EXHIBIT 99.1

3/03

Exhibit 99.1

ABOUT FORWARD LOOKING STATEMENTS

This presentation contains certain "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created by those laws. These forward looking statements include information about possible or assumed future results of our operations. All statements, other than statements of historical facts, included in this presentation that address activities, events or developments that we expect or anticipate may occur in the future, including, such things as future capital expenditures, business strategies, competitive strengths, goals, growth of our business and operations, plans, and references to future successes may be considered forward looking statements. Also, when we use the words such as "anticipate", "believe", "estimate", "expect", "intend", "plan", "probably", or similar expressions, we are making forward looking statements.

Many risks and uncertainties may impact the matters addressed in these forward looking statements. Many possible events or factors could affect our future financial results and performance. These could cause our results or performance to differ materially from those we express in our forward looking statements. Although we believe that the assumptions underlying our forward looking statements are reasonable, any of these assumptions, and therefore also the forward looking statements based on these assumptions, could themselves prove to be inaccurate. In light of the significant uncertainties inherent in the forward looking statements included in this presentation, our inclusion of this information is not a representation by us or any other person that our objectives and plans will be achieved.

Our forward looking statements speak only as of the date made and we will not update these forward looking statements unless the securities laws require us to do so. In light of these risks, uncertainties and assumptions, the forward looking events discussed in this presentation may not occur.

OVERVIEW

CORPORATE PROFILE

Specialty Insurance since 1974
Based in Houston, Texas with international offices in Bermuda, Spain and the U.K.
Operations include Insurance Companies, Underwriting Agencies and Intermediaries
Rated A+ (Superior) by A.M. Best Company and
AA (Very Strong) by Standard & Poor's

CORPORATE PHILOSOPHY

Long Term Growth of Shareholders' Equity
Capital Preservation
Diversification of Operations
Conservative Investments
Long Term Planning

GROWTH IN SHAREHOLDER'S EQUITY
($ in millions)

1996

$241

1998

$440

2000

$531

$882

2002

OPERATIONS

LINES OF BUSINESS

Group Life & Health
Global Financial Products
General Aviation
London Market Operations
Other Specialty Operations

REVENUE DIVERSIFICATION

Earned Premium
Management Fee Income
Commission Income
Investment Income

$346

$474

$505

$669

Total Revenue

REVENUE DIVERSIFICATION
($ in millions)

57%

68%

76%

80%

Risk Bearing

1999

2000

2001

2003
Estimate

2002

ORGANIZATIONAL STRUCTURE

Houston Casualty

HCC Europe

HCC Life

HCC Specialty

U.S. Specialty

Avemco

Insurance Intermediaries

HCC Employee
Benefits

HCC Intermediaries

Rattner Mackenzie

Underwriting Agencies

ASU International

Dickson Manchester

HCC Benefits

HCC Global
Financial Products

Professional
Indemnity Agency

INSURANCE COMPANY OPERATIONS

Capital Intensive
Risk Bearing
Capital Protection through Prudent Reinsurance
Disciplined Underwriting

INSURANCE COMPANY PREMIUM
($ in millions)

$140

1999

$284

2000

$373

2001

$546

2002

$730

2003
Estimate

UNDERWRITING AGENCY OPERATIONS

Provides Underwriting Management on behalf of Affiliated and Non-Affiliated Insurance Companies
Control of Premium Distribution
No Capital Required
High Margin, Non-Risk Bearing Revenue

MANAGEMENT FEES
($ in millions)

2000

$96

2001

$62

$77

2002

2003
Estimate

$85

INTERMEDIARY OPERATIONS

Specialty Retail, Wholesale and Reinsurance Brokers
No Capital Required
High Margin, Non-Risk Bearing Revenue

COMMISSION INCOME
($ in millions)

1999

$58

2001

$43

2003
Estimate

$50

2002

$42

FINANCIAL

STRONG BALANCE SHEET

No Net Loss Reserve Development Last 10 Years
Strong Liquidity
Low Risk Investment Portfolio
Assets of $3.7 Billion
Shareholders' Equity more than $880 Million
Debt to Total Capital ratio less than 25%

STRONG GROWTH IN INVESTMENT ASSETS
($ in millions)

1996

$469

1998

$526

$1,168

2002

$711

2000

Taxable Securities - 47%
Investment Grade
Average Maturity: 3.4 years
Duration: 2.9 years

Tax Exempt Securities - 24%
Investment Grade
Average Maturity: 5.7 years
Duration: 4.1 years

Other
4%

December 31, 2002
$1,168 million

Short Term
Investments - 25%

CONSERVATIVE INVESTMENT PORTFOLIO

1999

$31

2000

$40

2001

$40

$38

2002

INVESTMENT INCOME
($ in millions)

STRONG REVENUE GROWTH
($ in millions)

$474

2000

$346

1999

$505

2001

$669

2002

CONSISTENT GROWTH IN BOOK VALUE
($ in millions, except per share data)

$9.12

$8.94

$10.29

$12.40

$14.14

$458

$440

$531

$763

$882

1999

1998

2000

2001

2002

STRATEGY FOR
CONTINUING SUCCESS

COMPETITIVE ADVANTAGES

Strong Financials
Highly Rated Insurance Companies
Market Leader
Expertise and Experience as a Specialty Company

CURRENT FOCUS

Earnings Growth
Acquisitions and Strategic Investments
Long Term Planning

RECENT ACQUISITION

HCC Global Financial Products
Underwriting Agency formerly called MAG
Offices in the U.S., Spain and the U.K.
Specializing in D&O and Professional Indemnity
Estimated 2003 GWP - $225 Million

RECENT ACQUISITION

St. Paul Espana
Insurance Company
Based in Madrid, Spain
Licensed throughout the European Union
Specialty Lines of Business; Surety, D&O and PI
Estimated 2003 GWP - $100 Million

RECENT ACQUISITION

Dickson Manchester
Underwriting Agency based in the U.K.
Also has Wholesale Broking Operations
Specializing in Professional Indemnity
Estimated 2003 GWP - $50 Million

Earnings Growth expected from 20% to 30%
Underwriting Profits more Predictable
Growth in Non-Risk Bearing Revenue for Future Cycle Management
Quarterly Earnings Volatility
GAAP vs Operating Income

EARNINGS GROWTH

ABOUT FORWARD LOOKING STATEMENTS

This presentation contains certain "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created by those laws. These forward looking statements include information about possible or assumed future results of our operations. All statements, other than statements of historical facts, included in this presentation that address activities, events or developments that we expect or anticipate may occur in the future, including, such things as future capital expenditures, business strategies, competitive strengths, goals, growth of our business and operations, plans, and references to future successes may be considered forward looking statements. Also, when we use the words such as "anticipate", "believe", "estimate", "expect", "intend", "plan", "probably", or similar expressions, we are making forward looking statements.

Many risks and uncertainties may impact the matters addressed in these forward looking statements. Many possible events or factors could affect our future financial results and performance. These could cause our results or performance to differ materially from those we express in our forward looking statements. Although we believe that the assumptions underlying our forward looking statements are reasonable, any of these assumptions, and therefore also the forward looking statements based on these assumptions, could themselves prove to be inaccurate. In light of the significant uncertainties inherent in the forward looking statements included in this presentation, our inclusion of this information is not a representation by us or any other person that our objectives and plans will be achieved.

Our forward looking statements speak only as of the date made and we will not update these forward looking statements unless the securities laws require us to do so. In light of these risks, uncertainties and assumptions, the forward looking events discussed in this presentation may not occur.