HCC Quarterly Profit Up 60 %
NU Online News Service, Feb. 20, 11:23 a.m. EST?HCC Insurance Holdings Inc. said its 2003 fourth-quarter net income rose 60 percent to $50.5 million?compared to $31.5 million for the same period in 2002?helped in part by a $30.1 million after-tax gain from the sale of its HCC Employee Benefits retail broking unit.[@@]
The Houston-based insurer's net premiums written for the fourth quarter were $199.38 million, up from $143.68 million one year ago, while net premiums earned also rose for the quarter, to $202.92 million from $143.12 million one year ago.
For full-year 2003, net earnings increased 35.7 percent to $143.6 million, compared to $105.8 million during full-year 2002. For the year, net premiums written were $865.50 million, up from $545.91 million for 2002, while net premiums earned rose to $738.27 million from $505.52 million for 2002.
Stephen Way, HCC chairman and chief executive officer, described full-year 2003 as "the best year" in the company's history. "We are very pleased with our results," he said.
Looking ahead, Mr. Way forecast that HCC expects its total revenue for the year to increase 25 percent in 2004, including growth of net earned premium by 30 percent, fee and commission income by 15 percent, and investment income by 10 percent.
HCC also noted that the sale of its retail broking unit, HCC Employee Benefits, following an unsolicited approach from the London-based insurance brokerage firm Jardine Lloyd Thompson Group, could bring in further gains in 2004.
"The initial after-tax gain related to this sale, which was recorded in the fourth quarter 2003, was $30.1 million," HCC stated. "This transaction is subject to an earn-out formula and could result in a further gain, which would be recorded in 2004."
HCC offers specialized property-casualty insurance and underwrites for other unaffiliated insurers. It also provides related services for commercial and individual clients.
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