EXHIBIT 99.1

                           HCC REPORTS RECORD RESULTS
                FOR THE 2ND QUARTER AND FIRST SIX MONTHS OF 2002


HOUSTON (August 8, 2002) . . .
HCC INSURANCE HOLDINGS, INC. (NYSE SYMBOL: HCC) today released earnings for the
second quarter and first six months of 2002.

Net earnings increased 32 percent for the second quarter of 2002 to $26.8
million from $20.3 million and net earnings per share increased 26 percent to
$0.43 per share from $0.34 per share, both compared to the same period of 2001.

Net earnings for the first six months of 2002 increased 41 percent to $50.1
million from $35.4 million and net earnings per share increased 31 percent to
$0.80 from $0.61, both compared to the first six months of 2001.

Stephen L. Way, Chairman and Chief Executive Officer said, "We are extremely
pleased with our results, which are the best, first half year earnings in the
history of our Company. Our efforts over the past two years are now paying off
and having an extremely positive effect on our results, particularly in our
underwriting operations."

Total revenue continued to grow substantially, increasing 31 percent for the
first six months of 2002 to a record $307.6 million from $235.6 million in the
first half of 2001. This increase was primarily due to the growth in our
insurance company subsidiaries' earned premium, as market conditions in our
specialty lines continue to improve. Revenue is expected to further increase
during the second half of this year and into 2003, as earned premium continues
to rise.

Gross written premium of our insurance company subsidiaries, excluding
discontinued lines, increased 16 percent to $547.4 million during the first half
of 2002 compared to the first six months of 2001. During the same period and
also excluding discontinued lines, net written premium increased by 58 percent
to $252.9 million and net earned premium increased by 47 percent to $213.3
million. These increases are as a result of higher rates, increased retentions,
strong growth in our London branch operations and new business in our other
specialty business segment. This growth is expected to continue for the rest of
this year and into 2003.

The GAAP combined ratio improved considerably for the first six months of 2002
to 85.9 percent, from 89.3 percent in the corresponding period of 2001. The GAAP
gross loss ratio improved substantially in the first six months of 2002 to 60.1
percent from 85.2 percent in the same period in 2001. This improvement, together
with a reduction in ceded premiums, is having a positive effect on reinsurance
recoverables.

Mr. Way added that "This terrific result came from an improvement in both loss
and expense ratios, which was particularly impressive as earned premium was
growing 47


percent at the same time. This strong underwriting performance is the reward for
our underwriting discipline during an extended soft cycle."

Management fees increased 32 percent during the first half of 2002 to $39.0
million, from $29.6 million in the same period of 2001. This increase is due to
higher rates and new business in our other specialty lines segment. During the
same period, commission income was lower at $21.2 million compared to $24.8
million, due in part to the substantial reduction in ceded reinsurance from our
insurance company subsidiaries.

Cash flow from operating activities increased substantially during the first six
months of 2002 to $46.7 million from $16.5 million in the first half of 2001, as
a result of increased business, higher retained premiums and net earnings.

Despite an increase in investment assets, net investment income decreased in the
first six months of 2002 to $18.2 million, from $20.5 million in the first half
of 2001. This reduction in income was a result of lower interest rates and the
Company's conservative investment philosophy. The Company does not generally
invest in equities, has little or no derivatives and no high yield bonds.
Although continuing increases in cash flow should improve this result going
forward, investment income is unlikely to show any comparative growth until
interest rates rise.

As of June 30, 2002, total investments increased to $965.0 million, total assets
were $3.4 billion, book value per share increased to $13.21 and the Company's
debt to total capital ratio was 20.3 percent. See attached tables.

HCC will hold an open conference call beginning at 8:00 a.m. CDT on Friday,
August 9, 2002. To participate, the number for domestic calls is (877) 679-9055
and the number for international calls is (952) 556-2808. A replay will be
available until Friday, August 16, 2002 at (800) 615-3210, access code 6130781.

In addition, there will be a live webcast available on a listen-only basis, that
can be accessed through the HCC website at www.hcch.com. The webcast replay will
be available until Friday, August 16, 2002.

HCC is an international insurance holding company and one of the largest
specialty insurance groups in the USA. HCC has assets of $3.4 billion and its
shares trade on the NYSE (symbol: HCC) with a market capitalization of over $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
           HCC Insurance Holdings, Inc.
           Telephone (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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