Florida-based insurtech HCI Group has reported a net income of $14.9 million in the second quarter of 2023, compared to a net loss of $8.5 million in the second quarter of 2022.
Adjusted net income was $14.2 million for the quarter, compared to an adjusted net loss of $5.4 million in the prior year quarter.
For H123, HCI Group reported a net income of $32.7 million, compared to a net loss of $5.8 million in H122, while adjusted net income for H123 was $31.6 million, compared to an adjusted net income of $0.08 million in H122.
At the same time, consolidated gross premiums were $182.0 million for the quarter, an increase from $181.1 million from the second quarter of 2022.
Consolidated gross written premiums (GWP) for the quarter fell to $180 million from $186.2 million in the prior year quarter.
Homeowners choice GWP however, rose to $140.5 million from $113.1 million from the prior year period. TypTap Insurance Company gross written premiums fell to $39.4 million from $73 million.
In addition, premiums ceded for reinsurance for Q2 23 were $66.4 million, an increase from Q2 22’s $56.2 million.
Additionally, consolidated gross premiums earned were $362.0 million for H123, an increase from $360.0 million in H122.
Net investment income for the quarter was $8.8 million, an increase from $3.7 million in the prior year quarter. The increase was reflecting higher yields on fixed maturity securities, cash, and cash equivalents.
Furthermore, net realized and unrealized investment gains were $897,000 compared to net realized and unrealized losses of $4.2 million in the second quarter of 2022.
“HCI Group delivered another strong quarter with several positive trends continuing in the quarter. Loss trends improved, average premium per policy was higher and the interest rate environment benefited our investment income. We think these positive trends can continue,” said HCI Group Chairman and Chief Executive Officer Paresh Patel.
“The actions taken by the Florida Legislature and the Governor in 2022 are resulting in greater stability in the Florida homeowners’ market. HCI Group remains committed to Florida and we look forward to expanding in the state in the future.”
