HCC TO EXIT W/C

HCC Insurance Holdings Inc. posted a third-quarter net loss, citing claims from Sept. 11 and reserve charges for discontinued businesses. The company also announced it will also exit the workers’ compensation insurance business written through its subsidiary, U.S. Specialty Insurance Co., with a related after-tax charge for discontinued lines of business of $29.6 million, or 50 cents a share. The majority of that amount is applicable to goodwill and adequate reserving to cover the run-off obligations, according to HCC. Operating earnings for the third quarter of 2001 were $417,000 or $0.01 per share, compared to $17.4 million or $0.33 per share for the third quarter of last year. Operating earnings for the nine months ended Sept. 30, 2001, were $36.7 million or $0.62 per share compared to $46.3 million or $0.90 per share in the same period of 2000. HCC Chairman and CEO Stephen L. Way stated, “Although rates are rising and profitability is returning to the workers’ compensation line, it is not one of our core businesses and does not represent sufficient premium volume to maintain the division. With rates rising more dramatically in our specialty lines, we feel we can best use management’s time and the Company’s capital in other areas which are more likely to produce our expected return of at least 15 percent for next year.”