HCC Life Insurance Company
A&H Division of HCC
A subsidiary of HCC Insurance Holdings, Inc.
July 2013
HCC Overview
•
Specialty insurer since 1974 (NYSE: HCC) headquartered
in Houston, TX
•
Non-correlated specialty lines of business underwritten in
more than 180 countries
•
Five segments: U.S. Property & Casualty, Professional Liability,
Accident & Health, U.S. Surety & Credit and International
•
Financial Strength Ratings of “AA (Very Strong)” by
Standard & Poor’s, “AA (Very Strong)” by Fitch Ratings,
“A1 (Good Security)” by Moody’s, and “A+ (Superior)” by
A.M. Best Company
•
Assets of $10.3 billion, shareholders’ equity of $3.5 billion as of
December 31, 2012
HCC Life Insurance Company
2
Insurance Underwriting Segments
U.S. Property & Casualty
International
Aviation
E&O / EPLI
Public Risk
Contingency
Disability
Technical Property
Casualty
Energy
Property
Liability
Surety
Credit
A&H
Professional Liability
Accident & Health
U.S. Surety & Credit
U.S. D&O
International D&O
Large Account E&O
Medical Stop Loss
ST Domestic and
International Medical
Contract Surety
Commercial Surety
Credit
HCC Life Insurance Company
3
Segment Overview
($ in millions)
Gross Written Premium
$1,000
2011 Total1: $2,649
Net Earned Premium
2012 Total2: $2,784
$800
$800
$600
$600
$400
$400
$200
$200
$0
US P&C
1
$1,000
Prof Liab
2011
A&H
US S&C
2012
Includes Exited Lines (GWP = $45M; NEP = $45M).
HCC Life Insurance Company
2
Intl
2011 Total1: $2,127
2012 Total2: $2,243
$0
US P&C
Prof Liab
2011
A&H
US S&C
2012
Intl
Includes Exited Lines (GWP = $42M; NEP = $41M).
4
Profitable Growth
Premium ($ in millions)
CAGR (2007-2012)
$2,800
GWP: 2.6%
NWP: 2.6%
$2,600
NEP: 2.5%
$2,400
$2,200
$2,000
$1,800
2007
2008
Gross Written
HCC Life Insurance Company
2009
2010
Net Written
2011
2012
Net Earned
5
HCC’s Value Proposition
•
Specialty Insurance businesses with strong long-term fundamentals
and market leadership
•
Diversified underwriting portfolio with historically low correlation
•
Consistent track record of profitable growth and strong underwriting
performance
•
Lowest expense ratio amongst industry peers
•
Disciplined balance sheet and risk management practices
•
High quality investment portfolio
•
Broadly experienced team
HCC Life Insurance Company
6
HCC Life Insurance Company (HCC Life)
We have more than 35 years of experience.
HCC Life has one of the most qualified, dedicated teams in the
business. Our knowledge helps advance the success of our clients.
We consistently earn some of the highest ratings in the
industry for financial strength:
•
A+ (Superior) by A.M. Best Company
•
AA (Very Strong) by Standard & Poor’s
•
AA (Very Strong) by Fitch Ratings
•
A1 (Good Security) by Moody’s
HCC Life Insurance Company
7
HCC Life Regional Offices
Northeast Region
Wakefield, MA
Northwest Region
Minnetonka, MN
Southwest Region
Dallas, TX
Southeast Region
Atlanta, GA
Corporate Office
West Region
Scottsdale, AZ
HCC Life Insurance Company
8
Average Years Experience
35
31.3
30
25
20
29.1
24
20.0
19.5
15
10
5
0
Underwriting
Marketing
HCC Life Insurance Company
Claims
Senior
Management
Executive
Management
9
Medical Stop Loss Insurance
What is it?
Medical stop loss insurance minimizes risk to a self-funded plan by helping
protect against losses from catastrophic claims.
•
HCC Life has been a leading carrier of medical stop loss insurance for
more than 35 years.
•
Because we are a direct writer, we have greater flexibility with our
contracts, underwriting and claims procedures.
•
Industry leading stop loss contract to ensure we can customize each
proposal to a group’s needs.
Medical stop loss insurance from HCC Life helps give self-funded
employer groups peace of mind.
HCC Life Insurance Company
10
Advantages of Self-Funding
There are many advantages to self-funding.
1. Plan Control – Employer controls plan rather than an insurer.
2. Improved Cash Flow – Employer is no longer required to pre-pay coverage.
Instead, payments are made as claims are incurred. Reserves are held by
employer instead of insurer – maximizing cash flow.
3. Flexibility – Employer has flexibility in health plan design because ERISA
applies in lieu of state-mandated minimum benefit levels.
4. Reduced Fees – Stop loss premium is typically lower than fees included in
traditional insurance carriers’ premiums.
HCC Life Insurance Company
11
Advantages of Self-Funding
5. Better Predictability – By purchasing medical stop loss insurance to reduce
exposure to losses due to catastrophic claims, self-funded employers have more
predictability with their budgets.
6. Potential Cost Savings – If a self-funded employer has a better than expected
claims experience, the employer keeps the savings. In a fully-insured program,
the insurance carriers do not refund the excess profits to the employer.
7. And Much More – Self-funded groups also have the ability to access claims
data, conduct periodic claims audits and receive full credit for wellness and
disease management programs.
HCC Life Insurance Company
12
HCC Life’s Value-Added Proposition
We do so much more than just provide medical stop loss insurance.
•
Value-Added Options
–
Early Lock Down – Allows policyholder to lock-in up to 120 days prior to
effective date.
–
Split-Funded Aggregate – Allows policyholders with 200 or more
employees transitioning from a fully-insured environment to purchase a
110% claims aggregate corridor.
–
Qualified Clinical Trials Endorsement – Reimburses for eligible phase
II, III and IV cancer clinical trials.
–
IRO Endorsement – Reimburses plan claim denials overturned by an IRO
determination.
–
Small Group – Provides organizations with 200 or fewer employees
medical stop loss protection without any limitations or special quote
submission requirements.
–
Unique contract options for non-standard risks.
HCC Life Insurance Company
13
HCC Life’s Value-Added Proposition
•
Value-Added Services
–
Preliminary Claim Unit (PCU) – Ensures early case intervention through review of
live precert date and achieves additional savings by utilizing specialty vendors for
bill audits, negotiations and clinical peer review.
–
Specialty Claim Unit (SCU) – Helps clients directly control costs to the plan by
assisting them with managing claims related to transplants and premature births.
–
HCC Logix – On-staff nurses help plans identify opportunities to impact the
cost of care.
–
Mayo Clinic – Our “first-of-its kind” partnership with Mayo Clinic provides
policyholders with access to transplant services with one of the premier healthcare
providers in the world.
–
Experience & Expertise – With one of the most qualified, dedicated teams in the
marketplace, the HCC Life staff applies its industry knowledge to help advance the
success of clients.
–
Direct Contact with Key Personnel – Clients have direct access to decisionmaking personnel.
HCC Life Insurance Company
14
PCU Savings
Total net PCU savings to the plan.
$10
millions
$8
$9.06
$9.47
$7.42
$6
$4
$2
$0
2010
HCC Life Insurance Company
2011
2012
15
SCU Savings
Total net SCU savings to the plan.
$24.50
$25
millions
$20
$17.20
$18.78
$15
$10
$5
$0
2010
HCC Life Insurance Company
2011
2012
16
Medical Stop Loss Claims Statistics
Average Claims Turnaround Times (Calendar Days)
16
14.0
14
13.6
13.2
12
10
8
7.7
7.5
7.0
6
4
2
0
2010
2011
2012
Average calendar days to process complete claims
Average calendar days to pay all claims, including incomplete claims
HCC Life Insurance Company
17
Medical Stop Loss Underwriting Statistics
Number of Accounts Received
40,000
30,000
Average Turnaround Times (Days)
10.0
28,734
28,790
28,647
8.0
6.0
20,000
5.0
5.0
5.0
2009
2010
2012
4.0
10,000
2.0
0
0.0
2010
2011
2012
Average turnaround time to quote
new business requests.
HCC Life Insurance Company
18
Medical Stop Loss Policy Issuance Statistics
Average Turnaround Times (Calendar Days)
16.0
14.0
12.0
10.0
7.9
8.6
8.3
2011
2012
8.0
6.0
4.0
2.0
0.0
2010
Average calendar days when policies were issued from
the day complete information was received.
HCC Life Insurance Company
19
Results for Producer (customized for producer)
Medical Stop Loss - Overview
2010
2011
2012
Total New Business Premium
$
$
$
Total Renewal Premium
$
$
$
Total Premium - Block
$
$
$
2009
2010
2011
Accounts Quoted
XX
XX
XX
Accounts Sold
XX
XX
XX
Closing Ratio
%
%
%
2009
2010
2011
Eligible Renewals
XX
XX
XX
Accounts Renewed
XX
XX
XX
%
%
%
Total Employee Lives
New Business
Renewal Business
Persistency
HCC Life Insurance Company
20
HCC Medical Insurance Services (HCCMIS)
Industry leader in individual and group major medical insurance, travel
medical and life insurance for the international market
•
Headquartered in Indianapolis, Indiana
•
Latin America/Caribbean headquarters are in Miami, Florida
•
Currently offers health insurance to customers in over 130 countries
•
In 2012, insured more than 173,000 international travelers
and individuals living and working abroad
HCC Life Insurance Company
21
HCCMIS: Covered Countries
HCC Life Insurance Company
22
HCCMIS Key International Products
•
Atlas Travel – Individual travel medical insurance
•
Atlas Group – Group travel medical insurance
•
StudentSecure® – Study abroad medical insurance
Policy Count
173,000
175,000
150,000
137,000
125,000
100,000
75,000
50,000
25,000
0
2011
HCC Life Insurance Company
2012
International products
are underwritten by
Lloyd’s, London.
23
HCCMIS Domestic
• Domestic Short Term Medical Plan underwritten and administered by HCC Life
• HCCMIS is the direct insurance agency for HCC Life short term medical policies
• A temporary health insurance plan designed for individuals in transition. Ideal for:
– recent college graduates
– new employees
– individuals between jobs
– early retirees
– COBRA alternative
– individuals returning to the U.S. after an extended assignment
HCC Life Insurance Company
24
Short Term Medical Policy
HCC MIS offers STM Complete, a short term health
insurance plan through HCC Life.
Nearly 50,000 policies issued in 2012
•
Choice of deductible and coinsurance
•
Up to two million in medical coverage
•
Online purchase and electronic fulfillment
•
No network penalties
HCC Life Insurance Company
25
Why Choose HCCMIS?
Quality Products that remain some of the strongest in the international marketplace.
HCCMIS prides itself on its reputation and is committed to continually broaden its
portfolio of products.
Experience & Expertise are assets as HCCMIS’s staff has years of industry
experience and leadership that clients can rely on.
Exceptional Service and Support that is unrivaled in today’s market. HCCMIS
delivers outstanding service that adapts to the changing needs of its customers.
Innovative Technology is one of HCCMIS’s key assets as it leverages the power of
the Internet to expand beyond physical boundaries and reaches potential clients around
the globe.
HCC Life Insurance Company
26
Questions?
HCC Life Insurance Company
27
HCC Life Insurance Company
Appendix
HCC Offices
HCC Life Executive Management
HCC Life Medical Stop Loss Regional Executives
HCC Life Medical Stop Loss Representatives
HCCMIS Representatives
A subsidiary of HCC Insurance Holdings, Inc.
July 2013
HCC Offices – Property & Casualty
Company
Lines of Business
Avemco Insurance Company (AIC)
411 Aviation Way, Suite 100
Frederick, MD 21701
(800) 638 8440
Website: avemco.com
Contact: Lauretta Godbey
•
•
•
•
•
•
•
Piston-powered General Aviation
Non-owned/Renters Aircraft
Private Business and Pleasure
Experimental/Homebuilt Aircraft
Antiques, Seaplanes, Classics, Warbirds
Life Insurance for Pilots
Special Risks
Houston Casualty Company (HC)
13403 Northwest Freeway
Houston, TX 77040
(713) 462 1000
•
•
•
•
Accident & Health
Aviation
Directors’ & Officers’ Liability
Errors & Omissions
Contact: Michael Schell
HCC Life Insurance Company
29
HCC Offices – Property & Casualty
Company
Lines of Business
Houston Casualty Company –
Aviation Division (HCC Aviation)
13403 Northwest Freeway
Houston, TX 77040
(713) 462 1000
•
•
•
•
•
•
•
•
Airport Liabilities
Charter, Cargo, Aerial Photography
Commercial Operations
Corporate Aircraft
International Aviation
Military, Government, Law Enforcement
Rotor Wing Aircraft
Special Risks
•
•
•
•
•
•
•
Aerobatic Aircraft
Air Racing
Air Show Cancellation
Air Show Liability
Air Show Performers
Airport Liabilities
Antique, Classic, Seaplanes,
Experimental Aircraft, Warbirds
Aviation, Commercial Operations
Aviation, Charter, Cargo, Aerial
Photography
Contingent Contract Liability
Directors’ & Officers’ Liability
Contact (Domestic): Chris Bonnett
Contact (International): Chris Lewis
U.S. Specialty Insurance Company (USSIC)
13403 Northwest Freeway
Houston, TX 77040
(713) 744 3700
Contact (PEI and Transportation): Mary Hensley
USSIC Aviation Division
16415 Addison Road, Suite 900
Addison, TX 75001
(972) 447 2000
Contact (Aviation): Anthony Bacewicz
Website: hcc.com/ussic
HCC Life Insurance Company
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Errors & Omissions
General Aviation
Occupational Accident
Premises and Hangarkeeper’s
Liability
Private Business and Pleasure
Aircraft
Professional Liability
Property and Casualty
Rotor Wing Aircraft
Special Risks
Surety and Credit
Workers’ Compensation
Alternative
30
HCC Offices – Credit and Surety
Company
Lines of Business
HCC Surety Group
601 South Figueroa Street, Suite 1600
Los Angeles, CA 90017
(310) 649 0990
Website: hcc.com/surety
•
•
•
•
•
Contact: Michael Chalekson
HCC Credit Group (HCC Credit)
600 Lexington Avenue, 22nd Floor
New York, NY 10022
(212) 326 9393
Contact: Brian Duffy
HCC Life Insurance Company
Commercial Bonds
Contract Bonds
Court Bonds
Energy Industry Bonds
Energy, Federal, State, Local
Bonds
• Energy, OCS Mineral
Lessees’ and Operators’
Bonds
•
•
•
•
•
•
•
Energy, P&A Bonds
Energy, Performance Bonds
Energy, Right-of-Way Bonds
Game-of-Chance Bonds
License and Permit Bonds
Public Official Bonds
Small Business
Administration Bond
Guarantee Program
•
•
•
•
•
•
Confiscation, Expropriation, Nationalization Insurance
Contract Frustration Insurance
Currency Inconvertibility Insurance
Political Risk Insurance
Pre-export Credit Insurance
Trade Credit Insurance (Bank Structured Trade Finance, Letter of
Credit, Medium Term, Short Term)
• Wrongful Calling of Guarantee Insurance
31
HCC Offices – Life, Accident & Health
Company
Lines of Business
HCC Life Insurance Company (HCC Life)
225 TownPark Drive, Suite 350
Kennesaw, GA 30144
(800) 447 0460
Website: hcc.com/life
• Group Life and AD&D
• Medical Stop Loss
• Short Term Medical
Contact: David Grider
HCC Life Insurance Company
32
HCC Offices – International Operations
Company
Lines of Business
HCC International Insurance Company PLC (HCCI)
Walsingham House
35 Seething Lane
London, England EC3N 4AH
+44 (0) 20 7702 4700
Website: hcc.com/international
• Accident & Health (Student
Accident, Travel Accident)
• Energy (Onshore, Offshore)
• Errors & Omissions,
Promotional Marketing Firms
• Film & Television (Key Person
Death, Key Person Disability)
• Group Personal Accident
• High Income Disability
Coverage
• International Medical
• International Group Medical
• International Student Medical
• International Travel Medical
• Lloyd’s Market Marine Hull
Contact: Charlotte Dartford
HCC Life Insurance Company
•
•
•
•
•
•
•
•
•
•
Medical Excess Coverage
Occupational Accident
Personal Accident
Personal Indemnity
Professional Sports
Disability
Property
Reinsurance, Life, Accident
& Health
Short Term Medical
Sports, Entertainment &
Executives Accident
Surety & Credit
Transportation Industry,
Occupational Accident
33
HCC Offices – Underwriting Agencies
Company
Lines of Business
HCC Global Financial Products (HCC Global)
8 Forest Park Drive
Farmington, CT 06034
(860) 674 1900
Website: hcc.com/global
•
•
•
•
•
•
Directors’ & Officers’ Liability
Employment Practices Liability
Fiduciary Liability
Professional Indemnity, Errors & Omissions
Fidelity Bonds
Crime Coverage
Contact: Andy Stone
HCC Global Financial Products (HCC Global Intl.)
Torre Diagonal Mar
Josep Pia, 2-10
08019 Barcelona, Spain
+34 (93) 530 7300
Website: hcc.com/global
Contact: Eleana Sanford
HCC Indemnity Guaranty Agency (HCCIG)
600 Lexington Avenue, 22nd Floor
New York, NY 10022
(215) 751 8383
Website: hcc.com/ig
• Directors’ & Officers’ Liability (Not-For-Profit Organizations,
Private Companies, Public Companies)
• Employment Practices Liability
• Errors & Omissions
• Fidelity Bonds
• Crime Coverage
• Fiduciary Liability
• Financial Institutions
• Professional Indemnity
•
•
•
•
Mortgage Guaranty Reinsurance
Residual Value Insurance
Structured Insurance
Title Reinsurance
Contact: Brad DeLamielleure
HCC Life Insurance Company
34
HCC Offices – Underwriting Agencies
Company
Lines of Business
HCC Medical Insurance Services, LLC (HCCMIS)
Capital Center - North Tower
251 North Illinois Street, Suite 600
Indianapolis, IN 46204
(800) 605 2282
Website: hcc.com/mis
• International Accidental
Death & Dismemberment
• International Group
Medical
• International Medical
• International Student
Medical
• International Term Life
• International Travel Medical
• London Market, Accident &
Health
• Short Term Medical
• Student Accident
•
•
•
•
•
•
•
•
Contact: Andrew Bard
HCC Specialty
401 Edgewater Place, Suite 400
Wakefield, MA 01880
(781) 994 6000
Website: hcc.com/specialty
High Limit Disability
Professional Liability
Public Entity
Crisis Management
Special Event
DIC
Promotion Protection
Weather Insurance
Contact: Mark Barry
HCC Life Insurance Company
35
HCC Offices – Underwriting Agencies
Company
Lines of Business
HCC Underwriting Agency Ltd. (HCCUA)
Walsingham House - 35 Seething Lane
London, England EC3N 4AH
+44 (0) 20 7680 3000
Website: hcc.com/international/ual
•
•
•
•
Lloyd’s Market, Contractor’s All Risks (U.K. and Ireland)
Lloyd’s Market, Employers’ Liability (U.K. and Ireland)
Lloyd’s Market, Public and Products Liability
London Market, Sports Disability
•
•
•
•
County Fairs and Festivals
Municipalities
Public Entity
State and Local Government Entities
Contact: Charlotte Dartford
Kenrick Corporation (Kenrick)
1700 Opdyke Court
Auburn Hills, MI 48326
(248) 371 3100
Website: kenrickcorp.com
Contact: Ann Cowan
HCC Life Insurance Company
36
HCC Life Executive Management
Email
Years
Exp.
ckelbel@hcclife.com
37
msanderford@hcclife.com
30
Dan Strusz, Executive Vice President & COO
dstrusz@hcclife.com
32
Larry Stewart, Senior Vice President & CUO
lstewart@hcclife.com
25
skjohnson@hcclife.com
40
David Grider, Senior Vice President, Marketing & Sales
dgrider@hcclife.com
25
Jay Ritchie, Senior Vice President, Regulatory & Compliance
jritchie@hcclife.com
21
mlanza@hcclife.com
23
Name
Craig Kelbel, President & CEO
Mark Sanderford, Executive Vice President & CFO
Suzi Johnson, Senior Vice President, Claims
Mike Lanza, Assistant Vice President – Claims
The HCC Life 8-person executive management team has 233 total
years experience, or an average of 29 years.
HCC Life Insurance Company
37
Regional Executives
Office Phone
Region
Email
Years
Exp.
Mike Lee, Senior Vice President
(800) 676 1771
Northeast
mlee@hcclife.com
33
Mike Holthaus, Senior Vice President
(877) 843 5743
Northwest
mholthaus@hcclife.com
25
Mike Remeika, Senior Vice President
(800) 447 0460
Southeast
mremeika@hcclife.com
25
Jeff Petty, Senior Vice President
(888) 941 9532
Southwest
jpetty@hcclife.com
20
Gary Hudgins, Regional Underwriting Manager
(877) 446 9042
West
ghudgins@hcclife.com
17
Name
The five Regional Executives have a combined experience of
120 years with an average of 24 years of experience.
HCC Life Insurance Company
38
HCC Life Stop Loss Representatives
Region
Phone
Email
Years
Exp.
Tim Campbell, Vice President - Marketing
Northeast
(781) 716 4791
tcampbell@hcclife.com
20
Val Flowers, Assistant Vice President - Marketing
Southeast
(770) 693 6491
vflowers@hcclife.com
28
Lisa Gilbertson, Regional Marketing Representative
Northwest
(763) 647 5090
lgilbertson@hcclife.com
14
Southeast/TaftHartley
(763) 486 1014
pjohnson@hcclife.com
12
Shaun Johnson, Regional Marketing Representative
Southeast
(770) 693 6541
ssjohnson@hcclife.com
10
Todd Marcoux, Assistant Vice President - Marketing
Northeast
(781) 716 4866
tmarcoux@hcclife.com
22
Alan McDonald, Assistant Vice President - Marketing
Southeast
(770) 693 6589
amcdonald@hcclife.com
22
Pam McGovern, Vice President - Marketing
Northwest
(763) 486 1012
pmcgovern@hcclife.com
19
Nichole Sivigny, Regional Marketing Representative
Northwest
(763) 486 1034
nsivigny@hcclife.com
14
Name
Peter Johnson, Vice President – Marketing
HCC Life Insurance Company
39
HCCMIS Marketing Contacts
Name
Phone
Email
Mark Carney, President & Chief Executive Officer
(317) 221 8001
mcarney@hccmis.com
Andrew Bard, Vice President of Sales
(317) 221 8012
abard@hccmis.com
Bryant Tutterow, Assistant Vice President of Marketing
(317) 221 8037
btutterow@hccmis.com
Juan Mas, International Business Unit Director
(317) 221 8019
jmas@hccmis.com
Mike Watts, Domestic Business Unit Director
(317) 221 8016
mwatts@hccmis.com
HCC Life Insurance Company
40