Florida-based insurtech HCI Group has reported a net income of $15.7 million in the third quarter of 2023, compared to a net loss net loss of $51.5 million in the second quarter of 2022.
Adjusted net income was $16.5 million for the quarter, compared to an adjusted net loss of $51.2 million in the prior year quarter.
Total gross written premiums (GWP) for the quarter rose to $198.3 million from $191.2 million in the prior year quarter.
Homeowners choice GWP rose to $127.3 million from $119.4 million from the prior year period. TypTap Insurance Company GWP fell to $70.9 million from $71.8 million.
In addition, premiums ceded for reinsurance in the third quarter decreased to $66.2 million from $74.7 million in the third quarter of 2022.
Additionally, consolidated gross premiums earned in Q3’23 increased to $188.3 million from $181.7 million in the third quarter of 2022. The increase was primarily due to higher average premiums per policy offset in part by attrition in the number of policies in force.
Net investment income for the third quarter was $9.4 million compared with $18.5 million in the third quarter of 2022. Results for Q3’22 included a $13.4 million gain from the sale of real estate investment property.
Losses and loss adjustment expenses in the third quarter decreased to $66.7 million from $139.8 million in the third quarter of 2022.
The third quarter of 2023 included $6.5 million of loss expense related to Hurricane Idalia and the third quarter of 2022 included $64.6 million of loss expense related to Hurricane Ian, the company noted.
“HCI delivered another quarter of strong earnings as the company benefited from an improved operating environment in Florida, and rising interest rates on our interest-bearing investments,” said HCI Group Chairman and CEO Paresh Patel.
“We believe we are seeing the impact of insurance reforms recently enacted by the Florida Legislature. Our loss ratios, for example, are improving to profitable and sustainable levels. Ultimately, as a result of these reforms, we expect Florida consumers will benefit from a stabilised homeowners insurance market with greater choice and more competition. With a more favourable operating environment, we are currently expanding our Florida insurance businesses, which includes the assumption of policies from Citizens,” Patel concluded.
