Attached files
| file | filename |
|---|---|
| EXCEL - IDEA: XBRL DOCUMENT - HCC INSURANCE HOLDINGS INC/DE/ | Financial_Report.xls |
| 10-Q - 10-Q - HCC INSURANCE HOLDINGS INC/DE/ | d812420d10q.htm |
| EX-31.2 - EX-31.2 - HCC INSURANCE HOLDINGS INC/DE/ | d812420dex312.htm |
| EX-32.1 - EX-32.1 - HCC INSURANCE HOLDINGS INC/DE/ | d812420dex321.htm |
| EX-31.1 - EX-31.1 - HCC INSURANCE HOLDINGS INC/DE/ | d812420dex311.htm |
Exhibit 12
HCC Insurance Holdings, Inc. and Subsidiaries
Statement of Ratios
(unaudited, in thousands except ratios)
| Nine months ended September 30,
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Three months ended September 30,
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| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Net loss ratio |
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| Loss and loss adjustment expense, net |
$ | 960,875 | $ | 992,547 | $ | 311,937 | $ | 320,376 | ||||||||
| Net earned premium |
1,721,795 | 1,679,210 | 586,935 | 556,668 | ||||||||||||
| Net loss ratio (1) |
55.8 | % | 59.1 | % | 53.1 | % | 57.6 | % | ||||||||
| (Net loss ratio = net loss and loss adjustment expense divided by net earned premium) |
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| Expense ratio |
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| Segment underwriting expense (2) |
$ | 461,327 | $ | 423,712 | $ | 160,994 | $ | 145,772 | ||||||||
| Segment revenue (3) |
1,749,232 | 1,692,293 | 596,307 | 562,910 | ||||||||||||
| Expense ratio |
26.4 | % | 25.0 | % | 27.0 | % | 25.9 | % | ||||||||
| (Expense ratio = segment underwriting expense divided by segment revenue) |
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| Combined ratio |
82.2 | % | 84.1 | % | 80.1 | % | 83.5 | % | ||||||||
| (Combined ratio = net loss ratio plus expense ratio) |
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| Accident year net loss ratio |
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| Loss and loss adjustment expense, net |
$ | 960,875 | $ | 992,547 | $ | 311,937 | $ | 320,376 | ||||||||
| Add: Favorable (adverse) development |
30,651 | 39,634 | 30,651 | 27,842 | ||||||||||||
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| Accident year net loss and loss adjustment expense |
$ | 991,526 | $ | 1,032,181 | $ | 342,588 | $ | 348,218 | ||||||||
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| Net earned premium |
$ | 1,721,795 | $ | 1,679,210 | $ | 586,935 | $ | 556,668 | ||||||||
| Add: (Increase) decrease related to prior year reinstatement premium |
2,564 | - | 2,564 | - | ||||||||||||
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| Accident year net earned premium |
$ | 1,724,359 | $ | 1,679,210 | $ | 589,499 | $ | 556,668 | ||||||||
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| Accident year net loss ratio |
57.5 | % | 61.5 | % | 58.1 | % | 62.6 | % | ||||||||
| (Accident year net loss ratio = accident year net loss and loss adjustment expense divided by accident year net earned premium) |
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| (1) | Calculated for our insurance companies using financial data reported in accordance with generally accepted accounting principles. |
| (2) | Sum of Other Expense for each of our insurance segments. |
| (3) | Sum of Segment Revenue for each of our insurance segments. |
HCC Insurance Holdings, Inc. and Subsidiaries
Statement of Ratios
(unaudited, in thousands except ratios)
| Nine months ended September 30,
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Three months ended September 30,
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| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Net paid loss ratio |
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| Losses paid, net of reinsurance |
$ | 1,024,673 | $ | 884,022 | $ | 350,603 | $ | 297,696 | ||||||||
| Net earned premium |
1,721,795 | 1,679,210 | 586,935 | 556,668 | ||||||||||||
| Net paid loss ratio |
59.5 | % | 52.6 | % | 59.7 | % | 53.5 | % | ||||||||
| (Net paid loss ratio = losses paid, net of reinsurance, divided by net earned premium) |
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| Ratio of earnings to fixed charges |
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| Interest factor of rent expense (4) |
$ | 4,087 | $ | 3,875 | $ | 1,303 | $ | 1,338 | ||||||||
| Interest expense |
20,874 | 19,656 | 6,890 | 6,574 | ||||||||||||
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| Total fixed charges |
$ | 24,961 | $ | 23,531 | $ | 8,193 | $ | 7,912 | ||||||||
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| Earnings before income tax expense |
$ | 497,273 | $ | 416,327 | $ | 204,657 | $ | 140,100 | ||||||||
| Interest factor of rent expense (4) |
4,087 | 3,875 | 1,303 | 1,338 | ||||||||||||
| Interest expense |
20,874 | 19,656 | 6,890 | 6,574 | ||||||||||||
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| Earnings per calculation |
$ | 522,234 | $ | 439,858 | $ | 212,850 | $ | 148,012 | ||||||||
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| Ratio of earnings to fixed charges (5) |
20.92 | 18.69 | 25.98 | 18.71 | ||||||||||||
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| (4) | Estimated to be 33% of total rent expense. |
| (5) | Earnings per calculation divided by total fixed charges. |