Core Viewpoint - HCI Group reported quarterly earnings of $0.31 per share, significantly beating the Zacks Consensus Estimate of a loss of $2.75 per share, although this is a decline from earnings of $3.22 per share a year ago [1] Earnings Performance - The earnings surprise for the quarter was 111.27%, following a previous quarter where the company also exceeded expectations with earnings of $0.47 per share against an estimate of $0.39 per share, resulting in a surprise of 20.51% [2] - Over the last four quarters, HCI Group has consistently surpassed consensus EPS estimates [2] Revenue Analysis - HCI Group reported revenues of $161.88 million for the quarter ended December 2024, which was 1.22% below the Zacks Consensus Estimate and a slight decrease from $162.67 million in the same quarter last year [3] - The company has exceeded consensus revenue estimates in two of the last four quarters [3] Stock Performance - HCI Group shares have increased approximately 4.1% since the beginning of the year, outperforming the S&P 500, which gained 1.3% [4] Future Outlook - The company's future stock performance will largely depend on management's commentary during the earnings call and the revisions in earnings estimates [4][5] - Current consensus EPS estimate for the upcoming quarter is $4.03 on revenues of $228.74 million, and for the current fiscal year, it is $13.50 on revenues of $925.74 million [8] Industry Context - The Insurance - Property and Casualty industry, to which HCI Group belongs, is currently ranked in the top 17% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [9]

Financial Performance - Q4 2024 pre-tax income was $5.9 million, with diluted EPS of $0.23, a significant decrease from $38.1 million and $3.40 in Q4 2023 respectively[1][2] - Adjusted net income for Q4 2024 was $5.0 million, or $0.31 diluted EPS, compared to $38.8 million, or $3.22 diluted EPS in Q4 2023[2] - For the full year 2024, pre-tax income was $173.4 million, with diluted EPS of $8.89, compared to $79.0 million and $7.62 in 2023[9] - Net income for the year ended December 31, 2024, was $127,581 thousand, up 43% from $89,257 thousand in 2023[28] - Basic earnings per share for the year ended December 31, 2024, increased to $10.59, compared to $9.13 in 2023, reflecting a growth of 16.0%[28] - Adjusted net income for the three months ended December 31, 2024, was $5,019 thousand, while for the year ended December 31, 2024, it was $125,599 thousand[35] - Basic Earnings Per Share (EPS) before unrealized gains/losses on equity securities for the three months ended December 31, 2024, was $0.33, compared to $10.42 for the year ended December 31, 2024[35] - Diluted EPS before unrealized gains/losses on equity securities for the three months ended December 31, 2024, was $0.31, while for the year ended December 31, 2024, it was $8.75[37] - GAAP diluted EPS for the three months ended December 31, 2024, was $0.23, and for the year ended December 31, 2024, it was $8.89[37] - Non-GAAP Adjusted diluted EPS for the three months ended December 31, 2024, was $0.31, and for the year ended December 31, 2024, it was $8.75[37] - The company reported a net income attributable to HCI of $3,469 thousand for the three months ended December 31, 2024, and $108,169 thousand for the year ended December 31, 2024[35] Revenue and Premiums - Consolidated gross premiums earned in Q4 2024 increased by 38.0% to $297.5 million from $215.2 million in Q4 2023, primarily due to policies from Citizens Property Insurance Corporation[4] - Consolidated gross premiums earned for the full year 2024 increased by 41.5% to $1,083.2 million from $765.5 million in 2023[11] - Gross premiums earned for the year ended December 31, 2024, were $1,083,220 thousand, a significant increase of 41.6% compared to $765,512 thousand in 2023[28] Expenses and Losses - Losses and loss adjustment expenses in Q4 2024 were $110.7 million, compared to $65.4 million in Q4 2023, including a net loss of $78.0 million from Hurricane Milton[7][14] - Losses and loss adjustment expenses for the year ended December 31, 2024, were $374,708 thousand, up from $254,579 thousand in 2023, indicating a rise of 47.2%[28] - General and administrative personnel expenses for the full year 2024 increased to $63.2 million from $53.9 million in 2023[15] Investment Income - Net investment income in Q4 2024 rose to $14.5 million, up from $10.3 million in Q4 2023, driven by increased interest income[6] - The company reported net investment income of $59,148 thousand for the year ended December 31, 2024, up from $46,234 thousand in 2023, a growth of 27.8%[28] Assets and Liabilities - Total assets increased to $2,230,213 thousand as of December 31, 2024, up from $1,811,316 thousand in 2023, representing a growth of 23.1%[26] - Total liabilities increased to $1,761,172 thousand in 2024 from $1,387,991 thousand in 2023, representing a rise of 27.0%[26] Reinsurance and Dividends - Premiums ceded for reinsurance for the full year 2024 were $405.7 million, up from $269.6 million in 2023[12] - The company declared dividends per share of $1.60 for both 2024 and 2023, maintaining consistent shareholder returns[28] Future Plans - The company plans to keep rates flat for the foreseeable future and aims to expand its technology offerings to other carriers and geographies[3] Other Financial Metrics - The effect of dilutive securities included stock options, convertible senior notes, and warrants, impacting the diluted EPS calculations[35] - The company experienced a net loss attributable to noncontrolling interests of $(1,550) thousand for the three months ended December 31, 2024[35] - Net unrealized investment gains contributed $0.10 to GAAP diluted EPS for the three months ended December 31, 2024[37] - The tax effect on net unrealized investment gains was $0.02 for the three months ended December 31, 2024[37]

Core Insights - HCI Group, Inc. reported a significant decline in net income for Q4 2024, with a pre-tax income of $5.9 million and diluted EPS of $0.23, compared to $38.1 million and $3.40 in Q4 2023 [1][9] - The full year 2024 results showed a pre-tax income of $173.4 million and diluted EPS of $8.89, an increase from $7.62 in 2023 [9][10] Financial Performance - Q4 2024 adjusted net income was $5.0 million, or $0.31 diluted EPS, down from $38.8 million, or $3.22 diluted EPS in Q4 2023 [2] - Consolidated gross premiums earned in Q4 2024 increased by 38.0% to $297.5 million from $215.2 million in Q4 2023, primarily due to policy assumptions from Citizens Property Insurance Corporation [4] - For the full year 2024, consolidated gross premiums earned rose by 41.5% to $1,083.2 million from $765.5 million in 2023 [11] Losses and Expenses - Losses and loss adjustment expenses in Q4 2024 were $110.7 million, up from $65.4 million in Q4 2023, including a net loss of $78.0 million from Hurricane Milton [7][14] - Policy acquisition and other underwriting expenses for Q4 2024 were $27.7 million, compared to $22.7 million in Q4 2023 [7] - General and administrative personnel expenses decreased to $10.2 million from $12.2 million in Q4 2023, attributed to lower stock-based compensation [8] Investment Income - Net investment income for Q4 2024 was $14.5 million, an increase from $10.3 million in Q4 2023, mainly due to higher interest income from cash and fixed maturity securities [6][13] Management Commentary - HCI Group's CEO emphasized the company's commitment to Florida and plans to maintain flat rates for the foreseeable future despite increased catastrophe activity [3]

Core Insights - HCI Group, Inc. announced that Tailrow Insurance Exchange has successfully assumed nearly 14,000 policies from Citizens Property Insurance Corporation, representing approximately $35 million in in-force premium [1][3]. Company Operations - Tailrow Insurance Exchange is a reciprocal insurer sponsored by HCI, focusing on personal residential policies [1]. - The company was approved for 20,000 policies, made around 18,000 offers, and achieved a 76% acceptance rate for the policies assumed [3]. Management Commentary - HCI's CEO, Paresh Patel, expressed excitement about the successful assumption and highlighted the technology and management expertise that facilitated the identification of attractive policies [2]. Company Structure - HCI Group, Inc. operates in various sectors including homeowners insurance, information technology services, real estate, and reinsurance [5]. - The company's leading insurance operation, TypTap Insurance Company, is technology-driven and supported by HCI's software subsidiary, Exzeo USA, Inc. [5]. Market Presence - HCI Group's common shares are traded on the New York Stock Exchange under the ticker symbol "HCI" and are included in the Russell 2000 and S&P SmallCap 600 Index [6].

Core Insights - HCI Group (HCI) is projected to announce a quarterly loss of $2.75 per share, reflecting a significant decline of 185.4% year over year [1] - Revenue estimates for HCI are expected to reach $163.88 million, which is a slight increase of 0.7% compared to the same quarter last year [1] - There have been no revisions in the consensus EPS estimate over the last 30 days, indicating stability in analysts' forecasts [1] Financial Metrics - Analysts estimate 'Net investment income' to be $14.26 million, representing a year-over-year increase of 37.9% [4] - 'Net premiums earned' are forecasted to reach $154.57 million, indicating a growth of 4% from the prior-year quarter [4] - The 'Loss Ratio' is predicted to be 99.1%, a significant increase from the previous year's figure of 30.4% [4] Stock Performance - Over the past month, HCI Group shares have declined by 4.1%, while the Zacks S&P 500 composite has decreased by 0.5% [5] - HCI Group holds a Zacks Rank of 3 (Hold), suggesting that its performance is expected to align with the overall market in the near term [5]

Company Overview - HCI Group's stock closed at $117.91, reflecting a decrease of 1.12% from the previous trading session, which is less than the S&P 500's daily loss of 0.43% [1] - The stock has experienced a decline of 5.03% over the past month, underperforming compared to the Finance sector's gain of 3.13% and the S&P 500's gain of 2.6% [1] Upcoming Financial Results - HCI Group is set to announce its earnings on February 27, 2025, with an anticipated EPS of -$2.75, indicating a significant decline of 185.4% compared to the same quarter last year [2] - The consensus estimate for revenue is projected at $163.88 million, which represents a slight increase of 0.74% compared to the year-ago quarter [2] Analyst Estimates and Market Sentiment - Recent changes to analyst estimates for HCI Group reflect shifting short-term business dynamics, with positive revisions indicating analysts' confidence in the company's performance and profit potential [3] - The Zacks Rank system, which evaluates estimate changes, suggests that these adjustments are linked to imminent stock price performance [4] Zacks Rank and Valuation - HCI Group currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining unchanged over the past month [5] - The company has a Forward P/E ratio of 8.83, which is lower than the industry average Forward P/E of 10.99, indicating a valuation discount [6] Industry Context - HCI Group operates within the Insurance - Property and Casualty industry, which is part of the Finance sector and currently holds a Zacks Industry Rank of 64, placing it in the top 26% of over 250 industries [6][7] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Group 1 - The article discusses the investment potential in the Property and Casualty (P&C) insurance market in Florida, highlighting American Coastal Insurance Corporation (ACIC) as a noteworthy candidate for investment [1] - The author has extensive experience in the logistics sector and stock investing, focusing on various markets including ASEAN and NYSE/NASDAQ, with a particular interest in banks, telecommunications, logistics, and hotels [1] - The author emphasizes the importance of portfolio diversification, having transitioned from investing solely in blue-chip companies to a broader range of industries and market capitalizations [1] Group 2 - The author has been trading in the US market since 2020, gaining insights through a trading account initially managed by a relative, which led to the decision to open a personal account [1] - The article indicates that the author has been utilizing analyses from Seeking Alpha to compare with their own research in the Philippine market, demonstrating a commitment to informed investment decisions [1]

Core Viewpoint - HCI Group, Inc. will hold a conference call on February 27, 2025, to discuss its financial results for the fourth quarter and the year ended December 31, 2024 [1][2]. Company Overview - HCI Group, Inc. operates in homeowners insurance, information technology services, real estate, and reinsurance, with subsidiaries engaged in complementary business activities [3][4]. - The leading insurance operation, TypTap Insurance Company, is a technology-driven homeowners insurance provider, utilizing insurance-related IT developed by HCI's software subsidiary, Exzeo USA, Inc. [3]. - HCI's largest subsidiary, Homeowners Choice Property & Casualty Insurance Company, primarily provides homeowners insurance in Florida [3]. - The real estate subsidiary, Greenleaf Capital, LLC, manages various properties in Florida, including office buildings, retail centers, and marinas [3]. Conference Call Details - The conference call is scheduled for February 27, 2025, at 4:45 p.m. Eastern time, with a question-and-answer session following the presentation [2]. - Interested parties can join the call via a toll-free number or through a webcast link on the company's website [2]. - A replay of the call will be available after 8:00 p.m. Eastern time on the same day [3].

Group 1 - HCI Group's stock closed at $121.75, with a +0.29% change, underperforming the S&P 500's daily gain of 1% [1] - Over the past month, HCI Group's shares have appreciated by 9.12%, outperforming the Finance sector's loss of 0.44% and the S&P 500's loss of 2.14% [1] Group 2 - HCI Group's upcoming earnings per share (EPS) are projected to be -$2.75, indicating a 185.4% decrease from the same quarter last year [2] - The Zacks Consensus Estimate for revenue is projecting net sales of $163.88 million, which is a 0.74% increase from the year-ago period [2] Group 3 - Recent changes to analyst estimates for HCI Group reflect short-term business trends, with positive revisions indicating analyst optimism regarding the company's business and profitability [3] - The Zacks Rank system, which includes estimate changes, has a proven track record of outperformance, with 1 stocks returning an average of +25% annually since 1988 [4][5] Group 4 - HCI Group currently has a Zacks Rank of 3 (Hold), with a Forward P/E ratio of 8.99, which is a discount compared to the industry's average Forward P/E of 11.68 [5] Group 5 - The Insurance - Property and Casualty industry, part of the Finance sector, has a Zacks Industry Rank of 34, placing it in the top 14% of over 250 industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]

Core Viewpoint - HCI Group, Inc. has announced that its 4.75% Convertible Senior Notes Due 2042 became convertible by all holders starting January 1, 2025, due to the company's stock price exceeding the conversion price threshold [1][2]. Group 1: Convertible Notes Details - The Notes became convertible because HCI's closing share price was greater than 130% of the Conversion Price of $80.54 for 20 trading days during the last 30 trading days of the quarter ending December 31, 2024 [2]. - Holders wishing to convert their Notes into HCI common stock must provide a Notice of Conversion, with HCI planning to select Physical Settlement for conversions received by March 31, 2025, at a conversion ratio of approximately 12.4166 shares per $1,000 principal amount of Notes [3]. - HCI is considering a full redemption of the Notes on June 5, 2025, if certain conditions are met, including the stock price being at least 130% of the Conversion Price for 20 trading days within any 30 consecutive trading day period [4]. Group 2: Company Overview - HCI Group, Inc. operates in various sectors including homeowners insurance, information technology services, real estate, and reinsurance, with its leading insurance operation being TypTap Insurance Company [5]. - TypTap Insurance Company is a technology-driven homeowners insurance provider, leveraging insurance-related IT developed by HCI's software subsidiary, Exzeo USA, Inc. [5]. - HCI's largest subsidiary, Homeowners Choice Property & Casualty Insurance Company, primarily provides homeowners insurance in Florida, while its real estate subsidiary, Greenleaf Capital, LLC, manages multiple properties in Florida [5].