Florida-based insurtech HCI Group has posted a $6.4 million net income for the fourth quarter, up from an $8.5 million net loss in the prior year quarter.
Net income for the full year totaled $26.6 million, compared with $17.7 million in 2018.
HCI says this increase for the full year was primarily due to an increase in net premiums earned, a net increase in income from its investment portfolio, a decrease in loss expense and a decrease in interest expense, offset by an increase in general and administrative personnel expenses and an increase in policy acquisition expenses.
Consolidated gross written premiums for Q4 was $66.6 million, up 52.8% from $43.6 million in the fourth quarter of 2018, reflecting the rapid growth of TypTap Insurance Company, HCI’s technology-driven insurance subsidiary.
Also for Q4, consolidated gross premiums earned totaled $90.2 million, up 5.8% from $85.2 million in the fourth quarter of 2018.
Losses and loss adjustment expenses were $28.9 million compared with $42.1 million in the same period in 2018.
The decrease was primarily due to the pre-tax losses of $16.5 million attributable to Hurricane Michael from the fourth quarter of 2018.
“Our premium growth in the fourth quarter, driven by TypTap, evidences the effectiveness of our internally-developed underwriting and policy production software,” said Paresh Patel, HCI Group’s chairman and chief executive officer.
“While we are pleased with our revenue growth, we remain focused on generating profits and shareholder returns.”
