HCI Group, Inc
) posted earnings of $1.31 per share in the fourth quarter of
2013, missing the Zacks Consensus Estimate by 20 cents. However,
earnings improved 10% year over year largely on the strength of
an improved top line.
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Subsequently, shares of HCI Group fell 8.22% in the aftermarket
trading session likely due to the earnings miss at the company.
Full year net income of HCI Group came in at 95 cents per share
on revenues of $241.1 million. While the top line improved 48%,
the bottom line rose nearly 8% year over year.
Quarterly Operational Update
HCI Group's total revenue of $62.5 million was 21.9% higher year
over year. A 28% increase in net premiums earned coupled with a
five-fold increase in net investment income drove the upside.
However, results missed the Zacks Consensus Estimate of $68
Gross premiums earned improved 26.9%, fueled by policies assumed
from Citizens Property Insurance Corporation in Nov 2013 combined
with renewal premiums from policies assumed from Citizens in Nov
Total expense scaled up 33% year over year to $40 million
attributable to increase in losses and loss adjustment expenses,
policy acquisition and other underwriting expenses, interest
expense and other operating expenses.
Loss ratio in the reported quarter was 27.4%, lower than 32.1% in
the year-ago quarter. The improvement was attributable to higher
HCI Group exited 2013 with cash and cash equivalents of $293.4
million, up 27.5% from the end of 2012.
At the end of the quarter, total debt was $126.9 million.
Total stockholders' equity was $160.5 million at 2013 end, up
32.3% year over year.
HCI Group currently carries a Zacks Rank #3 (Hold).
Performance of Other Property and Casualty
The Travelers Companies Inc
) reported operating net earnings of $2.68 per share in the
fourth quarter of 2013, surpassing the Zacks Consensus Estimate
by 23.5%. Moreover, earnings improved nearly fourfold on a
) reported fourth-quarter operating earnings of 72 cents per
share, outpacing the Zacks Consensus Estimate by 28.6% and the
year-ago quarter's earnings by 64%.
) reported operating net earnings of $2.39 per share in the
fourth quarter of 2013, exceeding the Zacks Consensus Estimate by
19.5%. Moreover, earnings surged nearly 67% on a year-over-year