HCI - HCI Group Insurance Subsidiaries Plan Rate Increases as Offset for Rising Reinsurance Costs
TAMPA, Fla., Aug. 04, 2020 (GLOBE NEWSWIRE) -- The insurance subsidiaries of HCI Group, Inc. (NYSE:HCI) plan rate increases to offset, in part, increased reinsurance costs.
HCI’s largest subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., has asked state insurance regulators and received approval for a 6.9% rate increase for its homeowners’ and condominium insurance products. The rate increase will take effect October 1, 2020. Additionally, Homeowners Choice plans to apply for a 5-7% rate increase for both its dwelling and fire policies, and wind-only policies, subject to final negotiations with regulators.
HCI’s InsurTech operation, TypTap Insurance Company, implemented a 20% increase for its flood insurance product on July 15, 2020. TypTap has also applied for a 12-14% rate increase for its homeowners’ insurance product. If approved, this rate increase would be expected to go into effect before the end of the year.
“Increased reinsurance costs, by far our largest cost, have forced us reluctantly to seek rate increases,” said HCI Group Chief Executive Officer Paresh Patel.
About HCI Group, Inc.
HCI Group, Inc. is an InsurTech company with operations in insurance, software development and real estate. HCI’s leading insurance operation, TypTap Insurance Company, is a rapidly growing, technology-driven insurance company, which provides homeowners’ insurance and flood insurance primarily in Florida. TypTap’s operations are powered in large part by insurance-related information technology developed by HCI’s software subsidiary, Exzeo USA, Inc. HCI’s largest subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., provides homeowners’ insurance primarily in Florida. HCI’s real estate subsidiary, Greenleaf Capital LLC, owns and operates multiple properties in Florida, including office buildings, retail centers and marinas.
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.
Forward-Looking Statements
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. For example, there is no assurance that proposed rate increases will be approved by regulators or that policyholders will accept rate increases and renew their policies. 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:
Rachel Swansiger, Esq.
HCI Group, Inc.
Tel (813) 405-3206
rswansiger@hcigroup.com
Investor Relations Contact:
Matt Glover
Gateway Investor Relations
Tel (949) 574-3860
HCI@gatewayir.com
Media Contact:
Amber Brinkley
Kippen Communications
Tel (727) 466-7695
amber@kippencommunications.com