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                                                                    EXHIBIT 99.2


                                  HCC ANNOUNCES
                            CONVERTIBLE NOTE PRICING


HOUSTON (August 20, 2001) . . . HCC INSURANCE HOLDINGS, INC. (NYSE symbol: HCC)
announced today that it will receive $150,000,000 in gross proceeds from the
sale of convertible notes (the "Notes") due in 2021. HCC intends to use the
proceeds of the offering to repay outstanding debt, fund previously announced
acquisitions and for general corporate purposes.

The Notes, which are convertible into HCC's Common Stock, were offered under
HCC's shelf registration statement and have been underwritten by Banc of America
Securities LLC and Salomon Smith Barney, as joint book-running managers, and
First Union Securities, Inc. and BNY Capital Markets, Inc. as co-managers.

The Notes carry a coupon rate of 2.0 percent per annum with an initial
conversion price of $32.00 per share. The underwriters have a 30-day option to
purchase up to an additional $22,500,000 principal amount of the Notes to cover
over-allotments.

Each $1,000 principal amount of the Notes will be convertible into 31.25 shares
of HCC's Common Stock upon the occurrence of




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any of the following events: (1) the closing price of HCC's shares of
Common Stock on the New York Stock Exchange reaches certain specified
thresholds; (2) HCC calls the Notes for redemption; or (3) HCC is a party to
certain mergers or consolidations.

HCC may redeem the Notes for cash on or after September 1, 2006 at their face
value plus accrued and unpaid interest. HCC may be required to repurchase the
Notes at their face value plus accrued and unpaid interest, at the option of the
holders on each of September 1, 2002, 2004, 2006, 2008, 2011 and 2016. In such
event, HCC may choose to pay the purchase price for such repurchases in cash or
shares of its Common Stock. HCC may also be required to repurchase the Notes for
cash, at face value plus accrued and unpaid interest upon the occurrence of
certain change in control events occurring prior to September 1, 2002.

This press release does not constitute an offer to sell or the solicitation of
an offer to buy these securities. The Notes may be offered only by means of a
prospectus, including a prospectus supplement. A copy of the prospectus may be
obtained from Banc of America Securities LLC, Salomon Smith Barney, First Union
Securities, Inc. or BNY Capital Markets, Inc.



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HCC is one of the largest specialty insurance groups in the United States and
consists of insurance company, underwriting agency and intermediary operations.
HCC has assets of $2.9 billion and its shares are traded on the NYSE (symbol:
HCC) with a market capitalization of approximately $1.5 billion.  HCC 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.hcch.com.


Contact: L. Byron Way, Vice President at
         HCC Insurance Holdings, Inc. (713) 690-7300


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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