Exhibit 99.1
HCC Insurance Holdings, Inc. and Subsidiaries
Consolidated Statement of Ratios
(Unaudited, in thousands except ratios)
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| 2014 |
| 2013 |
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| Full Year |
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Loss and loss adjustment expense, net (1) |
| $ | 330,746 |
| $ | 335,897 |
| $ | 320,758 |
| $ | 339,434 |
| $ | 1,326,835 |
| $ | 341,094 |
| $ | 347,353 |
| $ | 328,530 |
| $ | 305,477 |
| $ | 1,322,454 |
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Net earned premium |
| 562,612 |
| 572,248 |
| 586,935 |
| 601,832 |
| 2,323,627 |
| 561,186 |
| 561,356 |
| 556,668 |
| 560,030 |
| 2,239,240 |
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Net loss ratio (2) |
| 58.8 | % | 58.7 | % | 54.6 | % | 56.4 | % | 57.1 | % | 60.8 | % | 61.9 | % | 59.0 | % | 54.5 | % | 59.1 | % | ||||||||||
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Segment underwriting expense |
| $ | 138,586 |
| $ | 143,527 |
| $ | 152,350 |
| $ | 156,057 |
| $ | 590,520 |
| $ | 130,026 |
| $ | 134,586 |
| $ | 137,287 |
| $ | 149,956 |
| $ | 551,855 |
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Segment net earned premium |
| 562,321 |
| 571,919 |
| 587,073 |
| 601,838 |
| 2,323,151 |
| 555,754 |
| 557,022 |
| 555,462 |
| 558,071 |
| 2,226,309 |
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Expense ratio (3) |
| 24.6 | % | 25.1 | % | 26.0 | % | 25.9 | % | 25.4 | % | 23.4 | % | 24.2 | % | 24.7 | % | 26.9 | % | 24.8 | % | ||||||||||
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Combined ratio (4) |
| 83.4 | % | 83.8 | % | 80.6 | % | 82.3 | % | 82.5 | % | 84.2 | % | 86.1 | % | 83.7 | % | 81.4 | % | 83.9 | % |
(1) Includes internal claims department costs.
(2) Net loss ratio = net loss and loss adjustment expense divided by net earned premium.
(3) Expense ratio = segment underwriting expense divided by segment net earned premium.
(4) Combined ratio = net loss ratio plus expense ratio.
HCC Insurance Holdings, Inc. and Subsidiaries
Segment Operations - North America Property & Casualty Segment
(Unaudited, in thousands except ratios)
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| 2014 |
| 2013 |
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| Second |
| Third |
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| Full Year |
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Net earned premium |
| $ | 201,334 |
| $ | 196,521 |
| $ | 195,115 |
| $ | 203,072 |
| $ | 796,042 |
| $ | 205,843 |
| $ | 205,566 |
| $ | 204,109 |
| $ | 201,936 |
| $ | 817,454 |
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Other revenue |
| 5,431 |
| 4,921 |
| 6,016 |
| 5,504 |
| 21,872 |
| 4,859 |
| 5,376 |
| 5,465 |
| 6,694 |
| 22,394 |
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Segment revenue |
| 206,765 |
| 201,442 |
| 201,131 |
| 208,576 |
| 817,914 |
| 210,702 |
| 210,942 |
| 209,574 |
| 208,630 |
| 839,848 |
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Loss and loss adjustment expense, net (1) |
| 103,553 |
| 104,737 |
| 69,969 |
| 90,370 |
| 368,629 |
| 113,958 |
| 113,593 |
| 58,530 |
| 98,365 |
| 384,446 |
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Other expense |
| 57,538 |
| 58,150 |
| 56,282 |
| 61,605 |
| 233,575 |
| 57,083 |
| 58,149 |
| 60,887 |
| 64,734 |
| 240,853 |
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Segment expense |
| 161,091 |
| 162,887 |
| 126,251 |
| 151,975 |
| 602,204 |
| 171,041 |
| 171,742 |
| 119,417 |
| 163,099 |
| 625,299 |
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Segment pretax earnings |
| $ | 45,674 |
| $ | 38,555 |
| $ | 74,880 |
| $ | 56,601 |
| $ | 215,710 |
| $ | 39,661 |
| $ | 39,200 |
| $ | 90,157 |
| $ | 45,531 |
| $ | 214,549 |
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Net loss ratio (2) |
| 51.4 | % | 53.3 | % | 35.9 | % | 44.5 | % | 46.3 | % | 55.4 | % | 55.3 | % | 28.7 | % | 48.7 | % | 47.0 | % | ||||||||||
Expense ratio (3) |
| 28.6 |
| 29.6 |
| 28.8 |
| 30.3 |
| 29.3 |
| 27.7 |
| 28.3 |
| 29.8 |
| 32.1 |
| 29.5 |
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Combined ratio (4) |
| 80.0 | % | 82.9 | % | 64.7 | % | 74.8 | % | 75.6 | % | 83.1 | % | 83.6 | % | 58.5 | % | 80.8 | % | 76.5 | % | ||||||||||
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Liability |
| $ | 96,075 |
| $ | 98,136 |
| $ | 100,817 |
| $ | 103,921 |
| $ | 398,949 |
| $ | 100,655 |
| $ | 101,993 |
| $ | 101,413 |
| $ | 100,173 |
| $ | 404,234 |
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Other Specialty |
| 105,259 |
| 98,385 |
| 94,298 |
| 99,151 |
| 397,093 |
| 105,188 |
| 103,573 |
| 102,696 |
| 101,763 |
| 413,220 |
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Total net earned premium |
| $ | 201,334 |
| $ | 196,521 |
| $ | 195,115 |
| $ | 203,072 |
| $ | 796,042 |
| $ | 205,843 |
| $ | 205,566 |
| $ | 204,109 |
| $ | 201,936 |
| $ | 817,454 |
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Liability |
| 63.7 | % | 63.4 | % | 43.8 | % | 62.0 | % | 58.1 | % | 64.8 | % | 64.9 | % | 39.9 | % | 64.5 | % | 58.5 | % | ||||||||||
Other Specialty |
| 40.2 |
| 43.3 |
| 27.4 |
| 26.2 |
| 34.4 |
| 46.4 |
| 45.8 |
| 17.6 |
| 33.2 |
| 35.8 |
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Total net loss ratio |
| 51.4 | % | 53.3 | % | 35.9 | % | 44.5 | % | 46.3 | % | 55.4 | % | 55.3 | % | 28.7 | % | 48.7 | % | 47.0 | % | ||||||||||
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Liability |
| $ | 121,537 |
| $ | 157,787 |
| $ | 144,115 |
| $ | 161,960 |
| $ | 585,399 |
| $ | 112,332 |
| $ | 150,945 |
| $ | 133,447 |
| $ | 167,715 |
| $ | 564,439 |
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Other Specialty |
| 166,737 |
| 178,738 |
| 162,608 |
| 140,802 |
| 648,885 |
| 175,740 |
| 186,543 |
| 185,506 |
| 134,710 |
| 682,499 |
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Total gross written premium |
| $ | 288,274 |
| $ | 336,525 |
| $ | 306,723 |
| $ | 302,762 |
| $ | 1,234,284 |
| $ | 288,072 |
| $ | 337,488 |
| $ | 318,953 |
| $ | 302,425 |
| $ | 1,246,938 |
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Liability |
| $ | 85,403 |
| $ | 108,283 |
| $ | 106,575 |
| $ | 120,973 |
| $ | 421,234 |
| $ | 78,943 |
| $ | 105,890 |
| $ | 95,296 |
| $ | 118,660 |
| $ | 398,789 |
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Other Specialty |
| 91,729 |
| 101,258 |
| 103,056 |
| 86,069 |
| 382,112 |
| 110,328 |
| 115,432 |
| 112,202 |
| 83,512 |
| 421,474 |
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Total net written premium |
| $ | 177,132 |
| $ | 209,541 |
| $ | 209,631 |
| $ | 207,042 |
| $ | 803,346 |
| $ | 189,271 |
| $ | 221,322 |
| $ | 207,498 |
| $ | 202,172 |
| $ | 820,263 |
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(1) Includes internal claims department costs.
(2) Net loss ratio = net loss and loss adjustment expense divided by net earned premium.
(3) Expense ratio = other expense divided by net earned premium.
(4) Combined ratio = net loss ratio plus expense ratio.
HCC Insurance Holdings, Inc. and Subsidiaries
Segment Operations - Accident & Health Segment
(Unaudited, in thousands except ratios)
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| 2014 |
| 2013 |
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| Full Year |
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| Full Year |
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Net earned premium |
| $ | 232,143 |
| $ | 240,338 |
| $ | 250,570 |
| $ | 258,168 |
| $ | 981,219 |
| $ | 217,125 |
| $ | 217,822 |
| $ | 223,048 |
| $ | 225,520 |
| $ | 883,515 |
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Other revenue |
| 1,640 |
| 3,862 |
| 2,363 |
| 1,798 |
| 9,663 |
| 1,190 |
| 1,140 |
| 1,406 |
| 1,196 |
| 4,932 |
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Segment revenue |
| 233,783 |
| 244,200 |
| 252,933 |
| 259,966 |
| 990,882 |
| 218,315 |
| 218,962 |
| 224,454 |
| 226,716 |
| 888,447 |
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Loss and loss adjustment expense, net (1) |
| 170,805 |
| 174,139 |
| 180,620 |
| 179,983 |
| 705,547 |
| 161,897 |
| 161,673 |
| 164,636 |
| 148,069 |
| 636,275 |
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Other expense |
| 34,573 |
| 36,032 |
| 38,183 |
| 37,422 |
| 146,210 |
| 29,656 |
| 31,049 |
| 32,212 |
| 31,832 |
| 124,749 |
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Segment expense |
| 205,378 |
| 210,171 |
| 218,803 |
| 217,405 |
| 851,757 |
| 191,553 |
| 192,722 |
| 196,848 |
| 179,901 |
| 761,024 |
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Segment pretax earnings |
| $ | 28,405 |
| $ | 34,029 |
| $ | 34,130 |
| $ | 42,561 |
| $ | 139,125 |
| $ | 26,762 |
| $ | 26,240 |
| $ | 27,606 |
| $ | 46,815 |
| $ | 127,423 |
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Net loss ratio (2) |
| 73.6 | % | 72.5 | % | 72.1 | % | 69.7 | % | 71.9 | % | 74.6 | % | 74.2 | % | 73.8 | % | 65.7 | % | 72.0 | % | ||||||||||
Expense ratio (3) |
| 14.9 |
| 15.0 |
| 15.2 |
| 14.5 |
| 14.9 |
| 13.7 |
| 14.3 |
| 14.4 |
| 14.1 |
| 14.1 |
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Combined ratio (4) |
| 88.5 | % | 87.5 | % | 87.3 | % | 84.2 | % | 86.8 | % | 88.3 | % | 88.5 | % | 88.2 | % | 79.8 | % | 86.1 | % | ||||||||||
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Total gross written premium |
| $ | 235,917 |
| $ | 250,559 |
| $ | 259,870 |
| $ | 252,041 |
| $ | 998,387 |
| $ | 215,561 |
| $ | 214,909 |
| $ | 222,312 |
| $ | 230,273 |
| $ | 883,055 |
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Total net written premium |
| $ | 234,751 |
| $ | 249,010 |
| $ | 257,991 |
| $ | 250,282 |
| $ | 992,034 |
| $ | 215,268 |
| $ | 214,600 |
| $ | 221,992 |
| $ | 229,508 |
| $ | 881,368 |
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(1) Includes internal claims department costs.
(2) Net loss ratio = net loss and loss adjustment expense divided by net earned premium.
(3) Expense ratio = other expense divided by net earned premium.
(4) Combined ratio = net loss ratio plus expense ratio.
HCC Insurance Holdings, Inc. and Subsidiaries
Segment Operations - International Segment
(Unaudited, in thousands except ratios)
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| 2014 |
| 2013 |
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| Full Year |
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Net earned premium |
| $ | 128,844 |
| $ | 135,060 |
| $ | 141,388 |
| $ | 140,598 |
| $ | 545,890 |
| $ | 132,786 |
| $ | 133,634 |
| $ | 128,305 |
| $ | 130,615 |
| $ | 525,340 |
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Other revenue |
| 976 |
| 855 |
| 855 |
| 976 |
| 3,662 |
| 600 |
| 1,117 |
| 577 |
| 985 |
| 3,279 |
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Segment revenue |
| 129,820 |
| 135,915 |
| 142,243 |
| 141,574 |
| 549,552 |
| 133,386 |
| 134,751 |
| 128,882 |
| 131,600 |
| 528,619 |
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Loss and loss adjustment expense, net (1) |
| 56,314 |
| 56,518 |
| 72,369 |
| 68,926 |
| 254,127 |
| 60,269 |
| 68,151 |
| 103,849 |
| 52,110 |
| 284,379 |
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Other expense |
| 46,475 |
| 49,345 |
| 57,885 |
| 57,030 |
| 210,735 |
| 43,287 |
| 45,388 |
| 44,188 |
| 53,390 |
| 186,253 |
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Segment expense |
| 102,789 |
| 105,863 |
| 130,254 |
| 125,956 |
| 464,862 |
| 103,556 |
| 113,539 |
| 148,037 |
| 105,500 |
| 470,632 |
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Segment pretax earnings (loss) |
| $ | 27,031 |
| $ | 30,052 |
| $ | 11,989 |
| $ | 15,618 |
| $ | 84,690 |
| $ | 29,830 |
| $ | 21,212 |
| $ | (19,155 | ) | $ | 26,100 |
| $ | 57,987 |
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Net loss ratio (2) |
| 43.7 | % | 41.8 | % | 51.2 | % | 49.0 | % | 46.6 | % | 45.4 | % | 51.0 | % | 80.9 | % | 39.9 | % | 54.1 | % | ||||||||||
Expense ratio (3) |
| 36.1 |
| 36.5 |
| 40.9 |
| 40.6 |
| 38.6 |
| 32.6 |
| 34.0 |
| 34.4 |
| 40.9 |
| 35.5 |
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Combined ratio (4) |
| 79.8 | % | 78.3 | % | 92.1 | % | 89.6 | % | 85.2 | % | 78.0 | % | 85.0 | % | 115.3 | % | 80.8 | % | 89.6 | % | ||||||||||
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London Market |
| $ | 61,661 |
| $ | 63,295 |
| $ | 70,760 |
| $ | 61,967 |
| $ | 257,683 |
| $ | 69,754 |
| $ | 69,009 |
| $ | 63,641 |
| $ | 63,178 |
| $ | 265,582 |
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Specialty |
| 67,183 |
| 71,765 |
| 70,628 |
| 78,631 |
| 288,207 |
| 63,032 |
| 64,625 |
| 64,664 |
| 67,437 |
| 259,758 |
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Total net earned premium |
| $ | 128,844 |
| $ | 135,060 |
| $ | 141,388 |
| $ | 140,598 |
| $ | 545,890 |
| $ | 132,786 |
| $ | 133,634 |
| $ | 128,305 |
| $ | 130,615 |
| $ | 525,340 |
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London Market |
| 36.5 | % | 35.5 | % | 14.4 | % | 53.7 | % | 34.3 | % | 37.3 | % | 56.0 | % | 32.8 | % | 36.4 | % | 40.9 | % | ||||||||||
Specialty |
| 50.3 |
| 47.4 |
| 88.0 |
| 45.4 |
| 57.5 |
| 54.3 |
| 45.6 |
| 128.3 |
| 43.2 |
| 67.7 |
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Total net loss ratio |
| 43.7 | % | 41.8 | % | 51.2 | % | 49.0 | % | 46.6 | % | 45.4 | % | 51.0 | % | 80.9 | % | 39.9 | % | 54.1 | % | ||||||||||
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London Market |
| $ | 131,979 |
| $ | 139,133 |
| $ | 69,058 |
| $ | 33,466 |
| $ | 373,636 |
| $ | 128,508 |
| $ | 158,279 |
| $ | 54,359 |
| $ | 34,388 |
| $ | 375,534 |
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Specialty |
| 90,261 |
| 106,183 |
| 95,403 |
| 103,090 |
| 394,937 |
| 82,632 |
| 94,433 |
| 82,098 |
| 102,643 |
| 361,806 |
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Total gross written premium |
| $ | 222,240 |
| $ | 245,316 |
| $ | 164,461 |
| $ | 136,556 |
| $ | 768,573 |
| $ | 211,140 |
| $ | 252,712 |
| $ | 136,457 |
| $ | 137,031 |
| $ | 737,340 |
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London Market |
| $ | 107,259 |
| $ | 102,897 |
| $ | 46,985 |
| $ | 11,057 |
| $ | 268,198 |
| $ | 106,253 |
| $ | 113,706 |
| $ | 28,524 |
| $ | 13,601 |
| $ | 262,084 |
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Specialty |
| 70,749 |
| 85,237 |
| 70,725 |
| 82,480 |
| 309,191 |
| 62,960 |
| 75,072 |
| 62,514 |
| 78,131 |
| 278,677 |
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Total net written premium |
| $ | 178,008 |
| $ | 188,134 |
| $ | 117,710 |
| $ | 93,537 |
| $ | 577,389 |
| $ | 169,213 |
| $ | 188,778 |
| $ | 91,038 |
| $ | 91,732 |
| $ | 540,761 |
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(1) Includes internal claims department costs.
(2) Net loss ratio = net loss and loss adjustment expense divided by net earned premium.
(3) Expense ratio = other expense divided by net earned premium.
(4) Combined ratio = net loss ratio plus expense ratio.