HCC Q3 earnings drop 40%
HCC Insurance Holdings Inc. has reported its third quarter results, with net earnings down 40% on year to $59.1 million, compared to net earnings of $97.9 million in the same period during 2007.
Net earnings per share for the quarter were $0.51, compared to $0.84 in the year ago period.
Total revenues fell 3% to $566.32 million, down from $582.49 million in the third quarter of 2007.
The fall in earnings and revenues came despite a 2.5% increase in net premiums earned to $505 million.
Catastrophe payouts and investment losses were the two drivers behind the company’s fall in profit.
Hurricanes Gustav and Ike hit HCC with claims totalling $24.5 million, primarily paid out to offshore energy sites.
Realised investment losses for the quarter were $17.2 million, whilst losses from alternative investments totalled $14.3 million.
Chief executive Frank Bramanti warned that gross losses for the two hurricanes may increase, but reassured investors that net loss is not expected to increase.
The company has now revised its 2008 earnings estimate, reducing the projection for earnings per share to $2.60-$2.90, compared to the original estimate of $3.03.
Shares in HCC climbed 3% on the New York stock exchange following the announcement.
Category: Financials, Insurance News
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