TAMPA, Fla., May 30, 2024 (GLOBE NEWSWIRE) — HCI Group, Inc. (NYSE: HCI), a holding company with operations in homeowners insurance, information technology services, real estate, and reinsurance, announced today that it has completed its catastrophe reinsurance programs for the 2024-2025 treaty year, which runs from June 1, 2024 through May 31, 2025.
“We appreciate the broad support we received from our valued reinsurance partners,” said Paresh Patel, HCI’s chairman and chief executive officer. “HCI continues to maintain a conservative approach to its reinsurance placement. This includes securing additional limit this year to support the significant growth we have achieved over the past few months.”
Similar to the prior year, HCI secured two reinsurance towers for its insurance subsidiaries, Homeowners Choice and TypTap. Reinsurance Tower 1 covers all Homeowners Choice policies issued in Florida and Reinsurance Tower 2 is shared between TypTap and Homeowners Choice and covers all TypTap policies (whether issued in Florida or outside of Florida) and Homeowners Choice policies issued outside of Florida.
Across its two reinsurance towers, HCI secured over $2.7 billion in aggregate limit for the 2024-2025 treaty year. All of HCI’s private reinsurers are AM Best rated ‘A-’ (Excellent) or better or have fully collateralized their obligations to HCI.
HCI’s reinsurance retentions are similar to the prior year, including a retention of $14 million for Reinsurance Tower 1 and $9 million for Reinsurance Tower 2. The reinsurance retentions apply to each of a first and second event.
For Reinsurance Towers 1 and 2, HCI Group expects to incur net consolidated reinsurance premiums ceded to third parties, excluding Claddaugh, of approximately $333.6 million from June 1, 2024 through May 31, 2025, assuming no losses occur during that period. HCI’s reinsurance premiums are an estimate based on exposure projections and subject to true up at September 30, 2024.
More information is available in the Company’s Form 8-K, filed today with the U.S. Securities and Exchange Commission.
About HCI Group, Inc.
HCI Group, Inc. owns subsidiaries engaged in diverse, yet complementary business activities, including homeowners insurance, information technology services, insurance management, real estate, and reinsurance. HCI’s leading insurance operation, TypTap Insurance Company, is a technology-driven homeowners insurance company. TypTap’s operations are powered in large part by insurance-related information technology developed by HCI’s software subsidiary, Exzeo USA, Inc. HCI’s largest subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., provides homeowners insurance primarily in Florida. HCI’s real estate subsidiary, Greenleaf Capital, LLC, owns and operates multiple properties in Florida, including office buildings, retail centers and marinas.
The company’s common shares trade on the New York Stock Exchange under the ticker symbol “HCI” and are included in the Russell 2000 and S&P SmallCap 600 Index. HCI Group, Inc. regularly publishes financial and other information in the Investor Information section of the company’s website. For more information about HCI Group and its subsidiaries, visit www.hcigroup.com.
Company Contact:
Bill Broomall, CFA
Investor Relations
HCI Group, Inc.
Tel (813) 776-1012
wbroomall@typtap.com
Investor Relations Contact:
Matt Glover
Gateway Group, Inc.
Tel 949-574-3860
HCI@gateway-grp.com
