HOUSTON, April 29, 2009 (GLOBE NEWSWIRE) -- HCC Insurance Holdings, Inc. (NYSE:HCC) announced today that its subsidiaries HCC Reinsurance Company Limited (HCC Re) and HCC Indemnity Guaranty Agency (HCCIG) have terminated all liability related to the prior reinsurance contract with MGIC Investment Corporation (NYSE:MTG) announced June 17, 2008.
MGIC disclosed a $26.4 million reinsurance fee in its earnings press release today which included premium that was earned by HCC during 2009 up to the date of commutation. The net earnings impact to HCC's financial statements will be significantly less than the revenue received after accounting for costs associated with and allocated to this transaction along with taxes.
HCC will discuss this matter in further detail in its earnings conference call next week on Wednesday, May 6, at 8:00 a.m. Central Daylight Time.
Headquartered in Houston, Texas, HCC Insurance Holdings, Inc. (HCC) is a leading international specialty insurance group with offices across the United States and in Bermuda, Ireland, Spain and the United Kingdom. HCC has assets of $8.3 billion, shareholders' equity of $2.6 billion and is rated AA (Very Strong) by Standard & Poor's and AA (Very Strong) by Fitch Ratings. In addition, HCC's major domestic insurance companies are rated A+ (Superior) by A.M. Best Company.
For more information, visit our website at www.hcc.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.