Houston-based HCC Insurance Holdings Inc. has released earnings for the second quarter of 2004.
Net earnings increased substantially during the second quarter of 2004, rising 41% to $46.4 million from $33.0 million and diluted earnings per share grew 37% to $0.71 from $0.52, both compared to the same period in 2003. Net earnings increased significantly during the first six months of 2004, rising 60% to $91.0 million compared to $56.7 million and diluted earnings per share grew 56% to $1.39 from $0.89, both compared to the first six months of 2003.
Stephen Way, chairman and CEO, commenting on the results said, “The company’s record second quarter 2004 earnings are as a result of the continuing bottom line improvement across all of our reporting segments. We continue to outperform our peers and barring any major catastrophe loss, expect earnings to continue to grow through 2005.”
Total revenue grew substantially during the first six months of 2004, rising 36% to $595.3 million from $437.8 million in the corresponding period in 2003. Revenue continues to increase strongly across all of the company’s reporting segments.
Net earned premium of the company’s insurance company subsidiaries continues to grow substantially, rising by 36% to $469.1 million during the first six months of 2004 compared to $345.9 million in the first half of 2003. During the same period net written premium increased by 23% to $544.8 million from $443.6 million. These record levels were achieved as a result of strong growth in new business, increased retentions and higher rates in some lines of business.
The GAAP combined ratio of the company’s insurance company subsidiaries was 85.0% for the first six months of 2004 compared to 88.9% in the corresponding period of 2003. Way added, “This continuing strong underwriting performance was achieved while keeping our loss reserves at very conservative levels, well above the mid-point of the actuarial range. We expect earned premium growth with this level of underwriting success to continue into 2005.”
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