GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » HCC Insurance Holdings Inc (FRA:HCZ) » Definitions » Sloan Ratio %

HCC Insurance Holdings (FRA:HCZ) Sloan Ratio % : 2.13% (As of Jun. 2015)


View and export this data going back to . Start your Free Trial

What is HCC Insurance Holdings Sloan Ratio %?

Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.

HCC Insurance Holdings's Sloan Ratio for the quarter that ended in Jun. 2015 was 2.13%.

As of Jun. 2015, HCC Insurance Holdings has a Sloan Ratio of 2.13%, indicating the company is in the safe zone and there is no funny business with accruals.


HCC Insurance Holdings Sloan Ratio % Historical Data

The historical data trend for HCC Insurance Holdings's Sloan Ratio % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

HCC Insurance Holdings Sloan Ratio % Chart

HCC Insurance Holdings Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.53 0.32 3.40 3.67 2.72

HCC Insurance Holdings Quarterly Data
Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.37 2.96 2.51 2.11 2.13

Competitive Comparison of HCC Insurance Holdings's Sloan Ratio %

For the Insurance - Property & Casualty subindustry, HCC Insurance Holdings's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


HCC Insurance Holdings's Sloan Ratio % Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, HCC Insurance Holdings's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where HCC Insurance Holdings's Sloan Ratio % falls into.



HCC Insurance Holdings Sloan Ratio % Calculation

Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.

HCC Insurance Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2014 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2014 )-Cash Flow from Operations (A: Dec. 2014 )
-Cash Flow from Investing (A: Dec. 2014 ))/Total Assets (A: Dec. 2014 )
=(371.716-388.175
--252.472)/8689.335
=2.72%

HCC Insurance Holdings's Sloan Ratio for the quarter that ended in Jun. 2015 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Jun. 2015 )
=(376.501-254.231
--88.788)/9926.569
=2.13%

HCC Insurance Holdings's Net Income for the trailing twelve months (TTM) ended in Jun. 2015 was 108.847 (Sep. 2014 ) + 91.667 (Dec. 2014 ) + 104.335 (Mar. 2015 ) + 71.652 (Jun. 2015 ) = €377 Mil.
HCC Insurance Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2015 was 128.101 (Sep. 2014 ) + 95.919 (Dec. 2014 ) + 28.779 (Mar. 2015 ) + 1.432 (Jun. 2015 ) = €254 Mil.
HCC Insurance Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2015 was -56.574 (Sep. 2014 ) + -39.218 (Dec. 2014 ) + -9.806 (Mar. 2015 ) + 16.81 (Jun. 2015 ) = €-89 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


HCC Insurance Holdings  (FRA:HCZ) Sloan Ratio % Explanation

A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.

According to How to Beat the Market with the Sloan Ratio:

If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.

If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.

If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.

As of Jun. 2015, HCC Insurance Holdings has a Sloan Ratio of 2.13%, indicating the company is in the safe zone and there is no funny business with accruals.


HCC Insurance Holdings Sloan Ratio % Related Terms

Thank you for viewing the detailed overview of HCC Insurance Holdings's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.


HCC Insurance Holdings (FRA:HCZ) Business Description

Traded in Other Exchanges
N/A
Address
HCC Insurance Holdings Inc was incorporated in the state of Delaware in 1991. The Company provides specialized property and casualty, surety, and group life, accident and health insurance coverages and related agency and reinsurance brokerage services to commercial customers and individuals. It concentrates its activities in selected, narrowly defined, specialty lines of business. The Company has five underwriting segments: U.S. Property & Casualty, Professional Liability, Accident & Health, U.S. Surety & Credit and International. U.S. Property & Casualty segment includes specialty lines of insurance such as aviation, small account errors and omissions liability (E&O), public risk, contingency, disability, title and mortgage reinsurance, residual value, employment practices liability (EPLI), technical property, primary and excess casualty, and brown water marine written in the U.S. The majority of the business is primary coverage, and claims are reported and settled on a short to medium-term basis. Professional Liability segment primarily consists of its directors' and officers' (D&O) liability business. In addition, it write related professional liability and crime business coverages, including large account E&O liability, fiduciary liability, fidelity and bankers blanket bonds, and EPLI for some D&O policyholders. Accident & Health segment includes medical stop-loss, short-term domestic and international medical products, written in the United States. The majority of the business covers groups of employees, and claims are reported and settled quickly. U.S. Surety & Credit segment conducts business through separate specialty surety underwriting operations and credit underwriting operations. International segment includes energy, property treaty, liability, surety, credit, property (direct and facultative), ocean marine, accident and health and other smaller product lines written from operations in the United Kingdom, Spain and Ireland. The Company operates mainly in the United States, the United Kingdom, Spain and Ireland. Some of its operations have a broader international scope. The Company markets its products both directly to customers and through a network of independent and affiliated brokers, producers, agents and third party administrators. Its insurance companies are risk-bearing and focus their underwriting activities on providing insurance and/or reinsurance in the following lines of business: Diversified financial products; Group life, accident and health; Aviation; London market account and other specialty lines. The Company's underwriting agencies underwrite on behalf of its insurance companies and in certain situations for other unaffiliated insurance companies. The agencies specialize in the following types of business: contingency; directors' and officers' liability; individual disability; kidnap and ransom; employment practices liability; errors and omissions liability; public entity; various financial products

HCC Insurance Holdings (FRA:HCZ) Headlines

No Headlines