HCC Insurance Holdings
Encyclopedia
HCC Insurance Holdings, Inc. ) is a leading international specialty insurance group with offices across the United States, the United Kingdom, Spain, and Ireland. The company is based in Houston, Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...

, U.S.A. and has a heavy concentration in property and casualty insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...

. The company's philosophy is long term growth of shareholder's equity through capital preservation, diversification of operations, disciplined underwriting and conservative investments.

The company was formed in 1974. Since the company's founding it has been consistently profitable, generally reporting annual increases in revenue and shareholder's equity.

In 2009, it posted $2.6 billion on Gross premiums written
Gross premiums written
When a non-life insurance company closes a contract to provide insurance against loss, the revenues expected to be received over the life of the contract are called gross premiums written...

, $2.4 in total revenue, earnings of $354 million, and Combined Ratio of less than 85%. Assets exceed $8.8 billion. Return on equity was 12.5% and earnings was $3 per share. HCC Insurance is ranked 827 in the 2009 edition of the Fortune 1000
Fortune 1000
Fortune 1000 is a reference to a list maintained by the American business magazine Fortune. The list is of the 1000 largest American companies, ranked on revenues alone...

.

The company has strong financial ratings including an A. M. Best rating of A+ (superior), Standard & Poor's
Standard & Poor's
Standard & Poor's is a United States-based financial services company. It is a division of The McGraw-Hill Companies that publishes financial research and analysis on stocks and bonds. It is well known for its stock-market indices, the US-based S&P 500, the Australian S&P/ASX 200, the Canadian...

 rating of AA (very strong), Fitch Group rating of AA (very strong), and Moody's
Moody's
Moody's Corporation is the holding company for Moody's Analytics and Moody's Investors Service, a credit rating agency which performs international financial research and analysis on commercial and government entities. The company also ranks the credit-worthiness of borrowers using a standardized...

rating of A1 (good security).

Growth and Acquisitions

The company has grown organically (growing market share with existing products), by adding new products, and through acquisitions of other insurance businesses. The company has also divested business positions to retain its strong focus on underwriting of specialty insurance products.

– In 2009, it sold its reinsurance brokerage business Rattner MacKenzie Limited and transferred rights relating to brown water marine to its original owner. The company also combined two Lloyd's syndicates to achieve more operational efficiency.

– In 2008, the company acquired the Cox Insurance Group, Arrowhead Public Risk, VMGU Insurance Agency, the Surety Company of the Pacific, and MultiNational Underwriters.

– In 2006, Novia Underwriters, Inc. was acquired by the company along with G.B. Kenrick & Associates and the Health Products Division of Allianz Life Insurance.

– In 2005, HCC Insurance acquired US Surety company along with the DeMontfort Group, Ltd., Perico Ltd., MIC Life Insurance, and the Ilium Insurance Group.

– In 2004, American Contractors Indemnity Company and RA&MCO Insurance companies were acquired by the company.

– In 1999, it acquired Centris Group Inc., another insurance company, for $171 million.

Connection to September 11 (911) WTC Incident

In a release on its official website dated September 13, 2001, HCC had what it called a "small participation in the World Trade Center property insurance coverage and some of the surrounding buildings".
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