Attached files

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EX-31.2 - EX-31.2 - HCC INSURANCE HOLDINGS INC/DE/d13283dex312.htm
EX-32.1 - EX-32.1 - HCC INSURANCE HOLDINGS INC/DE/d13283dex321.htm
EX-31.1 - EX-31.1 - HCC INSURANCE HOLDINGS INC/DE/d13283dex311.htm
10-Q - 10-Q - HCC INSURANCE HOLDINGS INC/DE/d13283d10q.htm

Exhibit 12

HCC Insurance Holdings, Inc. and Subsidiaries

Statement of Ratios

(unaudited, in thousands except ratios)

 

     Six months ended June 30,     Three months ended June 30,  
     2015     2014     2015     2014  

Net loss ratio

        

Loss and loss adjustment expense, net

   $ 760,467       $ 666,643       $ 395,305       $ 335,897    

Net earned premium

     1,242,403         1,134,860         641,840         572,248    

Net loss ratio

     61.2      58.7      61.6      58.7 

(Net loss ratio = net loss and loss adjustment expense divided by net earned premium)

        

Expense ratio

        

Segment underwriting expense (1)

   $ 317,298       $ 282,113       $ 162,974       $ 143,527    

Segment net earned premium (2)

     1,242,403         1,134,240         641,837         571,919    

Expense ratio

     25.5      24.9      25.4      25.1 

(Expense ratio = segment underwriting expense divided by segment net earned premium)

        

Combined ratio

     86.7      83.6      87.0      83.8 

(Combined ratio = net loss ratio plus expense ratio)

        

Accident year net loss ratio

        

Loss and loss adjustment expense, net

   $ 760,467       $ 666,643       $ 395,305       $ 335,897    

Add: Favorable (adverse) development

                            
  

 

 

   

 

 

   

 

 

   

 

 

 

Accident year net loss and loss adjustment expense

   $ 760,467       $ 666,643       $ 395,305       $ 335,897    
  

 

 

   

 

 

   

 

 

   

 

 

 

Net earned premium

   $ 1,242,403       $ 1,134,860       $ 641,840       $ 572,248    

Add: (Increase) decrease related to prior year reinstatement premium

                            
  

 

 

   

 

 

   

 

 

   

 

 

 

Accident year net earned premium

   $     1,242,403       $     1,134,860       $       641,840       $       572,248    
  

 

 

   

 

 

   

 

 

   

 

 

 

Accident year net loss ratio

     61.2      58.7      61.6      58.7 

(Accident year net loss ratio = accident year net loss and loss adjustment expense divided by accident year net earned premium)

        

 

(1) Sum of Other Expense for each of our insurance segments.

(2) Sum of Net Earned Premium for each of our insurance segments.


HCC Insurance Holdings, Inc. and Subsidiaries

Statement of Ratios

(unaudited, in thousands except ratios)

 

     Six months ended June 30,     Three months ended June 30,  
     2015     2014     2015     2014  

Net paid loss ratio

        

Losses paid, net of reinsurance

   $ 820,513       $ 691,775       $       431,975       $       327,917    

Net earned premium

         1,242,403             1,134,860         641,840         572,248    

Net paid loss ratio

     66.0      61.0      67.3      57.3 

(Net paid loss ratio = losses paid, net of reinsurance, divided by net earned premium)

        

Ratio of earnings to fixed charges

        

Interest factor of rent expense (3)

   $ 2,972       $ 2,784       $ 1,516       $ 1,425    

Interest expense

     15,030         13,984         7,264         6,865    
  

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed charges

   $ 18,002       $ 16,768       $ 8,780       $ 8,290    
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings before income tax expense

   $ 265,385       $ 292,616       $ 114,557       $ 137,644    

Interest factor of rent expense (3)

     2,972         2,784         1,516         1,425    

Interest expense

     15,030         13,984         7,264         6,865    
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per calculation

   $ 283,387       $ 309,384       $ 123,337       $ 145,934    
  

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of earnings to fixed charges (4)

     15.74         18.45         14.05         17.60    
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(3) Estimated to be 33% of total rent expense.

(4) Earnings per calculation divided by total fixed charges.