Houston-based HCC Insurance Holdings Inc. released earnings for the second quarter of 2003, reporting that net earnings increased 29 percent for the second quarter of 2003 to $34.7 million from $26.8 million and diluted earnings per share grew 26 percent to $0.54 from $0.43, both compared to the same period in 2002.
The company said net earnings increased 30 percent for the first six months of 2003 to $64.9 million from $50.1 and diluted earnings per share grew 28 percent to $1.02 from $0.80, both over the first six months of 2002. The increase in net earnings is primarily as a result of the continuing improvement in market conditions across all operations, including acquisitions made in 2002.
Total revenue grew substantially during the second quarter of 2003 rising 55 percent to $241.3 million from $155.9 million and rising 47 percent for the first six months of 2003 to $452.0 million from $307.6 million, both compared to the corresponding periods in 2002. Revenue continues to increase strongly across all segments and is expected to continue for the rest of this year and into 2004.
Net written premium of the insurance company subsidiaries grew significantly by 72 percent to $443.6 million during the first six months of 2003 compared to $257.7 million in the first half of 2002. During the same period, net earned premium increased by 53 percent to $345.9 million from $226.1 million. HCC said these levels were achieved as a result of higher rates and strong growth in new business including production from underwriting agencies that we acquired in 2002. Continued growth is expected through 2004.
The GAAP combined ratio was 88.9 percent for the first six months of 2003 compared to 85.9 percent in the corresponding period of 2002. The company noted that strong underwriting performance was accomplished while maintaining loss reserves at conservative levels.
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