stable. The new shelf registration replaces HCC's previous shelf registration, which has expired. Consequently, the indicative ratings for the previous shelf registration have been withdrawn.

The assigned ratings recognize HCC's sustained profitability, strong level of capitalization and solid liquidity. The ratings also are indicative of A.M. Best's view of the group's near-term earnings prospects when considering HCC's strong position in the specialty admitted and non-admitted market segments. As of year-end 2011, HCC's debt-to-capital and debt-to-tangible capital ratios were 12.7% and 16.5%, respectively, and the company continues to maintain a fixed interest coverage ratio that is well supportive of its ratings.

The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: "Understanding BCAR for Property/Casualty Insurers"; "A.M. Best's Ratings & the Treatment of Debt"; "Catastrophe Analysis in A.M. Best Ratings"; "Rating Members of Insurance Groups"; "Understanding Universal BCAR"; "Risk Management and the Rating Process for Insurance Companies"; and "Assessing Country Risk." Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com

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Contacts:

A.M. Best Co.
Greg Williams, 908-439-2200, ext. 5815
Managing Senior Financial Analyst
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or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
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or
Joseph Roethel, 908-439-2200, ext. 5630
Assistant Vice President
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or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
[e-mail]