HCI Group (HCI) closed at $109.91 in the latest trading session, marking a -1.69% move from the prior day. This change lagged the S&P 500's 0.58% loss on the day. At the same time, the Dow lost 0.12%, and the tech-heavy Nasdaq lost 1.15%.Prior to today's trading, shares of the property and casualty insurance holding company had gained 1.3% over the past month. This has outpaced the Finance sector's loss of 6.34% and the S&P 500's loss of 1.09% in that time.The investment community will be paying close atten ...

The recent consumer price index (CPI) data revealed that U.S. inflation is running hotter than anticipated. Prices rose 0.4% in March over the previous month and 3.5% year over year, surpassing forecasts of 0.3% and 3.4%, respectively. The data confirmed concerns that inflation is stickier than expected and lowered expectations for imminent interest rate cuts by the Federal Reserve.Market predictions for rate cuts in June have shifted significantly since the CPI release. The Fed is determined not to cut rat ...

HCI Group (HCI) closed at $110.22 in the latest trading session, marking a +0.8% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 1.2% for the day. At the same time, the Dow lost 0.65%, and the tech-heavy Nasdaq lost 1.79%.The property and casualty insurance holding company's shares have seen a decrease of 1.81% over the last month, surpassing the Finance sector's loss of 5.6% and falling behind the S&P 500's loss of 0.85%.The upcoming earnings release of HCI Group will be ...

TAMPA, Fla., April 11, 2024 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE:HCI), a holding company with operations in homeowners insurance, information technology services, real estate, and reinsurance, will hold a conference call on Wednesday, May 8, 2024, at 4:45 p.m. Eastern time to discuss results for the first quarter ended March 31, 2024. Financial results will be issued in a press release the same day after the close of the market. HCI management will host the presentation, followed by a question-and-answ ...

For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. HCI Group (HCI) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Finance peers, we might be able to answer that question.HCI Group is one of 859 companies in the Finance group. The Finance group currently sits ...

Insurance Operations - HCPCI ceased offering flood insurance policies in Florida during 2023, with gross earned premiums from such policies comprising less than 1% of total HCPCI gross premiums earned in 2022[18]. - In 2023, HCPCI assumed approximately 53,400 policies from Citizens, representing $196.8 million in annualized gross premiums written[19]. - TypTap's gross written premium grew from $2.5 million in 2016 to $363.6 million in 2023, marking significant organic growth[29]. - TypTap generated approximately $87.3 million in written premiums from states outside of Florida during 2023[29]. - Revenues from HCPCI insurance operations represented 63.8% of total revenues of all operating segments for the year ended December 31, 2023[26]. - TypTap Group's revenues represented 34.5% of total revenues of all operating segments for the year ended December 31, 2023[40]. - TypTap assumed approximately 6,700 policies from Citizens in 2023, representing approximately $77.6 million of annualized gross premiums written in aggregate[30]. Financial Performance - Net premiums earned for the year ended December 31, 2023, increased to $495.9 million, up from $463.6 million in 2022, representing a growth of 6.9%[59]. - Total revenue rose to $550.7 million in 2023, compared to $499.6 million in 2022, marking an increase of 10.2%[59]. - Losses and loss adjustment expenses decreased significantly to $254.6 million in 2023 from $371.5 million in 2022, a reduction of 31.5%[59]. - Net income for 2023 was $89.3 million, a turnaround from a net loss of $54.6 million in 2022[59]. - Basic earnings per share for 2023 was $9.13, compared to a loss of $6.24 per share in 2022[59]. - Total assets as of December 31, 2023, were $1,811.3 million, slightly up from $1,803.3 million in 2022[59]. - Total liabilities decreased to $1,388.0 million in 2023 from $1,548.5 million in 2022, a decline of 10.4%[59]. - Cash and cash equivalents increased significantly to $536.5 million in 2023, compared to $234.9 million in 2022[59]. - The company provided $230.7 million in net cash from operating activities in 2023, a notable increase from $96.5 million in 2022[59]. - Dividends per share remained stable at $1.60 for both 2023 and 2022[59]. Risk Factors - Increased competition in the property and casualty insurance industry may adversely impact the company's financial results and premium growth[82]. - The company faces risks if actual losses exceed its loss reserves, potentially affecting financial results and business expansion[84]. - The company must maintain adequate risk-based capital to comply with regulatory requirements and avoid insolvency risks[90]. - The insolvency of United Property & Casualty Insurance Company could have a material adverse effect on the company's financial position[107]. - CORE's entry into the condominium insurance market presents challenges that could impact expected management fee revenue and the company's reputation[108]. - The company may require additional capital in the future, which could be unavailable or only available on unfavorable terms[110]. - The ability to accurately price risks is critical for maintaining profitability and financial stability[101]. - The company relies on independent agents for policy sales, and any inability to attract and retain them could negatively affect revenues[100]. - The company faces uncertainties related to emerging claim and coverage issues that may adversely affect its business[89]. - The company faces restrictions in its credit agreement that limit operational flexibility, including covenants on increasing indebtedness and asset disposals[113]. - An increase in interest rates could negatively impact the company's operating results due to higher interest expenses on variable-rate borrowings[113]. - The company may incur significant losses on its investment portfolio if it needs to sell illiquid investments at a value below their carrying value[114]. - Revenue from real estate investments is dependent on the economic viability of anchor retail tenants, with potential adverse effects if these tenants become insolvent[116]. - The company periodically evaluates long-lived assets for impairment, which could lead to material adverse effects on financial results if impairments are recognized[120]. - Ongoing investments in real estate and information technology carry inherent risks that could burden financial and human resources[121]. - The company is subject to extensive state regulations that may reduce profitability and limit growth, with potential penalties for non-compliance[126]. - Changes in the regulatory environment, including potential federal oversight, could adversely affect the company's operations and competitive position[125]. - Economic activity fluctuations, particularly in the housing market, could materially impact the demand for homeowners insurance and related revenues[139]. - Climate change may negatively affect the frequency and severity of weather events, impacting the company's business and financial condition[140]. - The company is exposed to unpredictable catastrophes, which can materially and adversely affect financial results, particularly in regions like Florida and the northeast and southeast, where policyholders are concentrated[141]. Shareholder Information - The company has a total of $100,000,000 in Series A Preferred Stock redeemed, along with accrued dividends of approximately $2,923,000, funded by cash on hand and $50,000,000 from a revolving credit facility[179]. - The company has declared cash dividends of $0.40 per share for each quarter in 2023, totaling $1.60 for the year[166]. - The company has a total of 590,000 outstanding options under equity compensation plans with a weighted-average exercise price of $51.54[167]. - The company’s common stock trades on the New York Stock Exchange under the symbol "HCI," with a market price of $99.43 as of March 1, 2024[165]. Investment and Growth Strategy - The company has engaged in a strategy to optimize its existing book of insurance business and expand organically, while also managing costs and diversifying operations[178]. - The company continues to pursue geographical expansion and has regulatory approvals to underwrite residential property and casualty insurance in various states[45]. - The new shelf registration allows the company to raise up to $75,000,000 through the issuance of new shares, subject to market conditions[181]. - The company expects to issue approximately 397,000 shares upon the redemption of $23,916,000 principal balance of its 4.25% Convertible Senior Notes due 2037[185]. Investment Performance - Net investment income increased to approximately $46,234,000 in 2023 from $32,447,000 in 2022, driven by higher interest income and gains from fixed-maturity securities[191]. - Gross premiums earned increased to approximately $765,512,000 in 2023 from $724,716,000 in 2022, reflecting a $40,796,000 increase primarily due to the assumption of Citizens insurance policies[187]. - Net premiums written for 2023 totaled approximately $628,995,000, up from $464,875,000 in 2022, marking a $164,120,000 increase driven by the assumption of Citizens insurance policies[188]. - The loss ratio for 2023 improved to 51.3% from 80.1% in 2022, attributed to a decrease in losses and loss adjustment expenses[199]. - The combined ratio for 2023 was 87.3%, significantly lower than 122.5% in 2022, indicating improved underwriting profitability[201].

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 September 30, 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 P ...

Financial Data and Key Metrics Changes - The company reported pretax income of $20.1 million and diluted earnings per share of $1.43 for the third quarter, marking the third consecutive quarter of pretax income over $20 million [36][40] - Gross premiums earned increased by almost 4% in the third quarter, while the consolidated gross loss ratio improved to approximately 32% when adjusted for catastrophe losses [36][41] - Shareholder equity grew by about 25% year-to-date, with book value per share rising from $18.91 at the start of the year to $23.27 at the end of the third quarter [41] Business Line Data and Key Metrics Changes - Homeowner's Choice and TypTap Insurance Group both contributed positively to quarterly results, with TypTap reporting its third consecutive quarter of GAAP profitability [37] - The company is approved to assume up to 125,000 policies from Citizens, which is expected to add between $150 million to $250 million of in-force premium [38][41] Market Data and Key Metrics Changes - The Florida homeowner's market is stabilizing due to legislative reforms, providing policyholders with greater consumer choice [37] - The competitive environment in Florida is mixed, with some companies shrinking while new startups are entering the market [9] Company Strategy and Development Direction - The company is forming a new reciprocal carrier in Florida, named Condo Owners Reciprocal Exchange, to enter the commercial residential insurance space [2][3] - The company is focused on top-line growth and plans to leverage its technology and capabilities for better risk selection in the current market [21][41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for continued growth in Q4 and a bright outlook for 2024, driven by the assumption of policies from Citizens and improving loss trends [3][41] - The company is taking a prudent approach to reserving, maintaining flat net reserves despite a decrease in open claims [6][41] Other Important Information - The company paid a dividend of $0.40 per share, marking its 52nd consecutive quarterly dividend [38] - Investment income totaled $9.4 million, primarily from cash and fixed income holdings, benefiting from the current rate environment [36][41] Q&A Session Summary Question: Can you provide insights into the underlying loss trends? - Management noted significant decreases in claim frequency, with adjusted claims frequency down about 20% quarter-over-quarter and litigation down 30% to 40% [6] Question: What is the expected average policy size for the takeouts from Citizens? - The estimated average premium per policy is approximately $3,700 [7] Question: How is the competitive environment in Florida? - The competitive landscape is mixed, with some companies shrinking while new startups are emerging, and the Florida insurance space is improving [9] Question: What is the strategy behind the new reciprocal exchange? - The new reciprocal exchange aims to enter a tough commercial residential market, providing value to both shareholders and policyholders [14] Question: What is the expected hit rate for the policies being taken from Citizens? - The expected hit rate is between 40% and 60%, with the company focusing on smooth transitions for policyholders [28][29]

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 ...