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) |
|
Return on Equity (average, past 3 years) |
10.1% |
|
Cash / Debt |
$434.4 million / $583.9 million |
|
Dividend Yield |
1.6% |
|
Competitors |
ACE Limited |
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.
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