Back to top

Analyst Blog

HCI Group, Inc. (HCI - Snapshot Report) posted earnings of $1.31 per share in the fourth quarter of 2013, missing the Zacks Consensus Estimate by 20 cents. However, earnings improved 10% year over year largely on the strength of an improved top line.

Subsequently, shares of HCI Group fell 8.22% in the aftermarket trading session likely due to the earnings miss at the company.

Full year net income of HCI Group came in at 95 cents per share on revenues of $241.1 million. While the top line improved 48%, the bottom line rose nearly 8% year over year.

Quarterly Operational Update

HCI Group’s total revenue of $62.5 million was 21.9% higher year over year. A 28% increase in net premiums earned coupled with a five-fold increase in net investment income drove the upside. However, results missed the Zacks Consensus Estimate of $68 million.

Gross premiums earned improved 26.9%, fueled by policies assumed from Citizens Property Insurance Corporation in Nov 2013 combined with renewal premiums from policies assumed from Citizens in Nov 2012.

Total expense scaled up 33% year over year to $40 million attributable to increase in losses and loss adjustment expenses, policy acquisition and other underwriting expenses, interest expense and other operating expenses.

Loss ratio in the reported quarter was 27.4%, lower than 32.1% in the year-ago quarter. The improvement was attributable to higher premiums earned.

Financial Update

HCI Group exited 2013 with cash and cash equivalents of $293.4 million, up 27.5% from the end of 2012.

At the end of the quarter, total debt was $126.9 million.

Total stockholders' equity was $160.5 million at 2013 end, up 32.3% year over year.

Zacks Rank

HCI Group currently carries a Zacks Rank #3 (Hold).

Performance of Other Property and Casualty Insurers

The Travelers Companies Inc. (TRV - Analyst Report) reported operating net earnings of $2.68 per share in the fourth quarter of 2013, surpassing the Zacks Consensus Estimate by 23.5%. Moreover, earnings improved nearly fourfold on a year-over-year basis.

RLI Corp. (RLI - Analyst Report) reported fourth-quarter operating earnings of 72 cents per share, outpacing the Zacks Consensus Estimate by 28.6% and the year-ago quarter’s earnings by 64%.

ACE Ltd. (ACE - Analyst Report) reported operating net earnings of $2.39 per share in the fourth quarter of 2013, exceeding the Zacks Consensus Estimate by 19.5%. Moreover, earnings surged nearly 67% on a year-over-year basis.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SUPER MICRO… SMCI 27.00 +10.25%
CANADIAN SO… CSIQ 38.34 +8.18%
BANCO DO BR… BDORY 16.78 +8.05%
CENTURY ALU… CENX 26.97 +7.97%
WILLDAN GRO… WLDN 11.38 +5.86%