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					                                               HCC Life Insurance Company




Company Overview




A subsidiary of HCC Insurance Holdings, Inc.                           August 2011
HCC Overview


 •   Specialty insurer since 1974 (NYSE: HCC) headquartered
     in Houston, TX
 •   Non-correlated specialty lines of business underwritten in
     more than 180 countries:
      – Five segments: U.S. Property & Casualty, Professional
         Liability, Accident & Health, U.S. Surety & Credit and
         International
      – Offices in the U.S., U.K., Spain and Ireland
 •   Financial Strength Ratings of “AA (Very Strong)” by
     Standard & Poor’s, “AA (Very Strong)” by Fitch Ratings,
     “A1 (Good Security)” by Moody’s, and “A+ (Superior)” by
     A.M. Best Company
 •   Assets of $9.5 billion, shareholders’ equity of $3.3 billion and
     market capitalization of $3.6 billion as of June 30, 2011

                                                                        2
HCC Insurance Holdings, Inc.



                                        Assets                                                 Gross Written Premium
                   10                              8.83    9.1                     4
                                 8.07      8.33
                         7.63
                    8
                                                                                   3            2.45     2.50    2.56    2.58




                                                                 ($ in billions)
                                                                                        2.24
 ($ in billions)




                    6
                                                                                   2
                    4
                                                                                   1
                    2

                    0                                                              0
                        2006    2007     2008     2009    2010                         2006    2007    2008     2009    2010
                                         Year                                                          Year
Lines of Business


                                                    2010 Gross Written Premium
 •   Accident & Health                                     ($ in millions)


 •   International                                         U.S. Property &
                                                              Casualty
                                                                 $538
 •   Professional Liability     Accident & Health                                     Professional
                                      $762                                              Liability
                                                                                          $596
 •   U.S. Property & Casualty

 •   U.S. Surety & Credit                                                     U.S. Surety & Credit
                                                           International             $227
                                                               $453




                                                           Total: $2,576
                                                            ($ in millions)
Historical Performance

                   Gross Written Premium ($ in millions)                              Net Written Premium ($ in millions)
     $4,000                                                               $4,000


     $3,000                              $2,500   $2,560    $2,580        $3,000
                                $2,450
                       $2,240
              $2,040                                                                                 $1,990   $2,060   $2,050   $2,030
     $2,000                                                               $2,000            $1,810
                                                                                   $1,500

     $1,000                                                               $1,000


         $0                                                                   $0
               2005     2006    2007     2008     2009      2010                    2005     2006     2007    2008     2009      2010

                                                            GAAP Underwriting Ratios

                                                    85.1%                                                                     92.1%
               82.9%             83.5%                               84.0%             84.6%             84.0%
               23.7%             23.9%              24.7%            24.3%             25.2%             24.3%                34.8%


               59.2%             59.6%              60.4%            59.7%             59.4%             59.7%                57.3%


                                                                                                                                 1
               2006              2007               2008              2009              2010          5 year HCC        5 year peer
                                                                                                        average           average
                                                   Loss Ratio              Expense Ratio
1   Peer group defined as AFG, AGII, CB, MKL, NAVG, ORI, RLI, TRV and WRB. Five-year peer average calculated by HCC as simple mean using
    SEC filings for peer companies.
HCC Overview

                                                             Peer Group Comparison – 2010 Combined Ratios

                                                                                          113 .1%                              113 .7 %
                                                                                                                        111.4 %
                                                 10 6 .7 %
                                         10 3 .2 %                                                          10 2 .8 %
                                                                                                    10 0 .7 %                                                                              10 1.1%
                                                                                                                                                  9 7 .6 %              9 9 .0 %
                                                                      9 6 .2 %    9 7 .0 %
                              9 4 .7 %                                                                                                                       9 3 .2 %              9 4 .5 %
                      8 8 .5 %                                8 9 .5 %
   8 4 .6 %8 5 .6 %
                                                                                                                                          8 0 .7 %




    GAAP     AY        GAAP      AY       GAAP     AY          GAAP      AY        GAAP      AY      GAAP     AY         GAAP    AY        GAAP      AY       GAAP        AY        GAAP      AY




                                  Loss Ratio                                  Net Positive Development                                    Expense Ratio


Note: Calculated by HCC using 12/31/10 SEC filings for peer companies.
HCC Life Insurance Company (HCC Life)

•   Industry leader in Medical Stop Loss, HMO Reinsurance,
    and Medical Excess Reinsurance
     -   HCC Life is one of the largest insurance providers in the self-funded
         marketplace

     -   HCC Life’s Accident and Health Division provides coverage for
         more than 10 million lives


•   Rated A+ (Superior) by A.M. Best Company, AA (Very Strong) by
    Standard & Poor’s, and AA (Very Strong) by Fitch Ratings
HCC Life Executive Management

Craig Kelbel, President & CEO
34 years experience

Mark Sanderford, Executive Vice President & CFO
26 years experience

Dan Strusz, Executive Vice President
28 years experience

Larry Stewart, Senior Vice President & CUO
22 years experience

Suzi Johnson, Senior Vice President
37 years experience

David Grider, Senior Vice President
20 years experience

Jay Ritchie, Senior Vice President
19 years experience
HCC Life Regional Offices




                            Northeast Region
                            Wakefield, MA

                            Northwest Region
                            Minnetonka, MN

                            Southwest Region
                            Dallas, TX

                            Southeast Region
                            Atlanta, GA
                            Corporate Office

                            West Region
                            Scottsdale, AZ
Regional Executives

Region                 Name                                          Phone            Email                   Years*

   Northeast           Mike Lee, Senior Vice President               (781) 716-4885   mlee@hcclife.com         30


   Northwest           Mike Holthaus, Senior Vice President          (763) 486-1052   mholthaus@hcclife.com    21


   Southeast           Mike Remeika, Senior Vice President           (770) 693-6486   mremeika@hcclife.com     22


   Southwest           Jeff Petty, Senior Vice President             (972) 381-4854   jpetty@hcclife.com       17


   West                Gary Hudgins, Regional Underwriting Manager   (480) 278-7714   ghudgins@hcclife.com     14


 * Years of industry experience
HCC Life Stop Loss Representatives

Name                                                 Region           Phone            Email
Tim Campbell, Vice President - Marketing             Northeast        (781) 716-4791   tcampbell@hcclife.com

Holgate Dean, Vice President - Marketing             Southwest/West   (714) 432-6572   hdean@hcclife.com

Peter Johnson, Vice President – Marketing            Taft-Hartley     (763) 486-1014   pjohnson@hcclife.com

Pam McGovern, Vice President - Marketing             Northwest        (763) 486-1012   pmcgovern@hcclife.com

Gary Brown, Assistant Vice President - Marketing     Southeast        (314) 698-5329   gbrown@hcclife.com

Val Flowers, Assistant Vice President - Marketing    Southeast        (770) 693-6491   vflowers@hcclife.com

Bob Hosler, Assistant Vice President - Marketing     Northwest        (317) 696-7896   rhosler@hcclife.com

Todd Marcoux, Assistant Vice President - Marketing   Northeast        (781) 716-4866   tmarcoux@hcclife.com

Jim Miller, Assistant Vice President - Marketing     Northwest        (314) 698-5306   jmiller@hcclife.com

Jim Reagan, Assistant Vice President - Marketing     Southwest        (512) 263-8155   jreagan@hcclife.com

Chase Ambrosia, Regional Marketing Representative    Northwest        (763) 486-1048   cambrosia@hcclife.com

Shaun Johnson, Regional Marketing Representative     Southeast        (770) 693-6541   ssjohnson@hcclife.com

Nichole Sivigny, Regional Marketing Representative   Northwest        (763) 486-1034   nsivigny@hcclife.com
Medical Stop Loss Options

•   Split-Funded Aggregate

•   Early Lock Down

•   Contract Advantage Plan (CAP)
Value-Added Services

•   Specialty Claim Unit (SCU) – Ensures early case intervention for
    transplant and neo-natal claims in an effort to help reduce costs to the
    benefit plan and HCC Life.


•   Preliminary Claim Unit (PCU) – Receives early potential claim
    information via 50% notices, large case management reports and
    electronic pre-certs.


•   On-staff Medical Resources – 11 nurses on staff.


•   NetValue – Assists our clients in selecting the best managed care provider
    network in specific areas of operation.
Medical Stop Loss Service Goals

Claims
7……………….……… Average number of days to process complete claims


Policy
5………………………. Days on average when policies were issued from the
            day complete information was received


Underwriting
5………………………. Average number of days turnaround time for new
            business requests
HCC Life Medical Stop Loss Advisory Board

•   Composed of HCC Life Insurance Company staff and producers from
    across the country


•   Generates potential product ideas and serves as a sounding board
    for current product improvement


•   Provides feedback on market trends and educational initiatives
Why Choose HCC Life Medical Stop Loss?

•   Financial strength – Our products are backed by the financial resources and
    commitment of our parent company, HCC Insurance Holdings, Inc.
     –   As a direct writer, HCC Life retains all of the stop loss financial risk.


•   Experience and expertise – HCC Life Insurance Company’s experience in
    stop loss spans more than 30 years.

•   Commitment to marketplace

•   Exceptional service – The professional and knowledgeable staff in
    marketing, underwriting, claims and administration helps clients find solutions
    to identify and manage their risk exposure.

•   Comprehensive, strong contract

•   Access to multiple transplant networks
Why Choose HCC Life Medical Stop Loss?

•   Competitive rates – Continued analysis and research enables HCC Life to
    more accurately price products, leading to more competitive rates.

•   Advanced technology – Our proprietary medical stop loss administrative
    system increases communication capabilities across departments. We have
    also utilized Web-based applications and eliminated appointment forms in
    order to expedite time-critical communications between HCC Life and our
    producers.

•   Communications – We keep you updated with industry news
    and product promotions.

•   Regionalization – Regional offices have been strategically located to meet
    the unique needs of each region.

•   Easy access to key personnel
Healthcare Risk Management (HCRM) Division

•   Located in Minnetonka, MN

•   Almost 30 years of experience providing HMO Reinsurance and
    Medical Excess Reinsurance solutions to HMOs and health insurers

     – HMO Reinsurance – Reinsurance for licensed HMOs or entities assuming risk
      and operating under government contracts. Target market is regionally focused
      HMOs from start-ups to 300,000 members.


     – Medical Excess Reinsurance – For insurance companies that offer medical coverage on
      either a fully insured or self-funded basis.
HCRM Products


Coverage Availability
•   Commercial
•   Medicare
•   Medicaid


Product Overview
•   Specific coverage
•   Incurred contracts
•   Flexible attachment points
•   Flexible specific lifetime maximums
•   Contracts that clearly define eligible expenses
HCRM Products


Available options include:
•   Aggregating specific
•   Alternative funding arrangements
     –   Experience refund
     –   Swing rates
     –   Riskshare corridor
•   Different deductibles by line of business, diagnosis or claim type
•   HMO Continuation of Coverage (insolvency)
•   HMO Out-of-Area Conversion
Why Choose HCRM Reinsurance?

•   Financial strength – Our products are backed by the financial resources and
    commitment of our parent company, HCC Insurance Holdings, Inc.
     –   As a direct writer, HCC Life retains all of the reinsurance financial risk.

•   Experience and expertise – HCRM’s experience in HMO Reinsurance and
    Medical Excess spans more than 30 years.

•   Commitment to marketplace – HCRM targets clients looking for a long term
    relationship creating partnerships with every client.

•   Exceptional service – The professional and knowledgeable staff in marketing,
    underwriting, claims and administration helps clients find solutions to identify
    and manage their risk exposure.

•   Comprehensive, strong contract

•   Access to multiple transplant networks
Why Choose HCRM Reinsurance?

•   Competitive rates – Continued analysis and research enables HCRM to more
    accurately price products, leading to more competitive rates.

•   Advanced technology – Our proprietary reinsurance administrative and
    underwriting systems increase communication capabilities across departments
    and provide real time warehouse of claim experience on more than 10 million
    covered members – providing consultative analytics and superior service to our
    customers.

•   Communications – We keep you updated with industry news
    and product promotions.

•   Easy access to key personnel
Value-Added Services

•   HCC Life Solutions – Provides innovative client-focused clinical and financial
    consultative resources. We partner with clients to find healthcare solutions
    while refraining from interfering with decision-making by physicians and
    patients.

•   Claims Paying Commitment – Paying claims accurately, efficiently and on
    time is a top priority. Our claim consultants are committed to providing a
    superior customer service experience with every interaction while adhering to
    prompt claim turnaround guidelines.
HCRM Contacts

Name                                                   Phone            Email                                Years*

Carol Krinke, Assistant Vice President - Marketing     (763) 647-5052   ckrinke@hcclife.com                     26


Paul Larson, Assistant Vice President - Underwriting   (763) 647-5073   plarson@hcclife.com                     30


Barbara Harris, Claims Manager                         (763) 647-5097   bharris@hcclife.com                     26


Lisa Gilbertson, Marketing Representative              (763) 647-5090   lgilbertson@hcclife.com                 10


                                                                                          * Years of industry experience
HCC Medical Insurance Services (HCCMIS)

Industry leader in individual and group major medical insurance, travel
medical and life insurance for the international market

•   Corporate headquarters – Indianapolis, Indiana

•   Latin America/Caribbean Headquarters – Miami, Florida

•   Currently writes business in more than 180 countries

•   In 2010, insured more than 160,000 international travelers
    and individuals living and working abroad
HCCMIS Key International Products

•   Atlas Travel Series – Individual Travel Medical Insurance

•   Atlas Group – Group Travel Medical Insurance

•   CitizenSecureSM – Individual, Annually Renewable Major Medical Insurance

•   GroupSecureSM – Group Major Medical

•   IC+ – Term Life Insurance

•   StudentSecureSM – Study Abroad Medical Insurance



    International products are underwritten by Lloyd’s of London
Short Term Medical Policy

• Domestic Short Term Medical Plan underwritten and administered by HCC Life
• HCCMIS is the direct insurance agency for HCC Life short term medical policies
• A temporary health insurance plan designed for individuals in transition. Ideal for:
     – recent college graduates
     – new employees
     – individuals between jobs
     – early retirees
     – COBRA alternative
     – individuals returning to the U.S. after an extended assignment
• Available in both English and Spanish
    – Web site and quoting system
    – Brochure and application
    – Online fulfillment
• Approved in most states
    –   Currently approved in 44 states plus the District of Columbia
Why Choose HCCMIS?

•   Quality Products that remain some of the strongest in the international marketplace.
    HCCMIS prides itself on its reputation and is committed to continually broaden its portfolio
    of products.

•   Experience & Expertise are assets as HCCMIS’s staff has years of industry
    experience and leadership that clients can rely on.

•   Exceptional Service and Support that is unrivaled in today’s market. HCCMIS
    delivers on its promise of outstanding service that adapts to the changing needs of its
    customers.

•   World Service Center Expertise applies its broad communication resources and
    expertise in assisting customers every day. HCCMIS strives for excellence by being
    responsive and flexible.

•   Innovative Technology is one of HCCMIS’s key assets as it leverages the power of
    the Internet to expand beyond physical boundaries and reaches potential clients around
    the globe.
HCCMIS Marketing Contacts

Name                                                                  Phone            Email

Mark Carney, President & Chief Executive Officer                      (317) 221-8001   mcarney@hccmis.com

Andrew Bard, Vice President of Sales                                  (317) 221-8012   abard@hccmis.com

Bryant Tutterow, Assistant Vice President of Marketing                (317) 221-8037   btutterow@hccmis.com

Juan Mas, International Sales Director                                (317) 221-8019   jmas@hccmis.com

Mike Watts, Director of Short Term Medical Insurance                  (317) 221-8016   mwatts@hccmis.com

Robert Carrera, International Account Executive                       (317) 221-8028   rcarrera@hccmis.com

Brandon Merideth, International Account Executive                     (317) 221-8045   bmerideth@hccmis.com

Marco Marcelino, International Account Executive                      (317) 221-8029   mmarcelino@hccmis.com

Krystina Trimble, Short Term Medical Account Development Specialist   (317) 221-8064   ktrimble@hccmis.com

Dave Cataldi, Account Development Specialist                          (317) 221-8038   dcataldi@hccmis.com

Bryan Meyer, Account Development Specialist                           (317) 221-8063   bmeyer@hccmis.com
Other Products Offered

•   Kidnap & Ransom
    Coverage through Professional Indemnity Agency, Inc. (PIA)
    Contact:
    Bert Van Wagenen
    (914) 242-7850
    bvanwagenen@piaint.com

•   High Limit Disability
    Coverage through HCC Specialty Underwriters, Inc. (HCCSU)

    Contact:
    Glenn Dorr
    (781) 994-6000
    gdorr@hccsu.com
Characteristics That Make HCC Unique

Consistent Growth of Shareholders’ Equity through:

 1.   Specialty businesses with strong long-term fundamentals and
      market leadership

 2.   Underwriting culture with incentives based on underwriting profitability

 3.   Diversified underwriting portfolio with historically low correlation

 4.   Strong Enterprise Risk Management (ERM) rating

 5.   Primary investment objective is capital preservation

 6.   Disciplined balance sheet management and strong cash flow

 7.   Broadly experienced management team
Questions?

				
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