• Filing Date: 2020-03-06
  • Form Type: 10-K
  • Description: Annual report
v3.19.3.a.u2
Condensed Financial Information of HCI Group, Inc.
12 Months Ended
Dec. 31, 2019
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]  
Condensed Financial Information of HCI Group, Inc.

Note 27 -- Condensed Financial Information of HCI Group, Inc.

Condensed financial information of HCI Group, Inc. is as follows:

Balance Sheets

 

 

 

December 31,

 

 

 

2019

 

 

2018

 

Assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

17,738

 

 

$

42,292

 

Fixed-maturity securities, available for sale, at fair value

 

 

745

 

 

 

38,224

 

Equity securities, at fair value

 

 

6,689

 

 

 

7,299

 

Short-term investments

 

 

 

 

 

25,275

 

Limited partnership investments, at equity

 

 

21,405

 

 

 

21,711

 

Note receivable – related party

 

 

1,280

 

 

 

1,280

 

Investment in subsidiaries

 

 

290,675

 

 

 

290,469

 

Property and equipment, net

 

 

345

 

 

 

445

 

Income tax receivable

 

 

 

 

 

3,019

 

Other assets

 

 

4,466

 

 

 

1,136

 

Total assets

 

$

343,343

 

 

$

431,150

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Accrued expenses and other liabilities

 

$

6,526

 

 

$

4,772

 

Income tax payable

 

 

1,443

 

 

 

 

Deferred income taxes, net

 

 

2,587

 

 

 

3,594

 

Revolving credit facility

 

 

9,750

 

 

 

 

Long-term debt

 

 

134,080

 

 

 

219,301

 

Due to related parties

 

 

3,414

 

 

 

22,042

 

Total liabilities

 

 

157,800

 

 

 

249,709

 

Total stockholders’ equity

 

 

185,543

 

 

 

181,441

 

Total liabilities and stockholders’ equity

 

$

343,343

 

 

$

431,150

 

 

Statements of Income

 

 

 

Years Ended December 31,

 

 

 

2019

 

 

2018

 

 

2017

 

Net investment income

 

$

2,295

 

 

$

5,348

 

 

$

2,799

 

Net realized investment (losses) gains

 

 

(541

)

 

 

1,544

 

 

 

367

 

Net unrealized investment gains (losses)

 

 

1,385

 

 

 

(1,514

)

 

 

92

 

Other-than-temporary impairment losses

 

 

 

 

 

(80

)

 

 

(209

)

Loss on repurchases of senior notes

 

 

 

 

 

 

 

 

(743

)

Interest expense

 

 

(12,042

)

 

 

(17,007

)

 

 

(15,704

)

Operating expenses

 

 

(6,353

)

 

 

(5,429

)

 

 

(5,489

)

Loss before income tax benefit and equity in income of subsidiaries

 

 

(15,256

)

 

 

(17,138

)

 

 

(18,887

)

Income tax benefit

 

 

3,092

 

 

 

1,856

 

 

 

9,605

 

Net loss before equity in income of subsidiaries

 

 

(12,164

)

 

 

(15,282

)

 

 

(9,282

)

Equity in income of subsidiaries

 

 

38,740

 

 

 

33,007

 

 

 

2,389

 

Net income (loss)

 

$

26,576

 

 

$

17,725

 

 

$

(6,893

)

 

Statements of Cash Flows

 

 

 

Years Ended December 31,

 

 

 

2019

 

 

2018

 

 

2017

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

26,576

 

 

$

17,725

 

 

$

(6,893

)

Adjustments to reconcile net income (loss) to net cash used in

   operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

3,638

 

 

 

2,550

 

 

 

2,630

 

Net realized investment losses (gains)

 

 

541

 

 

 

(1,544

)

 

 

(367

)

Net unrealized investment (gains) losses

 

 

(1,385

)

 

 

1,514

 

 

 

(92

)

Amortization of premiums (discounts) on investments in

   fixed-maturity securities

 

 

66

 

 

 

(3

)

 

 

51

 

Depreciation and amortization

 

 

5,194

 

 

 

7,737

 

 

 

6,673

 

Net income from limited partnership investments

 

 

(701

)

 

 

(3,007

)

 

 

(1,354

)

Distributions from limited partnership interests

 

 

1,661

 

 

 

1,495

 

 

 

881

 

Other-than-temporary impairment losses

 

 

 

 

 

80

 

 

 

209

 

Loss on repurchases of senior notes

 

 

 

 

 

 

 

 

743

 

Loss from disposal of property and equipment

 

 

 

 

 

 

 

 

17

 

Equity in income of subsidiaries

 

 

(38,740

)

 

 

(33,007

)

 

 

(2,389

)

Deferred income taxes

 

 

(916

)

 

 

1,075

 

 

 

(4,224

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

4,462

 

 

 

4

 

 

 

(1,461

)

Other assets

 

 

(3,042

)

 

 

(144

)

 

 

(106

)

Accrued expenses and other liabilities

 

 

1,750

 

 

 

273

 

 

 

1,544

 

Due to related parties

 

 

(16,754

)

 

 

(2,600

)

 

 

(54,896

)

Net cash used in operating activities

 

 

(17,650

)

 

 

(7,852

)

 

 

(59,034

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Investment in limited partnership interest

 

 

(1,602

)

 

 

(5,125

)

 

 

(4,611

)

Investment in note receivable – related party

 

 

 

 

 

 

 

 

(7,280

)

Purchase of fixed-maturity securities

 

 

(234

)

 

 

(5,864

)

 

 

(31,034

)

Purchase of equity securities

 

 

(8,733

)

 

 

(16,913

)

 

 

(12,483

)

Purchase of short-term and other investments

 

 

(187

)

 

 

(50,510

)

 

 

 

Purchase of property and equipment

 

 

(176

)

 

 

(154

)

 

 

(306

)

Proceeds from sales of fixed-maturity securities

 

 

477

 

 

 

2,215

 

 

 

667

 

Proceeds from calls, repayments and maturities of fixed-maturity

   securities

 

 

35,361

 

 

 

 

 

 

 

Proceeds from sales of equity securities

 

 

9,906

 

 

 

20,698

 

 

 

8,886

 

Proceeds from sales, redemptions and maturities of short-term and other

   investments

 

 

25,733

 

 

 

25,401

 

 

 

 

Collection of note receivable – related party

 

 

 

 

 

6,000

 

 

 

 

Distributions from limited partnership interests

 

 

948

 

 

 

158

 

 

 

11,758

 

Dividends received from subsidiary

 

 

44,000

 

 

 

42,000

 

 

 

105,000

 

Return of capital from subsidiary

 

 

6,000

 

 

 

10,000

 

 

 

 

Investment in subsidiaries

 

 

(5,000

)

 

 

 

 

 

 

Net cash provided by investing activities

 

 

106,493

 

 

 

27,906

 

 

 

70,597

 

 

Statements of Cash Flows (Continued)

 

 

 

Years Ended December 31,

 

 

 

2019

 

 

2018

 

 

2017

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Repurchases of common stock

 

 

(1,203

)

 

 

(1,151

)

 

 

(30,718

)

Repurchases of common stock under share repurchase plan

 

 

(18,851

)

 

 

(20,015

)

 

 

(15,154

)

Repurchases of senior notes

 

 

 

 

 

 

 

 

(40,250

)

Debt issuance costs paid

 

 

(459

)

 

 

 

 

 

(4,975

)

Cash dividends paid to stockholders

 

 

(13,012

)

 

 

(11,318

)

 

 

(13,906

)

Cash dividends received under share repurchase forward contract

 

 

306

 

 

 

967

 

 

 

1,073

 

Proceeds from revolving credit facility

 

 

9,750

 

 

 

 

 

 

 

Proceeds from exercise of stock options

 

 

63

 

 

 

 

 

 

75

 

Proceeds from issuance of long-term debt

 

 

 

 

 

 

 

 

143,750

 

Repayment of long-term debt

 

 

(89,991

)

 

 

 

 

 

 

Net cash (used in) provided by financing activities

 

 

(113,397

)

 

 

(31,517

)

 

 

39,895

 

Net (decrease) increase in cash and cash equivalents

 

 

(24,554

)

 

 

(11,463

)

 

 

51,458

 

Cash and cash equivalents at beginning of year

 

 

42,292

 

 

 

53,755

 

 

 

2,297

 

Cash and cash equivalents at end of year

 

$

17,738

 

 

$

42,292

 

 

$

53,755