HCI Group, Inc. Enters Material Definitive Agreement

TL;DR

HCI Group just signed a big deal, details TBD.

AI Summary

On May 30, 2024, HCI Group, Inc. entered into a material definitive agreement. The filing does not disclose the specific details of this agreement, the counterparty, or any associated financial figures.

Why It Matters

This filing indicates a significant new contract or partnership for HCI Group, Inc., which could impact its future business operations and financial performance.

Risk Assessment

Risk Level: medium — The lack of specific details in the filing creates uncertainty about the nature and impact of the agreement.

Key Players & Entities

• HCI Group, Inc. (company) — Registrant
• May 30, 2024 (date) — Date of Report

FAQ

Key Financial Figures

• $1.12 billion — surance program provides coverage up to $1.12 billion for catastrophic losses from a single e
• $1.66 billion — e total coverage for all occurrences is $1.66 billion. The reinsurance retention for Reinsura
• $14 million — ce retention for Reinsurance Tower 1 is $14 million for each of the first and second event.
• $614.3 million — he program is estimated to cover 90% of $614.3 million in excess of $311.7 million retention.
• $311.7 million — over 90% of $614.3 million in excess of $311.7 million retention. Premiums for this component
• $49.4 million — ponent of the program are approximately $49.4 million. Premiums for the private reinsurance
• $161.4 m — ponent of the program are approximately $161.4 million, assuming no losses occur during
• $723.3 million — surance program provides coverage up to $723.3 million for catastrophic losses from a single e
• $410.0 million — surance program provides coverage up to $410.0 million for catastrophic losses from a single e
• $1.11 billion — e total coverage for all occurrences is $1.11 billion. The reinsurance retention for Reinsura
• $9.0 million — ce retention for Reinsurance Tower 2 is $9.0 million for each of the first and second event.
• $348.1 million — he program is estimated to cover 90% of $348.1 million in excess of $176.6 million retention.
• $176.6 million — over 90% of $348.1 million in excess of $176.6 million retention. Premiums for this component
• $28.0 million — ponent of the program are approximately $28.0 million. Premiums for the private reinsurance
• $117.7 m — rovided by Claddaugh, are approximately $117.7 million, assuming no losses occur during

Filing Documents

• hci-20240530.htm (8-K) — 59KB
• 0000950170-24-066263.txt ( ) — 175KB
• hci-20240530.xsd (EX-101.SCH) — 29KB
• hci-20240530_htm.xml (XML) — 4KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement To mitigate risk from hurricanes, tornados, severe thunderstorms and other catastrophes, each year our two insurance subsidiaries, Homeowners Choice Property & Casualty Insurance Company, Inc. ("Homeowners Choice") and TypTap Insurance Company ("TypTap"), implement a comprehensive reinsurance program whereby Homeowners Choice and TypTap pay premiums to other entities that agree to indemnify Homeowners Choice and TypTap against costs associated with policyholder claims caused by certain catastrophic events. Homeowners Choice and TypTap secured their reinsurance program for the year June 1, 2024 through May 31, 2025 by entering into contracts with multiple private reinsurance companies and with the State Board of Administration of Florida, which administers the Florida Hurricane Catastrophe Fund. The private reinsurance companies include Arch Reinsurance Ltd., Chubb Tempest Reinsurance Ltd., Endurance Specialty Insurance Ltd., Everest Reinsurance Company, Hannover Ruck SE, Markel Bermuda Limited, National Liability & Fire Insurance Company, Transatlantic Reinsurance Company, various Lloyd's syndicates, and our own Bermuda-based reinsurance subsidiary, Claddaugh Casualty Insurance Company Ltd ("Claddaugh"). All of our private reinsurers are AM Best rated A-' (Excellent) or better or have fully collateralized their obligations to us. The reinsurance contracts provide various coverages, limits, and retentions. The private reinsurance contracts cover, in general, hurricanes, tropical storms, tornados, hailstorms, wildfires and other large events. The Florida Hurricane Catastrophe Fund agreement covers only storms designated as hurricanes by the National Hurricane Center. Management assessed the reinsurance needs for each insurance subsidiary by region and peril for the 2024-2025 treaty year. HCI has secured two reinsurance towers for its two insurance subsidiaries. Reinsurance Tower 1 covers all Homeowners Cho

View Full Filing

View this 8-K filing on SEC EDGAR