Q2 2024 Hci Group Inc Earnings Call Transcript
Key Points
- HCI Group Inc (HCI) reported a significant increase in pre-tax income, reaching $76 million, with earnings per share of $4.24.
- Gross premiums earned increased by almost 45% to $264 million, driven by contributions from all insurance divisions.
- The company achieved a gross loss ratio of 29.7%, showing improvement in underwriting results.
- HCI Group Inc (HCI) maintained its commitment to shareholders by paying a dividend of $0.40 per share, marking the 55th consecutive quarterly dividend.
- The company successfully completed its annual reinsurance program, securing reinsurance spend at approximately $92 million per quarter.
- Hurricane Debby posed a potential risk, although it was not expected to be a reinsurance event, it still required active management.
- The combined ratio, although improved, was slightly lower due to limited reinsurance and policy acquisition expenses for part of the quarter.
- There is increased competition for policy takeouts from Citizens, with over 400,000 policies requested by multiple carriers.
- The impact of potential catastrophic events remains a concern, with statutory retentions for Homeowners Choice and TypTap being $14 million and $9 million, respectively.
- The company's growth from voluntary policy writing is overshadowed by larger initiatives, such as policy takeouts from Citizens.
Good afternoon, and welcome to HCI Group's second quarter 2024 earnings call. My name is Ali, and I will be your conference operator. (Operator Instructions) Before we begin today's call, I would like to remind everyone that this conference call is being recorded and will be available for replay through September 7, 2024, starting later today. This call is also being broadcast live via webcast and available via webcast replay until August 8, 2025, on the Investor Information section of HCI Group's website at www.hcigroup.com. I would now like to turn the call over to Mr. Matt Glover of Gateway Investor Relations. Matt, please proceed.
Thank you, and good afternoon, everyone. Welcome to HCI Group's second quarter 2024 earnings call. On today's call are Karin Coleman, HCI's Chief Operating Officer; Mark Harmsworth, HCI's Chief Financial Officer; and Paresh Patel, HCI's Chairman and Chief Executive Officer.
Following Karin's operational
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