NYSE$HCI
Hci Group Inc · Q2 2022 earnings
Q2 2022 earnings · · Investor relations
Briefing
Reported a net loss due to accelerated inflation, which increased the gross loss ratio. Management responded by increasing rates at Homeowners Choice and TypTap to offset higher severity and improve underwriting margins.
HCI Group reported a net loss of $8.5 million, or $1.04 per share, in Q2 2022, compared to a net income of $3.8 million, or $0.24 diluted earnings per share, in Q2 2021. Adjusted net loss was $5.4 million, or $0.71 per share, compared to adjusted net income of $2.7 million, or $0.11 diluted earnings per share, in Q2 2021. Gross premiums earned grew by 30%.
- Net loss of $8.5 million, or $1.04 per share, compared to net income of $3.8 million, or $0.24 diluted earnings per share in Q2 2021.
- Adjusted net loss of $5.4 million, or $0.71 per share, compared to adjusted net income of $2.7 million, or $0.11 diluted earnings per share in Q2 2021.
- Consolidated gross written premiums increased to $186.2 million from $185.0 million in Q2 2021.
- Consolidated gross premiums earned of $181.1 million, up 29.9% from $139.4 million in Q2 2021.
Headline financials
Revenue & EPS history
Hci Group · Revenue · Quarterly
$126M
Revenue by segment
Hci Group · $181M total across 2 segments · Q2 2022
- Homeowners Choice$114M+13.2%62.8%
- TypTap Insurance Company$67.4M—37.2%
Forward guidance
HCI Group increased rates 10% at Homeowners Choice and 12% at TypTap effective August 2022. These actions will offset higher severity and improve underwriting margins in the future. The strategy remains unchanged: to maximize returns for our shareholders.
Tailwinds
- Rate increases at Homeowners Choice and TypTap are expected to offset higher severity.
- Rate increases are expected to improve underwriting margins.
- Operating leverage benefits are expected to continue as the business expands.
- Raised over $170 million of capital through a convertible note offering in May.
- Capital raise provides added flexibility to the company's strategy.
Headwinds
- Inflation accelerated in the quarter, leading to an increase in the gross loss ratio.
- Net loss reported for the quarter compared to net income in the same period last year.
- Adjusted net loss reported for the quarter compared to adjusted net income in the same period last year.
- Net realized and unrealized investment losses were $4.2 million compared to net realized and unrealized gains of $4.1 million in the second quarter of 2021.
- General and administrative expenses increased due to an increase in personnel and related expenses in connection with the growth of the business.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2022
+2.2%
Avg return
Earnings day
+4.7%
Avg return
5 days after
+3.4%
Avg return
30 days after
61%
39 / 64 earnings
Positive
+27.5%
Q2 2020
Best reaction
-16.4%
Q2 2022
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -0.9% | -1.0% | +1.4% | |
| Q4 2025 | +4.8% | +7.6% | -8.0% | |
| Q3 2025 | -6.5% | -2.9% | -12.7% | |
| Q1 2025 | +8.1% | +5.1% | +8.7% | |
| Q4 2024 | +6.2% | +10.7% | +21.4% | |
| Q3 2024 | +1.5% | -1.1% | -0.4% | |
| Q2 2024 | +4.6% | +6.1% | +11.6% | |
| Q1 2024 | -6.0% | -7.6% | -14.1% | |
| Q4 2023 | +15.1% | +14.5% | +16.7% | |
| Q3 2023 | +25.3% | +21.0% | +40.7% | |
| Q2 2023 | +8.2% | -1.1% | -12.4% | |
| Q1 2023 | +17.8% | +11.3% | +15.2% | |
| Q4 2022 | +6.6% | +7.1% | -6.0% | |
| Q3 2022 | +4.7% | +19.4% | +5.6% | |
| Q2 2022 | -16.4% | -20.0% | -32.7% | |
| Q1 2022 | +6.6% | +8.9% | +3.7% | |
| Q4 2021 | +10.3% | +14.8% | +16.0% | |
| Q3 2021 | -11.1% | -1.8% | -19.7% | |
| Q2 2021 | +14.6% | +13.4% | +8.0% | |
| Q1 2021 | +1.8% | -2.6% | +6.6% | |
| Q4 2020 | +11.4% | +24.1% | +33.7% | |
| Q3 2020 | +5.9% | +8.6% | +8.1% | |
| Q2 2020 | +27.5% | +29.4% | +18.8% | |
| Q1 2020 | +6.4% | +1.0% | +18.3% | |
| Q4 2019 | +0.4% | -6.6% | -11.6% | |
| Q3 2019 | +7.2% | +4.2% | +6.1% | |
| Q2 2019 | +3.3% | +3.4% | +1.8% | |
| Q1 2019 | -3.5% | -0.3% | -3.9% | |
| Q4 2018 | -14.6% | -8.7% | -3.4% | |
| Q3 2018 | +13.5% | +21.2% | +21.7% | |
| Q2 2018 | -7.3% | -6.7% | -4.3% | |
| Q1 2018 | -2.7% | -2.7% | -1.0% | |
| Q4 2017 | +14.0% | +11.7% | +6.1% | |
| Q3 2017 | -12.5% | -13.1% | -19.5% | |
| Q2 2017 | -3.5% | -4.6% | -14.4% | |
| Q1 2017 | +1.6% | -0.7% | -1.8% | |
| Q4 2016 | +8.5% | +8.6% | +2.8% | |
| Q3 2016 | +5.3% | +7.8% | +22.0% | |
| Q2 2016 | -1.9% | +4.8% | +2.9% | |
| Q1 2016 | -5.8% | — | — | |
| Q4 2015 | -13.0% | — | — | |
| Q3 2015 | -10.0% | — | — | |
| Q2 2015 | -9.3% | — | — | |
| Q1 2015 | +5.5% | — | — | |
| Q4 2014 | +2.1% | — | — | |
| Q3 2014 | -12.9% | — | — | |
| Q2 2014 | +3.3% | — | — | |
| Q1 2014 | -0.1% | — | — | |
| Q4 2013 | -15.5% | — | — | |
| Q3 2013 | -4.2% | — | — | |
| Q2 2013 | -3.2% | — | — | |
| Q1 2013 | +21.1% | — | — | |
| Q1 2010 | -0.6% | — | — | |
| Q4 2012 | +21.9% | — | — | |
| Q3 2012 | -7.1% | — | — | |
| Q2 2012 | -0.5% | — | — | |
| Q1 2011 | -4.9% | — | — | |
| Q1 2012 | +1.0% | — | — | |
| Q4 2011 | +2.3% | — | — | |
| Q4 2010 | +2.3% | — | — | |
| Q3 2010 | +4.5% | — | — | |
| Q3 2011 | +4.5% | — | — | |
| Q2 2011 | +1.8% | — | — | |
| Q2 2010 | +1.8% | — | — |
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