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HCI Group Reports Second Quarter 2024 Results

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HCI Group reported strong Q2 2024 results with pre-tax income of $76 million and net income of $57.1 million. Diluted earnings per share reached $4.24, up from $1.28 in Q2 2023. The company's performance was driven by solid underwriting execution and technology advantages. Key highlights include:

- Gross premiums earned increased to $263.6 million from $181.9 million in Q2 2023
- Gross loss ratio improved to 29.7% from 34.0% in Q2 2023
- Net investment income rose to $16.9 million from $8.8 million in Q2 2023

HCI Group's growth was primarily attributed to expansion in Florida and the assumption of policies from Citizens. The company's CEO, Paresh Patel, emphasized the power of their technology and plans to explore new opportunities in future periods.

HCI Group ha riportato risultati solidi nel secondo trimestre del 2024, con un reddito ante imposte di 76 milioni di dollari e un reddito netto di 57,1 milioni di dollari. Utili per azione diluiti hanno raggiunto 4,24 dollari, in aumento rispetto a 1,28 dollari nel Q2 2023. Le prestazioni dell'azienda sono state sostenute da una solida esecuzione nell'assicurazione e vantaggi tecnologici. I punti salienti includono:

- Premi lordi incassati aumentati a 263,6 milioni di dollari rispetto ai 181,9 milioni di dollari nel Q2 2023
- Rapporto di perdita lordo migliorato al 29,7% rispetto al 34,0% nel Q2 2023
- Reddito netto da investimenti salito a 16,9 milioni di dollari rispetto agli 8,8 milioni di dollari nel Q2 2023

La crescita del HCI Group è stata principalmente attribuita all'espansione in Florida e all'assunzione di polizze da Citizens. Il CEO dell'azienda, Paresh Patel, ha sottolineato la potenza della loro tecnologia e i piani per esplorare nuove opportunità nei prossimi periodi.

HCI Group reportó sólidos resultados en el segundo trimestre de 2024, con un ingreso antes de impuestos de 76 millones de dólares y un ingreso neto de 57,1 millones de dólares. Earnings por acción diluido alcanzó los 4,24 dólares, un aumento desde 1,28 dólares en el Q2 2023. El rendimiento de la empresa fue impulsado por una ejecución sólida en suscripción y ventajas tecnológicas. Los aspectos destacados incluyen:

- Primas brutas devengadas aumentaron a 263,6 millones de dólares desde 181,9 millones de dólares en el Q2 2023
- Ratio de pérdida bruta mejoró al 29,7% desde el 34,0% en el Q2 2023
- Ingreso neto de inversiones aumentó a 16,9 millones de dólares desde 8,8 millones de dólares en el Q2 2023

El crecimiento de HCI Group se atribuyó principalmente a la expansión en Florida y la asunción de pólizas de Citizens. El CEO de la empresa, Paresh Patel, enfatizó el poder de su tecnología y los planes para explorar nuevas oportunidades en futuros períodos.

HCI 그룹은 2024년 2분기 강력한 실적을 보고했으며, 세전 수익은 7천600만 달러, 순이익은 5천710만 달러에 달했습니다. 희석 주당 순이익은 4.24달러로, 2023년 2분기의 1.28달러에서 증가했습니다. 회사의 성과는 탄탄한 인수 실행과 기술적 이점을 바탕으로 했습니다. 주요 하이라이트는 다음과 같습니다:

- 총 보험료 수익이 2023년 2분기의 1억 8천190만 달러에서 2억 6천360만 달러로 증가했습니다.
- 총 손실 비율이 2023년 2분기의 34.0%에서 29.7%로 개선되었습니다.
- 순 투자 수익이 2023년 2분기의 880만 달러에서 1천690만 달러로 증가했습니다.

HCI 그룹의 성장은 주로 플로리다주에서의 확장과 Citizens의 보험정책 인수를 통해 이루어졌습니다. 회사의 CEO인 Paresh Patel은 기술의 힘을 강조하고 향후 새로운 기회를 탐색할 계획을 밝혔습니다.

HCI Group a rapporté des résultats solides pour le deuxième trimestre 2024, avec un revenu avant impôts de 76 millions de dollars et un revenu net de 57,1 millions de dollars. Les bénéfices par action dilués ont atteint 4,24 dollars, en hausse par rapport à 1,28 dollar au 2ème trimestre 2023. La performance de l'entreprise a été soutenue par une solide exécution en souscription et des avantages technologiques. Les points clés incluent :

- Primes brutes gagnées augmentées à 263,6 millions de dollars contre 181,9 millions de dollars au 2ème trimestre 2023
- Taux de perte brute amélioré à 29,7% contre 34,0% au 2ème trimestre 2023
- Revenu net d'investissement passé à 16,9 millions de dollars contre 8,8 millions de dollars au 2ème trimestre 2023

La croissance du HCI Group est principalement attribuée à l'expansion en Floride et à l'assumption de polices de Citizens. Le PDG de l'entreprise, Paresh Patel, a souligné la puissance de leur technologie et a exprimé l'intention d'explorer de nouvelles opportunités dans les périodes à venir.

HCI Gruppe berichtete über starke Ergebnisse im 2. Quartal 2024 mit einem vorsteuerlichen Einkommen von 76 Millionen Dollar und einem Nettogewinn von 57,1 Millionen Dollar. Verwässerte Erträge je Aktie erreichten 4,24 Dollar, ein Anstieg von 1,28 Dollar im 2. Quartal 2023. Die Leistung des Unternehmens wurde durch eine solide Underwriting-Performance und technologische Vorteile unterstützt. Wichtige Höhepunkte sind:

- Brutto-Prämien stiegen auf 263,6 Millionen Dollar von 181,9 Millionen Dollar im 2. Quartal 2023
- Bruttoverlustquote verbesserte sich auf 29,7% von 34,0% im 2. Quartal 2023
- Nettokapitalerträge stiegen auf 16,9 Millionen Dollar von 8,8 Millionen Dollar im 2. Quartal 2023

Das Wachstum der HCI Gruppe wurde hauptsächlich durch die Expansion in Florida und die Übernahme von Policen von Citizens erzielt. Der CEO des Unternehmens, Paresh Patel, betonte die Stärken ihrer Technologie und die Pläne, zukünftige Chancen zu erkunden.

Positive
  • Pre-tax income increased to $76 million in Q2 2024
  • Diluted EPS grew to $4.24 from $1.28 year-over-year
  • Gross premiums earned rose to $263.6 million, a 45% increase from Q2 2023
  • Gross loss ratio improved to 29.7% from 34.0% in Q2 2023
  • Net investment income increased by 92% to $16.9 million
Negative
  • Losses and loss adjustment expenses increased to $78.3 million from $61.9 million in Q2 2023
  • General and administrative personnel expenses rose to $17.5 million from $14.3 million in Q2 2023

Insights

HCI Group's Q2 2024 results demonstrate impressive financial performance, with significant improvements across key metrics. The company reported a $76.0 million pre-tax income and $57.1 million net income, translating to a substantial increase in diluted EPS to $4.24 from $1.28 year-over-year. The gross loss ratio improved to 29.7% from 34.0%, indicating enhanced underwriting efficiency.

Notably, consolidated gross premiums earned surged to $263.6 million, a 44.9% increase from Q2 2023. This growth, coupled with a lower percentage of premiums ceded for reinsurance (29.1% vs 36.5%), suggests improved risk management and potential for higher retained earnings. The significant boost in net investment income to $16.9 million further contributes to the company's strong financial position.

These results underscore HCI Group's effective execution of its growth strategy and technological advantages, positioning the company favorably in the competitive insurance market.

HCI Group's Q2 2024 results reveal a remarkable improvement in underwriting performance, particularly in the Florida market. The decline in the gross loss ratio to 29.7% is exceptionally low for the property insurance sector, especially considering Florida's challenging climate risks. This suggests HCI's risk selection and pricing strategies are highly effective.

The company's ability to grow gross premiums by 44.9% while simultaneously reducing the percentage of premiums ceded for reinsurance is a significant achievement. It indicates improved negotiating power with reinsurers and potentially higher profit margins. The mention of "assumption of policies from Citizens" suggests HCI is capitalizing on market opportunities created by the state-backed insurer's depopulation efforts.

The continued decline in claims and litigation frequency in Florida is particularly noteworthy, as it contradicts industry trends of increasing litigation costs. This could be attributed to HCI's technological edge in claims processing and risk assessment, potentially giving them a sustainable competitive advantage in the market.

HCI Group's Q2 2024 results highlight the transformative impact of technology in the insurance sector. CEO Paresh Patel's emphasis on the "power of our technology" driving profitability suggests that HCI's proprietary tech solutions are key differentiators in the market. This tech-driven approach appears to be yielding significant benefits in risk assessment, underwriting efficiency and claims management.

The impressive reduction in the gross loss ratio to 29.7% and the decline in claims and litigation frequency indicate that HCI's technology is likely enhancing predictive analytics for risk selection and pricing. Furthermore, the ability to rapidly scale operations, as evidenced by the 44.9% increase in gross premiums earned, suggests robust and scalable tech infrastructure.

Patel's statement about exploring "new ways to exploit our technology and capitalize on new opportunities" hints at potential future innovations. This could involve expanding into new insurance lines, leveraging AI for claims processing, or even licensing their technology to other insurers, opening up new revenue streams beyond traditional insurance operations.

Pre-Tax Income of $76 million
Diluted EPS of $4.24
Gross Loss Ratio of 29.7%

TAMPA, Fla., Aug. 08, 2024 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE:HCI), a holding company with operations in homeowners insurance, information technology services, real estate, and reinsurance, reported pre-tax income of $76.0 million and net income of $57.1 million in the second quarter of 2024. Net income after noncontrolling interests was $54.1 million compared with $12.4 million in the second quarter of 2023. Diluted earnings per share were $4.24 in the second quarter of 2024, compared with $1.28 diluted earnings per share, in the second quarter of 2023.

Adjusted net income (a non-GAAP measure which excludes net unrealized gains or losses on equity securities) for the second quarter of 2024 was $56.7 million, or $4.21 diluted earnings per share compared with adjusted net income of $14.2 million, or $1.22 diluted earnings per share, in the second quarter of 2023. This press release includes an explanation of adjusted net income as well as a reconciliation to net income and earnings per share calculated in accordance with generally accepted accounting principles (known as “GAAP”).

Management Commentary
“In the second quarter, HCI Group delivered another quarter of solid profitability driven by strong underwriting execution,” said HCI Group Chairman and Chief Executive Officer Paresh Patel. “The results highlight the power of our technology. In future periods, we plan not only to replicate this success but also to explore new ways to exploit our technology and capitalize on new opportunities.”

Second Quarter 2024 Commentary
Consolidated gross premiums earned in the second quarter increased to $263.6 million from $181.9 million in the second quarter of 2023 driven primarily by growth in Florida, including the assumption of policies from Citizens.

Premiums ceded for reinsurance in the second quarter were $76.7 million compared with $66.4 million in the second quarter of 2023. Premiums ceded represented 29.1% of gross premiums earned in the second quarter of 2024 compared with 36.5% in the second quarter of 2023.

Net investment income in the second quarter was $16.9 million compared with $8.8 million in the second quarter of 2023. The $8.1 million increase was primarily attributable to an increase in interest income from cash, cash equivalents, available-for-sale securities, and an increase in income from real estate investments.

Losses and loss adjustment expenses in the second quarter were $78.3 million compared with $61.9 million in the second quarter of 2023.  The gross loss ratio in the second quarter was 29.7% compared to 34.0% in the second quarter of 2023.  The decline in the gross loss ratio was driven primarily by the continued decline of claims and litigation frequency in Florida.

Policy acquisition and other underwriting expenses in the second quarter were $23.5 million compared with $22.6 million in the second quarter of 2023, representing 8.9% of gross premiums earned in the second quarter of 2024 compared with 12.4% in the second quarter of 2023.

General and administrative personnel expenses in the second quarter increased to $17.5 million from $14.3 million in the second quarter of 2023. General and administrative personnel expenses represented 6.6% of gross premiums earned in the second quarter of 2024 down from 7.8% in the second quarter of 2023.

Year-to-Date 2024 Results
For the six months ended June 30, 2024, the company reported pre-tax income of $153.5 million and net income of $114.1 million. Net income after noncontrolling interests was $101.7 million compared with $27.8 million for the first six months ended June 30, 2023. Diluted earnings per share were $8.04 for the first six months ended June 30, 2024, compared with $2.81 diluted earnings per share, for the six months ended June 30, 2023.

Adjusted net income (a non-GAAP measure which excludes net unrealized gains or losses on equity securities) for the six-month period was $111.7 million, or $7.86 diluted earnings per share compared with adjusted net income of $31.6 million, or $2.72 diluted earnings per share, in the same period of 2023. An explanation of this non-GAAP financial measure and reconciliations to the applicable GAAP numbers accompany this press release.

Consolidated gross premiums earned for the six months of 2024 increased to $520.2 million from $362.0 million in the same period of 2023 driven primarily by growth in Florida, including the assumption of policies from Citizens.

Premiums ceded for reinsurance for the six months of 2024 were $144.8 million compared with $136.9 million for the six months of 2023. Premiums ceded represented 27.8% of gross premiums earned for the six months of 2024 compared with 37.8% in the six months of 2023.

Net investment income for the six months of 2024 was $30.9 million compared with $26.5 million for the six months of 2023. The increase was primarily attributable to an increase in interest income from cash, cash equivalents, and available-for-sale securities, offset by a decrease in income from real estate investments.

Losses and loss adjustment expenses for the six months of 2024 were $158.2 million compared with $122.5 million for the six months of 2023.  The gross loss ratio decreased to 30.4% compared to 33.8% for the six months ended June 30, 2023. The decline in the gross loss ratio was driven primarily by the continued decline of claims and litigation frequency in Florida.

Policy acquisition and other underwriting expenses for the six months of 2024 were $45.6 million compared with $45.3 million for the six months of 2023, representing 8.8% of gross premiums earned in the six months of 2024 compared with 12.5% in the six months of 2023.

General and administrative personnel expenses for the six months of 2024 increased to $33.7 million from $27.8 million for the six months of 2023. General and administrative personnel expenses represented 6.5% of gross premiums earned in the six months of 2024 down from 7.7% in the six months of 2023.

Conference Call
HCI Group will hold a conference call later today, August 8, 2024, to discuss these financial results. Chairman and Chief Executive Officer Paresh Patel, Chief Operating Officer Karin Coleman and Chief Financial Officer Mark Harmsworth will host the call starting at 4:45 p.m. Eastern time.

Interested parties can listen to the live presentation by dialing the listen-only number below or by clicking the webcast link available on the Investor Information section of the company's website at www.hcigroup.com.

Listen-only toll-free number: (888) 506-0062
Listen-only international number: (973) 528-0011
Entry Code: 357144

Please call the conference telephone number 10 minutes before the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at (949) 574-3860.

A replay of the call will be available by telephone after 8:00 p.m. Eastern time on the same day as the call and via the Investor Information section of the HCI Group website at www.hcigroup.com through August 8, 2025.

Toll-free replay number: (877) 481-4010
International replay number: (919) 882-2331
Replay ID: 50883

About HCI Group, Inc.
HCI Group, Inc. owns subsidiaries engaged in diverse, yet complementary business activities, including homeowners insurance, information technology services, insurance management, real estate, and reinsurance. HCI’s leading insurance operation, TypTap Insurance Company, is a technology-driven homeowners insurance company. TypTap’s operations are powered in large part by insurance-related information technology developed by HCI’s software subsidiary, Exzeo USA, Inc. HCI’s largest subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., provides homeowners insurance primarily in Florida. HCI’s real estate subsidiary, Greenleaf Capital, LLC, owns and operates multiple properties in Florida, including office buildings, retail centers and marinas.

The company's common shares trade on the New York Stock Exchange under the ticker symbol "HCI" and are included in the Russell 2000 and S&P SmallCap 600 Index. HCI Group, Inc. regularly publishes financial and other information in the Investor Information section of the company’s website. For more information about HCI Group and its subsidiaries, visit www.hcigroup.com.

Forward-Looking Statements
This news release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "estimate," "expect," "intend," "plan," "confident," "prospects" and "project" and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions, but rather are subject to various risks and uncertainties. For example, the estimation of reserves for losses and loss adjustment expenses is an inherently imprecise process involving many assumptions and considerable management judgment. Some of these risks and uncertainties are identified in the company's filings with the Securities and Exchange Commission. Should any risks or uncertainties develop into actual events, these developments could have material adverse effects on the company's business, financial condition and results of operations. HCI Group, Inc. disclaims all obligations to update any forward-looking statements.

Company Contact:
Bill Broomall, CFA
Investor Relations
HCI Group, Inc.
Tel (813) 776-1012
wbroomall@typtap.com

Investor Relations Contact:
Matt Glover
Gateway Group, Inc.
Tel (949) 574-3860
HCI@gateway-grp.com

- Tables to follow -

HCI GROUP, INC. AND SUBSIDIARIES
Selected Financial Metrics
(Dollar amounts in thousands, except per share amounts)
 
  Q2 2024   Q2 2023 
  (Unaudited)   (Unaudited) 
Insurance Operations       
Gross Written Premiums:       
Homeowners Choice $191,775   $140,544 
TypTap Insurance Company  79,093    39,438 
Condo Owners Reciprocal Exchange  36,034    - 
Total Gross Written Premiums  306,902    179,982 
        
Gross Premiums Earned:       
Homeowners Choice  143,703    96,875 
TypTap Insurance Company  107,055    85,071 
Condo Owners Reciprocal Exchange  12,803    - 
Total Gross Premiums Earned  263,561    181,946 
        
Gross Premiums Earned Loss Ratio  29.7%   34.0%
        
Per Share Metrics       
GAAP Diluted EPS $4.24   $1.28 
Non-GAAP Adjusted Diluted EPS $4.21   $1.22 
        
Dividends per share $0.40   $0.40 
        
Book value per share at the end of period $42.72   $21.92 
        
Shares outstanding at the end of period  10,472,741    8,594,764 
          


HCI GROUP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Dollar amounts in thousands)
 
  June 30, 2024  December 31, 2023 
  (Unaudited)    
Assets      
Fixed-maturity securities, available for sale, at fair value (amortized cost: $643,892 and $387,687, respectively and allowance for credit losses: $0 and $0, respectively) $640,242  $383,238 
Equity securities, at fair value (cost: $49,192 and $44,011, respectively)  53,886   45,537 
Limited partnership investments  21,856   23,583 
Real estate investments  73,507   67,893 
Total investments  789,491   520,251 
       
Cash and cash equivalents  445,829   536,478 
Restricted cash  3,303   3,287 
Receivable from maturities of fixed-maturity securities  500   91,085 
Accrued interest and dividends receivable  7,067   3,507 
Income taxes receivable  2,820    
Deferred income taxes, net     512 
Premiums receivable, net (allowance: $4,321 and $3,152, respectively)  58,114   38,037 
Assumed premium receivable  7,562   19,954 
Prepaid reinsurance premiums  123,955   86,232 
Reinsurance recoverable, net of allowance for credit losses:      
Paid losses and loss adjustment expenses (allowance: $0 and $0, respectively)  23,367   19,690 
Unpaid losses and loss adjustment expenses (allowance: $66 and $118, respectively)  279,795   330,604 
Deferred policy acquisition costs  52,564   42,910 
Property and equipment, net  29,449   29,251 
Right-of-use-assets - operating leases  1,296   1,407 
Intangible assets, net  6,432   7,659 
Funds withheld for assumed business  14,353   30,087 
Other assets  65,484   50,365 
       
Total assets $1,911,381  $1,811,316 
       
Liabilities and Equity      
Losses and loss adjustment expenses $571,646  $585,073 
Unearned premiums  542,839   501,157 
Advance premiums  24,119   15,895 
Reinsurance payable on paid losses and loss adjustment expenses     3,145 
Ceded reinsurance premiums payable  7,950   8,921 
Assumed premiums payable     850 
Accrued expenses  27,860   19,722 
Income tax payable  8,962   7,702 
Deferred income taxes, net  4,328    
Revolving credit facility  48,000    
Long-term debt  184,912   208,495 
Lease liabilities - operating leases  1,305   1,408 
Other liabilities  35,426   35,623 
       
Total liabilities  1,457,347   1,387,991 
       
Commitments and contingencies      
Redeemable noncontrolling interest  791   96,160 
       
Equity:      
Common stock, (no par value, 40,000,000 shares authorized, 10,472,741 and 9,738,183
shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively)
      
Additional paid-in capital  117,968   89,568 
Retained income  331,960   238,438 
Accumulated other comprehensive loss, net of taxes  (2,579)  (3,163)
Total stockholders' equity  447,349   324,843 
Noncontrolling interests  5,894   2,322 
Total equity  453,243   327,165 
       
Total liabilities, redeemable noncontrolling interest, and equity $1,911,381  $1,811,316 
 


HCI GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
(Dollar amounts in thousands, except per share amounts)
 
  Three Months Ended  Six Months Ended 
  June 30,  June 30, 
  2024  2023  2024  2023 
Revenue            
             
Gross premiums earned $263,561  $181,946  $520,205  $362,014 
Premiums ceded  (76,713)  (66,390)  (144,819)  (136,899)
             
Net premiums earned  186,848   115,556   375,386   225,115 
             
Net investment income  16,881   8,794   30,948   26,509 
Net realized investment gains (losses)  221   (230)  212   (1,379)
Net unrealized investment gains  533   897   3,168   1,426 
Policy fee income  1,089   1,469   2,108   2,559 
Other  682   841   1,037   2,126 
             
Total revenue  206,254   127,327   412,859   256,356 
             
Expenses            
             
Losses and loss adjustment expenses  78,324   61,890   158,246   122,455 
Policy acquisition and other underwriting expenses  23,452   22,618   45,591   45,338 
General and administrative personnel expenses  17,471   14,272   33,745   27,774 
Interest expense  3,452   2,667   6,601   5,468 
Other operating expenses  7,520   5,614   15,220   11,919 
             
Total expenses  130,219   107,061   259,403   212,954 
             
Income before income taxes  76,026   20,266   153,456   43,402 
             
Income tax expense  18,927   5,384   39,401   10,727 
             
Net income $57,099  $14,882  $114,055  $32,675 
Net income attributable to redeemable noncontrolling interests     (2,337)  (10,149)  (4,661)
Net income attributable to noncontrolling interests  (3,023)  (102)  (2,219)  (233)
             
Net income after noncontrolling interests $54,076  $12,443  $101,687  $27,781 
             
Basic earnings per share $5.18  $1.45  $9.95  $3.23 
             
Diluted earnings per share $4.24  $1.28  $8.04  $2.81 
             
Dividends per share $0.40  $0.40  $0.80  $0.80 
 


HCI GROUP, INC. AND SUBSIDIARIES
(Amounts in thousands, except per share amounts)
 
A summary of the numerator and denominator of basic and diluted earnings per common share calculated in accordance with GAAP is presented below.
 
  Three Months Ended  Six Months Ended 
GAAP June 30, 2024  June 30, 2024 
  Income  Shares (a)  Per Share  Income  Shares (a)  Per Share 
  (Numerator)  (Denominator)  Amount  (Numerator)  (Denominator)  Amount 
Net income $57,099        $114,055       
Less: Net income attributable to redeemable noncontrolling interest           (10,149)      
Less: Net income attributable to noncontrolling interests  (3,023)        (2,219)      
Net income attributable to HCI  54,076         101,687       
Less: Income attributable to participating securities  (2,052)        (3,243)      
Basic Earnings Per Share:                  
Income allocated to common stockholders  52,024   10,041  $5.18   98,444   9,897  $9.95 
                   
Effect of Dilutive Securities:                  
Stock options     298         290    
Convertible senior notes  1,753   2,142      3,393   2,212    
Warrants     215         262    
                   
Diluted Earnings Per Share:                  
Income available to common stockholders and assumed conversions $53,777   12,696  $4.24  $101,837   12,661  $8.04 
                   
(a) Shares in thousands. 
  

Non-GAAP Financial Measures

Adjusted net income is a Non-GAAP financial measure that removes from net income of HCI's portion of the effect of unrealized gains or losses on equity securities required to be included in results of operations in accordance with Accounting Standards Codification 321. HCI Group believes net income without the effect of volatility in equity prices more accurately depicts operating results. This financial measurement is not recognized in accordance with accounting principles generally accepted in the United States of America ("GAAP") and should not be viewed as an alternative to GAAP measures of performance. A reconciliation of GAAP Net income to Non-GAAP Adjusted net income and GAAP diluted earnings per share to Non-GAAP Adjusted diluted earnings per share is provided below.

Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income

  Three Months Ended Six Months Ended
  June 30, 2024 June 30, 2024
GAAP Net income    $57,099       $114,055   
Net unrealized investment gains $(533)      $(3,168)     
Less: Tax effect at 25.041% $133       $793      
Net adjustment to Net income    $(400)      $(2,375)  
Non-GAAP Adjusted Net income    $56,699       $111,680   
 


HCI GROUP, INC. AND SUBSIDIARIES
(Amounts in thousands, except per share amounts)
 
A summary of the numerator and denominator of the basic and diluted earnings per common share calculated with the Non-GAAP financial measure Adjusted net income is presented below.
 
  Three Months Ended  Six Months Ended 
Non-GAAP June 30, 2024  June 30, 2024 
  Income  Shares (a)  Per Share  Income  Shares (a)  Per Share 
  (Numerator)  (Denominator)  Amount  (Numerator)  (Denominator)  Amount 
Adjusted net income (non-GAAP) $56,699        $111,680       
Less: Net income attributable to redeemable noncontrolling interest  -        $(10,149)      
Less: Net loss (income) attributable to noncontrolling interests  (3,018)        (2,206)      
Net income attributable to HCI  53,681         99,325       
Less: Income attributable to participating securities  (2,037)        (3,168)      
                   
Basic Earnings Per Share before unrealized gains/losses on equity securities:                  
Income allocated to common stockholders  51,644   10,041  $5.14   96,157   9,897  $9.72 
                   
Effect of Dilutive Securities:                  
Stock options     298         290    
Convertible senior notes  1,753   2,142      3,393   2,212    
Warrants     215         262    
                   
Diluted Earnings Per Share before unrealized gains/losses on equity securities:                  
Income available to common stockholders and assumed conversions $53,397  $12,696  $4.21  $99,550  $12,661  $7.86 
                   
(a) Shares in thousands. 
  

Reconciliation of GAAP Diluted EPS to Non-GAAP Adjusted Diluted EPS

  Three Months Ended Six Months Ended
  June 30, 2024 June 30, 2024
GAAP diluted Earnings Per Share    $4.24       $8.04   
Net unrealized investment gains $(0.04)      $(0.25)     
Less: Tax effect at 25.041% $0.01       $0.07      
Net adjustment to GAAP diluted EPS    $(0.03)      $(0.18)  
Non-GAAP Adjusted diluted EPS    $4.21       $7.86   

FAQ

What was HCI Group's diluted EPS for Q2 2024?

HCI Group reported diluted earnings per share of $4.24 for Q2 2024, compared to $1.28 in Q2 2023.

How did HCI Group's gross premiums earned change in Q2 2024?

HCI Group's gross premiums earned increased to $263.6 million in Q2 2024, up from $181.9 million in Q2 2023, primarily driven by growth in Florida.

What was HCI Group's gross loss ratio in Q2 2024?

HCI Group's gross loss ratio in Q2 2024 was 29.7%, an improvement from 34.0% in Q2 2023, driven by a decline in claims and litigation frequency in Florida.

How much did HCI Group's net investment income grow in Q2 2024?

HCI Group's net investment income grew to $16.9 million in Q2 2024, compared to $8.8 million in Q2 2023, an increase of $8.1 million.

HCI Group, Inc.

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1.20B
10.48M
21.95%
78%
11.5%
Insurance - Property & Casualty
Fire, Marine & Casualty Insurance
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United States of America
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