HCC Insurance Holdings Posts Another Strong Performance

HOUSTON, Feb. 22, 2011 (GLOBE NEWSWIRE) -- HCC Insurance Holdings, Inc. (NYSE:HCC) today released earnings for the fourth quarter and full year 2010.

Net earnings for the fourth quarter of 2010 were $97.3 million, compared to $84.8 million for the fourth quarter of 2009. Net earnings per diluted share were $0.84 for the fourth quarter of 2010, versus $0.74 for the same quarter of 2009. Net earnings for the full year of 2010 were $345.1 million, compared to $353.9 million for the 2009 full year. Net earnings per diluted share were $2.99 for 2010, versus $3.11 for 2009.

"Our return on average equity was 10.9% for the year. We are very pleased with this performance in an environment which remains challenging," HCC President and Chief Executive Officer John N. Molbeck, Jr. said.

Book value per share increased 8% during the year from $26.58 to $28.67. The 2010 book value reflects dividends of $0.56 per share. This was the 14 ^th consecutive year in which HCC raised its dividend. Book value per share grew at a compounded rate of 13% over the last five years. The Company repurchased 1.3 million shares of its common stock during 2010, for a total cost of $35.1 million and a weighted-average cost of $26.99 per share. Currently, $265.3 million remains under its $300 million share buyback authorization.

The Company's GAAP combined ratio for the fourth quarter of 2010 was 82.3%, compared to 85.2% for the fourth quarter of 2009. The GAAP combined ratio for the full year of 2010 was 84.6%, versus 84.0% for 2009. HCC's paid loss ratio for the year was 59.7%, compared to a paid loss ratio of 55.8% in 2009.

The accident year combined ratio was 87.0% for the fourth quarter of 2010 and 85.6% for the full year of 2010, compared to 88.5% and 86.6% for the same periods in 2009, respectively.