The following is a summary of the HCI Group, Inc. (HCI) Q1 2024 Earnings Call Transcript:
Financial Performance:
HCI Group reported pre-tax income of $77.4 million in earnings per share of $3.81 in Q1 2024.
The gross loss ratio improved to 31% from 34% in the previous year's quarter.
HCI delivered 54th consecutive quarterly dividend at $0.40 per share.
42% increase was noted in gross premiums earned compared to the same quarter last year, and investment income increased by 40% due to higher cash and investment balances and higher rates.
Business Progress:
A total enforce premium of $40 million was completed through the first assumption at Condo Owners Reciprocal Exchange (CORE), and an additional $15 million in the next quarter.
Growth in Florida played a significant role in the reported gross premiums earned.
The company decreased debt by more than $60 million and increased shareholder equity by more than double to $395 million.
HCI is setting up to capture potential market opportunities for significant business expansion, backed by their robust technology platform.
Loss costs for old accident quarters, prior to legislative changes, are developing as expected with no adverse development in Q1 2024.
For accident quarters post-legislative changes, 35% fewer lawsuits have been logged; company expresses optimism in the current progress but needs more time for appropriate adjustments based on these developments.
More details: HCI Group IR
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