Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - HCC INSURANCE HOLDINGS INC/DE/ | h68221e8vk.htm |
| EX-99.4 - EX-99.4 - HCC INSURANCE HOLDINGS INC/DE/ | h68221exv99w4.htm |
| EX-99.6 - EX-99.6 - HCC INSURANCE HOLDINGS INC/DE/ | h68221exv99w6.htm |
| EX-99.3 - EX-99.3 - HCC INSURANCE HOLDINGS INC/DE/ | h68221exv99w3.htm |
| EX-99.1 - EX-99.1 - HCC INSURANCE HOLDINGS INC/DE/ | h68221exv99w1.htm |
| EX-99.5 - EX-99.5 - HCC INSURANCE HOLDINGS INC/DE/ | h68221exv99w5.htm |
| EX-23.1 - EX-23.1 - HCC INSURANCE HOLDINGS INC/DE/ | h68221exv23w1.htm |
Exhibit 99.2
| Item 6. | Selected Financial Data |
The selected consolidated financial data set forth
below has
been derived from the Consolidated Financial Statements. All
information contained herein should be read in
conjunction with
the Consolidated Financial Statements, the related Notes thereto
and Management’s Discussion and
Analysis of Financial
Condition and Results of Operations included elsewhere in this
Report.
As discussed in Note 1 to the Consolidated Financial Statements, we adopted
FSP APB 14-1 and FSP EITF 03-6-1 on January 1, 2009. The selected consolidated financial data set forth below has been adjusted
for the retrospective application of these new accounting standards.
| Years Ended December 31, | |||||||||||||||||||||
| 2008(3) | 2007(3) | 2006(3) | 2005(4) | 2004 (4) | |||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||||
|
Statement of earnings
data (as adjusted): |
|||||||||||||||||||||
|
Revenue |
|||||||||||||||||||||
|
Net earned premium |
$ | 2,007,774 | $ | 1,985,086 | $ | 1,709,189 | $ | 1,369,988 | $ | 1,010,692 | |||||||||||
|
Fee and commission income |
125,201 | 140,092 | 137,131 | 132,628 | 183,802 | ||||||||||||||||
|
Net investment income |
164,751 | 206,462 | 152,804 | 98,851 | 64,885 | ||||||||||||||||
|
Net realized investment gain (loss) |
(27,941 | ) | 13,188 | (841 | ) | 1,448 | 5,822 | ||||||||||||||
|
Other
operating income |
9,638 | 43,545 | 77,012 | 39,773 | 19,406 | ||||||||||||||||
|
Total
revenue |
2,279,423 | 2,388,373 | 2,075,295 | 1,642,688 | 1,284,607 | ||||||||||||||||
|
Expense |
|||||||||||||||||||||
|
Loss and loss
adjustment expense, net |
1,211,873 | 1,183,947 | 1,011,856 | 919,697 | 645,230 | ||||||||||||||||
|
Policy acquisition costs,
net |
381,441 | 366,610 | 319,885 | 261,708 | 222,323 | ||||||||||||||||
|
Other operating expense |
233,509 | 241,642 | 222,324 | 180,990 | 168,045 | ||||||||||||||||
|
Interest expense |
20,362 | 16,270 | 18,128 | 14,126 | 11,965 | ||||||||||||||||
|
Total
expense |
1,847,185 | 1,808,469 | 1,572,193 | 1,376,521 | 1,047,563 | ||||||||||||||||
|
Earnings from continuing operations before income tax expense |
432,238 | 579,904 | 503,102 | 266,167 | 237,044 | ||||||||||||||||
|
Income tax
expense on continuing operations |
130,118 | 188,351 | 165,191 | 81,921 | 80,684 | ||||||||||||||||
|
Earnings from continuing operations |
302,120 | 391,553 | 337,911 | 184,246 | 156,360 | ||||||||||||||||
|
Earnings from discontinued operations, net of income
taxes(1) |
— | — | — | 2,760 | 4,004 | ||||||||||||||||
|
Net earnings |
$ | 302,120 | $ | 391,553 | $ | 337,911 | $ | 187,006 | $ | 160,364 | |||||||||||
|
Basic earnings per share data: |
|||||||||||||||||||||
|
Earnings from continuing operations |
$ | 2.63 | $ | 3.47 | $ | 3.04 | $ | 1.74 | $ | 1.61 | |||||||||||
|
Earnings from discontinued operations(1) |
— | — | — | 0.03 | 0.04 | ||||||||||||||||
|
Net earnings |
$ | 2.63 | $ | 3.47 | $ | 3.04 | $ | 1.77 | $ | 1.65 | |||||||||||
|
Weighted average shares outstanding |
114,848 | 112,873 | 111,309 | 105,463 | 97,257 | ||||||||||||||||
|
Diluted earnings per share data: |
|||||||||||||||||||||
|
Earnings from continuing operations |
$ | 2.61 | $ | 3.35 | $ | 2.89 | $ | 1.68 | $ | 1.58 | |||||||||||
|
Earnings from discontinued
operations(1) |
— | — | — | 0.03 | 0.04 | ||||||||||||||||
|
Net
earnings |
$ | 2.61 | $ | 3.35 | $ | 2.89 | $ | 1.71 | $ | 1.62 | |||||||||||
|
Weighted average shares outstanding |
115,463 | 116,997 | 116,736 | 109,437 | 98,826 | ||||||||||||||||
|
Cash dividends declared, per share |
$ | 0.470 | $ | 0.420 | $ | 0.375 | $ | 0.282 | $ | 0.213 | |||||||||||
| December 31, | ||||||||||||||||||||||
| 2008(3) | 2007(3) | 2006(4) | 2005(4) | 2004(4) | ||||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||||||||
|
Balance sheet data (as adjusted):
|
||||||||||||||||||||||
|
Total investments
|
$ | 4,804,283 | $ | 4,672,277 | $ | 3,927,995 | $ | 3,257,428 | $ | 2,468,491 | ||||||||||||
|
Premium, claims and other receivables
|
770,823 | 763,401 | 864,705 | 884,654 | 891,360 | |||||||||||||||||
|
Reinsurance recoverables
|
1,054,950 | 956,665 | 1,169,934 | 1,361,983 | 1,104,026 | |||||||||||||||||
|
Ceded unearned premium
|
234,375 | 244,684 | 226,125 | 239,416 | 311,973 | |||||||||||||||||
|
Goodwill
|
858,849 | 776,046 | 742,677 | 532,947 | 444,031 | |||||||||||||||||
|
Total assets
|
8,332,000 | 8,074,520 | 7,626,025 | 7,022,231 | 5,891,649 | |||||||||||||||||
|
|
||||||||||||||||||||||
|
Loss and loss adjustment expense payable
|
3,415,230 | 3,227,080 | 3,097,051 | 2,813,720 | 2,089,199 | |||||||||||||||||
|
Unearned premium
|
977,426 | 943,946 | 920,350 | 807,109 | 741,706 | |||||||||||||||||
|
Premium and claims payable
|
405,287 | 497,974 | 646,224 | 753,859 | 766,765 | |||||||||||||||||
|
Notes payable
|
343,649 | 319,471 | 297,574 | 291,394 | 286,582 | |||||||||||||||||
|
Shareholders’ equity
|
2,640,023 | 2,443,695 | 2,050,009 | 1,702,015 | 1,341,274 | |||||||||||||||||
|
Book value per share(2)
|
$ | 23.27 | $ | 21.24 | $ | 18.35 | $ | 15.36 | $ | 13.14 | ||||||||||||
| (1) | Discontinued operations in 2005 and 2004 represent gains from a contractual earnout related to the 2003 sale of our retail brokerage operation, HCC Employee Benefits, Inc. | |
| (2) | Book value per share is calculated by dividing outstanding shares into total shareholders’ equity. | |
| (3) | See Note 1 to the Consolidated Financial Statements for changes in line items due to the adoption of FSP APB 14-1 and FSP EITF 03-6-1 on January 1, 2009. | |
| (4) | The following line items were affected by the adoption of FSP APB 14-1 and FSP EITF 03-6-1 on January 1, 2009: |
| Twelve months ended December 31, 2005 | ||||||||||||
| As originally | ||||||||||||
| reported | As adjusted | Change | ||||||||||
Interest expense |
$ | 7,684 | $ | 14,126 | $ | 6,442 | ||||||
Earnings before income tax expense |
272,609 | 266,167 | (6,442 | ) | ||||||||
Income tax expense |
84,177 | 81,921 | (2,256 | ) | ||||||||
Earnings from continuing operations |
188,432 | 184,246 | (4,186 | ) | ||||||||
Net earnings |
191,192 | 187,006 | (4,186 | ) | ||||||||
Basic earnings per share from continuing operations |
$ | 1.78 | $ | 1.74 | $ | (0.04 | ) | |||||
Basic earnings per share |
1.81 | 1.77 | (0.04 | ) | ||||||||
Diluted earnings per share from continuing operations |
1.72 | 1.68 | (0.04 | ) | ||||||||
Diluted earnings per share |
1.75 | 1.71 | (0.04 | ) | ||||||||
| Twelve months ended December 31, 2004 | ||||||||||||
| As originally | ||||||||||||
| reported | As adjusted | Change | ||||||||||
Interest expense |
$ | 8,374 | $ | 11,965 | $ | 3,591 | ||||||
Earnings before income tax expense |
240,635 | 237,044 | (3,591 | ) | ||||||||
Income tax expense |
81,940 | 80,684 | (1,256 | ) | ||||||||
Earnings from continuing operations |
158,695 | 156,360 | (2,335 | ) | ||||||||
Net earnings |
162,699 | 160,364 | (2,335 | ) | ||||||||
Basic earnings per share from continuing operations |
$ | 1.63 | $ | 1.61 | $ | (0.02 | ) | |||||
Basic earnings per share |
1.67 | 1.65 | (0.02 | ) | ||||||||
Diluted earnings per share from continuing operations |
1.61 | 1.58 | (0.03 | ) | ||||||||
Diluted earnings per share |
1.65 | 1.62 | (0.03 | ) | ||||||||
| December 31, 2006 | ||||||||||||
| As originally | ||||||||||||
| reported | As adjusted | Change | ||||||||||
Total assets (debt issuance costs and deferred tax asset) |
$ | 7,630,132 | $ | 7,626,025 | $ | (4,107 | ) | |||||
Notes payable |
308,887 | 297,574 | (11,313 | ) | ||||||||
Shareholders’ equity |
2,042,803 | 2,050,009 | 7,206 | |||||||||
Book value per share |
$ | 18.28 | $ | 18.35 | $ | 0.07 | ||||||
| December 31, 2005 | ||||||||||||
| As originally | ||||||||||||
| reported | As adjusted | Change | ||||||||||
Total assets (debt issuance costs and deferred tax asset) |
$ | 7,028,800 | $ | 7,022,231 | $ | (6,569 | ) | |||||
Notes payable |
309,543 | 291,394 | (18,149 | ) | ||||||||
Shareholders’ equity |
1,690,435 | 1,702,015 | 11,580 | |||||||||
Book value per share |
$ | 15.26 | $ | 15.36 | $ | 0.10 | ||||||
| December 31, 2004 | ||||||||||||
| As originally | ||||||||||||
| reported | As adjusted | Change | ||||||||||
Total assets (debt issuance costs and deferred tax asset) |
$ | 5,900,568 | $ | 5,891,649 | $ | (8,919 | ) | |||||
Notes payable |
311,277 | 286,582 | (24,695 | ) | ||||||||
Shareholders’ equity |
1,325,498 | 1,341,264 | 15,766 | |||||||||
Book value per share |
$ | 12.99 | $ | 13.14 | $ | 0.15 | ||||||