Notes

HCC Insurance Holdings (HCC) provides property and casualty, surety, group life, accident, and health insurance coverage. It also offers related agency and reinsurance brokerage services to commercial customers and individuals.

1JUN07 $33

Market cap.: 3.7B

RATINGS
Schwab: A
Goldman-Sachs: Neutral/Attractive
Stand & Poors: 3 stars
Market Edge Technical: Long

Yield: 1.2%

Equity/assets is near 30%, very good for an insurance company, but tangibles/assets is only 18% (still good).
Current ratio: 1.8
PE: 11
PB: 2.7
PCF: 10
PEG (5 yr. est.): 0.67

Estimates:
Current qtr. 5%, next qtr. 2%, next 5 years 15%.

Thoughts: good insurance company pick. The balance sheet is excellent, and valuations are good relative to present and estimated growth. Future earnings aren't likely to pace the past, because of unusually mild weather the last two years, but that seems to be priced into the stock already.

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