HCI Group (HCI) Q4 Earnings Beat Estimates, Revenues In Line

HCI Group, Inc .'s HCI fourth-quarter 2017 net earnings per share of $1.14 beat the Zacks Consensus Estimate of 82 cents by 39.02%. Also, the bottom line more than doubled year over year on lower expenses.

HCI Group, Inc. Price, Consensus and EPS Surprise

HCI Group, Inc. Price, Consensus and EPS Surprise | HCI Group, Inc. Quote

Behind the Headlines

Total operating revenues of $62 million declined 13.9% year over year. This downside can be attributed to lower net investment income and a decrease in premiums earned. The top line met the Zacks Consensus Estimate.

Gross premiums earned of $87.9 million fell 4.9% year over year, primarily due to policy attrition.

Net investment income of $2.9 million declined 5.5% year over year.

Losses and loss adjustment expenses dropped nearly 49% year over year to $23.2 million, resulting from the impact of Hurricane Matthew and reserve strengthening during the fourth quarter of 2016.

Total operating expenses declined 32.8% year over year to $44.7 million.

Loss ratio contracted 3010 basis points to 41.6% while expense ratio expanded 530 basis points to 38.5% in the reported period. Combined loss and expense ratio improved 2480 basis points to 80.1%.

Full-Year Highlights

HCI Group incurred loss of 75 cents per share against $2.92 earned in 2016.

Total revenues of $244.4 million decreased 7.6% year over year.

Combined ratio to gross premiums earned was 72.6% compared with 57.5% in 2016.

Financial Update

As of Dec 31, 2017, HCI Group had cash and investments of $255.9 billion, down 8.8% from $280.5 million at 2016-end.

Long-term debt of $237.8 million at 2017-end increased 71.2% from 2016-end level.

Stockholders' equity decreased 20.4% from 2016-end level to $194 million at the end of 2017.

Book value per share of $22.14 as of Dec 31, 2017 lessened 12.2% year over year.

Zacks Rank

HCI Group carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Performance of Other Insurers

Among other players from the insurance industry that have reported fourth-quarter earnings so far, the bottom line of The Progressive Corporation PGR , The Travelers Companies, Inc. TRV and RLI Corp. RLI topped the respective Zacks Consensus Estimate.

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

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

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