Schedule 2 HCCIH Financial Statements

12 Months Ended

Dec. 31, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

					SCHEDULE 2
	HCC INSURANCE HOLDINGS, INC.
	CONDENSED FINANCIAL INFORMATION OF REGISTRANT
	BALANCE SHEETS
	(in thousands)
			December 31,
			2014		2013
		ASSETS
Cash			$	11,647	$	2,206
Fixed maturity securities – available for sale, at fair value (amortized cost:
	2014 – $726,301 and 2013 – $497,233)			750,033		518,822
Equity securities – available for sale, at fair value (cost: 2013 – $134,156)				-		157,122
Short-term investments, at cost (approximates fair value)				76,759		6,498
Investment in subsidiaries				3,820,270		3,538,542
Intercompany loans to subsidiaries				176,002		174,280
Receivable from subsidiaries				94,989		80,946
Other assets				12,400		9,833
	Total assets		$	4,942,100	$	4,488,249
		LIABILITIES AND SHAREHOLDERS’ EQUITY
Payable to subsidiaries			$	36,415	$	36,654
Notes payable				824,251		654,098
Deferred Federal income tax				16,526		18,690
Accounts payable and accrued liabilities				161,557		104,377
	Total liabilities			1,038,749		813,819
	Total shareholders’ equity			3,903,351		3,674,430
		Total liabilities and shareholders’ equity	$	4,942,100	$	4,488,249
	See Notes to Condensed Financial Information.

						SCHEDULE 2
HCC INSURANCE HOLDINGS, INC.
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
STATEMENTS OF EARNINGS
(in thousands)
		Years ended December 31,
		2014		2013			2012
REVENUE
Equity in earnings of subsidiaries		$	448,762	$	415,408		$	400,294
Interest income from subsidiaries			11,562		9,101			8,858
Net investment income			20,311		13,691			10,290
Net realized investment gain (loss)			16,746		7,691			(309)
Other operating income			-		46			99
	Total revenue		497,381		445,937			419,232
EXPENSE
Interest expense			27,948		25,804			25,132
Other operating expense			8,642		6,433			7,138
	Total expense		36,590		32,237			32,270
Earnings before income tax expense			460,791		413,700			386,962
Income tax expense (benefit)			2,448		6,503			(4,278)
	Net earnings	$	458,343	$	407,197		$	391,240
See Notes to Condensed Financial Information.

									SCHEDULE 2
	HCC INSURANCE HOLDINGS, INC.
	CONDENSED FINANCIAL INFORMATION OF REGISTRANT
	STATEMENTS OF CASH FLOWS
	(in thousands)
					Years ended December 31,
					2014		2013			2012
Operating activities
	Net earnings				$	458,343	$	407,197		$	391,240
	Adjustments to reconcile net earnings to net cash provided by operating
		activities:
			Undistributed net earnings of subsidiaries			(404,468)		(404,441)			(392,486)
			Change in accrued interest receivable on intercompany loans			(9,190)		(9,097)			(3,154)
			Change in accounts payable and accrued liabilities			41,729		(13,866)			23,629
			(Gain) loss on investments			(16,746)		(7,691)			309
			Other, net			14,907		28,555			3,947
				Cash provided by operating activities		84,575		657			23,485
Investing activities
	Sales of available for sale fixed maturity securities					123,447		78,350			87,099
	Sales of equity securities					158,630		39,974			9,780
	Sales of other investments					-		23,720			21,736
	Maturity or call of available for sale fixed maturity securities					153,261		31,054			105,982
	Cost of available for sale fixed maturity securities acquired					(187,680)		(20,030)			(6,666)
	Cost of equity securities acquired					(1,533)		(53,723)			(124,710)
	Change in short-term investments					(70,261)		15,911			(20,987)
	Cash contributions to subsidiaries					(100,610)		(49,892)			(30,250)
	Change in receivable from/payable to subsidiaries					(10,753)		(18,748)			776
	Intercompany loans to subsidiaries					(2,579)		(7,228)			(66,765)
	Payments on intercompany loans to subsidiaries					-		19,157			51,427
	Payments for purchase of business and other					(6,043)		-			-
				Cash provided by investing activities		55,879		58,545			27,422
Financing activities
	Issuance of notes payable					-		-			25,000
	Payments on notes payable					-		(25,000)			-
	Advances on line of credit					275,000		180,000			185,000
	Payments on line of credit					(105,000)		(110,000)			(80,000)
	Sale of common stock					20,237		12,908			59,838
	Purchase of common stock					(224,706)		(47,869)			(173,028)
	Dividends paid					(96,544)		(71,967)			(64,345)
				Cash used by financing activities		(131,013)		(61,928)			(47,535)
Net increase (decrease) in cash						9,441		(2,726)			3,372
Cash at beginning of year						2,206		4,932			1,560
				Cash at end of year	$	11,647	$	2,206		$	4,932
See Notes to Condensed Financial Information.