HCI Group, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>HCI Group, Inc. has filed its 2023 annual report (10-K) detailing its financial performance and operations in the property and casualty insurance sector.</b>

AI Summary

HCI Group, Inc. (HCIIP) filed a Annual Report (10-K) with the SEC on March 8, 2024. HCI Group, Inc. filed its 2023 Form 10-K on March 8, 2024. The filing covers the fiscal year ending December 31, 2023. The company's primary business is FIRE, MARINE & CASUALTY INSURANCE. HCI Group, Inc. is incorporated in Florida (FL). The company's former name was Homeowners Choice, Inc., with a name change on May 24, 2007.

Why It Matters

For investors and stakeholders tracking HCI Group, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of HCI Group's financial health, operational risks, and strategic initiatives for the fiscal year 2023, crucial for investors assessing the company's stability and future prospects. As a property and casualty insurer, HCI Group's performance is heavily influenced by factors like weather events and regulatory changes, making this annual report essential for understanding its exposure and management strategies.

Risk Assessment

Risk Level: medium — HCI Group, Inc. shows moderate risk based on this filing. The company operates in the insurance industry, which is subject to significant regulatory oversight and is sensitive to catastrophic events like hurricanes, posing inherent risks to financial stability.

Analyst Insight

Investors should review the detailed risk factors and financial statements in the 10-K to understand HCI Group's exposure to insurance-specific risks and its strategies for mitigation.

Key Numbers

• 20231231 — Fiscal Year End (Conformed period of report)
• 20240308 — Filing Date (Filed as of date)
• 181 — Public Document Count (Number of documents in the filing)
• 001-34126 — SEC File Number (SEC file number for HCI Group, Inc.)

Key Players & Entities

• HCI Group, Inc. (company) — Filer name
• Homeowners Choice, Inc. (company) — Former company name
• FL (location) — State of incorporation
• FIRE, MARINE & CASUALTY INSURANCE (industry) — Standard Industrial Classification
• 0000950170-24-028620 (filing_id) — Accession number
• 20240308 (date) — Filing date
• 20231231 (date) — Fiscal year end
• 813 849-9500 (phone) — Business phone number

FAQ

Risk Factors

• Insurance Risk and Reserves [high — financial]: The company's financial results are significantly impacted by the adequacy of its insurance reserves and its ability to accurately estimate future claims, particularly for property and casualty lines.
• Investment Portfolio Performance [medium — financial]: Fluctuations in the value and performance of the company's investment portfolio can materially affect its financial condition and results of operations.
• Catastrophic Events [high — market]: The company is exposed to significant losses from catastrophic events such as hurricanes, which can adversely affect its financial results and liquidity.
• Regulatory Changes [medium — regulatory]: Changes in insurance laws and regulations, including those related to capital requirements and claims handling, could impact the company's operations and profitability.
• Competition [medium — operational]: The insurance market is highly competitive, and the company faces competition from other insurers, which could affect its market share and pricing power.

Key Financial Figures

• $196.8 million — 00 policies from Citizens, representing $196.8 million in annualized gross premiums written.
• $106 million — owners' insurance policies representing $106 million in written premium from a carrier place
• $69 million — owners' insurance policies representing $69 million of annualized premium in April 2020 fro
• $20 million — owners' insurance policies representing $20 million of annualized gross written premium fro
• $80.8 million — assumed business, totaled approximately $80.8 million. Reinsurance and other auxiliary oper
• $2.5 million — tion in 2016, gross written premium was $2.5 million and by 2023 it has grown to $363.6 mill
• $363.6 million — 2.5 million and by 2023 it has grown to $363.6 million. Since TypTap began applying for approv
• $87.3 million — assumed business, totaled approximately $87.3 million. TypTap has been successful in using in
• $77.6 million — ies in 2024, representing approximately $77.6 million of annualized gross premiums written in

Filing Documents

• hci-20231231.htm (10-K) — 7041KB
• hci-ex21.htm (EX-21) — 51KB
• hci-ex23_1.htm (EX-23.1) — 4KB
• hci-ex31_1.htm (EX-31.1) — 12KB
• hci-ex31_2.htm (EX-31.2) — 12KB
• hci-ex32_1.htm (EX-32.1) — 5KB
• hci-ex32_2.htm (EX-32.2) — 5KB
• hci-ex97.htm (EX-97) — 9KB
• img69279197_0.jpg (GRAPHIC) — 375KB
• 0000950170-24-028620.txt (&nbsp;) — 37093KB
• hci-20231231.xsd (EX-101.SCH) — 3930KB
• hci-20231231_htm.xml (XML) — 9614KB

Business

Business 2 - 8 Item 1A

Risk Factors

Risk Factors 8 - 18 Item 1B Unresolved Staff Comments 18 Item 1C Cybersecurity 19 Item 2

Properties

Properties 20 Item 3

Legal Proceedings

Legal Proceedings 21 Item 4 Mine Safety Disclosures 21 PART II: Item 5 Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 22 - 24 Item 6 Reserved 24 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 25 - 34 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 34 - 36 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 37 - 112 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 113 Item 9A

Controls and Procedures

Controls and Procedures 113 Item 9B Other Information 113 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 114 PART III: Item 10 Directors, Executive Officers and Corporate Governance 115 Item 11

Executive Compensation

Executive Compensation 115 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 115 Item 13 Certain Relationships and Related Transactions, and Director Independence 115 Item 14 Principal Accountant Fees and Services 115 PART IV: Item 15 Exhibit and Financial Statement Schedules 116 - 120

Signatures

Signatures Certifications PART I

– Business

ITEM 1 – Business General Incorporated in 2006, HCI Group, Inc. is a Florida-based company that, through its subsidiaries, is engaged in property and casualty insurance, information technology services, insurance management, real estate and reinsurance. References to "we," "our," "us," "the Company," or "HCI" in this Form 10-K generally refer to HCI Group, Inc. and its subsidiaries. Our principal executive offices are located at 3802 Coconut Palm Drive, Tampa, Florida 33619, and our telephone number is (813) 849-9500. During the fourth quarter of 2023, Core Risk Managers, LLC ("CRM"), a wholly owned subsidiary of HCI, entered into an attorney-in-fact ("AIF") agreement with Condo Owners Reciprocal Exchange ("CORE"). Under the AIF agreement, CRM is responsible for conducting daily operations on behalf of CORE. Although we do not have any equity interest in CORE, CORE's operating results will be regularly reviewed by us. As such, we now manage our operations in the following organizational segments, based on managerial emphasis and evaluation of financial and operating performances: a) HCPCI Insurance Operations Property and casualty insurance Reinsurance and other auxiliary operations b) TypTap Group Property and casualty insurance Information technology c) CORE Insurance Operations d) Real Estate Operations e) Other Operations Holding company operations HCPCI Insurance Operations Property and Casualty Insurance Homeowners Choice Property & Casualty Insurance Company, Inc. ("HCPCI") was incorporated and began operations in 2007. HCPCI provides various forms of residential insurance products such as homeowners insurance, fire insurance, flood insurance and wind-only insurance to homeowners, condominium owners and tenants for properties primarily located in Florida and in various states outside of Florida. Due to the reduced availability and affordability of flood reinsurance coverage, HCPCI ceased to offer flood insurance policies in F

View Full Filing

View this 10-K filing on SEC EDGAR