HCC Reports Record Q1 2005 Results

Houston-based international insurance holding company and specialty insurance group, HCC Insurance Holdings Inc., released earnings for the first quarter of 2005.

The company said earnings increased significantly for the first quarter of 2005, rising 29 percent to $57.3 million from $44.6 million for the first quarter of 2004. During the same period, net earnings per diluted share grew 19 percent to $0.81 per share from $0.68 per share, despite approximately $0.05 earnings per share dilution primarily from the company’s December 2004 equity offering.

Total revenue grew 37 percent during the first quarter of 2005 to $379.7 million, compared to the first quarter of 2004. As with last year, this increase was primarily due to the growth in our insurance company subsidiaries’ earned premium, particularly in our two largest lines, diversified financial products and group life, accident and health. Overall revenue is expected to continue to show strong growth into 2006.

The insurance company subsidiaries’ gross written premium growth slowed as expected during the first three months of 2005, the company said, but net written premium increased by 51 percent to $357.4 million and net earned premium by 47 percent to $320.1 million, both compared to the first quarter of 2004. This growth over last year’s record levels was achieved as a result of generally increased retentions and strong performance from acquisitions made in 2004, notwithstanding the substantially negative effect from our discontinued lines. Market conditions in specialty lines continue to be fairly stable and this premium growth is expected to continue.