Citizens policies boost growth at HCI Group

HCI Group, which has substantial property/casualty operations in Florida, posted strong growth in 2013 partly as a result of its ongoing policy of transferring tranches of policies from the state-owned Citizens Property Insurance Corporation, a policy that started in 2009.

The company’s gross written premiums increased to $337.1 million in 2013, a 44.3 percent increase on the $233.6 million in 2012. It said the increase was primarily due to renewal premiums of policies assumed from Citizens in November 2012 combined with premiums related to policies assumed from Citizens in November 2013.

The business made a profit of $65.5 million in 2013 compared with $29.8 million in 2012. Its combined ratio was 57.5% in 2013 compared with 72.0% in 2012.

“2013 marked another record year for HCI Group,” said Paresh Patel, the company's chairman and chief executive officer. “These results were driven by a 44% increase in gross premiums, coupled with our strong combined ratio during 2013. Our strong balance sheet with more than $293 million in cash gives us the financial flexibility to take advantage of accretive growth opportunities, while remaining focused on managing risk, costs and maintaining diligent underwriting standards.”