Florida-based insurtech HCI Group has announced consolidated gross written premium (GWP) growth to $177.3 million for the first quarter of 2022, a 40.9% increase from $125.8 million from the same period last year.
The company also saw a 36.6% increase in consolidated gross premium as they earned $178.9 million, compared to $130.9 million from last years first quarter.
Homeowners choice gross premiums earned grew from $102.1 million to $118.3 million, and TypTap gross premiums earned grew from $28.8 million to $60.6 million.
However, HCI Group’s net income for Q122 totalled $2.8 million, compared to last years period where the company reported a net income of $6.8 million.
The report also shows that the company’s adjusted net income for the first quarter of 2022 was $5.5 million, compared with last years adjusted net income of $7.0 million.
Furthermore, premiums ceded for reinsurance for Q122 increased to $53.2 million from $43.1 million in the first quarter of 2021 and represented 29.7% and 32.9%, respectively, of gross premiums earned. HCI Group added that the increase in reinsurance costs primarily reflects premium growth at both Homeowners Choice and TypTap.
In addition, net investment income for the quarter was $2.9 million, compared with $4.6 million in Q121. HCI Group stated that the decrease was primarily attributable to a $2.7 million decrease in income from real estate investments primarily due to a gain from a legal settlement in the first quarter of 2021, offset by a $1 million increase in income from limited partnership investments.
The report also showed that net realised investment losses for the quarter were $0.3 million, compared to last years period of $1.1 million.
At the same time, net unrealised investment losses were $3.6 million in Q122 compared with net unrealised investment losses of $0.3 million in Q121
HCI Groups losses and loss adjustment expenses for Q122 were $72.7 million compared with $45.8 million in the same period of 2021. The company stated that the increase was primarily attributable to their growing premium base and weather-related losses in Florida.
HCI Group Chairman and Chief Executive Officer Paresh Patel, commented: “In the first quarter, results across our geographic footprint again validated the effectiveness of the technology that we’ve built. We continue to execute on our nationwide expansion plan and because of the confidence we have in our technology capabilities, we plan to take advantage of potential opportunities in the future.”
