HCC INSURANCE HOLDINGS, INC. A.M. Best has assigned indicative ratings of “a” to the senior unsecured debt and “a-” to the subordinated debt of the recently filed shelf registration of HCC Insurance Holdings, Inc. (HCC) (Dover, DE) [NYSE: HCC]. Additionally, A.M. Best has assigned indicative ratings of “a-” to the preferred securities of HCC Capital Trusts I and II, which may be issued under HCC’s shelf registration statement. The outlook assigned to these ratings is stable. The new shelf registration was filed March 23, 2015 and replaces HCC’s previous shelf registration, which expired. Consequently, the indicative ratings for the previous shelf registration have been withdrawn.
The assigned ratings recognize HCC’s continuing strong earnings, excellent level of risk-adjusted capitalization and strong liquidity levels. The ratings also reflect A.M. Best’s view of the group’s near-term earnings prospects when considering HCC’s strong position in the specialty admitted and non-admitted market segments. As of year-end 2014, HCC’s debt-to-capital and debt-to-tangible capital ratios were 18.1% and 22.6%, respectively. The company continues to maintain a fixed interest coverage ratio that is well supportive of its ratings.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
- Insurance Holding Company and Debt Ratings
- Analyzing Insurance Holding Company Liquidity
- Risk Management and the Rating Process for Insurance Companies
This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.
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