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HCC INSURANCE HOLDINGS, INC. REPORTS 1993 SECOND QUARTER EARNINGS, PROPOSED PUBLIC STOCK OFFERING AND BANK LOAN

 HOUSTON, July 29 /PRNewswire/ -- HCC Insurance Holdings, Inc. (NASDAQ-NMS: HCCH) today released net earnings for the second quarter and six months ended June 30, 1993, and announced a proposed public offering of common stock and an increase in its bank loan.
 Stephen L. Way, chairman, announced that net earnings for the second quarter increased 114 percent to $1.8 million from $841,000 in the same quarter of 1992. Earnings per share were $0.43 for the second quarter of 1993 compared with $0.31 for the same period in 1992, a 39 percent increase after overcoming the dilutive effect of the company's October, 1992 initial public offering.
 Net earnings for the six months ended June 30, 1993, which exceeded all of 1992's earnings, were $3.2 million up 88 percent from $1.7 million for the same period of 1992. Earnings per share were $0.75 for the first six months of 1993 up 21 percent from $0.62 for the same period of 1992.
 Gross written premium increased 70 percent to $37.8 million for the second quarter of 1993 from $22.2 million for the same period in 1992. Net written premium increased 84 percent to $12.5 million during the second quarter of 1993 from $6.8 million in 1992 and net earned premium increased 54 percent to $7.4 million compared to $4.8 million in 1992.
 For the first six months of 1993, gross written premium increased 49 percent to $63.2 million from $42.3 million for the same period of 1992, while net written premium increased 45 percent to $20.6 from $14.2 million. Net earned premium increased 34 percent for the first six months of 1993 to $14.7 million from $11.0 million for the corresponding period of 1992.
 Net investment increased 115 percent during the second quarter of 1993 to $1.1 million from $511,000 for the same period of 1992. During the second quarter of 1993, total revenue increased 58 percent to $9.5 million from $6.0 million in the corresponding period of 1992.
 Net investment income increased 90 percent during the first half of 1993 to $1.9 million from $1.0 million for the same period of 1992. Total revenue increased 40 percent to $18.7 million from $13.4 million in 1992.
 Total investments were $102.0 million as of June 30, 1993, up 44 percent from $70.9 million as of December 31, 1992. Total assets increased 40 percent to $224.4 million from year end 1992. Book value per share was $10.57 at June 30, 1993 compared to $9.77 at December 31, 1992.
 In addition, Mr. Way announced the company's intention to file a registration statement with the Securities and Exchange Commission covering a proposed public offering of 1,745,000 common shares. Of the total, 1,085,000 shares will be offered by the company and 660,000 shares by selling shareholders.
 Net proceeds to the company will be used to expand its underwriting business and for general corporate purposes including debt service.
 J.P. Morgan Capital Corporation plans to sell 350,000 shares of its 588,000 shares, which it acquired in a 1987 private placement by the company.
 Mr. Way, chairman and the company's largest shareholder, plans to sell 285,000 shares, or less than 20 percent of his 1,531,000 shares. His proceeds will be used for debt reduction and estate planning purposes.
 The offering is expected to be filed in early August and will be made only by means of a prospectus to be filed with the Securities and Exchange Commission.
 Mr. Way further announced that the company had completed negotiations for an additional $10 million loan from First Interstate Bank of Texas, N.A. bringing its total credit facilities to $38 million.
 Proceed of the loan will be used to increase the company's investment in its principal operating subsidiary, Houston Casualty company (HCC). The additional funds will increase HCC's statutory capital and surplus to over $65 million and will cover the minimum capital needed to allow the continued expansion of its underwriting activities for the remainder of 1993.
 HCC will invest this new capital through its investment manager, J.P. Morgan Investment Management, Inc., in high quality, investment grade securities.
 The loan proceeds will allow the company to limit the number of new shares being issued in the proposed offering, thereby holding the dilutive effect to a minimal level, while still satisfying its overall capital requirements.
 Headquartered in Houston, Texas, HCC Insurance Holdings, Inc. is a property and casualty insurance group specializing in marine, offshore energy, aviation, property and onshore energy insurance worldwide.
 HCC INSURANCE HOLDINGS, INC.
 Financial Highlights
 Three Months Ended June 30, 1993 1992
 Gross written premium $37,751,000 $22,182,000
 Net written premium 12,468,000 6,831,000
 Total revenue 9,526,000 5,986,000
 Net earned premium 7,425,000 4,834,000
 Net investment income 1,087,000 511,000
 Fee and commission income 723,000 319,000
 Net realized investment gain 291,000 13,000
 Net earnings 1,837,000 841,000
 Earnings per share $ 0.43 $ 0.31
 Weighted average shares outstanding 4,278,479 2,675,884
 Six Months Ended June 30, 1993 1992
 Gross written premium $63,245,000 $42,276,000
 Net written premium 20,639,000 14,185,000
 Total revenue 18,737,000 13,419,000
 Net earned premium 14,684,000 10,996,000
 Net investment income 1,913,000 1,005,000
 Fee and commission income 1,505,000 1,108,000
 Net realized investment gain 635,000 1,000
 Net earnings 3,198,000 1,653,000
 Earnings per share $ 0.75 $ 0.62
 Weighted average shares outstanding 4,266,240 2,667,019
 -0- 7/29/93
 /CONTACT: Frank J. Bramanti, chief financial officer of HCC Insurance Holdings, Inc., 713-690-7300/
 (HCCH)


CO: HCC Insurance Holdings, Inc. ST: Texas IN: INS SU: ERN

TM -- NY133 -- 7526 07/29/93 19:16 EDT
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Publication:PR Newswire
Date:Jul 29, 1993
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