COMMUTATION AND MUTUAL RELEASE AGREEMENT

                                                                   Exhibit 10.32

                    COMMUTATION AND MUTUAL RELEASE AGREEMENT

This COMMUTATION AND MUTUAL RELEASE AGREEMENT (the "AGREEMENT") made as of and

dated the 21st day of November, 2005 by and among HOUSTON CASUALTY COMPANY, U.S.

SPECIALTY INSURANCE COMPANY, HCC SPECIALTY INSURANCE COMPANY, HCC REINSURANCE

COMPANY LIMITED AND HOUSTON CASUALTY COMPANY EUROPE SEGUROS Y REASEGUROS S.A.

(individually, a "REASSURED" and collectively, the "REASSUREDS") and QUANTA

REINSURANCE LIMITED (the "REINSURER") (The Reassureds and the Reinsurer are

collectively herein referred to as "PARTIES").

WHEREAS, the Parties have entered into certain reinsurance agreements as listed

below whereby the Reinsurer agreed to reinsure the Reassureds pursuant to the

terms and subject to the conditions of the reinsurance agreements:

     Obligatory Quota Share Reinsurance Agreement Reference No: 044073-Section

     A, effective for the treaty period January 1, 2004 to January 1, 2005

     attached hereto as Exhibit A;

     USA D&O Liability Obligatory Quota Share Reinsurance Agreement Reference

     No: 044073-Section B, effective for the treaty period January 1, 2004 to

     January 1, 2005 attached hereto as Exhibit B;

     Obligatory Quota Share Reinsurance Agreement Reference No: 044093 effective

     for the treaty period October 1, 2004 to January 1, 2005 attached hereto as

     Exhibit C; and

     Obligatory Quota Share Reinsurance Agreement Reference No: 054073 effective

     for the treaty period January 1, 2005 to January 1, 2006 attached hereto as

     Exhibit D

The above listed reinsurance agreements are jointly referred to as the

"Reinsurance Agreements"; and

WHEREAS, the Parties desire to terminate the Reinsurance Agreements and fully

and finally settle and commute, by means of the payment referred to in Article 1

hereof (the "Commutation Payments"), any and all past, present and/or future

rights, privileges, duties, obligations and liabilities under the Reinsurance

Agreements, to fully and forever release and discharge one another with respect

to the Reinsurance Agreements, and to enter into mutual releases thereto on the

terms set forth in this Agreement; and

WHEREAS, this Agreement is the result of a compromise freely entered into by the

Parties (following advice from their professional advisors) for their mutual

benefit, releasing them from their respective obligations under the Reinsurance

Agreements as set forth in this Agreement; and

WHEREAS, this Agreement shall apply only to the Reassureds and the Reinsurer

executing this Agreement and as their interests in the Reinsurance Agreements

are specified thereon.

NOW, THEREFORE, intending to be legally bound, in consideration of the

covenants, promises, agreements, assumptions, releases, representations and

warranties set forth herein and the payments to be made hereunder and other good

and valuable consideration recited as set forth herein, the Parties agree as

follows:

ARTICLE 1. PAYMENT & TERMINATION OF COLLATERAL

A.   The Reinsurer shall pay to the Reassureds commutation payments as

     calculated on Schedule 1 hereto in the amounts and in the currencies listed

     below (the "Commutation Payments") for 100% of the liabilities of Reinsurer

     under the Reinsurance Agreements by wire transfer to the accounts detailed

     below in Article 1B in full without set off or counterclaim and clear of

     any deductions not later than Monday, November 28, 2005:

                                       1

       CONTRACT                 USD               GBP               EUR              CAD

       --------          ----------------   ---------------   ---------------   ------------

US 044073-Section B      USD11,946,758.26         -0-               -0-              -0-

US 054073-Section A      USD 3,363,879.02         -0-               -0-              -0-

Int'l 044073-Section A   USD 2,309,738.23   GBP  680,764.43   EUR1,259,140.91   CAD37,840.69

Int'l 054073-Section B   USD   469,102.23   GBP1,543,486.89   EUR  522,150.46        -0-

Int'l 044073             USD 2,454,295.02   GBP  794,008.28   EUR1,120,629.03   CAD56,761.03

                         ----------------   ---------------   ---------------   ------------

Total                    USD20,543,772.76   GBP3,018,259.60   EUR2,901,920.40   CAD94,601.72

                         ----------------   ---------------   ---------------   ------------

B.   Payments in USD and CAD to be wired to:

     Wells Fargo Bank

     Account Number: 4159-734433

     ABA Number: 121000248

     For Benefit of: HCC Insurance Holdings, Inc.

     Payments in GBP to be wired to:

     Natwest Bank

     Account Number: 36298131

     Swift code: NWBKGB2L

     Sort code: 60-00-01

     For Benefit of: HCC Insurance Holdings, Inc

     Payments in EUR to be wired to:

     Natwest Bank

     Account Number: 42023106

     Swift code: NWBKGB2L

     Sort code: 60-00-01

     For Benefit of: HCC insurance Holdings, Inc.

C.   The Reassureds shall accept the Commutation Payments set forth in Article

     1A herein, which each party agrees shall serve as full and final settlement

     of any and all amounts claimed heretofore or hereinafter to be due by

     either party to the other party, arising under, in respect of or in any way

     related to the Reinsurance Agreements.

D.   Upon receipt of the Commutation Payments, the Reassureds will release the

     amount equal under each of the Letters of Credit as Scheduled below:

                                        LOC BALANCE    AMOUNT TO     AMOUNT TO

BENEFICIARY      BANK      LOC NUMBER    @ 11/18/05   BE RETAINED   BE RELEASED

-----------   ---------   -----------   -----------   -----------   -----------

     HC       JP Morgan   U-612395       6,592,609     4,030,697     2,561,912

     HC       JP Morgan   U-612397       1,171,253        -0-        1,171,253

     HC       JP Morgan   U-619969       7,057,077        -0-        7,057,077

     HC       JP Morgan   U-249982       1,111,895        -0-        1,111,895

     HC       JP Morgan   TUTS-644937    2,009,003        -0-        2,009,003

     HC       JP Morgan   TUTS-644934      331,800        -0-          331,800

   USSIC      JP Morgan   U-612396         706,610        -0-          706,610

   USSIC      JP Morgan   U-619970       3,159,612        -0-        3,159,612

   USSIC      JP Morgan   U-250140       2,884,181     1,000,000     1,884,181

     The Reinsurer and Reassureds agree that the amounts to be retained

     reflected in the Schedule above shall remain outstanding under letters of

     credit as security for agreements of reinsurance between the Parties other

     than the Reinsurance Agreements that are the subject of this Commutation

     and Mutual Release Agreement.

     &nbs