PART I – FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements for Q2 2023 show a significant turnaround in profitability, with positive net income and cash flow [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased slightly to $1.73 billion, while total equity increased to $188.6 million, reflecting positive net income Table: Balance Sheet Item | Balance Sheet Item | June 30, 2023 ($ thousands) | December 31, 2022 ($ thousands) | | :--- | :--- | :--- | | **Total Assets** | **$1,726,837** | **$1,803,328** | | Total Investments | $549,682 | $615,592 | | Cash and cash equivalents | $293,991 | $234,863 | | Reinsurance recoverable, net | $550,691 | $688,359 | | **Total Liabilities** | **$1,443,001** | **$1,548,521** | | Losses and loss adjustment expenses | $748,955 | $863,765 | | Unearned premiums | $385,870 | $368,047 | | Long-term debt | $208,156 | $211,687 | | **Total Equity** | **$188,634** | **$161,254** | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) The company reported a significant improvement in profitability, with net income of $14.9 million for Q2 2023, reversing prior-year losses Table: Metric ($ thousands, except EPS) | Metric ($ thousands, except EPS) | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 127,327 | 125,926 | 256,356 | 252,966 | | Net Premiums Earned | 115,556 | 124,919 | 225,115 | 250,682 | | Losses and LAE | 61,890 | 86,830 | 122,455 | 159,534 | | Total Expenses | 107,061 | 137,486 | 212,954 | 260,525 | | Net Income (Loss) | 14,882 | (8,542) | 32,675 | (5,751) | | Diluted EPS | $1.28 | $(1.04) | $2.81 | $(0.92) | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was $5.9 million for H1 2023, with significant cash provided by investing activities Table: Cash Flow Activity ($ thousands) | Cash Flow Activity ($ thousands) | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | 5,944 | 21,629 | | Net cash provided by (used in) investing activities | 59,675 | (360,095) | | Net cash (used in) provided by financing activities | (6,402) | 70,267 | | **Net increase (decrease) in cash** | **59,215** | **(268,255)** | [Notes to Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes provide detailed accounting policies, investment portfolio, debt, reinsurance, and segment performance, highlighting key business changes - The company's primary business is property and casualty insurance through its subsidiaries HCPCI and TypTap, emphasizing internally developed technologies for underwriting and claims analysis[39](index=39&type=chunk) - In March 2023, the company sold two retail shopping center investment properties in Melbourne and Sorrento, Florida, for a total of **$31.9 million**, resulting in a net realized gain of **$8.9 million**[68](index=68&type=chunk)[70](index=70&type=chunk) - The company is discontinuing its flood insurance policies written in Florida by its subsidiaries HCPCI and TypTap, citing increased costs and reduced availability of flood reinsurance[96](index=96&type=chunk)[97](index=97&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=49&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes improved Q2 and H1 2023 results to decreased losses and higher investment income, significantly improving the combined ratio - The company operates through four main segments: HCPCI Insurance Operations, TypTap Group (InsurTech), Real Estate Operations, and Corporate/Other[112](index=112&type=chunk)[169](index=169&type=chunk) - The company's insurance business is seasonal, with hurricane risk concentrated from June to November and winter storm risk from December to March, and reinsurance costs typically reflected starting June 1st each year[215](index=215&type=chunk) [Results of Operations](index=52&type=section&id=Results%20of%20Operations) Q2 2023 net income was $14.9 million, driven by decreased losses and higher investment income, improving the combined ratio to 92.4% Table: Ratio to Net Premiums Earned | Ratio to Net Premiums Earned | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | Loss Ratio | 53.56% | 69.51% | 54.40% | 63.64% | | Expense Ratio | 38.79% | 40.55% | 40.05% | 40.29% | | **Combined Ratio** | **92.35%** | **110.06%** | **94.45%** | **103.93%** | - The increase in profitability for Q2 2023 was primarily due to a decrease in losses and LAE, higher investment income, and lower policy acquisition expenses, partially offset by higher reinsurance costs (premiums ceded)[184](index=184&type=chunk) - Gross premiums earned remained stable in Q2 2023 vs Q2 2022, as premium rate increases were offset by a reduction in policies in force from approximately **261,700 to 200,000**[185](index=185&type=chunk)[187](index=187&type=chunk) [Liquidity and Capital Resources](index=58&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity needs are met by operations and investment portfolio, with sufficient cash for claims and expenses, supported by various debt instruments - Future liquidity requirements are expected to be met by funds from operations, primarily cash from premiums and investment income[216](index=216&type=chunk) - The company has an unfunded capital commitment of **$5.8 million** for its limited partnership investments as of June 30, 2023[223](index=223&type=chunk) [Critical Accounting Policies and Estimates](index=61&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The most material accounting estimate is the reserve for losses and LAE, totaling $749.0 million, primarily due to prior-year claim settlements - Reserves for losses and loss adjustment expenses are a material estimate, with IBNR representing the largest and most judgmental component[235](index=235&type=chunk)[236](index=236&type=chunk) - The company's reinsurance contracts with retrospective provisions can adjust premiums based on loss experience, resulting in a **$14.0 million** reduction in ceded premiums for H1 2023[240](index=240&type=chunk)[241](index=241&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=60&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The investment portfolio is exposed to interest rate, credit, and equity price risk, with strategies to maximize income and mitigate risk Table: Hypothetical Change in Interest Rates | Hypothetical Change in Interest Rates | Change in Estimated Fair Value ($ thousands) | % Change in Estimated Fair Value | | :--- | :--- | :--- | | 300 basis point increase | $(14,062) | -3.17% | | 100 basis point increase | $(4,688) | -1.06% | | 100 basis point decrease | $4,688 | 1.06% | | 300 basis point decrease | $(14,065) | 3.18% | - Credit risk is managed by investing in high-quality securities, with **97%** of the fixed-maturity portfolio rated A- or higher as of June 30, 2023[249](index=249&type=chunk)[250](index=250&type=chunk) [Controls and Procedures](index=62&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures are effective, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO have concluded that the company's disclosure controls and procedures are effective as of the end of the reporting period[253](index=253&type=chunk) - No changes in internal controls over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[254](index=254&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=63&type=section&id=Item%201.%20Legal%20Proceedings) Routine legal actions are not expected to materially affect financial position, operations, or cash flows - The company does not believe that any currently pending legal proceedings will have a material adverse effect on its consolidated financial position, results of operations or cash flows[257](index=257&type=chunk) [Risk Factors](index=63&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors were reported since the last Form 10-K filing - No material changes in risk factors were reported since the last Form 10-K filing[258](index=258&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=63&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased shares from employees for tax liabilities, and insurance subsidiaries face dividend restrictions from Florida regulations - In May 2023, **8,614 shares** were repurchased from employees to cover tax liabilities from vesting restricted stock; these were not part of a publicly announced plan[260](index=260&type=chunk) - The company's insurance subsidiaries are subject to dividend payment restrictions by the Florida Office of Insurance Regulation (FLOIR), which could impact the parent company's ability to pay future dividends[261](index=261&type=chunk)[262](index=262&type=chunk) [Defaults Upon Senior Securities](index=64&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period [Mine Safety Disclosures](index=64&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company [Other Information](index=64&type=section&id=Item%205.%20Other%20Information) The company reported no other information required to be disclosed under this item [Exhibits](index=65&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the quarterly report, including articles of incorporation, debt indentures, and officer certifications

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-34126 HCI Group, Inc. (Exact name of registrant as specified in its charter) (State of Incorporation) Florida 20-5961396 (IRS Employer Identification No.) 3802 Coconut Palm ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 WASHINGTON, D.C. 20549 Form 10-K For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-34126 HCI Group, Inc. (Exact name of Registrant as specified in its charter) (State of Incorporation) (IRS Employer Florida 20-5961396 Identification No.) 3802 Coconut Palm Drive ...

HCI Group, Inc. (NYSE:HCI) Q3 2022 Earnings Conference Call November 8, 2022 4:45 PM ET Company Participants Matt Glover - Gateway Investor Relations Karin Coleman - Chief Operating Officer Mark Harmsworth - Chief Financial Officer Paresh Patel - Chairman and Chief Executive Officer Conference Call Participants Matt Carletti - JMP Mark Hughes - Truist Operator Good afternoon, and welcome to HCI Group's Third Quarter 2022 Earnings Call. My name is Paul, and I will be your conference operator. [Operator Instr ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 (Exact name of registrant as specified in its charter) (State of Incorporation) Florida 20-5961396 (IRS Employer Identification No.) Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-34126 HCI Group, Inc. Indicate by ch ...

HCI Group, Inc. (NYSE:HCI) Q2 2022 Earnings Conference Call August 9, 2022 8:30 AM ET Company Participants Matt Glover - IR Paresh Patel - Chairman and CEO Karin Coleman - COO Mark Harmsworth - CFO Conference Call Participants Matt Carletti - JMP Mark Hughes - Truist Operator Good morning, ladies and gentlemen, and welcome to the PCTEL Second Quarter 2022 Earnings Release Conference Call. At this time all participants are in a listen-only mode. At the conclusion of our prepared remarks, we will conduct a qu ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-34126 HCI Group, Inc. (Exact name of registrant as specified in its charter) (State of Incorporation) Florida 20-5961396 (IRS Employer Identification No.) 3802 Coconut Palm D ...

HCI Group, Inc. (NYSE:HCI) Q1 2022 Earnings Conference Call May 5, 2022 8:30 AM ET Company Participants Matt Glover - Investor Relations Paresh Patel - Chairman and Chief Executive Officer Karin Coleman - Chief Operating Officer Mark Harmsworth - Chief Financial Officer Conference Call Participants Matt Carletti - JMP Mark Hughes - Truist Securities Operator Good morning and welcome to HCI Group’s First Quarter 2022 Earnings Call. My name is Holly and I will be your conference operator. At this time, all pa ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-34126 HCI Group, Inc. (Exact name of Registrant as specified in its charter) (State of Incorporation) (IRS Employer Florida 20-5961396 Identification No.) 3802 Coconut Palm Drive ...

HCI Group, Inc. (NYSE:HCI) Q4 2021 Earnings Conference Call March 9, 2022 8:30 AM ET Company Participants Paresh Patel – Chairman and Chief Executive Officer Matt Glover – Investor Relations Karin Coleman – Chief Operating Officer Mark Harmsworth – Chief Financial Officer Conference Call Participants Matt Carletti – JMP Mark Hughes – Truist Operator Good morning and welcome to HCI Group's Fourth Quarter 2021 earnings call. My name is Paul and I will be your conference operator this morning. At this time, al ...