HOUSTON -- HCC Insurance
Holdings, Inc. HCC announced today the formation of a strategic alliance between
its subsidiary, U. S. Specialty Insurance Company (USSIC) and SureTec Financial
Corp. (SureTec), a Houston based property and casualty insurance holding company
whose subsidiaries specialize in underwriting contract and commercial surety and
providing related financial services.
SureTec was founded in 1998 by its current
Chairman and Chief Executive Officer, John Knox, Jr. Mr. Knox, who is a past
Chairman of the National Association of Independent Sureties, was also the
founder of Universal Surety of America (Universal) which at the time of its
sale, was the largest surety company in Texas. Mr. Knox remained with Universal
following its sale in 1994 to Capsure Holdings, Inc., which subsequently became
part of CNA Surety.
Subject to the receipt of regulatory approval,
USSIC will invest $5 million in a combination of equity and debt, which will
provide SureTec with additional capital for its insurance company subsidiary.
Following its investment, USSIC will own 23.5% of SureTec. In addition, USSIC
will act as co-surety with and for SureTec on larger issues and in those
jurisdictions where SureTec is not yet licensed providing a stable platform for
SureTec to grow its business.
Stephen L. Way, Chairman and Chief Executive
Officer of HCC said, "We are extremely pleased to have reached this agreement
with SureTec, which provides us an excellent entry point into the surety
business with a very experienced and innovative partner."
SureTec has already achieved substantial
recognition in Texas by creating and administrating a master subcontractor
surety program for the $2.5 billion Dallas/Fort Worth Airport Capital
Development Plan. Mr. Knox commented, "We are fortunate to have HCC as a
partner, which will provide us with increased acceptability in the marketplace
and help us expand our business." For more information, visit the Company's
website at www.suretec.com
HCC is an international insurance holding company
and one of the largest specialty insurance groups in the USA. HCC has assets of
over $3.0 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.
