We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
HCI Group's (HCI) HCPCI Takes Over 53,000 Policies From Citizens
Read MoreHide Full Article
HCI Group, Inc. (HCI - Free Report) recently revealed that its subsidiary, Homeowners Choice Property & Casualty Insurance Company (“HCPCI”), has assumed around 53,750 policies from the state-backed insurer in Florida, Citizens Property Insurance Corporation.
The approval was received from the Florida Office of Insurance Regulation in September, while the effective assumption date is Nov 21, 2023. It received approval for 75,000 policies and garnered an acceptance rate of 74%. The move highlights HCPCI’s ability to offer policyholders a competitively priced renewal policy and enhanced coverage as compared with the alternative.
The assumed policies represent an in-force premium of around $196 million. Last year, the largest HCI subsidiary witnessed a $377 million in-force premium, which rose to $423 million in the third quarter of 2023. The segment earned total revenues of $72 million in the third quarter, up from $61.5 million a year ago.
Another subsidiary of HCI Group, TypTap, is anticipated to take over policies from Citizens Property Insurance Corporation next month and in the first month of 2024. These moves are likely to encourage private firms to assume policies from the state-backed insurance company, which is related to the state’s legislatively mandated depopulation program.
Since its launch in 2016, TypTap has experienced substantial organic growth, driven by advancements in its technology. It is now operating in 13 states. Refining risk evaluation and improving efficiency in the subsidiary are boosting TypTap’s profit levels. During the 2018-2022 period, TypTap recorded a gross written premium CAGR of 121%.
Price Performance
Over the past year, shares of HCI have surged 121.1%, outperforming the industry’s 11.3% growth.
The Zacks Consensus Estimate for Assurant’s current-year earnings indicates a 27.5% year-over-year increase. It beat earnings estimates in all the past four quarters, with an average surprise of 42.4%. Also, the consensus mark for AIZ’s 2023 revenues suggests 5% year-over-year growth.
The consensus mark for Employers Holdings’ current-year earnings indicates a 17.8% year-over-year increase. It beat earnings estimates in all the past four quarters, with an average surprise of 26.5%. Furthermore, the consensus estimate for EIG’s 2023 revenues suggests 17.5% year-over-year growth.
The Zacks Consensus Estimate for Brown & Brown’s current-year earnings is pegged at $2.75 per share, which indicates 20.6% year-over-year growth. It has witnessed four upward estimate revisions against none in the opposite direction during the past month. BRO beat earnings estimates in each of the past four quarters, with an average surprise of 12.3%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
HCI Group's (HCI) HCPCI Takes Over 53,000 Policies From Citizens
HCI Group, Inc. (HCI - Free Report) recently revealed that its subsidiary, Homeowners Choice Property & Casualty Insurance Company (“HCPCI”), has assumed around 53,750 policies from the state-backed insurer in Florida, Citizens Property Insurance Corporation.
The approval was received from the Florida Office of Insurance Regulation in September, while the effective assumption date is Nov 21, 2023. It received approval for 75,000 policies and garnered an acceptance rate of 74%. The move highlights HCPCI’s ability to offer policyholders a competitively priced renewal policy and enhanced coverage as compared with the alternative.
The assumed policies represent an in-force premium of around $196 million. Last year, the largest HCI subsidiary witnessed a $377 million in-force premium, which rose to $423 million in the third quarter of 2023. The segment earned total revenues of $72 million in the third quarter, up from $61.5 million a year ago.
Another subsidiary of HCI Group, TypTap, is anticipated to take over policies from Citizens Property Insurance Corporation next month and in the first month of 2024. These moves are likely to encourage private firms to assume policies from the state-backed insurance company, which is related to the state’s legislatively mandated depopulation program.
Since its launch in 2016, TypTap has experienced substantial organic growth, driven by advancements in its technology. It is now operating in 13 states. Refining risk evaluation and improving efficiency in the subsidiary are boosting TypTap’s profit levels. During the 2018-2022 period, TypTap recorded a gross written premium CAGR of 121%.
Price Performance
Over the past year, shares of HCI have surged 121.1%, outperforming the industry’s 11.3% growth.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
HCI Group currently sports a Zacks Rank #1 (Strong Buy). Some other top-ranked stocks in the broader Finance space are Assurant, Inc. (AIZ - Free Report) , Employers Holdings, Inc. (EIG - Free Report) and Brown & Brown, Inc. (BRO - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Assurant’s current-year earnings indicates a 27.5% year-over-year increase. It beat earnings estimates in all the past four quarters, with an average surprise of 42.4%. Also, the consensus mark for AIZ’s 2023 revenues suggests 5% year-over-year growth.
The consensus mark for Employers Holdings’ current-year earnings indicates a 17.8% year-over-year increase. It beat earnings estimates in all the past four quarters, with an average surprise of 26.5%. Furthermore, the consensus estimate for EIG’s 2023 revenues suggests 17.5% year-over-year growth.
The Zacks Consensus Estimate for Brown & Brown’s current-year earnings is pegged at $2.75 per share, which indicates 20.6% year-over-year growth. It has witnessed four upward estimate revisions against none in the opposite direction during the past month. BRO beat earnings estimates in each of the past four quarters, with an average surprise of 12.3%.