Hilltop Holdings Inc. (HTH, Financial) filed Quarterly Report for the period ended 2010-09-30.
Hilltop Holdings Inc. has a market cap of $571 million; its shares were traded at around $10.12 with and P/S ratio of 4.5. HTH is in the portfolios of Michael Price of MFP Investors LLC, Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates, Bruce Kovner of Caxton Associates.
The $3.7 million decrease in net loss from operations for the nine months ended September 30, 2010 compared to the same period in 2009, is primarily due to the decrease in loss and loss adjustment expenses of $3.4 million, an increase in net premiums earned of $1.3 million, an increase in net investment income of $0.6 million and an increase in total realized investment gains of $0.8 million as compared to the same period in 2009. This was partially offset by a decrease in income tax benefit of $2.1 million due to lower operating losses for the nine months ended September 30, 2010.
Revenue. Revenue for the three months ended September 30, 2010 was $33.9 million, as compared to $32.7 million for the same period in 2009. Net premiums earned were $30.1 million for the three months ended September 30, 2010, as compared to $29.2 million for 2009. Net investment income was $2.0 million for the three months ended September 2010, as compared to $1.5 million for
The Company seeks to operate at a combined ratio of 85.0%, excluding Property Claim Services (PCS) catastrophic events. If PCS identifies a catastrophic event and the Company's losses exceed $250,000 for that event, then management will internally identify the PCS event. Catastrophic events, including those that do not exceed our reinsurance retention, affect the Company's loss ratios. For the three months ended September 30, 2010, catastrophic events that did not exceed our reinsurance retention accounted for $2.3 million of the total loss and loss adjustment expense, as compared to $1.4 million for the same period in 2009. Excluding catastrophic events, our combined ratios for the three months ended September 30, 2010 and 2009 would have been 85.4% and 80.4%, respectively.
For the three months ended September 30, 2010 and 2009, the Company had incurred losses related to two 2008 catastrophes, Hurricane Ike and Hurricane Dolly. Gross losses incurred from these storms were $16.3 million for the three months ended September 30, 2010, compared to $5.1 million for the same period in 2009. The losses in the three months ended September 30, 2010 relate primarily to lawsuits filed in response to the pending expiration of the statute of limitations. These losses have no effect on net loss and LAE incurred because the catastrophic events exceeded our retention and are fully recoverable. The primary financial effect is additional reinstatement premium payable to the
Total net premiums written increased for the three months ended September 30, 2010 for all insurance products, except for fire, due to higher direct written premiums of $3.2 million from the same period in 2009, which was offset by an increase in ceded premiums of $0.4 million, which was largely attributable to increased flood production.
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Hilltop Holdings Inc. has a market cap of $571 million; its shares were traded at around $10.12 with and P/S ratio of 4.5. HTH is in the portfolios of Michael Price of MFP Investors LLC, Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates, Bruce Kovner of Caxton Associates.
Highlight of Business Operations:
For the nine months ended September 30, 2010, net loss attributable to common stockholders was $14.5 million, or $0.26 per share, as compared to net loss of $13.0 million, or $0.23 per share, for the same period in 2009. Net loss from operations accounted for $1.6 million of the net loss for the nine months ended September 30, 2010, compared to $5.3 million of the net loss for the nine months ended September 30, 2009.The $3.7 million decrease in net loss from operations for the nine months ended September 30, 2010 compared to the same period in 2009, is primarily due to the decrease in loss and loss adjustment expenses of $3.4 million, an increase in net premiums earned of $1.3 million, an increase in net investment income of $0.6 million and an increase in total realized investment gains of $0.8 million as compared to the same period in 2009. This was partially offset by a decrease in income tax benefit of $2.1 million due to lower operating losses for the nine months ended September 30, 2010.
Revenue. Revenue for the three months ended September 30, 2010 was $33.9 million, as compared to $32.7 million for the same period in 2009. Net premiums earned were $30.1 million for the three months ended September 30, 2010, as compared to $29.2 million for 2009. Net investment income was $2.0 million for the three months ended September 2010, as compared to $1.5 million for
The Company seeks to operate at a combined ratio of 85.0%, excluding Property Claim Services (PCS) catastrophic events. If PCS identifies a catastrophic event and the Company's losses exceed $250,000 for that event, then management will internally identify the PCS event. Catastrophic events, including those that do not exceed our reinsurance retention, affect the Company's loss ratios. For the three months ended September 30, 2010, catastrophic events that did not exceed our reinsurance retention accounted for $2.3 million of the total loss and loss adjustment expense, as compared to $1.4 million for the same period in 2009. Excluding catastrophic events, our combined ratios for the three months ended September 30, 2010 and 2009 would have been 85.4% and 80.4%, respectively.
For the three months ended September 30, 2010 and 2009, the Company had incurred losses related to two 2008 catastrophes, Hurricane Ike and Hurricane Dolly. Gross losses incurred from these storms were $16.3 million for the three months ended September 30, 2010, compared to $5.1 million for the same period in 2009. The losses in the three months ended September 30, 2010 relate primarily to lawsuits filed in response to the pending expiration of the statute of limitations. These losses have no effect on net loss and LAE incurred because the catastrophic events exceeded our retention and are fully recoverable. The primary financial effect is additional reinstatement premium payable to the
Total net premiums written increased for the three months ended September 30, 2010 for all insurance products, except for fire, due to higher direct written premiums of $3.2 million from the same period in 2009, which was offset by an increase in ceded premiums of $0.4 million, which was largely attributable to increased flood production.
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