Exhibit 99.1

HCC INSURANCE HOLDINGS REPORTS THIRD
QUARTER 2011 NET EARNINGS OF $60.4 MILLION AND
COMBINED RATIO OF 92.8%

HOUSTON (November 1, 2011) . . .

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

Net earnings were $60.4 million for the third quarter of 2011, compared to $93.1 million for the third quarter of 2010.  Net earnings per diluted share were $0.56 for the third quarter of 2011, versus $0.81 for the same quarter of 2010.  Net earnings were $176.9 million for the first nine months of 2011, or $1.57 per diluted share, compared to $247.8 million, or $2.15 per diluted share, for the same period of 2010.

The 2011 results include previously announced pretax net catastrophe losses of $34.6 million and $107.9 million for the third quarter and first nine months of 2011, respectively, which reduced net earnings by $0.21 and $0.63 per share in the respective periods.  These catastrophe losses added 6.2 and 6.5 percentage points to the Company’s GAAP net loss ratio and 6.3 and 6.7 percentage points to its GAAP combined ratio for the third quarter and first nine months of 2011, respectively.

The Company’s GAAP combined ratio was 92.8% for the third quarter of 2011, compared to 82.2% for the third quarter of 2010.  The GAAP combined ratio was 92.2% for the first nine months of 2011, versus 85.4% for the same period of 2010.

Book value per share increased 3.4% and 7.0% for the third quarter and first nine months of 2011, respectively, to $30.67 at September 30, 2011.  The Company’s annualized return on average equity was 7.4% for the third quarter of 2011, or 10.1% excluding catastrophe losses.

The Company repurchased 3.8 million shares of its common stock during the third quarter of 2011 for $106.2 million at an average cost of $27.73 per share.  As of September 30, 2011, the Company has repurchased 11.5 million shares for $342.5 million at an average cost of $29.89 per share since the share repurchase program announced in June 2010.

HCC had net favorable loss development of $0.6 million in the third quarter of 2011,

compared to $0.9 million in the same quarter of 2010, and net adverse development of $21.6 million for the first nine months of 2011, versus $1.3 million in the same period of 2010.  The Company’s 2011 accident year net loss ratio was 66.0% and its accident year combined ratio was 91.8% for the first nine months of 2011.

As previously announced, the third quarter 2011 results included $88.0 million of net favorable development, primarily in the U.S. D&O and International D&O lines of business in the Professional Liability segment and in the U.K. professional liability line of business in the International segment, which was offset by $87.4 million of adverse development in the diversified financial products line of business in the Professional Liability segment.  In addition, in the third quarter of 2011, the Company increased its loss reserves by $28.2 million due to increases in its 2011 accident year loss ratios, virtually all of which related to the diversified financial products line of business.

“HCC delivered another solid quarter of overall underwriting profitability with a combined ratio of 92.8%, or 86.5% excluding catastrophes.  And although worldwide industry catastrophe losses continue to be significant, HCC’s after-tax losses for all such events in 2011 represent only 2.1% of our shareholders’ equity at December 31, 2010.  We are disappointed in our diversified financial products results but believe we have taken the appropriate actions to return the book to profitability as we re-underwrite it in the next twelve months,” said John N. Molbeck, Jr., HCC’s Chief Executive Officer.

Gross written premium decreased 2% to $628.8 million for the third quarter of 2011, compared to $640.7 million for the third quarter of 2010.  Net written premium increased 4% to $512.3 million for the third quarter of 2011, versus $494.4 million for the same quarter of 2010.  Net earned premium increased 5% to $544.3 million for the third quarter of 2011, compared to $516.2 million for the same quarter of 2010.

Gross written premium increased 3% to $2.0 billion for the first nine months of 2011, compared to the same period of 2010.  Net written premium increased 8% to $1.7 billion for the first nine months of 2011, versus $1.5 billion for the same period of 2010.  Net earned premium increased 3% to $1.6 billion for the first nine months of 2011, compared to $1.5 billion for the same period of 2010.

Investment income increased to $54.8 million in the third quarter of 2011, compared to $51.1 million in the same quarter of 2010.  Investment income increased to $158.8 million in the first nine months of 2011, compared to $150.6 million in the same period of 2010.  The Company’s fixed income securities portfolio increased 9% to $5.8 billion at September 30, 2011, from $5.4 billion at September 30, 2010.  The Company’s total investments increased 4% to $6.1 billion at September 30, 2011, from $5.8 billion at September 30, 2010.

As of September 30, 2011, HCC’s fixed income securities portfolio had an average rating of AA, with a duration of 5.2 years and an average long-term tax equivalent yield of 4.8%.  In addition, HCC’s total investments had an average combined duration of 5.0

2

years.

The Company’s liquidity position remains strong with $291.1 million of cash and short-term investments and $392.2 million of available capacity under its $600.0 million revolving loan facility at September 30, 2011.  In the first nine months of 2011, the Company generated $325.8 million of operating cash flow, before consideration of $37.8 million in commutations, compared to $314.6 million in the same period of 2010.

As of September 30, 2011, total assets were $9.6 billion, shareholders’ equity was $3.3 billion and the Company’s debt to total capital ratio was 13.1%.

For further information about HCC’s 2011 third 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, November 2.  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, February 3, 2012.

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.

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HCC Insurance Holdings, Inc. and Subsidiaries

Financial Highlights

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