EX-99.1 2 h79927exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
(HCC LOGO)
HCC INSURANCE HOLDINGS POSTS ANOTHER STRONG PERFORMANCE
HOUSTON (February 22, 2011)
HCC Insurance Holdings, Inc. (NYSE: HCC) today released earnings for the fourth quarter and full year 2010.
Net earnings for the fourth quarter of 2010 were $97.3 million, compared to $84.8 million for the fourth quarter of 2009. Net earnings per diluted share were $0.84 for the fourth quarter of 2010, versus $0.74 for the same quarter of 2009. Net earnings for the full year of 2010 were $345.1 million, compared to $353.9 million for the 2009 full year. Net earnings per diluted share were $2.99 for 2010, versus $3.11 for 2009.
“Our return on average equity was 10.9% for the year. We are very pleased with this performance in an environment which remains challenging,” HCC President and Chief Executive Officer John N. Molbeck, Jr. said.
Book value per share increased 8% during the year from $26.58 to $28.67. The 2010 book value reflects dividends of $0.56 per share. This was the 14th consecutive year in which HCC raised its dividend. Book value per share grew at a compounded rate of 13% over the last five years. The Company repurchased 1.3 million shares of its common stock during 2010, for a total cost of $35.1 million and a weighted-average cost of $26.99 per share. Currently, $265.3 million remains under its $300 million share buyback authorization.
The Company’s GAAP combined ratio for the fourth quarter of 2010 was 82.3%, compared to 85.2% for the fourth quarter of 2009. The GAAP combined ratio for the full year of 2010 was 84.6%, versus 84.0% for 2009. HCC’s paid loss ratio for the year was 59.7%, compared to a paid loss ratio of 55.8% in 2009.
The accident year combined ratio was 87.0% for the fourth quarter of 2010 and 85.6% for the full year of 2010, compared to 88.5% and 86.6% for the same periods in 2009, respectively.
“Once again our combined ratio remained excellent for the year and our accident year combined ratio of 85.6% is a reflection of our strong underwriting culture, well managed

 

 

expense ratio and the continued value of our non-correlated portfolio of businesses,” Mr. Molbeck said.
Gross written premium of HCC’s insurance company subsidiaries decreased 5% to $624.2 million for the fourth quarter of 2010, compared to $655.7 million for the same quarter of 2009. Net written premium decreased 6% to $486.7 million during the 2010 fourth quarter, compared to net written premium of $518.4 million for the 2009 fourth quarter. Net earned premium for the fourth quarter of 2010 decreased 1% to $509.8 million, versus net earned premium of $512.8 million for the same quarter of 2009. Gross written premium was essentially flat at $2.6 billion for the full year of 2010, as were net written premium and net earned premium of $2.0 billion.
During the fourth quarter of 2010, HCC had net favorable prior year reserve development of $23.9 million, compared to net favorable prior year reserve development of $16.9 million for the same period of 2009. For the full year of 2010, the Company recorded $22.7 million of net favorable prior year reserve development, compared to $53.5 million of net favorable prior year reserve development for the full year of 2009.
Investment income increased to $53.2 million during the fourth quarter of 2010, compared to $50.2 million during the fourth quarter of 2009. On a year-to-date basis, investment income grew to $203.8 million in 2010 from $192.0 million in 2009. This resulted from growth in the Company’s fixed income securities investment portfolio, partially offset by lower interest rates. The portfolio increased 12% from $4.6 billion at December 31, 2009 to $5.2 billion at December 31, 2010.
As of December 31, 2010, HCC’s fixed income securities portfolio had a weighted-average rating of AA+, a weighted-average duration of 5.5 years and an average long-term tax equivalent yield of 5.0%. As of December 31, 2010, HCC’s total investments had a weighted-average duration of 5.1 years.
Other operating income was $9.8 million for the 2010 fourth quarter, compared to $12.9 million for the same period in 2009. Other operating income was $44.8 million for the full year of 2010, compared to $82.7 million for the 2009 full year.
The Company’s liquidity position remains strong with $585.9 million of cash and short-term investments and $556.8 million of available capacity under its $575.0 million revolving loan facility at December 31, 2010. The Company generated $100.6 million and $415.2 million of cash flow from operating activities in the fourth quarter and full year 2010, respectively, compared to $165.3 million and $582.8 million for the same periods in 2009.
As of December 31, 2010, total investments were $5.7 billion, total assets were $9.1 billion, shareholders’ equity was $3.3 billion and the Company’s debt to total capital ratio was 8.3%.

2

 

EARNINGS GUIDANCE: HCC’s management estimates the Company will achieve net earnings of $2.75 to $3.05 per diluted share for 2011. These estimated results assume the following: gross written premium of $2.7 billion; net written premium of $2.2 billion; total revenue of $2.4 billion; a combined ratio of 85%-87%; and average fully diluted shares outstanding of 112 million shares. These assumptions do not include any provision for catastrophe losses that exceed the Company’s attritional loss assumptions on property treaty business, reserve development or capital gains or losses.
For further information about HCC’s 2010 fourth quarter and full-year earnings results, see the supplemental financial schedules that are accessible on HCC’s website at http://www.hcc.com, as well as directly in the Investor Relations section of HCC’s website at http://ir.hcc.com.
(Note: If clicking on the above links does not open in a new web page, please cut and paste the above URLs into your browser’s address bar.)
HCC will hold an open conference call beginning at 8:00 a.m. Central Standard Time on Wednesday, February 23. To participate, the number for domestic calls is (800) 374-0290 and the number for international calls is (706) 634-0161. There will also be a live webcast available on a listen-only basis that can be accessed through the HCC website at http://www.hcc.com. The webcast replay will be archived in the Investor Relations section of the HCC website through Friday, May 6, 2011.
Headquartered in Houston, Texas, HCC Insurance Holdings, Inc. is a leading international specialty insurance group with offices across the United States and in the United Kingdom, Spain and Ireland. As of December 31, 2010, HCC had assets of $9.1 billion and shareholders’ equity of $3.3 billion. HCC’s major domestic and international insurance companies have financial strength ratings of “AA (Very Strong)” from Standard & Poor’s Corporation, “A+ (Superior)” from A.M. Best Company Inc., “AA (Very Strong)” from Fitch Ratings, and “A1 (Good Security)” by Moody’s Investors Service, Inc.
For more information about HCC, please visit http://www.hcc.com.
     
Contact:
  Doug Busker, Director of Investor Relations
 
  HCC Insurance Holdings, Inc.
 
  Telephone: (713) 996-1192
Forward-looking statements contained in this press release are made under “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. The types of risks and uncertainties which may affect the Company are set forth in its periodic reports filed with the Securities and Exchange Commission.
*     *     *     *     *

3

 

HCC Insurance Holdings, Inc. and Subsidiaries
Financial Highlights
(Unaudited, in thousands except per share data)
                                 
    Twelve months ended   Three months ended
    December 31,   December 31,
    2010   2009   2010   2009
Gross written premium
   $ 2,578,908     $ 2,559,791     $ 624,178     $ 655,705  
Net written premium
     2,026,197       2,046,289       486,706       518,400  
Net earned premium
     2,041,924       2,037,235       509,786       512,810  
Net investment income
     203,819       191,965       53,216       50,225  
Other operating income (a)
     44,832       82,669       9,797       12,904  
Total revenue (a)
     2,302,254       2,318,516       576,881       583,013  
Net earnings
     345,096       353,868       97,299       84,792  
Earnings per share (diluted)
   $ 2.99     $ 3.11     $ 0.84     $ 0.74  
Weighted-average shares outstanding (millions)
     114.1       113.1       114.1       113.4  
GAAP net loss ratio
     59.4 %     59.7 %     57.0 %     59.2 %
GAAP combined ratio (a)
     84.6 %     84.0 %     82.3 %     85.2 %
Paid loss ratio
     59.7 %     55.8 %     67.7 %     58.4 %
                 
    December 31,   December 31,
    2010   2009
Total investments
   $ 5,687,095     $ 5,456,229  
Total assets
     9,064,082       8,834,391  
Shareholders’ equity
     3,296,432       3,031,183  
Debt to total capital ratio
     8.3 %     9.0 %
Book value per share
   $ 28.67     $ 26.58  
 
(a)   2009 amounts changed to be consistent with 2010 presentation.

S - 1

 

HCC Insurance Holdings, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited, in thousands)
                 
    December 31,     December 31,  
    2010     2009  
ASSETS
                
Investments:
                
Fixed income securities — available for sale, at fair value
   $ 4,999,440     $ 4,538,073  
Fixed income securities — held to maturity, at amortized cost
     193,668       102,792  
Short-term investments
     488,002       810,673  
Other investments
     5,985       4,691  
 
            
Total investments
     5,687,095       5,456,229  
 
            
Cash
     97,857       129,460  
Restricted cash and cash investments
     148,547       146,133  
Premium, claims and other receivables
     635,867       600,332  
Reinsurance recoverables
     1,006,855       1,016,411  
Ceded unearned premium
     278,663       270,436  
Ceded life and annuity benefits
     58,409       61,313  
Deferred policy acquisition costs
     212,786       208,463  
Goodwill
     821,648       822,006  
Other assets
     116,355       123,608  
 
            
 
                
Total assets
   $ 9,064,082     $ 8,834,391  
 
            
 
                
LIABILITIES
                
 
                
Loss and loss adjustment expense payable
   $ 3,471,858     $ 3,492,309  
Life and annuity policy benefits
     58,409       61,313  
Reinsurance balances payable
     201,235       182,661  
Unearned premium
     1,045,877       1,044,747  
Deferred ceding commissions
     72,565       71,595  
Premium and claims payable
     144,495       154,596  
Notes payable
     298,637       298,483  
Accounts payable and accrued liabilities
     474,574       497,504  
 
            
 
                
Total liabilities
     5,767,650       5,803,208  
 
            
 
                
SHAREHOLDERS’ EQUITY
                
 
                
Common stock
     120,942       118,724  
Additional paid-in capital
     954,332       914,339  
Retained earnings
     2,257,895       1,977,254  
Accumulated other comprehensive income
     97,186       119,665  
Treasury stock
     (133,923 )     (98,799 )
 
            
 
                
Total shareholders’ equity
     3,296,432       3,031,183  
 
            
 
                
Total liabilities and shareholders’ equity
   $ 9,064,082     $ 8,834,391  
 
            

S - 2

 

HCC Insurance Holdings, Inc. and Subsidiaries
Consolidated Statements of Earnings
(Unaudited, in thousands except per share data)
                                 
    Twelve months ended     Three months ended  
    December 31,     December 31,  
    2010     2009     2010     2009  
REVENUE
                                
 
                                
Net earned premium
   $ 2,041,924     $ 2,037,235     $ 509,786     $ 512,810  
Net investment income
     203,819       191,965       53,216       50,225  
Other operating income (a)
     44,832       82,669       9,797       12,904  
Net realized investment gain
     12,104       12,076       4,207       7,224  
Other-than-temporary impairment loss
                                
Total loss
     (378 )     (6,443 )     (62 )     (354 )
Portion recognized in equity, before tax
     (47 )     1,014       (63 )     204  
 
                        
Net loss recognized in earnings
     (425 )     (5,429 )     (125 )     (150 )
 
                        
 
                                
Total revenue (a)
     2,302,254       2,318,516       576,881       583,013  
 
                        
 
                                
EXPENSE
                                
 
                                
Loss and loss adjustment expense, net
     1,213,029       1,215,759       290,384       303,815  
Policy acquisition costs, net (a)
     322,046       308,554       79,968       85,368  
Other operating expense
     256,004       259,488       66,051       63,979  
Interest expense
     21,348       16,164       5,441       4,348  
 
                        
 
                                
Total expense
     1,812,427       1,799,965       441,844       457,510  
 
                        
 
                                
Earnings before income tax expense
     489,827       518,551       135,037       125,503  
Income tax expense
     144,731       164,683       37,738       40,711  
 
                        
 
                                
Net earnings
   $ 345,096     $ 353,868     $ 97,299     $ 84,792  
 
                        
 
                                
Basic earnings per share data:
                                
Net earnings per share
   $ 3.00     $ 3.14     $ 0.84     $ 0.75  
 
                        
 
                                
Weighted-average shares outstanding (millions)
     113.9       112.2       113.8       112.3  
 
                        
 
                                
Diluted earnings per share data:
                                
Net earnings per share
   $ 2.99     $ 3.11     $ 0.84     $ 0.74  
 
                        
 
                                
Weighted-average shares outstanding (millions)
     114.1       113.1       114.1       113.4  
 
                        
 
                                
Cash dividends declared, per share
   $ 0.560     $ 0.520     $ 0.145     $ 0.135  
 
                        
 
                                
 
(a)   2009 amounts changed to be consistent with 2010 presentation.

S - 3

 

HCC Insurance Holdings, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited, in thousands)
                 
    Twelve months ended  
    December 31,  
    2010     2009  
Operating activities
                
Net earnings
   $ 345,096     $ 353,868  
Adjustments to reconcile net earnings to net cash provided by operating activities:
                
Change in premium, claims and other receivables
     (38,507 )     23,432  
Change in reinsurance recoverables
     (2,077 )     42,521  
Change in ceded unearned premium
     (10,713 )     (34,107 )
Change in loss and loss adjustment expense payable
     6,702       22,439  
Change in reinsurance balances payable
     20,609       60,057  
Change in unearned premium
     7,106       48,366  
Change in premium and claims payable, excluding restricted cash
     1,243       (98,675 )
Change in accounts payable and accrued liabilities
     31,032       96,040  
Stock-based compensation expense
     13,018       15,628  
Depreciation and amortization expense
     17,380       16,221  
Gain on investments
     (12,168 )     (3,518 )
Other, net
     36,479       40,525  
 
            
Cash provided by operating activities
     415,200       582,797  
 
            
 
                
Investing activities
                
Sales of available for sale fixed income securities
     239,414       551,760  
Maturity or call of available for sale fixed income securities
     620,884       347,794  
Maturity or call of held to maturity fixed income securities
     25,240       86,364  
Cost of available for sale fixed income securities acquired
     (1,347,285 )     (1,159,796 )
Cost of held to maturity fixed income securities acquired
     (120,643 )     (59,754 )
Cost of other investments acquired
     (4,977 )     —  
Change in short-term investments
     311,983       (297,016 )
Proceeds from sales of strategic and other investments
     4,638       114,940  
Payments for purchase of businesses, net of cash received
     (36,348 )     (38,018 )
Proceeds from sale of subsidiaries
     17,068       50,557  
Other, net
     (9,627 )     (16,581 )
 
            
Cash used by investing activities
     (299,653 )     (419,750 )
 
            
 
                
Financing activities
                
Issuance of notes payable
     —       296,096  
Advances on line of credit
     50,000       130,000  
Payments on line of credit
     (50,000 )     (350,032 )
Payments on convertible notes
     (64,472 )     (60,210 )
Sale of common stock
     29,193       19,198  
Purchase of common stock
     (35,124 )     (35,464 )
Dividends paid
     (63,245 )     (57,437 )
Other, net
     (13,502 )     (3,085 )
 
            
Cash used by financing activities
     (147,150 )     (60,934 )
 
            
 
                
Net increase (decrease) in cash
     (31,603 )     102,113  
Cash at beginning of year
     129,460       27,347  
 
            
 
                
Cash at end of year
   $ 97,857     $ 129,460  
 
            

S - 4

 

HCC Insurance Holdings, Inc. and Subsidiaries
Gross Written Premium
(Unaudited, in thousands)
                                                 
    Twelve months ended December 31,     Three months ended December 31,  
    2010     2009     Change     2010     2009     Change  
U.S. Property & Casualty
                                                
Aviation
   $ 162,539     $ 176,073       (8) %   $ 40,939     $ 42,160       (3) %
E&O
     81,567       109,163       (25 )     18,251       25,045       (27 )
Public Risk
     64,802       66,176       (2 )     14,405       14,105       2  
Other
     229,567       251,996       (9 )     49,741       46,753       6  
 
                                    
 
     538,475       603,408       (11 )     123,336       128,063       (4 )
 
                                    
 
                                                
Professional Liability
                                                
U.S. D&O
     388,369       426,027       (9 )     121,067       136,801       (12 )
International D&O
     97,960       97,977       —       28,034       30,365       (8 )
Other
     109,962       115,465       (5 )     32,754       36,482       (10 )
 
                                    
 
     596,291       639,469       (7 )     181,855       203,648       (11 )
 
                                    
 
                                                
Accident & Health
                                                
Medical Stop-loss
     654,335       633,573       3       166,079       160,300       4  
Other
     107,394       111,462       (4 )     27,865       33,810       (18 )
 
                                    
 
     761,729       745,035       2       193,944       194,110       —  
 
                                    
 
                                                
U.S. Surety & Credit
                                                
Surety
     171,595       159,287       8       39,458       44,619       (12 )
Credit
     55,271       44,235       25       14,266       10,459       36  
 
                                    
 
     226,866       203,522       11       53,724       55,078       (2 )
 
                                    
 
                                                
International
                                                
Energy
     106,902       98,935       8       9,849       6,658       48  
Property Treaty
     74,514       284     nm       3,110       284     nm  
Liability
     86,681       87,142       (1 )     18,180       20,676       (12 )
Surety & Credit
     75,106       75,775       (1 )     18,087       20,626       (12 )
Other
     110,275       75,426       46       22,277       19,394       15  
 
                                    
 
     453,478       337,562       34       71,503       67,638       6  
 
                                    
 
                                                
Exited Lines
     2,069       30,795     nm       (184 )     7,168     nm  
 
                                                
 
                                    
Totals
   $ 2,578,908     $ 2,559,791       1 %   $ 624,178     $ 655,705       (5) %
 
                                    
 
nm — Not meaningful comparison

S - 5

 

HCC Insurance Holdings, Inc. and Subsidiaries
Net Written Premium
(Unaudited, in thousands)
                                                 
    Twelve months ended December 31,     Three months ended December 31,  
    2010     2009     Change     2010     2009     Change  
U.S. Property & Casualty
                                                
Aviation
   $ 110,539     $ 124,336       (11) %   $ 26,442     $ 28,681       (8) %
E&O
     81,443       109,026       (25 )     18,187       24,971       (27 )
Public Risk
     46,844       48,524       (3 )     10,209       8,877       15  
Other
     89,995       100,921       (11 )     26,266       20,343       29  
 
                                    
 
     328,821       382,807       (14 )     81,104       82,872       (2 )
 
                                    
 
                                                
Professional Liability
                                                
U.S. D&O
     288,306       316,468       (9 )     90,263       97,091       (7 )
International D&O
     39,307       53,952       (27 )     11,233       16,765       (33 )
Other
     73,949       76,660       (4 )     22,110       23,261       (5 )
 
                                    
 
     401,562       447,080       (10 )     123,606       137,117       (10 )
 
                                    
 
                                                
Accident & Health
                                                
Medical Stop-loss
     654,335       633,571       3       166,079       160,300       4  
Other
     107,038       110,983       (4 )     27,774       33,691       (18 )
 
                                    
 
     761,373       744,554       2       193,853       193,991       —  
 
                                    
 
                                                
U.S. Surety & Credit
                                                
Surety
     164,764       153,479       7       37,416       42,977       (13 )
Credit
     44,609       35,729       25       12,331       6,516       89  
 
                                    
 
     209,373       189,208       11       49,747       49,493       1  
 
                                    
 
                                                
International
                                                
Energy
     53,063       49,435       7       1,347       (833 )     nm  
Property Treaty
     59,878       284     nm       (2,116 )     284     nm  
Liability
     79,959       78,472       2       16,549       18,831       (12 )
Surety & Credit
     64,847       68,887       (6 )     13,569       18,934       (28 )
Other
     66,597       55,982       19       9,232       10,794       (14 )
 
                                    
 
     324,344       253,060       28       38,581       48,010       (20 )
 
                                    
 
                                                
Exited Lines
     724       29,580     nm       (185 )     6,917     nm  
 
                                                
 
                                    
Totals
   $ 2,026,197     $ 2,046,289       (1) %   $ 486,706     $ 518,400       (6) %
 
                                    
 
nm — Not meaningful comparison

S - 6

 

HCC Insurance Holdings, Inc. and Subsidiaries
Net Earned Premium
(Unaudited, in thousands)
                                                 
    Twelve months ended December 31,     Three months ended December 31,  
    2010     2009     Change     2010     2009     Change  
U.S. Property & Casualty
                                                
Aviation
   $ 115,952     $ 129,626       (11) %   $ 28,704     $ 31,112       (8) %
E&O
     95,275       118,834       (20 )     21,196       28,366       (25 )
Public Risk
     46,409       39,986       16       11,883       11,133       7  
Other
     81,877       90,993       (10 )     19,303       19,633       (2 )
 
                                    
 
     339,513       379,439       (11 )     81,086       90,244       (10 )
 
                                    
 
                                                
Professional Liability
                                                
U.S. D&O
     303,028       306,621       (1 )     73,994       81,209       (9 )
International D&O
     47,358       59,082       (20 )     10,609       14,283       (26 )
Other
     74,840       78,831       (5 )     18,774       18,428       2  
 
                                    
 
     425,226       444,534       (4 )     103,377       113,920       (9 )
 
                                    
 
                                                
Accident & Health
                                                
Medical Stop-loss
     654,335       633,572       3       166,079       160,301       4  
Other
     105,699       107,967       (2 )     26,216       27,271       (4 )
 
                                    
 
     760,034       741,539       2       192,295       187,572       3  
 
                                    
 
                                                
U.S. Surety & Credit
                                                
Surety
     160,373       147,803       9       41,048       39,808       3  
Credit
     39,535       34,824       14       10,433       7,383       41  
 
                                    
 
     199,908       182,627       9       51,481       47,191       9  
 
                                    
 
                                                
International
                                                
Energy
     52,671       49,099       7       13,105       14,131       (7 )
Property Treaty
     47,594       51     nm       15,061       51     nm  
Liability
     81,887       82,137       —       21,409       20,774       3  
Surety & Credit
     69,264       68,162       2       15,464       17,733       (13 )
Other
     64,770       56,673       14       16,676       14,285       17  
 
                                    
 
     316,186       256,122       23       81,715       66,974       22  
 
                                    
 
                                                
Exited Lines
     1,057       32,974     nm       (168 )     6,909     nm  
 
                                                
 
                                    
Totals
   $ 2,041,924     $ 2,037,235       — %   $ 509,786     $ 512,810       (1) %
 
                                    
 
nm — Not meaningful comparison

S - 7

 

HCC Insurance Holdings, Inc. and Subsidiaries
Net Investment Income and Unrealized Gain
(Unaudited, in thousands)
                                 
    Twelve months ended     Three months ended  
    December 31,     December 31,  
    2010     2009     2010     2009  
Sources of net investment income:
                                
 
                                
Fixed income securities
                                
Taxable
   $ 110,517     $ 106,690     $ 28,101     $ 27,796  
Exempt from U.S. income taxes
     92,297       82,760       24,712       21,171  
 
                        
Total fixed income securities
     202,814       189,450       52,813       48,967  
Short-term investments
     900       1,978       269       187  
Other
     4,344       4,338       1,291       2,144  
 
                        
Total investment income
     208,058       195,766       54,373       51,298  
Investment expense
     (4,239 )     (3,801 )     (1,157 )     (1,073 )
 
                        
 
                                
Net investment income
   $ 203,819     $ 191,965     $ 53,216     $ 50,225  
 
                        
 
                                
Unrealized gain on available for sale fixed income securities:
                                
 
                                
Increase (decrease) in unrealized gain for period, before tax
   $ (21,677 )   $ 141,685     $ (166,630 )   $ (52,185 )
 
                        
 
                                
Unrealized gain at:
                                
 
                                
December 31, 2010
   $ 134,634                          
 
                              
 
                                
September 30, 2010
   $ 301,264                          
 
                              
 
                                
June 30, 2010
   $ 224,943                          
 
                              
 
                                
March 31, 2010
   $ 163,883                          
 
                              
 
                                
December 31, 2009
   $ 156,311                          
 
                              

S - 8

 

HCC Insurance Holdings, Inc. and Subsidiaries
Net Loss Ratios
(Unaudited, in thousands)
                                 
    Twelve months ended     Twelve months ended  
    December 31, 2010     December 31, 2009  
    Net earned     Loss     Net earned     Loss  
    premium     ratio     premium     ratio  
U.S. Property & Casualty
                                
Aviation
   $ 115,952       55.0 %   $ 129,626       56.6 %
E&O
     95,275       79.2       118,834       61.5  
Public Risk
     46,409       61.8       39,986       66.3  
Other
     81,877       28.4       90,993       31.2  
 
                        
 
     339,513       56.3       379,439       53.1  
 
                        
 
                                
Professional Liability
                                
U.S. D&O
     303,028       60.8       306,621       62.2  
International D&O
     47,358       60.8       59,082       53.3  
Other
     74,840       70.0       78,831       68.9  
 
                        
 
     425,226       62.4       444,534       62.2  
 
                        
 
                                
Accident & Health
                                
Medical Stop-loss
     654,335       73.6       633,572       71.7  
Other
     105,699       71.0       107,967       80.5  
 
                        
 
     760,034       73.3       741,539       72.9  
 
                        
 
                                
U.S. Surety & Credit
                                
Surety
     160,373       22.8       147,803       22.8  
Credit
     39,535       41.5       34,824       59.9  
 
                        
 
     199,908       26.5       182,627       29.9  
 
                        
 
                                
International
                                
Energy
     52,671       22.2       49,099       25.7  
Property Treaty
     47,594       58.2       51     nm  
Liability
     81,887       43.3       82,137       25.7  
Surety & Credit
     69,264       41.7       68,162       50.9  
Other
     64,770       61.3       56,673       46.1  
 
                        
 
     316,186       45.4       256,122       36.9  
 
                        
 
                                
Exited Lines
     1,057     nm       32,974     nm  
 
                                
 
                        
Totals
   $ 2,041,924       59.4 %   $ 2,037,235       59.7 %
 
                        
 
nm — Not meaningful comparison

S - 9