HCC Insurance Q2 Profit Rises, Beats View

(RTTNews) - HCC Insurance Holdings, Inc. (HCC) on Tuesday reported a 10 percent increase in profit for the second quarter from last year, reflecting higher revenues and narrower catastrophe losses. Earnings per share for the quarter beat analysts' estimates.

The company's second-quarter net earnings available to common stock were $95.55 million or $0.97 per share, up from $86.72 million or $0.87 per share in the year-ago period.

The latest quarter's results included accident year pretax net catastrophe losses of $4.9 million, which reduced net earnings by $0.03 per share. The prior-year quarter's results included pretax net catastrophe losses of $21.4 million that reduced net earnings by $0.14 per share.

On average, 10 analysts polled by Thomson Reuters expected the company to earn $0.90 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the quarter grew 2 percent to $643.57 million from $629.43 million in the same period last year. Analysts had a consensus revenue estimate of $591.54 million for the quarter.

Net written premiums for the quarter increased 3 percent to $647.01 million, while net earned premiums rose 2 percent to $572.25 million and investment income rose 1 percent to $56.44 million.

Net realized investment gain for the quarter was $4.91 million, compared to net realized gain of $4.62 million in the prior-year quarter.

Combined ratio for the quarter was 83.5 percent, compared to 85.3 percent in the same period last year.

HCC closed Tuesday's trading at $47.24, down $0.67 or 1.4 percent on a volume of 415,983 shares.