TAMPA, Fla., June 01, 2017 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE:HCI) recently disclosed in reports to the Securities and Exchange Commission that its wholly owned subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., which is a Florida based provider of homeowners insurance, has completed placement of its reinsurance program for the 2017-18 reinsurance year, which runs from June 1, 2017 through May 31, 2018.
Homeowners Choice purchases reinsurance to cover losses associated with hurricanes and other catastrophes. The 2017-18 program provides coverage up to $968 million for catastrophic losses in a single event, which according to catastrophe models approved by the Florida Office of Insurance Regulation is sufficient to cover the company’s probable maximum loss resulting from a 1 in 173-year storm based on projected exposure at September 30, 2017.
According to Paresh Patel, HCI’s chief executive officer, the company expects to recognize net reinsurance costs on a consolidated basis of approximately $113 million for the 2017-18 reinsurance year, similar to the 2016-2017 treaty year.
“While it is difficult to compare reinsurance coverages year to year, we expect our reinsurance spend to be similar to last year while securing improved coverage terms and conditions,” said Patel. “In addition, we reduced our risk retained through HCI’s reinsurance subsidiary, Claddaugh Casualty Insurance Company, Ltd. We believe our company and our policyholders will remain well protected in the event of a catastrophe.”
The company released a chart describing its reinsurance structure:
About Homeowners Choice
Headquartered in Tampa, Florida, Homeowners Choice provides property and casualty homeowners' insurance, condominium owners' insurance and tenants' insurance to Florida property owners. Homeowners Choice serves approximately 145,000 policyholders throughout Florida. Homeowners Choice is a wholly owned subsidiary of HCI Group, Inc. For more information about Homeowners Choice, visit www.hcpci.com.
About HCI Group, Inc.
HCI Group, Inc. owns subsidiaries engaged in diverse, yet complementary business activities, including homeowners’ insurance, reinsurance, real estate and information technology services. The company's largest subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., is a leading provider of property and casualty insurance in the state of Florida.
The company's common shares trade on the New York Stock Exchange under the ticker symbol "HCI" and are included in the Russell 2000 and S&P SmallCap 600 Index. HCI Group, Inc. regularly publishes financial and other information in the Investor Information section of the company’s website. For more information about HCI Group and its subsidiaries, visit www.hcigroup.com.
This news release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "estimate," "expect," "intend," "plan," "confident," "prospects" and "project" and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. There can be no assurance, for example, that reinsurance pricing will remain at these levels or that all reinsurers will fulfil their obligations to the company in the event of a catastrophe. Some of these risks and uncertainties are identified in the company's filings with the Securities and Exchange Commission. Should any risks or uncertainties develop into actual events, these developments could have material adverse effects on the company's business, financial condition and results of operations. HCI Group, Inc. disclaims all obligations to update any forward-looking statements.
Company Contact: Kevin Mitchell, Vice President of Investor Relations HCI Group, Inc. Tel (813) 405-3603 firstname.lastname@example.org Investor Relations Contact: Matt Glover or Najim Mostamand Liolios Group, Inc. Tel (949) 574-3860 HCI@liolios.com