Q4 2024 Hci Group Inc Earnings Call Transcript
Key Points
- HCI Group Inc (HCI) maintained a strong customer retention rate of approximately 90% despite significant hurricane impacts.
- The company successfully grew its in-force premium by 22% to over $1.2 billion and increased policies in force from 247,000 to more than 272,000.
- HCI Group Inc (HCI) paid its 57th consecutive quarterly dividend, demonstrating a commitment to returning value to shareholders.
- The company's technology platform has been instrumental in achieving operational efficiency, allowing for revenue growth without significant increases in operating expenses.
- Investment income has doubled over the last couple of years due to higher investment balances and rates, contributing positively to underlying earnings.
- Hurricane Milton resulted in a net impact of $128 million, including $78 million of net loss expense.
- The company faced significant losses from three hurricanes, expecting to pay over $0.5 billion to help Florida rebuild.
- Despite a strong year, the company had to manage the reversal of $50 million in benefits under a multiyear reinsurance agreement.
- The normalized combined ratio is expected to be about 75% once reinsurance and commissions kick in for recent Citizens assumptions, indicating potential future cost pressures.
- The company is exposed to risks and uncertainties that could have material adverse effects on its business, as highlighted in its SEC filings.
Good afternoon, and welcome to HCI Group's fourth-quarter 2024 earnings call. My name is Ali, and I will be your conference operator. (Operator Instructions)
Before we begin today's call, I would like to remind everyone that this conference call is being recorded and will be available for replay through March 27, 2025, starting later today.
The call is also being broadcast live via webcast and available via webcast replay until February 27, 2026 on the Investor Information section of HCI Group's website at www.hcigroup.com.
I would now like to turn the call over to Matt Glover, Gateway Investor Relations. Matt, please proceed.
Thank you, and good afternoon. Welcome to HCI Group's fourth-quarter 2024 earnings call.
On today's call is Karin Coleman, HCI's Chief Operating Officer; Mark Harmsworth, HCI's Chief Financial Officer; Paresh Patel, HCI's Chairman and Chief Executive Officer. Following Karin's
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