Q4 Earnings and Revs Miss Ests at HCI Group - Analyst Blog


HCI Group, Inc . ( HCI ) 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.

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 million.

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 2012.

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 premiums earned.

Financial Update

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.

Zacks Rank

HCI Group currently carries a Zacks Rank #3 (Hold).

Performance of Other Property and Casualty Insurers

The Travelers Companies Inc . ( TRV ) 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 year-over-year basis.

RLI Corp. ( RLI ) 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%.

ACE Ltd. ( ACE ) 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 basis.

ACE LIMITED (ACE): Free Stock Analysis Report

HCI GROUP INC (HCI): Free Stock Analysis Report

RLI CORP (RLI): Free Stock Analysis Report

TRAVELERS COS (TRV): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: ACE , HCI , RLI , TRV



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