UPDATE 1-HCC Insurance posts Q1 profit

* Q1 EPS $0.73 vs $0.69 last year

* Gain of $60.0 mln on fixed income securities

* Q1 net investment income fell 5 pct to $45.2 mln

* Net premium Q1 rose 1.8 pct

* Reuters Estimates Q1 EPS view $0.69

May 5 (Reuters) - HCC Insurance Holdings Inc (HCC.N) posted a marginal rise in quarterly profit, helped by income from commutation of MGIC reinsurance contract and gain on fixed income securities. For the first quarter, it earned $83.2 million, or 73 cents a share, compared with $80.5 million, or 69 cents a share, a year ago.

Net premiums earned rose 1.8 percent to $502.4 million.

The company said it has completed its exit from equity and equity-related investments in the quarter and incurred a $1.0 million loss in the period. Those funds have been reinvested in fixed income securities, it said.

The company saw a net unrealized gain of $60.0 million on its available-for-sale fixed-income securities at March 31.

Investment income decreased to $45.2 million, compared with $47.6 million, last year, reflecting much lower short-term interest rates in 2009, the company said.

"Our investment income should resume its steady growth following our exit from alternative investments and as our investment assets continue to increase," Chief Executive Frank Bramanti said in a statement.

Shares of the Houston, Texas-based company closed at $24.77 Tuesday on the New York Stock Exchange. (Reporting by Archana Shankar in Bangalore; Editing by Anil D'Silva)