HCI Group, Inc (HCI) has reported 53.75 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $11.33 million, or $1.10 a share in the quarter, compared with $7.37 million, or $0.71 a share for the same period last year. Revenue during the quarter grew 13.95 percent to $69.81 million from $61.26 million in the previous year period. Net premium earned for the quarter went up marginally by 0.85 percent or $0.53 million to $63.30 million.
Total expenses move up marginally
Benefits, losses and expenses for the quarter were at $49.78 million, or 78.64 percent of premium earned from $49.32 million or 78.59 percent of premium earned in the last year period. Operating income for the quarter was $20.03 million, compared with $11.94 million in the previous year period. Net investment income was at $2.78 million for the quarter, up 636.61 percent or $3.30 million from year-ago period. Meanwhile, income from fees and commission for the quarter moved down marginally by 2.21 percent or $0.02 million to $0.97 million. The company has recorded a gain on investments of $0.58 million in the quarter compared with a loss of $0.30 million for the previous year period.
“Fortunately, Hurricane Hermine, which was the first hurricane to make landfall in Florida in over 11 years, appears to have been a minor loss event for us during the third quarter of 2016,” said Paresh Patel, HCI Group’s chairman and chief executive officer. “Additionally, the third quarter was highlighted by the implementation of our 2016/17 reinsurance program which provides more comprehensive coverage for less premium when compared with the 2015/2016 program. Our current loss estimates for Hurricane Matthew appear to be far less than originally anticipated based on loss development to date.”
Assets, liabilities fall
Total assets decreased 2.64 percent or $18.57 million to $684.29 million on Sep. 30, 2016. On the other hand, total liabilities were at $439.78 million as on Sep. 30, 2016, down 7.16 percent or $33.94 million from year-ago. Return on assets stood at 2.05 percent in the quarter, up 0.61 from 1.43 percent in the last year period. At the same time, return on equity was at 4.63 percent in the quarter, up 1.42 from 3.22 percent in the last year period.
Investments move up
Investments stood at $288.45 million as on Sep. 30, 2016, up 23.68 percent or $55.23 million from year-ago. Total debt was at $138.17 million as on Sep. 30, 2016, up 4.96 percent or $6.53 million from year-ago. Shareholders equity stood at $244.51 million as on Sep. 30, 2016, up 6.71 percent or $15.37 million from year-ago. As a result, debt to equity ratio went down 1 basis points to 0.57 percent in the quarter from 0.57 percent in the last year period.
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