Press Releases - April 18, 2007

AVEMCO ANNOUNCES REPRICING FOR TAAs AND NEW HUMAN FACTORS IN ACCIDENTS RESEARCH STUDY Cirrus and Selected Diamond Models Will Cost Less to Insure; Expanded Coverage for Lower Time Pilots and Higher Limits for Qualified Customers

LAKELAND, FL (April 18, 2007)…

Avemco Insurance Company ("Avemco") announced today at the Sun 'N Fun Fly-in in Lakeland, Florida, that the Company has lowered its rates on coverage for specific models in the technically advanced aircraft (TAA) category.

Rates have been reduced for all Cirrus models and Diamond's new DA-42. Avemco is also broadening its coverage for pilots transitioning into higher performance aircraft across several make and model categories, while making higher liability limits of up to one million combined single limit available to qualified customers.

Jim Lauerman, Executive Vice President of Avemco, said, "To maintain our leadership in general aviation insurance we constantly monitor our underwriting results to ensure that we charge a rate that is adequate to promptly pay for all covered claims and also provide a solid return on our stockholder's investment. While inflation usually means that those rates need to increase, sometimes the analysis indicates that we no longer have to be as conservative in some of our assumptions. This is one of those times."

These changes are in addition to Avemco's recent broadening of liability coverage for bodily injury to family members who are injured due to the negligence of another family member.

As part of the Company's Safety Rewards Program efforts, Avemco works with several initiatives in aviation risk management and loss prevention including the King Schools Practical Risk Management Courses and the Aviator's Model Code of Conduct. At Sun 'N Fun, Lauerman also announced that the Company has recently invested in a new multi-year research study aimed at studying human causal factors associated with accidents and incidents.

The study, known as the Airmanship Education Research Initiative (AERI), is designed to bring significant improvement to the pilot-induced accident rate by introducing a new, empirically grounded approach to teaching airmanship based on precepts from professional education in other fields. The study seeks to understand the mental processes associated with pilot-induced accidents and comparing them to those processes demonstrated by expert airmen who have avoided accidents over time.

"The goal of this research project for Avemco is obviously a business one: determining characteristics and practices that are associated with accidents will help us in underwriting and pricing risks. The benefit for general aviation is a noble one: understanding more about piloting expertise will make for better and smarter pilots at all levels, and ultimately safer skies," Lauerman explained. "We intend to take what we learn to develop educational tools to help all pilots improve the safety of their flight operations. Avemco will certainly benefit from this effort, but if successful so will all of general aviation."

"Who better to do the research than an insurance company? The NTSB data only documents a small portion of the accidents and incidents reported to insurance companies," Lauerman noted.

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) a leading specialty insurance group with assets exceeding $7.5 billion and shareholders' equity of over $2.0 billion.