Florida-based insurtech HCI Group has reported a net income of $89.3 million for 2023, compared to a net loss of $54.6 million in 2022.
Consolidated gross premiums earned in 2023 also increased to $765.5 million from $724.7 million in 2022.
HCI explained that gross premiums earned for 2023 include $23 million of premium from the assumption of policies from Citizens, which you can read more about here.
The firm’s premiums ceded for reinsurance in 2023 increased to $269.6 million from $261.1 million in the previous year. Premiums ceded represented 35.2% and 36% of gross premiums earned in 2023 and 2022, respectively.
Meanwhile, HCI’s net investment income for 2023 increased to $46.2 million from $32.4 million in 2022.
At the same time, losses and loss adjustment expenses for 2023 decreased to $254.6 million from $371.5 million in 2022.
“The twelve months of 2022 included $64.6 million of loss expense related to Hurricane Ian. After adjusting for this, the gross loss ratio for the twelve months of 2023 improved to 33% compared to an adjusted gross loss ratio of 42% for the twelve months of 2022 reflecting the continued improvement in claims experience in Florida including lower claims and litigation frequency,” HCI explained.
Policy acquisition and other underwriting expenses for 2023 decreased to $90.8 million from $105.0 million in 2022, and declined to 11.9% of gross premiums earned from 14.5%, reflecting lower commissions, the transition of business from United Property & Casualty Insurance Company and lower policy acquisition expenses related to the policies assumed from Citizens.
