TAMPA, Fla., Sept. 18, 2017 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE:HCI) has issued initial loss estimates from Hurricane Irma, which made landfall in the Florida Keys last week before making a second landfall in the southwest coast of Florida shortly thereafter. Irma is the first major hurricane to make landfall in Florida since Hurricane Wilma struck in 2005.
HCI’s principal operating subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., which is a leading provider of homeowners’ insurance in Florida, issued a preliminary estimate indicating its losses related to Hurricane Irma will be in the range of $100 to $300 million. These losses will exceed its $16 million reinsurance retention level and trigger reinsurance recoveries, as well as trigger the loss of accrued benefits and deferrals under retrospective provisions within certain reinsurance contracts.
HCI’s captive reinsurance subsidiary, Claddaugh Casualty Insurance Company Ltd., which participates in the Homeowners Choice reinsurance program, estimates a loss of $34 million from Hurricane Irma which is the full extent of the coverage it provided to Homeowners Choice.
“Our thoughts go out to all who have been affected by this hurricane,” said Paresh Patel, HCI’s chairman and chief executive officer. “Our focus at this time is on our policyholders and ensuring their claims are handled quickly and efficiently. We have ample resources, including reinsurance recoveries and cash, to meet our obligations to policyholders.”
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 Index and the 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 Hurricane Irma losses will not be larger than expected. 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.
Kevin Mitchell, Vice President of Investor Relations
HCI Group, Inc.
Investor Relations Contact:
Matt Glover or Najim Mostamand, CFA
Liolios Group, Inc.