InsurTech HCI Group has announced a decline in net income for the third-quarter of 2019 to $5.9 million, while a decline in underwriting profitability resulted in a combined ratio of 96%, compared with 92% for the same period last year.
HCI Group’s net income declined in Q3 2019 when compared with the $9 million recorded in Q3 2018, while adjusted net income reached $5.4 million, down from the $9.3 million recorded a year earlier.
The firm’s loss ratio increased slightly in the quarter from 47.6% to 50.2%, while the expense ratio also increased in the period to 45.8%, compared with 44.4% a year earlier. HCI Group attributes this to an increase in policy acquisition, underwriting and personnel expenses, somewhat offset by a decline in interest expense.
The interest expense was $2.9 million in Q3 2019 versus $4.6 million in the third-quarter of 2018.
Losses and loss adjustment expenses reached $27.3 million compared with $25.8 million a year earlier, mostly driven by the strengthening of loss reserves on non-catastrophe claims.
Consolidated gross written premiums jumped by almost 8% year-on-year to $97.3 million, which the firm attributes to rapid growth of TypTap Insurance Company, which recorded premium growth of almost $12 million to $16.2 million.
Consolidated gross premiums earned declined by 0.2% to $86 million for HCI Group in the third-quarter of this year, while net premiums earned actually increased by 0.5%.
Paresh Patel, HCI Group’s Chairman and Chief Executive Officer (CEO), commented, “The third quarter marked another period of growth for HCI, driven by accelerating growth at TypTap, our technology-based insurance subsidiary. TypTap’s gross written premiums increased four-fold compared with a year ago.”
