HCI Group Provides Hurricane Season Update
Rhea-AI Summary
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.
Positive
- 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
Negative
- 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
News Market Reaction 1 Alert
On the day this news was published, HCI gained 0.66%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
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?
How much is the expected net expense for HCI Group (HCI) in Q3 2024 due to hurricane losses?
What is the expected financial impact of Hurricane Milton on HCI Group (HCI) in Q4 2024?
Is HCI Group (HCI) still expecting a profit in Q3 2024 despite hurricane losses?
