Schedule 1 Summary of Investments

12 Months Ended

Dec. 31, 2012

Summary of Investments, Other than Investments in Related Parties

							SCHEDULE 1

		HCC INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

		SUMMARY OF INVESTMENTS
		OTHER THAN INVESTMENTS IN RELATED PARTIES
		(in thousands)

			December 31, 2012
Column A			Column B		Column C			Column D
								Amount
								shown in
Type of Investment			Cost		Value			balance sheet

	Fixed maturities
		Bonds — United States government and government agencies and authorities	$	195,049	$	199,607		$	199,607
		Bonds — states, municipalities and political subdivisions		969,966		1,065,811			1,065,811
		Bonds — special revenue		2,033,947		2,200,331			2,200,331
		Bonds — corporate		1,247,282		1,315,170			1,315,170
		Residential mortgage-backed securities		632,665		664,887			664,887
		Commercial mortgage-backed securities		482,808		524,289			524,289
		Asset-backed securities		32,801		33,275			33,275
		Bonds — foreign		261,914		278,411			278,411
		Total fixed maturities		5,856,432		6,281,781			6,281,781

	Equity securities
		Common stocks — banks, trust and insurance companies		33,624		37,088			37,088
		Common stocks — industrial and miscellaneous		260,594		268,476			268,476
		Total equity securities		294,218	$	305,564			305,564

	Short-term investments			363,053					363,053
		Total investments	$	6,513,703				$	6,950,398

- Definition

The entire disclosure for the schedule applicable to insurance companies summarizing investments held as of the most recent audited balance sheet. At a minimum, such summary is by three major categories of investments including: (1) fixed maturities primarily consisting of bonds, including convertibles and bonds with warrants, and redeemable preferred stocks, (2) equity securities primarily consisting of common stocks and nonredeemable preferred stocks, and (3) other investments including mortgage loans on real estate, real estate held for investment, real estate acquired in satisfaction of debt, policy loans, other long-term investments, and short-term investments not otherwise categorized. The information provided with respect to each item within each category includes: (A) the original cost of equity securities and, as to fixed maturity securities, original cost reduced by repayments and adjusted for amortization of premiums or accrual of discounts, (B) fair value as of the reporting date, and (C) the amount at which the item within each category is shown in the statement of financial position; with respect to (C), if the amount at which shown in the statement of financial position is different from the items original [amortized] cost or fair value, an explanation of the difference may be included herein.

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