(HCC) - Revenues were up, advancing 22.3% - Board of Directors authorized a 33% increase in the company's annual dividend

HCC Insurance Holdings, Inc. (HCC) has a history of beating the Street's earnings estimates, having done so for the past 10 quarters. Consensus estimates for this quarter and full-year 2006 have increased over the past week. This Zacks #1 Rank stock raised its dividend in late May and is currently yielding 1.3%. Full Analysis HCC Insurance Holdings, Inc. provides property and casualty, surety, group life and accident and health insurance products. The company also offers related agency and reinsurance brokerage services. HCC operates in the United States, the United Kingdom, Spain, Ireland and Bermuda. HCC exceeded analysts' earnings expectations in 10 straight quarters, and in 13 out of the past 14. Earnings per share grew 25% over the past five years and are forecasted to grow 17% over the next 3-5 years. The industry is expected to grow at a 12% clip. On Aug 3, HCC beat the Street's estimate by a solid 14.9% with earnings per share of 77 cents. The company posted profits of 59 cents in the prior-year period, marking a 30.5% year-over-year improvement. Total revenues increased 21.8% to $493.2 million. For the first half of 2006, profits soared 38.4% to $168.0 million. Revenues were also up, advancing 22.3% to $959.3 million when compared to the first six months of 2005. The company credited growth of earned premium to its increased retentions. Furthermore, Chairman and CEO Officer Stephen L. Way stated, "We continue to produce record results with a strong balance sheet and we are confident about our future performance." HCC announced recently that it will purchase the Health Products Division of Allianz Life Insurance Co. of North America for $140 million in cash. Pending regulatory approval, the transaction is expected to be finalized by the end of the third quarter of 2006. The Health Products Division, which has been operating for 30 years and is based in Minneapolis, currently writes over $300 million in annual gross premium. Once the deal is approved, HCC's Life unit will write more than $750 million in annual premiums. The company also acquired G.B. Kenrick & Associates, Inc. on Jul 13 and Novia Underwriters, Inc. on Jun 30, both for undisclosed considerations. Kenrick is recognized as one of the premier underwriters of municipal insurance, while Novia specializes in medical stop loss insurance. The consensus estimate for this quarter currently sits at 69 cents and represents a 6.2% increase when compared to the consensus of a week earlier. Profit forecasts for the full year of 2006 jumped 4.1% to $2.80 over the same period of time. Two analysts upped their estimates for this quarter while three did so for the full year. On May 24, the Board of Directors authorized a 33% increase in the company's annual dividend to 40 cents per share. The company is currently yielding 1.3% and has a five-year average dividend yield of 0.99%. HCC�s return on equity tops that of the industry average�15% compared to 12%. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home