Exhibit 99.1

HCC INSURANCE HOLDINGS REPORTS STRONG
SECOND QUARTER 2011 DESPITE CATASTROPHES

HOUSTON (August 2, 2011) . . .

HCC Insurance Holdings, Inc. (NYSE: HCC) today released results for its second quarter ended June 30, 2011.

Net earnings were $69.5 million for the second quarter of 2011, compared to $83.4 million for the second quarter of 2010.  Net earnings per diluted share were $0.61 for the second quarter of 2011, versus $0.72 for the same quarter of 2010.  Net earnings were $116.5 million for the first six months of 2011, or $1.02 per diluted share, compared to $154.7 million, or $1.34 per diluted share, for the same period of 2010.

The 2011 results include previously announced pretax net catastrophe losses of $21.9 million and $73.3 million for the second quarter and first six months of 2011, respectively, related to the 2011 catastrophes in Japan, New Zealand and the United States, which reduced net earnings by $0.13 and $0.42 per share in the respective periods. These catastrophe losses added 3.9 and 6.6 percentage points to the Company’s GAAP loss ratio for the second quarter and first six months of 2011, respectively, and 4.1 and 6.9 percentage points to its GAAP combined ratio for those same periods in 2011.

Book value per share increased to $29.65 at June 30, 2011, compared to $28.87 at March 31, 2011, representing a 2.7% increase in the second quarter of 2011.  The Company’s annualized return on average equity was 8.4% for the second quarter of 2011.

The Company repurchased 5.0 million shares of its common stock during the second quarter of 2011 for $161.4 million at an average cost of $32.06 per share.  As of June 30, 2011, the Company has repurchased 6.3 million shares for $201.6 million at an average cost of $31.78 per share under the Company’s $300.0 million buyback authorization announced on March 14, 2011.

The Company’s GAAP combined ratio was 89.2% for the second quarter of 2011, compared to 84.3% for the second quarter of 2010.  The GAAP combined ratio was 91.9% for the first half of 2011, versus 87.1% for the same period of 2010.

HCC had net adverse loss development of $13.3 million in the second quarter of 2011, compared to net favorable development of $2.8 million in the same quarter of 2010, and

net adverse development of $22.3 million for the first six months of 2011, versus $2.2 million in the same period of 2010.

The Company’s current accident year net loss ratio was 63.9% and its accident year combined ratio was 89.8% for the first six months of 2011.

“We are pleased with our underwriting results despite another heavy quarter of catastrophes for the entire industry.  HCC delivered another solid quarter with strong overall underwriting profitability, excluding the impact of catastrophe losses, at or ahead of our expectations.  And although worldwide industry catastrophe losses continue to be significant, HCC’s after-tax losses for all such events in 2011 represent 1.4% of our shareholders’ equity at December 31, 2010, which is within both our expectations and our reinsurance programs,” said John N. Molbeck, Jr., HCC’s Chief Executive Officer.

Gross written premium increased 7% to $742.1 million for the second quarter of 2011, compared to $691.6 million for the second quarter of 2010.  Net written premium increased 12% to $609.9 million for the second quarter of 2011, versus $546.8 million for the same quarter of 2010.  Net earned premium increased 4% to $524.3 million for the second quarter of 2011, compared to $506.4 million for the same quarter of 2010.

Gross written premium increased 6% to $1.4 billion for the first six months of 2011, compared to $1.3 billion for the same period of 2010.  Net written premium increased 10% to $1.1 billion for the first half of 2011, versus $1.0 billion for the same period of 2010.  Net earned premium was $1.0 billion for the first six months of 2011, representing a slight increase compared to the same period of 2010.

Investment income increased to $52.4 million in the second quarter of 2011, compared to $50.2 million in the same quarter of 2010.  Investment income increased to $104.0 million in the first six months of 2011, compared to $99.5 million in the same period of 2010.  The Company’s fixed income securities portfolio increased 11% to $5.6 billion at June 30, 2011, from $5.1 billion at June 30, 2010.  The Company’s total investments, including its fixed income securities portfolio and short-term investments, increased 5% to $5.8 billion at June 30, 2011 from $5.6 billion at June 30, 2010.

As of June 30, 2011, HCC’s fixed income securities portfolio had an average rating of AA+, with a duration of 5.3 years and an average long-term tax equivalent yield of 4.8%.  In addition, HCC’s total investments had an average combined duration of 5.1 years.

The Company’s liquidity position remains strong with $281.7 million of cash and short-term investments and $492.1 million of available capacity under its $600.0 million revolving loan facility at June 30, 2011.  The Company generated $121.8 million of cash flow from operating activities in the first half of 2011, compared to $139.3 million in the same period of 2010.  The Company’s 2011 operating cash flow was reduced by payments of $33.6 million for commutations of certain reserves in its Exited Lines.

2

As of June 30, 2011, total assets were $9.5 billion, shareholders’ equity was $3.3 billion and the Company’s debt to total capital ratio was 10.7%.

For further information about HCC’s 2011 second quarter earnings results, see the supplemental financial schedules that are accessible on HCC’s website at http://www.hcc.com, as well as directly in the Investor Relations section of HCC’s website at http://ir.hcc.com.

(Note: If clicking on the above links does not open in a new web page, please cut and paste the above URLs into your browser’s address bar.)

HCC will hold an open conference call beginning at 8:00 a.m. Central Daylight Time on Wednesday, August 3.  To participate, the number for domestic calls is (800) 374-0290 and the number for international calls is (706) 634-0161.  There will also be a live webcast available on a listen-only basis that can be accessed through the HCC website at http://www.hcc.com.  The webcast replay will be archived in the Investor Relations section of the HCC website through Friday, November 4, 2011.

Headquartered in Houston, Texas, HCC Insurance Holdings, Inc. is a leading international specialty insurance group with offices across the United States and in the United Kingdom, Spain and Ireland.  HCC’s major domestic and international insurance companies have financial strength ratings of “AA (Very Strong)” from Standard & Poor’s Corporation, “A+ (Superior)” from A.M. Best Company Inc., “AA (Very Strong)” from Fitch Ratings, and “A1 (Good Security)” from Moody’s Investors Service, Inc.

For more information about HCC, please visit http://www.hcc.com.

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.

*    *    *    *    *

3

HCC Insurance Holdings, Inc. and Subsidiaries

Financial Highlights

(Unaudited, in thousands except per share data)

S - 1

HCC Insurance Holdings, Inc. and Subsidiaries

Consolidated Balance Sheets

(Unaudited, in thousands)

S - 2

HCC Insurance Holdings, Inc. and Subsidiaries

Consolidated Statements of Earnings

(Unaudited, in thousands except per share data)

S - 3

HCC Insurance Holdings, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited, in thousands)

S - 4

HCC Insurance Holdings, Inc. and Subsidiaries

Gross Written Premium

(Unaudited, in thousands)

nm - Not meaningful comparison

S - 5

HCC Insurance Holdings, Inc. and Subsidiaries

Net Written Premium

(Unaudited, in thousands)

nm -  Not meaningful comparison

S - 6

HCC Insurance Holdings, Inc. and Subsidiaries

Net Earned Premium

(Unaudited, in thousands)