Tailrow Reciprocal Exchange, an HCI Group Sponsored Insurer, Assumes Just Under 14,000 Policies from Citizens, Representing Approximately $35 Million in Premium

Rhea-AI Summary

HCI Group announced that its sponsored reciprocal insurer, Tailrow Insurance Exchange, has successfully assumed nearly 14,000 policies from Citizens Property Insurance , Florida's state-backed insurance company. The assumed policies represent approximately $35 million of in-force premium.

Tailrow achieved a 76% acceptance rate, having been approved for 20,000 policies and making approximately 18,000 offers. The policy assumption became effective on February 18, 2025. The company operates as a reciprocal insurer, an unincorporated aggregation of policyholders operating through an attorney in fact, with policyholders essentially owning the company while management services are provided for a predetermined fee.

Positive

• Successfully assumed 14,000 new policies worth $35M in premium
• High acceptance rate of 76% from policy offers made
• Expansion of business operations through new insurance subsidiary

Negative

• None.

TAMPA, Fla., Feb. 24, 2025 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE: HCI), a holding company with operations in homeowners insurance, information technology services, real estate, and reinsurance, announced today that Tailrow Insurance Exchange, an HCI-sponsored reciprocal insurer with plans to write personal residential policies, has successfully assumed just under 14,000 policies from Citizens Property Insurance Corporation, Florida’s state-backed insurance company. The policies assumed represent approximately $35 million of in-force premium.

“We are excited to complete this assumption and officially commence operations at Tailrow. The technology we’ve built and our management expertise enabled us to identify attractive policies at Citizens for assumption and achieve a high adoption rate by policyholders,” said Paresh Patel, HCI’s chairman and chief executive officer.

Tailrow was approved for 20,000 policies, made approximately 18,000 offers and assumed just under 14,000 policies – a 76% acceptance rate. The assumption of policies is effective as of February 18, 2025.

A “reciprocal insurer” is an unincorporated aggregation of at least 25 policyholders operating through an attorney in fact to provide insurance among themselves. A reciprocal insurer is essentially owned by its policyholders, but its operations such as underwriting, claims and management services are provided by an attorney in fact for a predetermined management fee.

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.

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

FAQ

How many policies did Tailrow Insurance Exchange assume from Citizens in February 2025?

Tailrow Insurance Exchange assumed just under 14,000 policies from Citizens Property Insurance in February 2025.

What is the total premium value of policies assumed by HCI's Tailrow from Citizens?

The policies assumed by Tailrow represent approximately $35 million of in-force premium.

What was Tailrow's policy acceptance rate in the Citizens assumption?

Tailrow achieved a 76% acceptance rate, assuming just under 14,000 policies out of approximately 18,000 offers made.

When did Tailrow's assumption of Citizens policies become effective?

The assumption of policies became effective as of February 18, 2025.

How many policies was Tailrow Insurance Exchange initially approved to assume?

Tailrow was approved to assume 20,000 policies from Citizens Property Insurance