Press Releases - September 1, 2006

Avemco Offers Safety Rewards Credit for CPC & Part 141 Flight Training

Frederick, MD (September 1, 2006)…

Avemco Insurance Company, the nation's only direct source of general aviation insurance, is pleased to announce a noteworthy change to its Safety Rewards Program. Developed with cooperation from Cessna Aircraft Company, the new initiative expands the availability of premium credits available though Avemco's popular program.

Any student who enrolls in a Cessna Pilot Center (CPC)-approved Part 141 flight training program will qualify for the 5% flight training premium credit upon their purchase of an Avemco insurance policy (including non-owner coverage). Upon graduation from that CPC-approved Part 141 flight training program the pilot will be eligible for another year of 5% savings on their Avemco policy premium. If the pilot completes one of the Practical Risk Management Courses from King Schools, the total premium savings increases to 10%.

This initiative came about when Avemco was approached by Brumley Smith, Manager of CPC programs for Cessna. Mr. Smith provided Avemco with detailed information on how Cessna assists the CPCs in providing training that goes beyond FAA minimums – a corner stone of the Avemco Safety Rewards Program. The Program, which was launched by Avemco in 2002, was designed specifically to give pilots an incentive to seek risk management training and additional flight training, thereby reducing both the frequency and severity of accidents and helping to keep insurance rates as low as possible. "With three years of solid claims data there is no question this program has helped to reduce accidents and stabilize insurance premiums," stated Jim Lauerman, Executive Vice President of Insurance Operations at Avemco. "Our underwriting results are better for customers who have participated in one or both aspects of the program."

This expansion of the Safety Rewards Program not only offers more opportunities for pilots to save money on their insurance, it also gives them an incentive to seek excellence in their flight training. CPCs utilize a structured approach to managing and administering their flight training programs. For the CPCs that elect to be Part 141 approved, another level of structure and discipline is added to the training process. According to Cessna's Smith, this level of management in the flight training process helps pilots achieve their training goals faster and more efficiently while at the same providing the foundation for the students to become safer pilots. Particularly attractive to Avemco is Cessna's integrated program which the student completes a computerized flight lab that teaches maneuver training prior to the pilot entering the aircraft. This training methodology gives the student advanced understanding of what to expect during the lesson. "During my years as a flight instructor I would personally coach my students on these maneuvers prior to flight because the aircraft is the world's worst and most expensive classroom. Understanding the maneuver before the lesson can speed up the learning process and produce a better pilot," asserts Lauerman. "We agree with Jim," added Mr. Smith, "that's why our Cessna training kits are vital to the training process we offer to the CPCs." Mr. Smith went on to mention that the average time to complete a Private Pilot's license in the CPC network is 54 hours – almost 30% less than the national average, and Smith attributes this difference to Cessna's integrated curriculum.

To obtain more information on the Avemco Safety Rewards Program visit Avemco's website at www.avemco.com. To locate a Cessna Pilot Center near you, go to www.cessna.com and click on Learn to Fly.

Based on unit sales, Cessna Aircraft Company, a wholly owned subsidiary of Textron Inc., is the world's largest manufacturer of general aviation airplanes. In 2005, Cessna delivered 1,157 aircraft and reported revenues of about $3.5 billion. Since the company was originally established in 1927, more than 187,000 Cessna airplanes have been delivered to nearly every country in the world. The global fleet of more than 4,500 Citations is the largest fleet of business jets in the world. More information about Cessna Aircraft Company is available at www.cessna.com.

Textron is a $10 billion multi-industry company operating in 33 countries with approximately 37,000 employees in continuing operations. The company leverages its global network of aircraft, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft, Jacobsen, Kautex, Lycoming, E-Z-GO and Greenlee, among others. More information is available at www.textron.com.

Avemco Insurance Company, a leading pleasure and business general aviation insurer in the United States, has been insuring planes and pilots since 1961. Headquartered in Frederick, Maryland, Avemco is rated A+ (Superior) by A. M. Best Company and AA (Very Strong) by Standard & Poor's. Avemco is a wholly-owned subsidiary of HCC Insurance Holdings, Inc. (NYSE: HCC) an international insurance holding company and a leading specialty insurance group since 1974 with assets exceeding $7 billion. Avemco is not affiliated or contracted with Cessna Aircraft Company or Textron Inc.