HOUSTON (December 11, 2003) . . .Stephen L. Way, Chairman and
Chief Executive Officer of HCC Insurance Holdings,
Inc. (NYSE symbol: HCC), announced today that the Company had reached an
agreement to acquire Surety Associates Holding Co. Inc. and their
subsidiary American Contractors Indemnity Company (ACIC),
a surety company headquartered in Los Angeles,
California. This transaction, the terms of which were not disclosed, is subject
to regulatory approval and is expected to close in the
next few weeks.
Acquired in 1990 by Skipper G. Baumgarten, ACIC grew to be a
market leader providing court, specialty contract,
license and permit bonds. Regrettably, Mr. Baumgarten was
permanently disabled by a stroke suffered in July 2001 and consequently
the Company is now being sold. Non-executive Chairman
Bill LeVine and current management, led by Chief
Executive Officer Robert F. Thomas, have guided the Company very well during
this difficult time.
Bob Thomas, formerly with reinsurance broker E. W. Blanch, will
continue to oversee operations following the
acquisition. Lee Back (fiduciary and judicial bonds), who has
been with ACIC for eight years, and Scott Anschultz (bail bonds), who has
been with the Company for nine years, will continue to
be part of the stable and experienced underwriting
team at ACIC. Stephen T. Pate, formerly President of Western Surety
Company (CNA Surety) and with over twenty-five years of surety
experience, will join the Company in early January to
oversee the contract and commercial surety division.
John Knox, Jr., Chief Executive
Officer of Houston based SureTec Financial Corp. (www.suretec.com)
will become Chairman of the Board. Mr. Knox formed SureTec in
2000 and previously founded Universal Surety of America in 1983, which he
continued to manage until 1998, following its sale to
Capsure (CNA Surety) in 1994. SureTec, in which HCC
has a minority interest, will participate in ACIC’s operations through a quota
share reinsurance arrangement.
Mr. Way said, "We are very pleased to make this acquisition,
which will further expand our diversified financial
products segment and be immediately accretive." He added,
"ACIC’s small business profile and national platform will provide HCC the
formula for future growth and success in the surety
business."
ACIC’s gross written premium is estimated to be more than $50
million in 2004. For more information, visit the ACIC
website at
www.acicbond.com.
HCC is an international insurance holding company and a leading
specialty insurance group since 1974, with offices in
Bermuda, Spain, the UK and across the USA. HCC is traded on
the NYSE, has assets of $4.6 billion, shareholders equity of more than $1
billion and 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
John Knox, Jr., CEO
SureTec Insurance Company
(713) 812-0800
jknox@suretec.com
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.
* * * * *
