HCI - HCI Group: Trading Below The Valuation Of Its Disruptive TypTap Subsidiary
- HCI's subsidiary TypTap received a $100 million investment at an $850 million valuation. The value of HCI's majority interest in TypTap is greater than its market cap.
- Analysts upgraded their target prices on HCI to $100 and $88 based on the value implied by the TypTap deal and Q4 results that beat expectations.
- TypTap is demonstrating a loss ratio that is 20 points better than the industry average within HCI's prime state of operation, Florida.
- TypTap has shown tremendous scalability. It has now achieved $1 million in gross written premium in a day. This implies a run rate more than double of Q4's result.
- TypTap will be spun out into its own publicly-traded company with the intent to aggressively expand across the United States.
For further details see:
HCI Group: Trading Below The Valuation Of Its Disruptive TypTap Subsidiary