HCI Group, a holding company with operations in homeowners insurance, information technology services, real estate, and reinsurance, has reported net income of $17.8 million for the first quarter of 2023.
The income figure represented an improvement on the $2.8 million that the company posted for the same period last year.
Pre-tax income came to $23.1 million and HCI also reported an improved gross loss ratio of 33.6% for the quarter, versus 40.6% previously.
“We are starting to see the benefits of the company’s underwriting and rate actions as well as the bold leadership provided by the Florida Legislature in 2022,” said HCI Group Chairman and Chief Executive Officer Paresh Patel.
HCI’s consolidated gross premiums earned in Q1 increased to $180.1 million from $178.9 million last year, with the increase primarily due to higher average premium per policy offset by a decline in the number of policies in force.
Premiums ceded for reinsurance increased to $70.5 million from $53.2 million previously, with ceded premiums representing 39.2% and 29.7% of gross premiums earned in the first quarters of 2023 and 2022, respectively.
HCI further reported improved net investment income of $17.7 million, up from $2.9 million in the first quarter of 2022, driven by the sale of two real estate investment properties at Greenleaf and higher yields on fixed maturity securities.
Also notable, losses and loss adjustment expenses decreased to $60.6 million from $72.7 million, driven by lower claims and litigation frequency in Florida.
Additionally, policy acquisition and other underwriting expenses decreased to $22.7 million from $29.4 million, reflecting a higher mix of renewal policies and lower commissions.