NYSE$HCI

Hci Group Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported a strong quarter with improved loss trends, higher average premium per policy, and benefited from the interest rate environment.

HCI Group reported a strong second quarter in 2023, with pre-tax income of $20.3 million and net income of $14.9 million, or $1.28 diluted earnings per share. This compares favorably to the second quarter of 2022, which saw a net loss of $8.5 million, or $1.04 loss per share. The positive results were driven by improved loss trends, higher average premium per policy, and benefits from the interest rate environment.

  • Pre-tax income was $20.3 million.
  • Net income was $14.9 million, or $1.28 diluted earnings per share.
  • Adjusted net income was $14.2 million, or $1.22 diluted earnings per share.
  • Consolidated gross premiums earned increased to $182.0 million.

Headline financials

Total Revenue

$127M

Previous: $126M+1.1%
EPS (adj)

$1.22

Previous: -$0.71+271.8%
Gross Loss Ratio

34.0%

Previous: 47.9%-29.0%
Capital Expenditures

-$2.76M

Previous: -$4.23M+34.7%
Free Cash Flow

$9.68M

Previous: -$14.2M+168.1%
Net Income

$12.4M

Previous: -$9.98M+224.7%
Operating Income

$95.1M

Previous: $89.8M+6.0%
Gross Profit

$107M

Previous: $105M+1.6%
Cash & Equivalents

$294M

Previous: $360M-18.4%
Total Assets

$1.73B

Previous: $1.28B+34.8%
Stock-Based Comp

$1.87M

Previous: $4.24M-56.0%

Revenue & EPS history

Hci Group · Revenue · Quarterly

$127M

Q2 2023+1.1%vs Q2 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Hci Group · $182M total across 2 segments · Q2 2023

  • Homeowners Choice
    $96.9M-14.8%
  • TypTap Insurance Company
    $85.1M+26.1%

Forward guidance

HCI Group anticipates continuing positive trends, including improved loss trends, higher average premium per policy, and benefits from the interest rate environment. They are committed to Florida and look forward to expanding in the state.

Tailwinds

  • Loss trends are expected to continue improving.
  • Average premium per policy is expected to remain higher.
  • The interest rate environment is expected to continue benefiting investment income.
  • Actions taken by the Florida Legislature and the Governor in 2022 are expected to result in greater stability in the Florida homeowners’ market.
  • HCI Group remains committed to Florida and looks forward to expanding in the state in the future.

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 2023

Historical avgQ2 2023

+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

Earnings price reactions
QuarterReport dateReaction (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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