Attached files
| file | filename |
|---|---|
| 10-K - 10-K - HCC INSURANCE HOLDINGS INC/DE/ | d860932d10k.htm |
| EX-21 - EX-21 - HCC INSURANCE HOLDINGS INC/DE/ | d860932dex21.htm |
| EX-24 - EX-24 - HCC INSURANCE HOLDINGS INC/DE/ | d860932dex24.htm |
| EX-23 - EX-23 - HCC INSURANCE HOLDINGS INC/DE/ | d860932dex23.htm |
| EX-31.1 - EX-31.1 - HCC INSURANCE HOLDINGS INC/DE/ | d860932dex311.htm |
| EX-31.2 - EX-31.2 - HCC INSURANCE HOLDINGS INC/DE/ | d860932dex312.htm |
| EX-32.1 - EX-32.1 - HCC INSURANCE HOLDINGS INC/DE/ | d860932dex321.htm |
| EXCEL - IDEA: XBRL DOCUMENT - HCC INSURANCE HOLDINGS INC/DE/ | Financial_Report.xls |
| XML - IDEA: XBRL DOCUMENT - HCC INSURANCE HOLDINGS INC/DE/ | R9999.htm |
EXHIBIT 12
HCC INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
STATEMENT OF RATIOS
(in thousands, except ratios)
| Years ended December 31, | ||||||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
| Net loss ratio |
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| Loss and loss adjustment expense, net |
$ | 1,326,835 | $ | 1,322,454 | $ | 1,338,074 | $ | 1,429,370 | $ | 1,241,976 | ||||||||||
| Less: Internal claims department costs |
36,423 | 32,404 | 32,563 | 30,123 | 28,947 | |||||||||||||||
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| Adjusted loss and loss adjustment expense, net |
$ | 1,290,412 | $ | 1,290,050 | $ | 1,305,511 | $ | 1,399,247 | $ | 1,213,029 | ||||||||||
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| Net earned premium |
$ | 2,323,627 | $ | 2,239,240 | $ | 2,242,625 | $ | 2,127,170 | $ | 2,041,924 | ||||||||||
| Net loss ratio |
55.5 | % | 57.6 | % | 58.2 | % | 65.8 | % | 59.4 | % | ||||||||||
| (Net loss ratio = adjusted net loss and loss adjustment expense divided by net earned premium) |
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| Expense ratio |
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| Segment underwriting expense (1) |
$ | 627,104 | $ | 583,534 | $ | 565,777 | $ | 536,238 | $ | 519,336 | ||||||||||
| Segment revenue (2) |
$ | 2,360,934 | $ | 2,261,302 | $ | 2,231,734 | $ | 2,117,882 | $ | 2,030,219 | ||||||||||
| Expense ratio |
26.6 | % | 25.8 | % | 25.4 | % | 25.3 | % | 25.6 | % | ||||||||||
| (Expense ratio = segment underwriting expense divided by segment revenue) |
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| Combined ratio |
82.1 | % | 83.4 | % | 83.6 | % | 91.1 | % | 85.0 | % | ||||||||||
| (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 |
$ | 1,326,835 | $ | 1,322,454 | $ | 1,338,074 | $ | 1,429,370 | $ | 1,241,976 | ||||||||||
| Less: Internal claims department costs |
36,423 | 32,404 | 32,563 | 30,123 | 28,947 | |||||||||||||||
| Add: Favorable (adverse) development |
56,357 | 73,742 | 70,011 | (10,147 | ) | 22,663 | ||||||||||||||
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| Accident year net loss and loss adjustment expense |
$ | 1,346,769 | $ | 1,363,792 | $ | 1,375,522 | $ | 1,389,100 | $ | 1,235,692 | ||||||||||
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| Net earned premium |
$ | 2,323,627 | $ | 2,239,240 | $ | 2,242,625 | $ | 2,127,170 | $ | 2,041,924 | ||||||||||
| Add: (Increase) decrease related to |
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| prior year reinstatement premium |
4,793 | (818 | ) | (5,083 | ) | — | 3,177 | |||||||||||||
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| Accident year net earned premium |
$ | 2,328,420 | $ | 2,238,422 | $ | 2,237,542 | $ | 2,127,170 | $ | 2,045,101 | ||||||||||
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| Accident year net loss ratio |
57.8 | % | 60.9 | % | 61.5 | % | 65.3 | % | 60.4 | % | ||||||||||
| (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) | Sum of Other Expense, which includes internal claims department costs, for each of our insurance segments. |
| (2) | Sum of Segment Revenue for each of our insurance segments. |
HCC INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
STATEMENT OF RATIOS
(in thousands, except ratios)
| Years ended December 31, | ||||||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
| Net paid loss ratio |
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| Losses paid, net of reinsurance |
$ | 1,400,501 | $ | 1,298,400 | $ | 1,304,908 | $ | 1,283,812 | $ | 1,247,027 | ||||||||||
| Less: Internal claims department costs |
36,423 | 32,404 | 32,563 | 30,123 | 28,947 | |||||||||||||||
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| Adjusted losses paid, net of reinsurance |
$ | 1,364,078 | $ | 1,265,996 | $ | 1,272,345 | $ | 1,253,689 | $ | 1,218,080 | ||||||||||
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| Net earned premium |
$ | 2,323,627 | $ | 2,239,240 | $ | 2,242,625 | $ | 2,127,170 | $ | 2,041,924 | ||||||||||
| Net paid loss ratio |
58.7 | % | 56.5 | % | 56.7 | % | 58.9 | % | 59.7 | % | ||||||||||
| (Net paid loss ratio = adjusted 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 (3) |
$ | 5,557 | $ | 5,232 | $ | 5,328 | $ | 5,390 | $ | 5,294 | ||||||||||
| Interest expense |
28,125 | 26,210 | 25,628 | 23,070 | 21,348 | |||||||||||||||
| Capitalized interest |
- | - | 303 | 382 | - | |||||||||||||||
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| Total fixed charges |
$ | 33,682 | $ | 31,442 | $ | 31,259 | $ | 28,842 | $ | 26,642 | ||||||||||
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| Earnings before income tax expense |
$ | 661,836 | $ | 572,710 | $ | 554,427 | $ | 355,006 | $ | 489,827 | ||||||||||
| Interest factor of rent expense (3) |
5,557 | 5,232 | 5,328 | 5,390 | 5,294 | |||||||||||||||
| Interest expense |
28,125 | 26,210 | 25,628 | 23,070 | 21,348 | |||||||||||||||
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| Earnings per calculation |
$ | 695,518 | $ | 604,152 | $ | 585,383 | $ | 383,466 | $ | 516,469 | ||||||||||
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| Ratio of earnings to fixed charges (4) |
20.65 | 19.21 | 18.73 | 13.30 | 19.39 | |||||||||||||||
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| (3) | Estimated to be 33% of total rent expense. |
| (4) | Earnings per calculation divided by total fixed charges. |