Houston-based HCC Insurance Holdings Inc. reported a record $107.1 million in net earnings for the third quarter ended Sept. 30, 2012.
By comparison, the company’s net earnings for the third quarter of 2011 totaled $60.4 million.
Net earnings were $283.1 million for the first nine months of 2012, or $2.76 per diluted share, compared to $176.9 million, or $1.57 per diluted share, for the same period of 2011.
The 2012 results include pretax net catastrophe losses of $8 million and $20.3 million for the third quarter and first nine months of 2012, respectively, which reduced net earnings per share by $0.05 and $0.13 in the respective periods.
The 2011 results include pretax net catastrophe losses of $34.6 million and $107.9 million for the third quarter and first nine months of 2011, respectively, which reduced net earnings per share by $0.21 and $0.63 in the respective periods.
Catastrophe losses added 1.4 and 1.3 percentage points to the company’s net loss ratio for the third quarter and first nine months of 2012, respectively.
HCC’s combined ratio was 79.1 percent for the third quarter of 2012, compared to 93.1 percent for the third quarter of 2011. The combined ratio was 83.3 percent for the first nine months of 2012, versus 92.6 percent for the same period of 2011.
HCC’s paid loss ratio was 56.3 percent for the first nine months of 2012, compared to 59.4 percent for the same period of 2011.
Gross written premium increased 6 percent to $665.8 million for the third quarter of 2012, compared to $628.8 million for the same quarter of 2011.
Net written premium increased 4 percent to $530.3 million for the third quarter of 2012, versus $512.3 million for the same quarter of 2011.
Net earned premium increased 4 percent to $563.7 million for the third quarter of 2012, compared to $544.3 million for the same quarter of 2011.
Gross written premium increased 6 percent to $2.1 billion for the first nine months of 2012, compared to $2.0 billion for the same period of 2011.
Net written premium increased 4 percent to $1.7 billion for the first nine months of 2012, versus $1.7 billion for the same period of 2011.
Net earned premium increased 6 percent to $1.7 billion for the first nine months of 2012, compared to $1.6 billion for the same period of 2011.
In the first nine months of 2012, the company generated cash flow from operating activities of $496.0 million, compared to $288 million in the same period of 2011. The company’s liquidity position remains strong with $224.4 million of cash and short-term investments and $340.1 million of available capacity under its $600.0 million revolving loan facility at September 30, 2012.
As of Sept. 30, 2012, total assets were $10.1 billion, shareholders’ equity was $3.5 billion and the company’s debt to total capital ratio was 13.5 percent.
Source: HCC
Topics Profit Loss
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