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.
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.