HCC Reports Record Results for 2002

HCC Insurance Holdings Inc., based in Houston, reported that 2002 was the best year in the company’s history, and that it achieved record earnings results for the fourth quarter and for the full year that ended December 31, 2002.

Net earnings for the fourth quarter 2002 increased 32 percent to $31.5 million, or $0.50 per share, compared to $23.8 million, or $0.38 per share, for the same period in the previous year.

Net earnings for the full year 2002 increased substantially to $105.8 million, or $1.68 per share, from $30.2 million, or $0.51 per share, in 2001.

Stephen L. Way, chairman and CEO, said it was unfortunate that the results are not reflected in the company’s share price but added that “HCC is extremely optimistic about both the coming year and 2004.”

Total revenue for the full year 2002 increased by 32 percent to a record $669.4 million compared to 2001, driven by substantial increases in net earned premium and management fees.

Comparing the full year 2002 to the previous year, the company’s insurance company subsidiaries’ net written premium increased 46 percent to a $545.9 million (69 percent before discontinued lines) and net earned premium increased 47 percent to $505.5 million (62 percent before discontinued lines). During the same period, gross written premium reached a record $1.16 billion, growing 15 percent (33 percent before discontinued lines).

HCC expects these trends to continue through 2003.

As of December 31, 2002, total assets increased to $3.7 billion; total investments increased 31 percent to a record $1.2 billion; shareholders’ equity increased 16 percent to $882.2 million; and book value per share increased 14 percent to $14.14, all compared to December 31, 2001.