HCC Insurance Holdings

HCC Insurance Holdings Inc.
Public
Traded as NYSE: HCC
Industry Insurance
Founder Stephen L. Way
Headquarters Houston, Texas, U.S.A.
Key people
 Christopher J.B. Williams, Chief Executive Officer
William Burke, 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 Increase$2.3 billion
Increase$345 million
Number of employees
 1,900
Website http://www.hcc.com/

HCC Insurance Holdings, Inc. is an 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.[1]

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 reports to have paid shareholder dividends for 67 consecutive quarters.[2]

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).

Aviation

Aviation was the first line of insurance provided by HCC. Since 1974 the company underwrites 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.[3]

Avemco

Avemco Insurance Company has been serving the needs of U.S. general aviation since the 1950s. 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. 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.[4]

Houston Casualty Aviation

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 sells many types of insurance with particular emphasis on second and third tier airlines, helicopters, government, military, and police operations. It provides 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.[5]

US Specialty Insurance Aviation

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 commercial aircraft as well as private aircraft owned and operated by individuals. It offers coverage for rotor wing aircraft flown both for 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 challenging. 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.[6]

Professional Liability

The company underwrites 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 reports to have relationships with 550 brokers in over 50 countries. Company employees represent more than 20 nationalities bringing multilingual skills and experience.[7]

Accident and Health

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.

Medical stop-loss insurance is the 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.

[8]

International Operations

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. [9]

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 2012, the company's Specialty division launched a musical instrument insurance program.

- 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.[10] 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.

External links

References

  1. ↑ "Company Website". Retrieved February 18, 2013.
  2. ↑ Globe Newswire - HCC Press Release from November 26, 2012
  3. ↑ HCC Insurance Holdings, Inc 2007 Annual Report page 6
  4. ↑ HCC Insurance Holdings, Inc 2007 Annual Report page 7
  5. ↑ HCC Insurance Holdings, Inc 2007 Annual Report page 8
  6. ↑ HCC Insurance Holdings, Inc 2007 Annual Report page 10
  7. ↑ HCC Insurance Holdings, Inc 2010 Annual Report pages 11 - 14
  8. ↑ HCC Insurance Holdings, Inc 2008 Annual Report pages 7 - 10
  9. ↑ HCC Insurance Holdings, Inc 2009 Annual Report pages 6 - 12
  10. ↑ "HCC INSURANCE HOLDINGS TO ACQUIRE CENTRIS GROUP". October 13, 1999. Retrieved February 18, 2014.