HCI(US:HCI)2025-11-07 21:01Financial Performance - Net income for the nine months ended September 30, 2025, reached $212,397 thousand, compared to $123,447 thousand for the same period in 2024, reflecting a significant increase of 72.0%[15] - Basic earnings per share for the three months ended September 30, 2025, were $5.05, up from $0.54 in the same period of 2024, indicating a substantial increase of 834.3%[15] - The net income for the three months ended September 30, 2025, was $67,888,000, compared to $65,507,000 for the previous quarter, indicating a quarter-over-quarter increase of about 3.6%[21] - For the nine months ended September 30, 2025, the company reported a net income of $212,397,000, a significant increase from $9,392,000 for the same period in the previous year[26] - The company reported net income from investment portfolio of $19,361,000, up from $17,217,000, marking an increase of about 12.5%[125][129] Revenue Growth - Net premiums earned for the three months ended September 30, 2025, were $194,991 thousand, a 25.1% increase from $155,824 thousand in the same period of 2024[15] - Total revenue for the nine months ended September 30, 2025, was $654,703,000, an increase of 11.2% compared to $588,176,000 for the same period in 2024[15] - Gross premiums earned for the three months ended September 30, 2025, were $301,079,000, an increase from $265,518,000 in the same period of 2024, representing a growth of approximately 13.4%[125][129] - Total revenue for the quarter was $216,350,000, up from $175,317,000 in the previous year, reflecting a growth of approximately 23.5%[125][129] Asset and Equity Changes - Total assets increased to $2,346,779 thousand as of September 30, 2025, up from $2,230,213 thousand at December 31, 2024, representing a growth of approximately 5.2%[9] - Total stockholders' equity increased to $821,776 thousand as of September 30, 2025, compared to $453,333 thousand at December 31, 2024, representing an increase of 81.2%[12] - The company’s cash and cash equivalents rose to $987,933 thousand as of September 30, 2025, compared to $532,471 thousand at December 31, 2024, marking an increase of 85.5%[9] - As of September 30, 2025, total stockholders' equity reached $852,346,000, an increase from $784,684,000 as of June 30, 2025, reflecting a growth of approximately 8.6%[21] Expense Management - Total expenses decreased to $125,751,000 from $161,237,000, resulting in a reduction of about 22% year-over-year[125][129] - Total expenses for the nine months ended September 30, 2025, were $369,373,000, a decrease from $420,640,000 in 2024, indicating a reduction of 12.2%[134] - Losses and loss adjustment expenses for the three months ended September 30, 2025, were $66,153 thousand, down 37.5% from $105,736 thousand in the same period of 2024[15] Investment Performance - The company reported net investment income of $17,529 thousand for the three months ended September 30, 2025, which is a 27.0% increase from $13,714 thousand in the same period of 2024[15] - The company recognized net investment loss of $51 thousand for the three months ended September 30, 2025, compared to net investment income of $79 thousand for the same period in 2024[76] - The company’s unrealized gains on investments in available-for-sale fixed-maturity securities, net of income taxes, were $2.8 million for the nine months ended September 30, 2025, compared to $5.3 million in 2024[37] Policy and Insurance Operations - The Insurance Operations segment represented 77.1% of total revenue for the three months ended September 30, 2025, down from 82.7% in 2024[122] - During the nine months ended September 30, 2025, approximately 13,900 policies were assumed from Citizens Property Insurance Corporation, representing approximately $35,800 in annualized gross written premiums[42] - The company experienced no losses from catastrophic events for the three and nine months ended September 30, 2025, while the previous year included net losses of $40,000 due to Hurricane Helene and $6,500 due to Hurricane Debby[116] Shareholder Actions - Common stock dividends declared were $0.40 per share, totaling $5,183,000 for the quarter ended September 30, 2025[21] - The company issued 3,750,000 shares of restricted stock during the quarter, contributing to the overall equity increase[21] - The company declared a quarterly dividend of $0.40 per common share on July 1, 2025, which was paid on September 19, 2025[155] Debt and Financing - The total long-term debt as of September 30, 2025, was $32,078,000, a significant decrease from $185,254,000 as of December 31, 2024[98] - The company had $38,000,000 outstanding under a revolving credit facility as of September 30, 2025, with an additional available borrowing capacity of $37,000,000[97] - The company reported interest expense related to long-term debt of $400,000 for the three months ended September 30, 2025, compared to $2,562,000 for the same period in 2024[98]