HCI(HCI) - 2024 Q4 - Annual Results

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$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$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$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$2,230,213 thousand as of December 31, 2024, up from $1,811,316 thousand in 2023, representing a growth of 23.1$1,761,172 thousand in 2024 from $1,387,991 thousand in 2023, representing a rise of 27.0$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]