HOUSTON, Aug. 15, 2011 (GLOBE NEWSWIRE) -- HCC Insurance Holdings, Inc. (NYSE:HCC) today announced that A.M. Best Company has upgraded the issuer credit ratings (ICR) to "aa" from "aa-" with a "stable" outlook, and affirmed the financial strength rating (FSR) of "A+ (Superior)" with a "stable" outlook, of Houston Casualty Group and its property and casualty members.
In a press release dated August 10, 2011 regarding HCC's and its subsidiaries' ratings, A.M. Best commented, "These ratings reflect HCC's sustained profitability, evidenced most recently by its second-quarter 2011 earnings and its strong capitalization, as well as the low financial leverage and substantial financial flexibility at HCC Holdings. HCC's business strategies have focused on a conservative investment strategy, underwriting within defined specialty lines, effective utilization of affiliated underwriting agencies/insurance intermediaries and the optimal utilization of reinsurance protection. These strategies have helped produce consistently increasing operating profits in recent years despite challenging market conditions. The ratings also acknowledge HCC's near-term earnings prospects and its strong position in the specialty admitted and nonadmitted markets."
"We believe A.M. Best's recently announced ratings upgrades and affirmations underscore HCC's financial strength and consistent profitability despite the continued challenging insurance market and world economic conditions," said John N. Molbeck, Jr., HCC's Chief Executive Officer.
The property and casualty members of Houston Casualty Group, for whom these ratings apply, are the following insurance companies:
- Houston Casualty Company
- U.S. Specialty Insurance Company
- Avemco Insurance Company
- HCC Specialty Insurance Company
Concurrently, A.M. Best has upgraded the ICR and debt rating on $300 million 6.3% Notes due 2019, of HCC Insurance Holdings, Inc. (HCC) to "a" from "a-" with a "stable" outlook.
A.M. Best also has affirmed the FSR of "A+ (Superior)" and ICR of "aa-" with a "stable" outlook for the following insurance company subsidiaries of HCC:
- HCC Life Insurance Company
- Perico Life Insurance Company
- American Contractors Indemnity Company
- United States Surety Company
A.M. Best also has affirmed the FSR and ICR of "A- (Excellent)" and "a-," respectively, of Pioneer General Insurance Company and upgraded its outlook from "stable" to "positive."
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 June 30, 2011, HCC had assets of $9.5 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)" from Moody's Investors Service, Inc.
For more information about HCC, please visit http://www.hcc.com.
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.