This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

TSC Ratings' Updates: HCC Insurance

For the second quarter of fiscal year 2008, Mercury General's total revenue slipped 2.3% year over year to $787.90 million, weighed down by lower net premiums earned and a decline in net investment income. Net premiums declined 5.7% to $711.20 million while net investment income dropped 4.4% to $39.00 million during the quarter.

Deteriorating operating income. Net income for the quarter increased 1.8% year over year to $70.73 million or $1.29 per share. However, excluding net realized investment gains of $23.72 million or 43 cents per share, the company's operating income dropped 25.4% to $47.00 million or 86 cents per share from $63.02 million or $1.15 per share.

The company had a lower debt-to-equity ratio of 0.08, implying its successful management of debt.

For the latest second quarter, the company's combined ratio increased to 97.00% from 94.00% a year ago on an increase in the expenses ratio, which grew to 28.20% from 27.10%. The loss ratio also increased to 68.80% from 66.90% a year ago. Despite the increase, the combined ratio remained below the regulatory benchmark of 100.00%, reflecting sound underwriting results.

For the second quarter of fiscal year 2008, the company's return on equity diminished 452 basis points to 9.36% from 13.88% while return on assets reduced 163 basis points to 4.05% from 5.68% a year ago

MCY had been rated a sell since April 18, 2008.

Intersil (ISIL - Get Report) has been upgraded from hold to buy. Intersil engages in the design and manufacture of analog integrated circuits. It offers a portfolio of application specific standard products and general purpose proprietary products for high-end consumer, industrial, communications and computing markets. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself.

4 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs