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HCI Group (HCI) Q4 Earnings and Revenues Miss Estimates
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HCI Group, Inc. (HCI - Free Report) reported fourth-quarter 2018 operating loss per share of 48 cents, wider than the Zacks Consensus Estimate of a loss of 40 cents. Also, the bottom line declined from the year-ago earnings of $1.14 per share.
The quarter suffered due to cat loss stemming from Hurricane Michael.
Behind the Headlines
Gross premiums written increased 6% year over year to $43.6 million.
Operating revenues of $53 million declined 14.5% year over year and missed the Zacks Consensus Estimate by 12.1%. Lower net premiums earned, policy fee income and other resulted in the downside.
Net investment income surged 68.3% year over year to $4.9 million.
Total expense of $64.3 million increased 44% year over year driven by higher losses and loss adjustment expenses, general and administrative personnel expenses and interest expense.
The loss ratio deteriorated 2300 basis points (bps) year over year to 49.4% largely due to Hurricane Michael. Combined ratio deteriorated 4190 bps year over year to 122%.
Operating loss per share was $3.23, deteriorating from the year-ago loss of 75 cents.
Operating revenues of $235.4 million declined 2.5% from 2017.
Combined ratio of 95.8% improved 2000 bps driven by lower loss ratio.
Financial Update
HCI Group exited 2018 with total investments of $387.8 million, up nearly 2% year over year. Cash and cash equivalents totaled $34.9 million, down 6.4% from 2017 end.
Long-term debt of $250.2 million increased 5.2% year over year.
HCI Group exited 2018 with total shareholders’ equity of $181.4 billion, down 1.4% year over year.
As of Dec 31, 2018, book value per share was $21.71, down 1.9% year over year
Dividend Update
The board of directors increased quarterly cash dividend by 6.7% to 40 cents per share per quarter, representing the ninth dividend increase.
Among other players from the insurance industry, which have already reported fourth-quarter earnings, The Travelers Companies, Inc. (TRV - Free Report) and RLI Corp. (RLI - Free Report) outpaced the respective Zacks Consensus Estimate, while The Progressive Corporation’s (PGR - Free Report) earnings missed the same.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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HCI Group (HCI) Q4 Earnings and Revenues Miss Estimates
HCI Group, Inc. (HCI - Free Report) reported fourth-quarter 2018 operating loss per share of 48 cents, wider than the Zacks Consensus Estimate of a loss of 40 cents. Also, the bottom line declined from the year-ago earnings of $1.14 per share.
The quarter suffered due to cat loss stemming from Hurricane Michael.
Behind the Headlines
Gross premiums written increased 6% year over year to $43.6 million.
Operating revenues of $53 million declined 14.5% year over year and missed the Zacks Consensus Estimate by 12.1%. Lower net premiums earned, policy fee income and other resulted in the downside.
Net investment income surged 68.3% year over year to $4.9 million.
Total expense of $64.3 million increased 44% year over year driven by higher losses and loss adjustment expenses, general and administrative personnel expenses and interest expense.
The loss ratio deteriorated 2300 basis points (bps) year over year to 49.4% largely due to Hurricane Michael. Combined ratio deteriorated 4190 bps year over year to 122%.
HCI Group, Inc. Price, Consensus and EPS Surprise
HCI Group, Inc. Price, Consensus and EPS Surprise | HCI Group, Inc. Quote
Full-Year Highlights
Operating loss per share was $3.23, deteriorating from the year-ago loss of 75 cents.
Operating revenues of $235.4 million declined 2.5% from 2017.
Combined ratio of 95.8% improved 2000 bps driven by lower loss ratio.
Financial Update
HCI Group exited 2018 with total investments of $387.8 million, up nearly 2% year over year. Cash and cash equivalents totaled $34.9 million, down 6.4% from 2017 end.
Long-term debt of $250.2 million increased 5.2% year over year.
HCI Group exited 2018 with total shareholders’ equity of $181.4 billion, down 1.4% year over year.
As of Dec 31, 2018, book value per share was $21.71, down 1.9% year over year
Dividend Update
The board of directors increased quarterly cash dividend by 6.7% to 40 cents per share per quarter, representing the ninth dividend increase.
Zacks Rank
HCI Group currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other P&C Insurers
Among other players from the insurance industry, which have already reported fourth-quarter earnings, The Travelers Companies, Inc. (TRV - Free Report) and RLI Corp. (RLI - Free Report) outpaced the respective Zacks Consensus Estimate, while The Progressive Corporation’s (PGR - Free Report) earnings missed the same.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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