| Type | Public (NYSE: HCC) |
|---|---|
| Industry | Insurance |
| Founder(s) | Stephen L. Way |
| Headquarters | Houston, Texas, U.S.A. |
| Key people | John N. Molbeck, Jr., Chief Executive Officer Christopher J.B. Williams, President Brad Irick, Chief Financial Officer |
| Products | Specialty insurance products including Medical Stop Loss, Directors and Officers and other types of professional Liability, Aviation, Surety, Public Risk, and Event Cancellation |
| Revenue | $2.3 billion |
| Net income | $345 million |
| Employees | 1,900 |
| Website | http://www.hcc.com/ |
HCC Insurance Holdings, Inc. NYSE: HCC) 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, U.S.A. but has major offices in Atlanta, Barcelona, Boston, Chicago, Dallas, Detroit, Farmington (CT), Frederick (MD), Ireland, Leicester (UK), London, Los Angeles, Madrid, Mount Kisco (NY), and New York City.
HCC underwrites more than 100 classes of Specialty Insurance within five segments:
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. The company's philosophy is long term growth of shareholder's equity through capital preservation, diversification of operations, disciplined underwriting and conservative investments. The philosophy has proven effective and, accordingly, the company has paid shareholder dividends for over 60 consecutive quarters.
In 2010, it posted $2.6 billion on Gross premiums written, $2.3 in total revenue, earnings of $345 million, and Combined Ratio of less than 85%. Assets exceed $9.1 billion. HCC Insurance was ranked 827 in the 2009 edition of the Fortune 1000. The company has strong financial ratings including an A. M. Best rating of A+ (superior), Standard & Poor's rating of AA (very strong), Fitch Group rating of AA (very strong), and Moody's rating of A1 (good security).
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Aviation was the first line of insurance provided by HCC. Since 1974 the company is one of the top five underwriters in the U.S. in general aviation, a category which includes many types of aircraft from helicopters to homemade private plans, corporate jets, and antique "warbirds". The company's insurance for aviation includes hull, liability, spares, cargo, and war, as well as many unique coverages. Altogether, HCC Aviation insures approximately 45,000 aircraft in the United States and more than 60 countries worldwide. Almost all the company's aviation insurance is written on three of the corporation's insurance companies: Houston Casualty Company, US Specialty Insurance Company, and Avemco Insurance Company.
Avemco Insurance Company has been serving the needs of U.S. general aviation since the 1950's. Avemco was a stand-alone NYSE company and acquired by HCC in 1997. Avemco sells direct to the consumer through its national call center in Frederick, Maryland, and online through its website (http://www.avemco.com). Avemco provides traditional coverage on its standard policy. It also provides unique, non-owned aircraft policy coverage which protects renters and borrowers of general aviation aircraft. Both the aircraft and non-owner policies can be extensively modified by endorsement to meet the needs of the customer. An integral part of the aircraft community, Avemco invests considerable resources in loss prevention efforts and insurance education through air shows, Federal Aviation Administration and industry initiatives, articles in aviation trade journals, and other forums. Avemco is a leading contributor to Build-A-Plane, a charitable organization that helps young people enter general aviation employment.
Houston Casualty Company Aviation writes a combination of international and U.S. commercial aviation insurance with a primary focus on the needs of large commercial businesses and internationally based risks. All of HC Aviation's insurance involves commercial fixed and rotor wing business. It is a recognized market leader in many types of insurance with particular emphasis on second and third tier airlines, helicopters, government, military, and police operations. It continues to be a market leader in providing insurance to many South and Central American militaries (air forces), government, and police operations. Because these types of risks are non-commercial and the some of the types of aircraft are military, they require special understanding and expertise from both an underwriting and claims perspective. Due to the unique nature of the business, no single policy is the same as each risk is written and the policy developed on a customized basis.
USSIC Aviation writes General Aviation and Special Risk insurance. The General Aviation insurance provides insurance through brokers and agents and represents a portfolio of commercial operations insurance including charter, cargo, aerial photography and many other "for hire purposes" aviation insurance. It provides coverage for aircraft flow by professional pilots as well as private business and pleasure aircraft owned and operated by individuals. It offers coverage for rotor wing aircraft flown both by private and commercial purposes. In addition to hull and liability, General Aviation issues policies for airports which includes coverages for premises, non-critical products, completed operations and hangarkeeper's legal liability. The Special Risks insurance offers coverage for aircraft that do not fit the typical definition of general aviation. These aircraft include antiques, classics, seaplanes, experimental aircraft, and warbirds. Pilots who wish to transition to more complex aircraft can obtain insurance through Special Risks. USSIC Aviation is a market leader for air show liability, insuring a majority of the nation's air shows each year. USSIC Aviation is the largest insurer of warbirds (that is, propeller and jet driven military surplus aircraft owned individually or held by aircraft museums). These aircraft are unique - often one of a kind - and obtaining the right insurance can be challending. USSIC Aviation partners with aircraft owners and pilots to provide the coverage they need and to ensure the aircraft are operated and maintained in a safe manner.
The company is one of the world's leading underwriters of Directors and Officers liability insurance through its HCC Global subsidiary. A large number of public and private companies, financial institutions, and commercial companies rely on D&O insurance. The company offers both domestic US and international coverages. The company distinguishes itself in the D&O business through experienced and specialized staffs in both underwriting and claims. The company excels at developing appropriate policy terms and conditions for difficult to place risks. Flexibility and creativity provide valued protection for directors and officers. Close interaction and office proximity of underwriters and claims professionals produce underwriting flexibility and effective claim handling. Uncommon in the insurance industry, this close interaction and communication between underwriting and claims supports better decision making across the organization. Paving the way for success internationally, the company has relationships with 550 brokers in over 50 countries. Company employees represent more than 20 nationalities bringing multilingual skills and experience.
With the acquisition of LDG Management Company Incorporated in 1996, HCC began writing medical stop-loss insurance and made a pivotal entry into the Life, Accident and Health industry. Through subsequent acquisitions and by maintaining a strong underwriting focus, HCC has become a market leader in medical stop-loss insurance, as well as a solid player in the HMO reinsurance, provider excess, medical excess, sports disability, short term medical and international medical insurance markets. Its staff of underwriters, claim specialists, actuaries, and medical professionals collaborating together makes it possible for HCC to consider unusual risks and offer underwriting flexibility on a case-by-case basis.
Medical stop-loss insurance is a major component of the business segment. Medical stop-loss insurance providers employers that self-fund their employee health benefits protection against catastrophic loss. More than 3,500 employer groups and five million lives across the United States trust HCC to protect their plan from unexpected catastrophic claims that can occur during a plan year. Aggregate and specific coverages are available to a diverse group of employers and providers, from those with as few as 50 covered lives to organizations employing thousands.
Short term medical insurance offers a solution for individuals transitioning between jobs, college students or recent graduates, children who are no longer eligible on their parents' plans due to age or status, those seeking an affordable alternative to COBRA, new employees waiting for group coverage to begin, and indidivuals not yet eligible for Medicare coverage.
HCC also offers high-limit sports disability insurance to protect against the future loss of earnings of athletes who may become temporarily or permanently disabled and can no longer continue their professional sports career. Coverage is available for the team or individual players.
Houston Casualty Company was authorized by Her Majesty's Treasury in 1998 to operate a full branch office in the United Kingdom, and the company opened its London branch to more closely align its underwriting operations with the London Market. HCC now has offices across the United Kingdom, Ireland, and Spain that provide a broad range of specialty insurance coverage including Energy, Marine, Commercial Property, Credit, Professional Indemnity, Surety Bonds, Political Risks, Accident and Health, General Liability, and Property Treaty. HCC is an owner of a Lloyd's managing agency and 100% capital provider of a Lloyd's syndicate.
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 2011, the company opened Primary Casualty and Excess Casualty divisions.
- In 2010, the company started a Technical Property division.
- 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. The company started a Property Treaty underwriting team.
- 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 2002, the company acquired Dickson Manchester and MAG Global Financial Products
- In 1999, it acquired Centris Group Inc., another insurance company. The same year it acquired Midwest Stop Loss Underwriters.
- In 1998, HCC acquired Guarantee Insurance Resources.
- In 1997, the company acquired Managed Group Underwriting.
- In 1996, LDG Management Company was acquired.