This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

HCC Insurance Holdings CEO Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: HCC

HCC Insurance Holdings (HCC)

Q2 2012 Earnings Call

August 1, 2012 09:00 AM ET


John Molbeck - CEO

Brad Irick - CFO

Chris Williams - President

Bill Burke - CFO

Mike Schell - EVP, Chief Property & Casualty Insurance Officer


Mark Dwelle - RBC Capital Markets

John Thomas - William Blair & Company

Brian Perry - Sampson Partners



Welcome to the Second Quarter 2012 Earnings Release Conference Call. (Operator Instructions). I would now like to turn the conference John Molbeck, Chief Executive Officer. Sir, you may begin your conference.

John Molbeck

Thank you operator and good morning everyone and welcome to HCC’s 2012 second quarter conference call. Joining me today is Chris Williams, our President, Bill Burke, our Chief Financial Officer, Brad Irick, our Chief Financial Officer and Mike Schell, our Chief Property and Casualty Insurance Officer.

Brad will provide a financial overview and Chris and Bill will provide additional insight into the quarter’s results. As you can see by our press release HCC has a strong second quarter and first half in each segment. Annualized operating return and equity was 11.3% for the quarter and 11.1% for the six months. Net earnings were $93.5 million or $0.92 per share for the quarter and a $176.1 million or a $1.71 per share for the first six months. The earnings of both periods are records for earnings per share.

Gross written premium increased 7% for the quarter and 6% for the six months and our gap combined ratio was 84.9% for the quarter and 85% for the first six months which included 8/10th percentage points of catastrophe losses in the quarter and 1.1% for the six months. Our expense ratio remained excellent at 25.3% for the quarter and 25.2% for the six months and book value increased for the year by 5.5% to $33.19 per share.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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