Attached files

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10-K - FORM 10-K - HCC INSURANCE HOLDINGS INC/DE/h69817e10vk.htm
EX-24 - EX-24 - HCC INSURANCE HOLDINGS INC/DE/h69817exv24.htm
EX-21 - EX-21 - HCC INSURANCE HOLDINGS INC/DE/h69817exv21.htm
EX-23 - EX-23 - HCC INSURANCE HOLDINGS INC/DE/h69817exv23.htm
EX-31.2 - EX-31.2 - HCC INSURANCE HOLDINGS INC/DE/h69817exv31w2.htm
EX-31.1 - EX-31.1 - HCC INSURANCE HOLDINGS INC/DE/h69817exv31w1.htm
EX-32.1 - EX-32.1 - HCC INSURANCE HOLDINGS INC/DE/h69817exv32w1.htm
EX-10.28 - EX-10.28 - HCC INSURANCE HOLDINGS INC/DE/h69817exv10w28.htm
EX-10.31 - EX-10.31 - HCC INSURANCE HOLDINGS INC/DE/h69817exv10w31.htm
EX-10.29 - EX-10.29 - HCC INSURANCE HOLDINGS INC/DE/h69817exv10w29.htm
EX-10.30 - EX-10.30 - HCC INSURANCE HOLDINGS INC/DE/h69817exv10w30.htm
EXHIBIT 12
 
HCC INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
 
STATEMENT OF RATIOS
(in thousands)
 
                                         
    Years Ended December 31,  
    2009     2008     2007     2006     2005  
 
Gross premium to surplus ratio
                                       
Gross written premium
  $ 2,568,609     $ 2,510,612     $ 2,460,498     $ 2,243,843     $ 2,049,116  
Policyholders’ surplus
    2,103,892       1,852,684       1,744,889       1,342,054       1,110,268  
Premium to surplus ratio(1)
    122.1 %     135.5 %     141.0 %     167.2 %     184.6 %
(Gross premium to surplus ratio = gross written premium divided by policyholders’ surplus)
                                         
Net premium to surplus ratio
                                       
Net written premium
  $ 2,052,309     $ 2,064,091     $ 1,985,641     $ 1,812,896     $ 1,495,931  
Policyholders’ surplus
    2,103,892       1,852,684       1,744,889       1,342,054       1,110,268  
Premium to surplus ratio(1)
    97.5 %     111.4 %     113.8 %     135.1 %     134.7 %
(Net premium to surplus ratio = net written premium divided by policyholders’ surplus)
                                         
Loss ratio
                                       
Incurred loss and loss adjustment expense
  $ 1,232,510     $ 1,216,746     $ 1,194,925     $ 1,020,221     $ 925,130  
Net earned premium
    2,029,748       2,000,289       1,971,951       1,700,373       1,378,100  
Loss ratio(1)
    60.7 %     60.8 %     60.6 %     60.0 %     67.1 %
(Loss ratio = incurred loss and loss adjustment expense divided by net earned premium)
                                         
Expense ratio
                                       
Underwriting expense
  $ 528,077     $ 501,948     $ 473,597     $ 435,371     $ 381,680  
Net written premium
    2,052,309       2,064,091       1,985,641       1,812,896       1,495,931  
Expense ratio(1)
    25.7 %     24.3 %     23.9 %     24.0 %     25.5 %
(Expense ratio = underwriting expense divided by net written premium)
                                         
Combined ratio(1)
    86.4 %     85.1 %     84.5 %     84.0 %     92.6 %
(Combined ratio = loss ratio plus expense ratio)
 
 
(1) Calculated for our insurance companies using financial data reported in accordance with statutory accounting principles.


 

 
EXHIBIT 12
 
HCC INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
 
STATEMENT OF RATIOS
(in thousands)
 
                                         
    Years Ended December 31,  
    2009     2008     2007     2006     2005  
 
Loss ratio
                                       
Incurred loss and loss adjustment expense
  $ 1,215,759     $ 1,211,873     $ 1,183,947     $ 1,011,856     $ 919,697  
Net earned premium
    2,037,235       2,007,774       1,985,086       1,709,189       1,369,988  
Loss ratio(2)
    59.7 %     60.4 %     59.6 %     59.2 %     67.1 %
(Loss ratio = incurred loss and loss adjustment expense divided by net earned premium)
                                         
Expense ratio
                                       
Underwriting expense
  $ 513,942     $ 501,537     $ 472,168     $ 427,456     $ 357,727  
Net earned premium
    2,037,235       2,007,774       1,985,086       1,709,189       1,369,988  
Expense ratio(2)
    25.2 %     25.0 %     23.8 %     25.0 %     26.1 %
(Expense ratio = underwriting expense divided by net earned premium)
                                         
Combined ratio(2)
    84.9 %     85.4 %     83.4 %     84.2 %     93.2 %
(Combined ratio = loss ratio plus expense ratio)
                                         
Ratio of earnings to fixed charges
                                       
Interest factor of rent expense(3)
  $ 5,277     $ 4,581     $ 4,067     $ 3,944     $ 3,373  
Interest expense
    16,164       20,362       16,270       18,128       14,126  
Capitalized interest
    51       104                    
                                         
Total fixed charges
  $ 21,492     $ 25,047     $ 20,337     $ 22,072     $ 17,499  
                                         
Earnings from continuing operations before income tax expense
  $ 518,551     $ 432,238     $ 579,904     $ 503,102     $ 266,167  
Interest factor of rent expense(3)
    5,277       4,581       4,067       3,944       3,373  
Interest expense
    16,164       20,362       16,270       18,128       14,126  
                                         
Earnings per calculation
  $ 539,992     $ 457,181     $ 600,241     $ 525,174     $ 283,666  
                                         
Ratio of earnings to fixed charges(4)
    25.13       18.25       29.51       23.79       16.21  
                                         
 
 
(2) Calculated for our insurance companies using financial data reported in accordance with generally accepted accounting principles.
 
(3) Estimated to be 33% of total rent expense.
 
(4) Earnings per calculation divided by total fixed charges.