"Dickson Manchester fits the HCC profile perfectly, as a leader in a specialty line of insurance business with both underwriting and intermediary operations," he said.

Dickson Manchester's business will now be part of Global Financial Products, a new reporting segment for HCC in 2003. "This is an exciting sector for us now and we anticipate substantial growth in both our U.S. and international operations, with gross written premium next year of more than $300 million," Mr. Way said.

The acquisition will be added to HCC's growing list of European insurance businesses that include:

? Lloyd's broker Rattner Mackenzie, with offices in London, Bermuda and New York.

? Underwriting agencies such as MAG Global Financial Products, with offices in Barcelona, Spain, and London, and the London branch office of ASU International--a HCC subsidiary.

HCC is an international insurance holding company and one of the largest specialty insurance groups in the United States, with assets of $3.5 billion. Its products include direct and reinsurance policies for the aviation, marine, and offshore energy industries; property-casualty and health policies; medical stop-loss; workers' compensation and occupational accident insurance.

The company said it plans to continue expanding its overseas operations by acquiring specialty insurers.