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HCI Group, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports gross premiums earned of $265.5 million, an increase from $188.3 million in the same quarter the previous year. This rise is attributed to policies assumed from Citizens and premium rate increases.
Net premiums earned for the quarter were $155.8 million, up from $122.2 million in the previous year, reflecting increased reinsurance costs.
Net investment income for the quarter was $13.7 million, compared to $9.4 million in the previous year, driven by higher interest income from cash and fixed-maturity securities.
The company reported a net income of $9.4 million for the quarter, down from $15.7 million in the previous year. The decrease is due to higher losses and loss adjustment expenses, which rose to $105.7 million from $66.7 million.
Losses and loss adjustment expenses increased due to net losses from Hurricanes Helene and Debby, as well as a greater number of policies in force.
Policy acquisition and other underwriting expenses were $26.1 million, up from $22.8 million, primarily due to increased premiums in force.
General and administrative personnel expenses rose to $19.2 million from $13.9 million, mainly due to decreased recoverable payroll costs and increased stock-based compensation.
Interest expense increased to $3.4 million from $2.8 million, primarily due to the revolving credit facility.
The company’s effective tax rate for the quarter was 33.3%, up from 22.0% in the previous year, due to changes in valuation allowance and non-deductible compensation expenses.
HCI Group continues to focus on its property and casualty insurance operations, with a significant portion of its revenue derived from this segment. The company also operates in real estate and information technology services.
The filing also details the impact of Hurricanes Helene and Milton, with estimated net losses of $40 million and $78 million, respectively, after reinsurance recoveries.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the HCI Group Inc. quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.