Florida-Based HCI Group Reports Strong Gain in Q4 Earnings

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TAMPA, Fla. (AP) — HCI Group Inc. (HCI) on Thursday reported fourth-quarter earnings of $38.1 million, a significant improvement over Q4 2022.

The Tampa, Florida-based company said it had profit of $3.40 per share. Earnings, adjusted for non-recurring gains, were $3.22 per share.

The results surpassed Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of $1.41 per share.

The property and casualty insurance holding company posted revenue of $162.7 million in the period, which also topped Street forecasts. Three analysts surveyed by Zacks expected $146.1 million.

For the year, the company reported profit of $79 million, or $7.62 per share. That was much better than in 2022, when HCI reported a $55 million loss. Revenue for 2023 was reported as $550.7 million.

HCI Group includes Homeowners Choice Property & Casualty Insurance Co.; TypTap, an insurtech and property insurance firm; ExZeo, an imaging and technology company; and CORE, Condo Owners Reciprocal Exchange.

Meanwhile, Universal Insurance Holdings, parent company of one of Florida’s largest property insurers, reported a net income of almost $20 million for the fourth quarter of 2023, down from the $25 million reported for Q4 2022.

For all of 2023, though, net income topped $66.8 million, a healthy improvement over 2022’s net loss of $21 million, the company reported last month.

Universal’s combined ratio, a measure of profitability, fell for the year but climbed slightly in Q4, to 103.7%. Ratios above 100 reflect less-than-profitable reporting periods.

Policies in force for Universal’s insurance companies dropped for the year and for the quarter, from 849,856 to 809,932. Direct premiums written climbed 4% to $433 million for Q4.