Why HCC Insurance Is Poised to Keep Popping

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, specialty insurance underwriter HCC Insurance Holdings (NYSE: HCC  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at HCC and see what CAPS investors are saying about the stock right now.

HCC facts

Headquarters (founded)

Houston, Texas (1974)

Market Cap

$4.2 billion

Industry

Multi-line insurance

Trailing-12-Month Revenue

$2.5 billion

Management

CEO Christopher Williams (since 2012)
COO William Burke, Jr. (since 2012)

Return on Equity (average, past 3 years)

10.1%

Cash / Debt

$434.4 million / $583.9 million

Dividend Yield

1.6%

Competitors

ACE Limited
Travelers Companies
W.R. Berkley

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 93% of the 197 members who have rated HCC believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, rtc76, succinctly summed up the HCC bull case for our community:

In a challenging interest rate environment, underwriting profit is essential. HCC has some of the lowest combined ratios in the insurance biz, and the company philosophy is explicitly focused on book value growth and maintaining underwriting profitability. At $42 it's underpriced with a margin of safety according to my calculations.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, HCC may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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