HOUSTON (Dow Jones/AP) — HCC Insurance Holdings Inc. yesterday said it has recorded a charge of $26.6 million to correct for the accounting of employee stock options in 1997 through 2005 after an independent review.The Houston-based company said the charge had no affect on its reported net revenue, cash or cash flow for the period but it did result in a net after-tax decrease in shareholders' equity of $3.3 million.

HCC said its conclusion of the review and subsequent completion of certain quarterly and annual financial filings with the Securities and Exchange Commission will have "cured any possible event of default" stemming from its failure to deliver the reports in a timely manner under the provisions of certain debt offerings.

Also Wednesday, HCC posted earnings of $93.3 million, or 80 cents a share, for the third quarter, up from a profit of $7.4 million, or seven cents a share, a year ago.

Last year's third quarter was affected by hurricane losses and the effect of reinsurance commutations.