Exhibit 99.1

HCC INSURANCE HOLDINGS REPORTS FOURTH QUARTER AND FULL YEAR 2011 RESULTS

Fourth Quarter 2011 Highlights and 2012 Guidance:

·                  Net earnings of $78.3 million and net earnings per diluted share of $0.74

·                  GAAP combined ratio of 86.8%, including 1.9 percentage points for catastrophes

·                  Book value per share increased 3.1% to $31.62

·                  Annualized return on equity of 9.6% and annualized operating return on equity(a) of 10.4%

·                  2.5 million shares of common stock repurchased for $65.8 million at an average cost of $26.63 per share

·                  Net earned premium increased 8% to $550.2 million

·                  Net earnings guidance of $2.80 to $3.10 per diluted share for 2012

HOUSTON (February 21, 2012) . . .

HCC Insurance Holdings, Inc. (NYSE: HCC) today released earnings for the fourth quarter and full year of 2011.

Net earnings were $78.3 million for the fourth quarter of 2011, compared to $97.3 million for the fourth quarter of 2010.  Net earnings per diluted share were $0.74 for the fourth quarter of 2011, versus $0.84 for the same quarter of 2010.  Net earnings were $255.2 million for 2011, or $2.30 per diluted share, compared to $345.1 million, or $2.99 per diluted share, for 2010.

The 2011 results include previously announced pretax net catastrophe losses of $10.0 million and $117.9 million for the fourth quarter and full year of 2011, respectively, which reduced net earnings by $0.06 and $0.70 per share in the respective periods.  These catastrophe losses added 1.9 and 5.3 percentage points to the Company’s GAAP net loss ratio for the fourth quarter and full year of 2011, respectively.

The Company’s GAAP combined ratio was 86.8% for the fourth quarter of 2011, compared to 82.3% for the fourth quarter of 2010.  The GAAP combined ratio was 90.8% for the full year of 2011, versus 84.6% for 2010.  HCC’s paid loss ratio for 2011 was 58.9%, compared to 59.7% for 2010.

Book value per share increased 3.1% and 10.3% for the fourth quarter and full year of 2011, respectively, to $31.62 at December 31, 2011.  Book value per share grew at a compounded rate of 11.5% over the last five years.  Dividends of $0.60 per share were declared in 2011.  This was the 15th consecutive year in which HCC raised its dividend.

HCC’s annualized return on equity was 9.6% for the fourth quarter of 2011 and 7.7% for the full year of 2011.  The Company’s annualized operating return on equity(a) was 10.4% for the fourth quarter of 2011 and 8.1% for the full year of 2011.

“HCC had a strong quarter and a solid year despite unprecedented catastrophe losses.  We look forward to 2012 and an improving pricing environment,” HCC Chief Executive Officer John N. Molbeck, Jr. said.

The Company repurchased 2.5 million shares of its common stock during the fourth quarter of 2011 for $65.8 million at an average cost of $26.63 per share.  As of February 21, 2012, the Company has repurchased 14.1 million shares for $412.5 million at an average cost of $29.30 per share since June 2010.

HCC had net favorable loss development of $11.5 million in the fourth quarter of 2011, compared to $23.9 million for the same period of 2010, and net adverse development of $10.1 million for the full year of 2011, versus $22.7 million of net favorable development for the full year of 2010.  The Company’s 2011 accident year net loss ratio was 65.3% and its accident year combined ratio was 91.0% for the full year of 2011.

Gross written premium increased 1% to $629.0 million for the fourth quarter of 2011, compared to $624.2 million for the same quarter of 2010.  Net written premium increased 7% to $521.1 million for the fourth quarter of 2011, versus $486.7 million for the same quarter of 2010.  Net earned premium increased 8% to $550.2 million for the fourth quarter of 2011, compared to $509.8 million for the same quarter of 2010.

Gross written premium increased 3% to $2.6 billion for the full year of 2011.  Net written premium increased 8% to $2.2 billion for the full year of 2011, compared to $2.0 billion for the same period of 2010.  Net earned premium increased 4% to $2.1 billion for the full year of 2011, versus $2.0 billion for 2010.

Investment income increased to $53.5 million in the fourth quarter of 2011, compared to $53.2 million in the same quarter of 2010.  Investment income increased to $212.3 million in the full year of 2011, versus $203.8 million in 2010.  The Company’s fixed income securities portfolio increased 13% to $5.9 billion at December 31, 2011, from $5.2 billion at December 31, 2010.  The Company’s total investments increased 6% to $6.0 billion at December 31, 2011, from $5.7 billion at December 31, 2010.

As of December 31, 2011, HCC’s fixed income securities portfolio had an average rating of AA, with a duration of 5.0 years and an average long-term tax equivalent yield of

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4.8%.  In addition, HCC’s total investments had an average combined duration of 4.9 years.

The Company’s liquidity position remains strong with $238.5 million of cash and short-term investments and $407.4 million of available capacity under its $600.0 million revolving loan facility at December 31, 2011.  In the full year of 2011, the Company generated $465.0 million of operating cash flow compared to $431.0 million in 2010, before consideration of $43.7 million and $15.8 million in commutations, respectively.

As of December 31, 2011, total assets were $9.6 billion, shareholders’ equity was $3.3 billion and the Company’s debt to total capital ratio was 12.7%.

EARNINGS GUIDANCE: HCC’s management estimates the Company will achieve net earnings of $2.80 to $3.10 per diluted share for 2012.  These estimated results assume the following: gross written premium of $2.7 billion; net written premium of $2.2 billion; a combined ratio of 86%-89%; and average fully diluted shares outstanding of 100 million shares.  These assumptions include 2.6 loss ratio points for catastrophe losses in the Company’s property treaty and property direct and facultative businesses.  These assumptions do not include any provision for loss development, foreign currency fluctuation, net realized investment gains (losses) or other-than-temporary impairment credit losses.

For further information about HCC’s 2011 fourth quarter and full-year 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 Standard Time on Wednesday, February 22.  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, May 25, 2012.

Headquartered in Houston, Texas, HCC Insurance Holdings, Inc. is a leading international specialty insurance group with offices in the United States, 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, “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.

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(a) Non-GAAP Financial Measure

Annualized operating return on equity is a non-GAAP financial measure as defined by Regulation G and is calculated as operating earnings (or net earnings excluding after-tax net realized investment gain (loss), other-than-temporary impairment credit losses and foreign currency benefit (expense)) divided by average shareholders’ equity excluding accumulated other comprehensive income.  To annualize a quarterly rate, we multiply the result by four.  See the supplemental financial schedules for a reconciliation of this non-GAAP financial measure to corresponding GAAP amounts.  Management believes annualized operating return on equity is a useful measure for understanding the Company’s profitability relative to shareholders’ equity before consideration of investment-related gains (losses) and foreign currency benefit (expense) that the Company does not actively manage or consider in evaluating its operating results internally.

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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Consolidated Balance Sheets

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Consolidated Statements of Earnings

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Consolidated Statements of Cash Flows

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Gross Written Premium

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Net Written Premium

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Net Earned Premium

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