HCI Group’s net income climbs to $57.1m in Q2’24

Florida-based insurtech HCI Group has posted its results for the second quarter of 2024, which includes a net income of $57.1 million and a pre-tax income of $76 million, a solid increase compared to the prior year’s $14.9 million and $20.2 million figures.

Adjusted net income (a non-GAAP measure which excludes net unrealised gains or losses on equity securities) sat at $56.7 million for Q2’24, compared to an adjusted net income of $14.2 million from the previous year.

Consolidated gross premiums earned in the second quarter of 2024 increased to $263.6 million from $181.9 million in the second quarter of 2023, which HCI Group stated was driven primarily by growth in Florida, including the assumption of policies from Citizens.

HCI Group also explained that premiums ceded for reinsurance in Q2’24 were $76.7 million compared to the $66.4 million figure that the company posted in the previous year, with premiums ceded representing 29.1% of gross premiums earned in the second quarter of 2024 compared with 36.5% in the second quarter of 2023.

As well as this, the firm’s net investment income for the quarter was $16.9 million compared with $8.8 million from the prior year quarter.

Additionally, HCI Group’s losses and loss adjustment expenses for Q2’24 increased to $78.3 million from $61.9 million in Q2’23.

The company’s gross loss ratio for the second quarter sat at 29.7% compared to 34.0% in the second quarter of 2023.

HCI Group Chairman and Chief Executive Officer Paresh Patel, commented: “In the second quarter, HCI Group delivered another quarter of solid profitability driven by strong underwriting execution. The results highlight the power of our technology. In future periods, we plan not only to replicate this success but also to explore new ways to exploit our technology and capitalize on new opportunities.”

For the first half of 2024, HCI Group reported a net income of $114.1 million and a pre-tax income of $153.5 million, compared to the previous year’s $32.6 million and $43.4 million.

Furthermore, HCI Group’s consolidated gross premiums earned for H1’24 increased to $520.2 million from $362 million in the same period of 2023, while premiums ceded for reinsurance for the period climbed to $144.8 million from $136.9 million in the same period in 2023.

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