HCC Insurance Holding Inc. reported net income increased 107 percent over the past nine months, helped by a benign catastrophe season, rising $86 million in the third quarter alone.
The Houston-based conglomerate reported that for the nine months ending Sept. 30, the carrier reported net income of $261.5 million, or $2.24 a share, from $126 million, or $1.17 a share, in the comparable 2005 period.
Total revenue grew 24 percent for the first nine months of 2006 to $1.5 billion, from $1.2 billion from the same period in 2005.
For the third quarter, the company reported earnings of $93.3 million, compared to $7.4 million for the comparable period in 2005.
In the prior quarter, catastrophe losses and reinsurance commutations reduced net earnings by $65.2 million.
"Our results were positively affected by the lack of catastrophes in the period and continue to show the execution of our strategic business plan," said Frank J. Bramanti, chief executive officer, in a statement. "We will continue to explore opportunities to expand our businesses."
Growth in net earned premium and higher investment income also fueled the increase, the company said.
The combined ratio for the first nine months was 82.9, compared to 94.5 in the comparable 2005 period.
Earlier this year, the carrier said it would restate its financial results to correct accounting errors related to its stock-based compensation plans going back nine years that are expected to take a charge of about $30 million.
Company founder and former CEO Stephen Way resigned following that announcement.
Today, the company said the expenses related to the correction of errors stemming from the investigation was $26.6 million, and as of Dec. 31 of last year, policyholder surplus was reduced by $3.3 million.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.