HCI Group Reports Fourth Quarter 2024 Results

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$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$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]