HCI GROUP, INC. Investor Presentation
N Y S E : H C I | M A Y 2 0 2 4
Forward-Looking Statement
This presentation includes certain forward‐looking statements and information, including statements regarding plans, strategies and expectations of HCI Group, Inc. ("HCI" or the "Company"). When used in this presentation, words such as "believes," "anticipates," "expects," "estimates," or words of similar meaning are generally intended to identify forward‐looking statements. All statements other than statements of historical fact included in this presentation are forward‐looking statements. These forward‐looking statements are subject to risks, uncertainties, assumptions and other factors, many of which are beyond the control of the
Company. Important factors that could cause actual results to differ materially from those expressed or implied by the forward‐looking statements are described in the Company's filings it makes from time to time with the Securities and Exchange Commission, including within the "Risk Factors" section of the Annual Report on Form 10‐K for the year ended December 31, 2023, filed March 8, 2024.
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Property & Casualty | Insurance |
Insurance | Technology |
HCI at a Glance
Reinsurance | Real Estate |
Stock Price2 | $103.78 |
Est. Market Capitalization2 | $1.1B |
Price-to-TTM Earnings | 10.6x |
Book Value/Share | $38.50 |
Dividend Yield2 | 1.5% |
In-Force Premium3 | $1,069M |
Debt to Capital | 37% |
Founded/IPO | 2006/2008 |
Management Tenure | 13 years |
Insider Ownership | 18% |
(1) | All data as of 3/31/2024 except where noted | |
(2) | As of 5/10/24 | |
(3) | Includes Condo Owners Reciprocal Exchange ("CORE") | 2 |
Investment Thesis
An insurance holding company with operations in Homeowners
Insurance, Information Technology Services, Reinsurance, and Real Estate
2006 founded
Combining technology and industry knowledge to drive profitable growth
Allocating capital with purpose and discipline while managing risk | 54 | consecutive quarters |
of dividends | ||
Creating value for our shareholders
36%
TRAILING
12-MONTHS ROE1
13%
TEN-YEAR ROE1
18% | >$430M | capital returned to |
shareholders since | ||
INSIDER OWNERSHIP | inception2 |
- As of 3/31/2024
- Includes $269M buybacks and $162M dividends
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Growing Through Investment & Innovation
Executed | Launched |
first Citizens | real estate |
assumption | division |
Formed captive | ||
Incorporated | reinsurance division | |
Completed initial | ||
Homeowners | Started information | |
Choice in Florida | public offering | technology division |
HCI transitions polices | HCI Group premium |
in 4 Northeast states | in force exceeds |
from UIHC | $700 million |
HCI transitions all | TypTap approved |
policies from Anchor | in 20 states |
Insurance | |
TypTap insurance | |
group raises | |
Launched | $100M in capital |
TypTap insurance | |
business |
HCI agrees to transition | ||
policies in 3 Southeast | ||
states from UIHC | Condo Owners | |
Introduced | Reciprocal | |
Exchange (CORE) | ||
TypTap Homeowners | HCI transitions | commences |
product | business from | operations |
Gulfstream P&C |
2006 | 2007 | 2008 | 2011 | 2012 | 2016 | 2018 | 2020 | 2021 | 2022 | 2024 |
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Overview of HCI Business Divisions
PROPERTY & CASUALTY | INSURANCE TECHNOLOGY | |||||
Homeowners and | Technology-driven | |||||
condominium insurance | homeowners insurance | |||||
primarily in Florida | ||||||
Nationwide expansion | ||||||
Track record of consistent | announced in 2020 | |||||
underwriting profitability | ||||||
Differentiated technology | ||||||
Strong cash flow helps to | yields best-in-class | |||||
fund growth initiatives | loss ratio | |||||
Growth fueled by | ||||||
opportunistic acquisitions |
$597M of In-Force | $434M of In-Force |
Premiums(1) | Premiums(1) |
RECIPROCAL EXCHANGE
Writing Florida-based
commercial residential lines
Licensed and announced first Citizens takeout in November
2023
Fills gap created by limited
condo association
coverage and growing
demand
$37M of In-Force
Premiums(1)
REINSURANCE
Provides Reinsurance Flexibility
TECHNOLOGY PLATFORM
Powers Technology Development
REAL ESTATE
>$100M Real Estate Portfolio(1)
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(1) As of 3/31/2024.
A Growing Homeowners Business
Premium in Force (in $M) | Loss Ratio 2 |
$1,069 | The loss ratio has benefited from a 25% | ||||||||
decline in claims frequencyand a 35% | |||||||||
$995 | 41% | decline in litigation frequency | |||||||
$719 | $737 | 34% | |||||||
$528 | 31% | ||||||||
$353 | $338 | $369 | |||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | Q1-243 | Q1-23 | Q1-24 |
Q1-22 |
Premium growth… …with profitability
- Trailing twelve-months gross premiums earned
- Losses and loss adjustment expenses divided by gross premiums earned.
- Includes CORE in-force premium
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Steady Improvement
Shareholders Equity (in $M)
$396
$325
$163
2022 | 2023 | Q1-24 |
Book Value Per Share
$38.50
$33.36
$18.91
Invested Assets (in $M)
$1,271
$1,057
$850
2022 | 2023 | Q1-24 |
Debt Leverage (%)1
57%
39%37%
2022 | 2023 | Q1-24 | 2022 | 2023 | Q1-24 |
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(1) Excludes preferreds
Property & Casualty Insurance
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Florida Focused Insurance Business with Strong Operating Performance
Homeowners Choice
In-Force Premiums (in $M)
$6112$597
$482
$422
$323 $309
$3781
2018 | 2019 | 2020 | 2021 | 2022 | 2023 | Q1-24 |
Best-in-class | Opportunistically | Proactively | Deploying Excess | |||
Underwriter in the | Acquiring Profitable | Managing Risk | Capital Into Investments | |||
Florida Market | Books of Business | and Loss Costs | & Growth Initiatives | |||
- The decline in in-force premium from 2021 to 2022 reflects the transition of business assumed from United Property & Casualty Insurance Company to TypTap Insurance Company.
- The increase in in-force premium from 2022 to 2023 includes the assumption of over 53,000 policies from Citizens Property Insurance Corporation.
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Disclaimer
HCI Group Inc. published this content on 21 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 May 2024 14:30:03 UTC.
