HCC Insurance Holdings Reports Record Earnings per Share for 2012
- Record net earnings of
$108.1 million, or $1.06per diluted share, for the fourth quarter
- Annualized return on equity of 12.3% and annualized operating return on equity(a) of 11.7% for the fourth quarter
- Record earnings per diluted share of
$3.83for the full year
- GAAP combined ratio of 84.5% for the fourth quarter and 83.6% for the full year
- Net earned premium increased 3% to
$566.5 millionfor the fourth quarter and 5% to $2.2 billionfor the full year
- Book value per share increased 11.6% for the full year to
Net earnings were
The 2012 results include accident year pretax net catastrophe losses of
The Company's combined ratio was 84.5% for the fourth quarter of 2012, compared to 87.0% for the fourth quarter of 2011. The combined ratio was 83.6% for the full year of 2012, versus 91.1% for the same period of 2011. HCC's paid loss ratio was 56.7% for 2012, compared to 58.9% for 2011.
Book value per share increased 1.4% and 11.6% for the fourth quarter and full year of 2012, respectively, to
HCC's annualized return on equity was 12.3% for the fourth quarter of 2012 and 11.5% for the full year of 2012. The Company's annualized operating return on equity(a) was 11.7% for the fourth quarter of 2012 and 11.9% for the full year of 2012.
"The fourth quarter represented our second consecutive quarter with record earnings and capped a record full year performance for our shareholders. We grew book value per share by an impressive 11.6%. These results were once again driven by our commitment to underwriting performance, evident in yet another year with a combined ratio below 85%," HCC Chief Executive Officer
HCC had net favorable loss development of
The Company's 2012 accident year net loss ratio was 61.5% and its accident year combined ratio was 87.2% for the full year of 2012. HCC's accident year combined ratio includes 2.4 percentage points for catastrophes.
Gross written premium increased 2% to
Gross written premium increased 5% to
Investment income increased to
HCC generated cash flow from operating activities of
EARNINGS GUIDANCE: HCC's management estimates the Company will achieve net earnings of
For further information about HCC's 2012 fourth quarter results, see the supplemental financial schedules that are accessible on HCC's website at http://www.hcc.com, as well as directly in the Investor Relations section of HCC's website at http://ir.hcc.com.
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HCC will hold an open conference call beginning at
For more information about HCC, please visit http://www.hcc.com.
a) Non-GAAP Financial Measure
Annualized operating return on equity is a non-GAAP financial measure as defined by Regulation G and is calculated as operating earnings (or net earnings excluding after-tax net realized investment gain (loss), other-than-temporary impairment credit losses and foreign currency benefit (expense)) divided by average shareholders' equity excluding accumulated other comprehensive income. To annualize a quarterly rate, the result is multiplied by four. See the supplemental financial schedules for a reconciliation of this non-GAAP financial measure to corresponding GAAP amounts. Management believes annualized operating return on equity is a useful measure for understanding the Company's profitability relative to shareholders' equity before consideration of investment-related gains (losses) and foreign currency benefit (expense) that the Company does not consider in evaluating its operating results internally.
Forward-looking statements contained in this press release are made under "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. The types of risks and uncertainties which may affect the Company are set forth in its periodic reports filed with the
Doug Busker, Director of Investor Relations HCC Insurance Holdings, Inc.Telephone: (713) 996-1192
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