Press Releases - July 30, 2008

AVEMCO® ANNOUNCES NEW INSURANCE FOR AIRCRAFT TRADERS

OSHKOSH, WI (July 30, 2008) – At AirVenture Oshkosh today, Avemco Insurance Company President Jim Lauerman announced the launch of a specialty insurance product for aircraft traders – insurance coverage for those aircraft owners who buy and sell aircraft on a part-time or sideline basis.

Available in most states August 1, 2008, Avemco Aircraft Trader Insurance provides coverage not previously available for non-commercial traders who are not dealers but end up buying and selling several aircraft over the course of a year. The policy will allow for coverage specifically tailored to the unique needs of this niche market. The product will be available for owners who buy and sell standard certificated single-engine aircraft and meet the company's underwriting guidelines.

"We have observed that there are a number of owners whose aircraft is always for sale and who are always on the look out for a good buy. Yet most of these owners go without appropriate insurance expecting the buyer to have coverage. These owners are running the risk of being with the wrong coverage should a mishap occur. So we've added Aircraft Trader to our product line for this special market." Lauerman said.

"Avemco is the general aviation industry's only direct underwriter, so we're well positioned to handle the flexibility necessary for this type of specialty insurance. Traders can add qualified aircraft to, or remove aircraft from their Avemco policy with one call. This coverage will recognize that the owner has a sideline interest in trading aircraft. Avemco's direct business model makes it easier for all our customers to fully enjoy their aircraft purchases," Lauerman said.

Avemco Aircraft Trader Insurance is available in most states; and, it joins the company's broad specialty product line that also includes offerings for CFIs and light sport aircraft (LSAs), technically advanced aircraft (TAAs), homebuilts, and non-owned aircraft liability coverage. Hangar coverage and life insurance for pilots, written through non-affiliated insurers, are also available through Avemco Insurance Agency, Inc.

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 subsidiary of HCC Insurance Holdings, Inc. (NYSE: HCC) a leading international specialty insurance group with assets of more than $8.2 billion.