HCI Group Provides Hurricane Season Update
HCI Group, Inc. (NYSE: HCI) has provided an update on the estimated losses from Hurricanes Debby, Helene, and Milton. The company expects to pay $600 to $750 million to policyholders across all three events. For Q3 2024, net retained losses from Hurricanes Debby and Helene are expected to result in a net expense of approximately $60 million, with the company still anticipating a pre-tax profit for the quarter. In Q4 2024, Hurricane Milton is expected to cause a net expense of approximately $125 million.
Despite these losses, HCI Group remains financially stable due to its strong balance sheet, conservative reinsurance program with over $2 billion of occurrence reinsurance limit and over $3 billion of aggregate reinsurance limit, and overall profitability. The company is continuing its participation in Citizens' Depopulation Program in Q4, with early indications showing a strong adoption rate.
HCI Group, Inc. (NYSE: HCI) ha fornito un aggiornamento sulle perdite stimate derivanti dagli uragani Debby, Helene e Milton. L'azienda prevede di pagare 600 a 750 milioni di dollari agli assicurati per tutti e tre gli eventi. Per il terzo trimestre del 2024, si prevede che le perdite nette trattenute dagli uragani Debby e Helene comporteranno una spesa netta di circa 60 milioni di dollari, con l'azienda che continua a prevedere un profitto ante imposte per il trimestre. Nel quarto trimestre del 2024, l'uragano Milton è previsto causare una spesa netta di circa 125 milioni di dollari.
Nonostante queste perdite, HCI Group rimane finanziariamente stabile grazie al suo solido bilancio, un programma di riassicurazione conservativo con oltre 2 miliardi di dollari di limite di riassicurazione per evento e oltre 3 miliardi di dollari di limite di riassicurazione aggregato, e alla redditività complessiva. L'azienda sta continuando la sua partecipazione nel Programma di De-population di Citizens nel quarto trimestre, con le prime indicazioni che mostrano un tasso di adozione elevato.
HCI Group, Inc. (NYSE: HCI) ha proporcionado una actualización sobre las pérdidas estimadas de los huracanes Debby, Helene y Milton. La compañía espera pagar 600 a 750 millones de dólares a los asegurados por los tres eventos. Para el tercer trimestre de 2024, se espera que las pérdidas netas retenidas de los huracanes Debby y Helene resulten en un gasto neto de aproximadamente 60 millones de dólares, con la compañía aún anticipando un beneficio antes de impuestos para el trimestre. En el cuarto trimestre de 2024, se espera que el huracán Milton cause un gasto neto de aproximadamente 125 millones de dólares.
A pesar de estas pérdidas, HCI Group sigue siendo financieramente estable gracias a su sólido balance, un programa de reaseguro conservador con más de 2 mil millones de dólares en límite de reaseguro por evento y más de 3 mil millones de dólares en límite de reaseguro agregado, y una rentabilidad general. La compañía continúa participando en el Programa de Despoblación de Citizens en el cuarto trimestre, con las primeras indicaciones mostrando una fuerte tasa de adopción.
HCI Group, Inc. (NYSE: HCI)는 허리케인 데비, 헬렌, 밀턴에 따른 추정 손실에 대한 업데이트를 제공했습니다. 회사는 세 사건에 대해 피보험자에게 6억에서 7억 5천만 달러를 지급할 것으로 예상하고 있습니다. 2024년 3분기에는 허리케인 데비와 헬렌으로 인한 순 유지 손실이 약 6천만 달러의 순 비용을 발생시킬 것으로 예상되며, 회사는 여전히 분기 기준으로 세전 이익을 예상하고 있습니다. 2024년 4분기에는 허리케인 밀턴이 약 1억 2천5백만 달러의 순 비용을 초래할 것으로 예상됩니다.
이러한 손실에도 불구하고 HCI Group은 강력한 재무구조, 20억 달러 이상의 사건별 재보험 한도와 30억 달러 이상의 총 재보험 한도를 가진 보수적인 재보험 프로그램, 그리고 전반적인 수익성 덕분에 재정적으로 안정적입니다. 회사는 4분기에도 시민의 인구 감소 프로그램에 계속 참여하고 있으며, 초기 지표에 따르면 높은 채택률을 보이고 있습니다.
HCI Group, Inc. (NYSE: HCI) a fourni une mise à jour sur les pertes estimées dus à les ouragans Debby, Helene et Milton. L'entreprise s'attend à payer entre 600 et 750 millions de dollars aux assurés pour ces trois événements. Pour le troisième trimestre 2024, les pertes nettes retenues des ouragans Debby et Helene devraient entraîner une dépense nette d'environ 60 millions de dollars, tout en anticipant un bénéfice avant impôts pour le trimestre. Au quatrième trimestre 2024, il est prévu que l'ouragan Milton provoque une dépense nette d'environ 125 millions de dollars.
Malgré ces pertes, HCI Group reste financièrement stable grâce à son bilan solide, son programme de réassurance conservateur avec plus de 2 milliards de dollars de limite de réassurance par événement et plus de 3 milliards de dollars de limite de réassurance agrégée, et sa rentabilité globale. L'entreprise continue de participer au Programme de Dépopulation de Citizens au quatrième trimestre, avec des indications préliminaires montrant un taux d'adoption élevé.
HCI Group, Inc. (NYSE: HCI) hat ein Update zu den geschätzten Verlusten durch die Hurrikans Debby, Helene und Milton bereitgestellt. Das Unternehmen erwartet Zahlungen in Höhe von 600 bis 750 Millionen Dollar an die Versicherungsnehmer für alle drei Ereignisse. Für das 3. Quartal 2024 wird mit Netto-Rückstellungen von den Hurrikans Debby und Helene von etwa 60 Millionen Dollar gerechnet, wobei das Unternehmen für das Quartal nach wie vor von einem Vorsteuergewinn ausgeht. Im 4. Quartal 2024 wird erwartet, dass Hurrikan Milton eine Nettoausgabe von etwa 125 Millionen Dollar verursacht.
Trotz dieser Verluste bleibt die HCI Group finanziell stabil, dank ihrer soliden Bilanz, eines konservativen Rückversicherungsprogramms mit über 2 Milliarden Dollar an Ereignis-Rückversicherungssumme und über 3 Milliarden Dollar an Gesamt-Rückversicherungssumme, sowie einer insgesamt rentablen Geschäftstätigkeit. Das Unternehmen setzt seine Teilnahme am Bevölkerungssenkungsprogramm von Citizens im 4. Quartal fort, wobei erste Hinweise auf eine hohe Akzeptanzrate hinweisen.
- HCI Group expects to report a pre-tax profit for Q3 2024 despite hurricane losses
- Strong balance sheet and conservative reinsurance program with over $2 billion occurrence limit and $3 billion aggregate limit
- Continuing participation in Citizens' Depopulation Program with strong early adoption rates
- Expected net expense of $60 million in Q3 2024 due to Hurricanes Debby and Helene
- Anticipated net expense of $125 million in Q4 2024 from Hurricane Milton
- Total expected payout to policyholders of $600 to $750 million for all three hurricane events
Insights
HCI Group's hurricane season update reveals significant financial implications. The company expects to pay out
The company anticipates a net expense of approximately
- A robust balance sheet
- A conservative reinsurance program with over
$2 billion in occurrence limit and$3 billion in aggregate limit - Continued profitability
HCI's ongoing participation in Citizens' Depopulation Program suggests potential for market share growth. The company's ability to absorb substantial losses while maintaining profitability and pursuing growth opportunities demonstrates resilience in a challenging insurance market.
HCI Group's update presents a mixed financial picture. While the hurricane-related losses are substantial, the company's risk management strategies appear effective. The expected net expenses of
Key risk mitigation factors include:
- Reinsurance recoveries offsetting gross losses
- Reversal of benefits from multi-year reinsurance agreements
- Over
$2 billion in occurrence reinsurance limit - Over
$3 billion in aggregate reinsurance limit
The anticipated pre-tax profit in Q3, despite major catastrophe events, suggests strong underlying business performance. However, investors should monitor the impact on long-term profitability and potential premium increases. The company's continued participation in the Citizens' Depopulation Program indicates confidence in its capacity to take on additional risk, which could lead to future growth but also increased exposure.
TAMPA, Fla., Oct. 16, 2024 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE: HCI), a holding company with operations in homeowners insurance, information technology services, real estate, and reinsurance, announced today the estimated losses attributable to Hurricanes Debby, Helene, and Milton.
“Our policyholders have experienced three major catastrophe events over the past few months. We are responding to the needs of our policyholders and ensuring that their claims are handled quickly and efficiently,” said HCI’s Chairman and Chief Executive Officer Paresh Patel. “Across all three events, HCI expects to pay
Third Quarter Update:
Net retained losses from Hurricanes Debby and Helene, after considering reinsurance recoveries as well as the reversal of benefits accrued under a multi-year reinsurance agreement, are expected to result in a net expense to the company in the third quarter of approximately
Fourth Quarter Update:
Net retained losses from Hurricane Milton, after considering reinsurance recoveries as well as the reversal of benefits accrued under a multi-year reinsurance agreement, is expected to result in a net expense to the company in the fourth quarter of approximately
“The company is able to absorb these losses because of our strong balance sheet, our conservative reinsurance program with over
HCI Group will hold an earnings conference call on Thursday, November 7, 2024, at 4:45 p.m. Eastern time to discuss results for the third quarter ended September 30, 2024. Financial results will be issued in a press release the same day after the close of the market.
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 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@gatewayir.com
FAQ
What is HCI Group's estimated payout for Hurricanes Debby, Helene, and Milton?
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Is HCI Group (HCI) still expecting a profit in Q3 2024 despite hurricane losses?
