HCC Insurance has said net earnings for the first quarter of 2006 surged 37% to $78.6m from $57.3m for the first quarter of 2005...
HCC Insurance has said net earnings for the first quarter of 2006 surged 37% to $78.6m from $57.3m.
Stephen L. Way, chairman and chief executive officer, said: “Our first quarter results reflect the continuing strong margins from our underwriting activities and increasing investment income.”
HCC said total revenue grew 23% during the first quarter of 2006 to $466.1m from $379.7m, in the first quarter of 2005.
The company said revenue is expected to continue to show strong growth throughout 2006.
It added that although its insurance company subsidiaries' gross written premium growth slowed as expected during the first three months of 2006, net written premium increased by 10% to $393.1m and net earned premium by 19% to $380.6m, both compared to the first quarter of 2005.
HCC also said premiums are rising in part due to the strong energy market and growth in surety, offset by softening in the international D&O market and its non-renewal of an A&H program, on which it had no retention.
It said overall, market conditions in its specialty lines
continue to be fairly stable.
The GAAP combined ratio for the first three months of 2006 was 85.2% compared to 84.5% in the corresponding period of 2005.
No net loss reserve releases were taken in the quarter.
Way said: “To date, there has been no adverse reserve development from the catastrophe losses of 2005 and none is anticipated, as is our past record for all previous catastrophe losses.”
"Fee and commission income was down during the first quarter of 2006 to $31.5m from $33.1m during the same period in 2005. Although this reduction was contemplated, we expect this revenue source to stabilize during 2006 and anticipate it will begin to increase again next year."
