On Friday, HCI Group, Inc. (NYSE: HCI) shares price traded between $40.35 and $41.99 during the last trading session above with +2.39% at $41.57. The shares recorded trading volume 130,583 shares as compared to its average volume of 67,298 shares. The company has 9.34M shares outstanding and market value of 388.211M. Over the one year trading period, the stock has a peak price of $49.12 and its down is recorded at $27.11. The short ratio in the stock is 13.4 and the short float is around of 13.63%.
HCI Group, Inc. (HCI) stated results for the quarter ended March 31, 2018.
1st Quarter 2018 – Financial Results
Net income for the first quarter of 2018 totaled $10.8M or $1.11 diluted earnings per share contrast with $12M or $1.15 diluted earnings per share in the first quarter of 2017. Adjusted net income (a non-GAAP measure which excludes unrealized gains or losses on equity securities) for the quarter was $12.7M or $1.26 per fully diluted share. The company has included in this press release an explanation of adjusted net income as well as a reconciliation to GAAP net income and earnings per share.
Gross premiums earned totaled $85.8M contrast with $91.6M in the same period in 2017. The decrease in 2018 was primarily attributable to policy attrition.
Gross premiums written were $70.1M contrast with $71.4M in the same quarter of 2017.
Premiums ceded raised to $32.3M or 37.6% of gross premiums earned from $28.6M or 31.2% of gross premiums earned in the first quarter of 2017. The raise was primarily Because of a net raise of ceded premiums attributable to retrospective provisions under certain reinsurance contracts as opposed to a net reduction in ceded premiums in the same period in 2017.
Net premiums earned (defined as gross premiums earned less premiums ceded to reinsurance) were $53.5M contrast with $63M in the same period in 2017.
Net premiums written (defined as gross premiums written less premiums ceded to reinsurance) were $37.9M contrast with $42.8M in the same period in 2017.
Net realized investment gains were $2.2M contrast with $0.7M in the same period in 2017. The gains in 2018 resulted primarily from sales intended to rebalance the company’s investment portfolio. Net unrealized investment losses were $2.6M representing a net unfavorable change in the fair value of equity securities during the first quarter of 2018 subsequent to the adoption of a new accounting standard requiring unrealized holding gains and losses on equity securities to be stated in the statement of income.
Losses and loss adjustment expenses were $19.7M contrast with $25.5M in the same period in 2017. There were two reasons for the decrease. The $25.5M in 2017 included loss reserve strengthening of $2.5M in response to trends involving assignment of insurance benefits and related litigation, and there was no material reserve strengthening in the first quarter of 2018. Second, there was a substantial decrease in the number of non-catastrophe claims in the first quarter of 2018 contrast to the first quarter of 2017.
General and administrative personnel expenses were $6.3M contrast with $7M in the same period in 2017.
The decrease related to lower stock-based compensation and payroll costs associated with the processing and settlement of Hurricane Irma claims which are recoverable from reinsurers.
Interest expense was $4.5M contrast with $3.5M in the same period in 2017. The change primarily resulted from interest expense related to the 4.25% convertible debt offering which was completed in March 2017.
Income tax expense was $4M contrast to $7.1M in the same quarter in 2017, which resulted primarily from a reduced federal tax rate attributable to the Tax Cut and Jobs Act of 2017 that became effective January 1, 2018. The effective tax rate in the quarter was 27.1% as contrast to 37.2% in the same quarter of 2017.
Book value per share, defined as shareholders’ equity divided by ordinary shares outstanding at the end of the period, was $22.45 at March 31, 2018 contrast with $22.14 at December 31, 2017.
The stock established a positive trend of 0.36% in last week and indicated rise of 0.27% in previous month. (HCI) price volatility for a month noted as 2.58% however its price volatility for a week documented as 3.30%.
