TAMPA, Fla., June 06, 2018 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE: HCI), a leading provider of property and casualty insurance in Florida, has completed its catastrophic reinsurance program for the 2018-2019 contract year, which runs from June 1, 2018 through May 31, 2019.
HCI purchases insurance called reinsurance from other insurance companies and institutions to cover policyholder losses associated with hurricanes and other catastrophes. The 2018-2019 reinsurance program provides coverage up to $888 million for catastrophic losses in a single event, excluding flood losses, 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 191-year storm based on projected exposure at September 30, 2018.
According to Paresh Patel, HCI’s chief executive officer, the company expects to recognize net reinsurance costs of approximately $123 million for the 2018-2019 contract year.
“We received strong interest from our reinsurers based on our data transparency and early loss projections post Hurricane Irma,” said Patel. “In addition, we eliminated for this year our risk retention within HCI’s reinsurance subsidiary, Claddaugh Casualty Insurance Company, while keeping the cost of this year’s program roughly equal to last year’s. Considering our first event retention is only $16 million, 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: http://www.globenewswire.com/NewsRoom/AttachmentNg/138684a0-800e-4dc7-8ffe-7f677fe60bb9
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 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.
Kevin Mitchell, Senior Vice President of Investor Relations
HCI Group, Inc.
Tel (813) 405-3603
Investor Relations Contact:
Matt Glover or Najim Mostamand, CFA
Liolios Group, Inc.
Tel (949) 574-3860