Houston-based HCC Insurance Holdings Inc. released results for the fourth quarter and full year ended Dec. 31, 2004, reporting increased earnings for both the quarter and the year.
Net earnings for the fourth quarter 2004 increased to $56.2 million, or $0.84 per diluted share, compared to $50.5 million, or $0.77 per diluted share, for the same period in 2003. Net earnings for the full year 2004 increased to $163.0 million, or $2.47 per diluted share, compared to $143.6 million, or $2.23 per diluted share, for the previous year.
Stephen L. Way, chairman and chief executive officer, said, “2004 was the best year in our history and we are confident of improving on this in 2005.”
HCC expects 2005 net earnings to range between $3.15 and $3.25 per diluted share. This represents 28 percent earnings per diluted share growth and a 17 percent return on shareholders’ equity at the bottom end of the range, despite dilution from the equity offering in December 2004 and the expensing of stock options.
Total revenue is expected to increase approximately 20 percent in 2005, predominantly due to growth of net earned premium by 25 percent and investment income by 25 percent.
The GAAP combined ratio is expected to be approximately 88 percent without any consideration for potential catastrophe activity during the coming year.
Total revenue for the full year 2004 increased by 36 percent to $1.3 billion compared to 2003, driven by significant increases in net earned premium, fee and commission income and investment income. The company anticipates continued revenue growth in 2005.
Topics Trends Profit Loss
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