Have you been paying attention to shares of HCI Group (HCI) ? Shares have been on the move with the stock up 14.9% over the past month. The stock hit a new 52-week high of $140.72 in the previous session. HCI Group has gained 20.1% since the start of the year compared to the 4.9% move for the Zacks Finance sector and the 11.4% return for the Zacks Insurance - Property and Casualty industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't misse ...

TAMPA, Fla., March 03, 2025 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE: HCI) announced today a streamlined organizational structure to better align the long-term potential of the company. HCI will be organized into two distinct operating units, with each unit having defined management teams and operational objectives. “Each operating unit is financially strong, and we believe this new structure will enable both to pursue their growth and profitability objectives more effectively,” said Paresh Patel, HCI’s ch ...

Revenue and Premiums - In 2024, the company assumed 52,805 policies from Citizens Property Insurance Corporation, generating annualized gross premiums of $315,062,000, compared to 59,860 policies and $224,789,000 in 2023[23]. - Revenues from insurance operations represented 82.3% of total revenues in 2024, down from 86.9% in 2023 and 95.4% in 2022[25]. - TypTap Group's revenues accounted for 12.5% of total revenues in 2024, up from 11.6% in 2023 and 0.6% in 2022[46]. - Net premiums earned increased to $677.6 million in 2024, up from $495.9 million in 2023, representing a growth of 36.6%[59]. - Total revenue rose to $750.1 million in 2024, compared to $550.7 million in 2023, marking an increase of 36.2%[59]. - Gross premiums earned for 2024 were approximately $1,083,220,000, an increase of $317,708,000 from $765,512,000 in 2023, primarily due to policies assumed from Citizens and premium rate increases[181]. - Net premiums written increased to approximately $761,108,000 in 2024 from $628,995,000 in 2023, representing a year-over-year increase of 21%[182]. Financial Performance - Net income for 2024 was $127.6 million, a significant rise from $89.3 million in 2023, reflecting a growth of 43%[59]. - Total investments reached $874.7 million at the end of 2024, up from $520.3 million in 2023, indicating a growth of 67.9%[59]. - The total assets increased to $2,230.2 million in 2024, compared to $1,811.3 million in 2023, showing a growth of 23.1%[59]. - Total liabilities rose to $1,761.1 million in 2024, up from $1,388.0 million in 2023, reflecting an increase of 27%[59]. - Net investment income for 2024 was approximately $59,148,000, up from $46,234,000 in 2023, driven by a $17,758,000 increase in interest income[183]. - The loss ratio for 2024 was 55.3%, compared to 51.3% in 2023, indicating an increase in losses relative to net premiums earned[191]. - The expense ratio for 2024 improved to 27.8% from 33.7% in 2023, reflecting better management of expenses relative to net premiums earned[192]. - The combined ratio for 2024 was 83.1%, a decrease from 85.0% in 2023, indicating improved underwriting profitability[193]. Operational Strategy - The company utilizes internally developed software technologies to enhance efficiency in claims processing and identify profitable underwriting opportunities[20]. - The company focuses on exceptional service, disciplined underwriting, and effective use of technology as part of its competitive strategy[28]. - The company has a strategy to optimize its existing book of insurance business and expand organically while managing costs and diversifying operations[175]. - The company has engaged in a "take-out program" to acquire additional policies from Citizens, a Florida state-sponsored insurance carrier[174]. - The company has a strong focus on developing and deploying new technologies to streamline operational processes[175]. Risk Factors - The company aims to establish adequate loss reserves, but the process is complex and uncertain, potentially leading to material variances from reserved amounts[83]. - Future financial condition and results of operations may be adversely affected if actual losses exceed current loss reserves[84]. - The company relies on claims personnel for accurate claims evaluation, and any failure in this process could lead to litigation and negatively impact financial results[85]. - The insolvency of United Property & Casualty Insurance Company in 2023 could have a material adverse effect on the company's financial position and results of operations[103]. - The company may require additional capital in the future, which could be unavailable or only available on unfavorable terms, impacting growth and financial condition[106]. - The company’s operations in India expose it to additional risks, including compliance with complex foreign laws, which could negatively impact business and financial results[101]. - The company’s ability to recover amounts due from reinsurers is subject to their financial strength, and any failure could adversely affect financial condition[90]. - The company’s financial results may be negatively affected by fluctuating interest rates impacting investment income generated from available cash[110]. - The company faces competition for independent agents, and failure to attract them could negatively affect revenues[98]. - The company faces risks from unpredictable catastrophes, which can materially impact financial results, especially in regions prone to severe weather events[138]. - Cybersecurity risks are a significant concern, with potential data breaches leading to financial and reputational damage[130]. - The company is subject to various environmental regulations that could incur substantial costs if violated[129]. - Changing climate conditions may adversely impact business operations and financial condition due to increased frequency and severity of weather events[137]. Regulatory Environment - The company has regulatory approvals to underwrite residential property and casualty insurance in various states, aiming for geographical expansion[28]. - The insurance holding company is subject to extensive state regulation, which may limit growth and profitability, with potential penalties for non-compliance[121]. - Regulatory authorities may impose restrictions on premium rates and underwriting practices, potentially affecting profitability[127]. - Legal and regulatory risks in the insurance industry may lead to increased costs and deterioration of reserves, particularly due to rising jury awards and litigation trends[115]. Dividends and Shareholder Returns - The company maintained dividends per share at $1.60 for 2024, consistent with the previous two years[59]. - The company declared a quarterly dividend of $0.40 per common share, payable on March 21, 2025, to stockholders of record on February 21, 2025[177]. Workforce and Employment - The company employed 552 full-time individuals as of February 15, 2025, indicating a stable workforce[65].

HCI Group (HCI) Q4 2024 Earnings Call February 28, 2025 12:37 AM ET Company Participants Matt Glover - Senior MDKarin Coleman - President of Homeowners Choice Property & Casualty Insurance Company, Inc., COO & DirectorMark Harmsworth - Chief Financial OfficerParesh Patel - Chairman and Chief Executive OfficerMatthew Carletti - Managing Director Conference Call Participants Michael Phillips - Managing Director and Insurance AnalystMark Hughes - Analyst Operator Good afternoon, and welcome to HCI Group's Four ...

Core Insights - HCI Group reported a revenue of $161.88 million for the quarter ended December 2024, reflecting a decrease of 0.5% year-over-year, and an EPS of $0.31 compared to $3.22 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $163.88 million, resulting in a surprise of -1.22%, while the EPS exceeded expectations with a surprise of +111.27% against a consensus estimate of -$2.75 [1] Financial Performance Metrics - Net investment income was reported at $14.49 million, surpassing the average estimate of $14.26 million, marking a year-over-year increase of +40.1% [4] - Policy fee income matched the estimated $1.30 million, showing a year-over-year growth of +23.7% [4] - Net premiums earned were $146.35 million, below the average estimate of $154.57 million, indicating a decline of -1.5% year-over-year [4] - Other income was reported at $0.59 million, exceeding the estimated $0.52 million, with a significant year-over-year increase of +144.2% [4] Stock Performance - HCI Group's shares have returned -0.5% over the past month, in contrast to the Zacks S&P 500 composite's decline of -2.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

HCI Group, Inc. (NYSE:HCI) Q4 2024 Earnings Conference Call February 27, 2025 4:45 PM ET Company Participants Matt Glover - Senior Managing Director-Gateway Investor Relations Karin Coleman - Chief Operating Officer Mark Harmsworth - Chief Financial Officer Paresh Patel - Chief Executive Officer Conference Call Participants Matthew Carletti - Citizens JMP Michael Phillips - Oppenheimer Mark Hughes - Truist Securities Operator Good afternoon, and welcome to HCI Group's Fourth Quarter 2024 Earnings Call. My n ...

Core Viewpoint - HCI Group reported quarterly earnings of $0.31 per share, significantly beating the Zacks Consensus Estimate of a loss of $2.75 per share, although this is a decline from earnings of $3.22 per share a year ago [1] Earnings Performance - The earnings surprise for the quarter was 111.27%, following a previous quarter where the company also exceeded expectations with earnings of $0.47 per share against an estimate of $0.39 per share, resulting in a surprise of 20.51% [2] - Over the last four quarters, HCI Group has consistently surpassed consensus EPS estimates [2] Revenue Analysis - HCI Group reported revenues of $161.88 million for the quarter ended December 2024, which was 1.22% below the Zacks Consensus Estimate and a slight decrease from $162.67 million in the same quarter last year [3] - The company has exceeded consensus revenue estimates in two of the last four quarters [3] Stock Performance - HCI Group shares have increased approximately 4.1% since the beginning of the year, outperforming the S&P 500, which gained 1.3% [4] Future Outlook - The company's future stock performance will largely depend on management's commentary during the earnings call and the revisions in earnings estimates [4][5] - Current consensus EPS estimate for the upcoming quarter is $4.03 on revenues of $228.74 million, and for the current fiscal year, it is $13.50 on revenues of $925.74 million [8] Industry Context - The Insurance - Property and Casualty industry, to which HCI Group belongs, is currently ranked in the top 17% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [9]

Financial Performance - Q4 2024 pre-tax income was $5.9 million, with diluted EPS of $0.23, a significant decrease from $38.1 million and $3.40 in Q4 2023 respectively[1][2] - Adjusted net income for Q4 2024 was $5.0 million, or $0.31 diluted EPS, compared to $38.8 million, or $3.22 diluted EPS in Q4 2023[2] - For the full year 2024, pre-tax income was $173.4 million, with diluted EPS of $8.89, compared to $79.0 million and $7.62 in 2023[9] - Net income for the year ended December 31, 2024, was $127,581 thousand, up 43% from $89,257 thousand in 2023[28] - Basic earnings per share for the year ended December 31, 2024, increased to $10.59, compared to $9.13 in 2023, reflecting a growth of 16.0%[28] - Adjusted net income for the three months ended December 31, 2024, was $5,019 thousand, while for the year ended December 31, 2024, it was $125,599 thousand[35] - Basic Earnings Per Share (EPS) before unrealized gains/losses on equity securities for the three months ended December 31, 2024, was $0.33, compared to $10.42 for the year ended December 31, 2024[35] - Diluted EPS before unrealized gains/losses on equity securities for the three months ended December 31, 2024, was $0.31, while for the year ended December 31, 2024, it was $8.75[37] - GAAP diluted EPS for the three months ended December 31, 2024, was $0.23, and for the year ended December 31, 2024, it was $8.89[37] - Non-GAAP Adjusted diluted EPS for the three months ended December 31, 2024, was $0.31, and for the year ended December 31, 2024, it was $8.75[37] - The company reported a net income attributable to HCI of $3,469 thousand for the three months ended December 31, 2024, and $108,169 thousand for the year ended December 31, 2024[35] Revenue and Premiums - Consolidated gross premiums earned in Q4 2024 increased by 38.0% to $297.5 million from $215.2 million in Q4 2023, primarily due to policies from Citizens Property Insurance Corporation[4] - Consolidated gross premiums earned for the full year 2024 increased by 41.5% to $1,083.2 million from $765.5 million in 2023[11] - Gross premiums earned for the year ended December 31, 2024, were $1,083,220 thousand, a significant increase of 41.6% compared to $765,512 thousand in 2023[28] Expenses and Losses - Losses and loss adjustment expenses in Q4 2024 were $110.7 million, compared to $65.4 million in Q4 2023, including a net loss of $78.0 million from Hurricane Milton[7][14] - Losses and loss adjustment expenses for the year ended December 31, 2024, were $374,708 thousand, up from $254,579 thousand in 2023, indicating a rise of 47.2%[28] - General and administrative personnel expenses for the full year 2024 increased to $63.2 million from $53.9 million in 2023[15] Investment Income - Net investment income in Q4 2024 rose to $14.5 million, up from $10.3 million in Q4 2023, driven by increased interest income[6] - The company reported net investment income of $59,148 thousand for the year ended December 31, 2024, up from $46,234 thousand in 2023, a growth of 27.8%[28] Assets and Liabilities - Total assets increased to $2,230,213 thousand as of December 31, 2024, up from $1,811,316 thousand in 2023, representing a growth of 23.1%[26] - Total liabilities increased to $1,761,172 thousand in 2024 from $1,387,991 thousand in 2023, representing a rise of 27.0%[26] Reinsurance and Dividends - Premiums ceded for reinsurance for the full year 2024 were $405.7 million, up from $269.6 million in 2023[12] - The company declared dividends per share of $1.60 for both 2024 and 2023, maintaining consistent shareholder returns[28] Future Plans - The company plans to keep rates flat for the foreseeable future and aims to expand its technology offerings to other carriers and geographies[3] Other Financial Metrics - The effect of dilutive securities included stock options, convertible senior notes, and warrants, impacting the diluted EPS calculations[35] - The company experienced a net loss attributable to noncontrolling interests of $(1,550) thousand for the three months ended December 31, 2024[35] - Net unrealized investment gains contributed $0.10 to GAAP diluted EPS for the three months ended December 31, 2024[37] - The tax effect on net unrealized investment gains was $0.02 for the three months ended December 31, 2024[37]

Core Insights - HCI Group, Inc. reported a significant decline in net income for Q4 2024, with a pre-tax income of $5.9 million and diluted EPS of $0.23, compared to $38.1 million and $3.40 in Q4 2023 [1][9] - The full year 2024 results showed a pre-tax income of $173.4 million and diluted EPS of $8.89, an increase from $7.62 in 2023 [9][10] Financial Performance - Q4 2024 adjusted net income was $5.0 million, or $0.31 diluted EPS, down from $38.8 million, or $3.22 diluted EPS in Q4 2023 [2] - Consolidated gross premiums earned in Q4 2024 increased by 38.0% to $297.5 million from $215.2 million in Q4 2023, primarily due to policy assumptions from Citizens Property Insurance Corporation [4] - For the full year 2024, consolidated gross premiums earned rose by 41.5% to $1,083.2 million from $765.5 million in 2023 [11] Losses and Expenses - Losses and loss adjustment expenses in Q4 2024 were $110.7 million, up from $65.4 million in Q4 2023, including a net loss of $78.0 million from Hurricane Milton [7][14] - Policy acquisition and other underwriting expenses for Q4 2024 were $27.7 million, compared to $22.7 million in Q4 2023 [7] - General and administrative personnel expenses decreased to $10.2 million from $12.2 million in Q4 2023, attributed to lower stock-based compensation [8] Investment Income - Net investment income for Q4 2024 was $14.5 million, an increase from $10.3 million in Q4 2023, mainly due to higher interest income from cash and fixed maturity securities [6][13] Management Commentary - HCI Group's CEO emphasized the company's commitment to Florida and plans to maintain flat rates for the foreseeable future despite increased catastrophe activity [3]

Core Insights - HCI Group, Inc. announced that Tailrow Insurance Exchange has successfully assumed nearly 14,000 policies from Citizens Property Insurance Corporation, representing approximately $35 million in in-force premium [1][3]. Company Operations - Tailrow Insurance Exchange is a reciprocal insurer sponsored by HCI, focusing on personal residential policies [1]. - The company was approved for 20,000 policies, made around 18,000 offers, and achieved a 76% acceptance rate for the policies assumed [3]. Management Commentary - HCI's CEO, Paresh Patel, expressed excitement about the successful assumption and highlighted the technology and management expertise that facilitated the identification of attractive policies [2]. Company Structure - HCI Group, Inc. operates in various sectors including homeowners insurance, information technology services, real estate, and reinsurance [5]. - The company's leading insurance operation, TypTap Insurance Company, is technology-driven and supported by HCI's software subsidiary, Exzeo USA, Inc. [5]. Market Presence - HCI Group's common shares are traded on the New York Stock Exchange under the ticker symbol "HCI" and are included in the Russell 2000 and S&P SmallCap 600 Index [6].