HCI Group, Inc. Issues CAT Loss Estimate for Q3 2020

Rhea-AI Summary

HCI Group, Inc. (NYSE:HCI) has reported an initial estimate of $17.7 million in catastrophic losses for Q3 2020, primarily due to Hurricane Sally, which impacted its homeowners and flood insurance operations in Florida. The net after-tax impact is projected at approximately $12.5 million. Importantly, HCI's subsidiary, TypTap Insurance Company, reported no losses from this event. HCI Group continues to operate in insurance, software development, and real estate, maintaining its presence in the Russell 2000 and S&P SmallCap 600 Index.

Positive

• TypTap Insurance Company reported no losses from Hurricane Sally.
• HCI continues to have strong operational presence in the insurance and InsurTech sectors.

Negative

• Estimated catastrophic losses of $17.7 million impacting financial performance.
• Net after-tax impact of approximately $12.5 million could affect shareholder value.

TypTap Insurance Subsidiary Unaffected

TAMPA, Fla., Oct. 23, 2020 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE:HCI) has issued an initial catastrophic loss estimate for the third quarter of 2020. HCI’s homeowners and flood insurance operations, which are primarily in Florida, experienced only one catastrophic event during the quarter. Hurricane Sally made landfall near Gulf Shores, Alabama, but impacted the Florida panhandle with high winds and rain. HCI’s preliminary estimates for the quarter indicate $17.7 million in catastrophic losses related to Hurricane Sally. The net after tax impact is estimated at approximately $12.5 million. All the catastrophic losses during the quarter were sustained by HCI’s Homeowners Choice insurance operation. TypTap Insurance Company, HCI’s rapidly growing, technology driven insurance subsidiary, was unaffected.

About HCI Group, Inc.
HCI Group, Inc. is an InsurTech company with operations in insurance, software development and real estate. HCI’s leading subsidiary corporation, TypTap Insurance Group, Inc., embodies HCI’s InsurTech operations. It owns TypTap Insurance Company, a rapidly growing, technology-driven provider of homeowners’ insurance and flood insurance primarily in Florida, and Exzeo USA, Inc., a developer of insurance-related information technologies. TypTap Insurance Company utilizes online platforms developed by Exzeo to simplify and speed insurance processes for quoting and binding policies, administering policies, and managing claims. 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. There can be no assurance, for example, that Hurricane Sally losses will not be larger than expected. 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:
Rachel Swansiger, Esq.
HCI Group, Inc.
Tel (813) 405-3206
rswansiger@hcigroup.com

Investor Relations Contact:
Matt Glover
Gateway Investor Relations
Tel (949) 574-3860
HCI@gatewayir.com

Media Contact:
Amber Brinkley
Kippen Communications
Tel (727) 466-7695
amber@kippencommunications.com 

FAQ

What was HCI Group's estimated loss from Hurricane Sally in Q3 2020?

HCI Group estimated catastrophic losses of $17.7 million from Hurricane Sally in Q3 2020.

How did Hurricane Sally impact HCI's subsidiaries?

Hurricane Sally primarily affected HCI’s Homeowners Choice insurance operation, while TypTap Insurance Company was unaffected.

What is the net after-tax impact of the losses reported by HCI Group?

The net after-tax impact of the estimated losses for HCI Group is approximately $12.5 million.

Is HCI Group included in any stock indices?

Yes, HCI Group is included in the Russell 2000 and S&P SmallCap 600 Index.

What type of company is HCI Group?

HCI Group operates in insurance, software development, and real estate as an InsurTech company.