HCI eyes more Florida growth as it raises $85m

HCI Group, a holding company with a focus on Florida currently ramping up its property insurance business in the state, has raised $85 million through an underwritten public offering.

HCI Group is a holding company with operations in homeowners’ insurance, information technology services, real estate, and reinsurance. It has raised $85 million through an underwritten public offering of 1,150,000 shares of its common stock at a public offering price of $78 per share, before underwriting discounts and commissions. 

This includes the exercise in full by the underwriters of their option to purchase up to an additional 150,000 shares of common stock in the offering, resulting in additional net proceeds to the company of approximately $11.1 million, after deducting underwriting discounts and commissions and estimated offering expenses. 

Total net proceeds to the company were approximately $85 million, after deducting underwriting discounts and commissions and estimated offering expenses. HCI Group intends to use the net proceeds from the offering, including the proceeds received in connection with the exercise of the underwriters’ option, for general corporate purposes, including the continued assumption of policies from Citizens Property Insurance Corporation.

HCI has been looking to capitalise on legislative reforms in Florida. Earlier this year, it launched a new Florida domestic insurer called Tailrow Insurance.

JMP Securities, a Citizens Company, acted as lead book-running manager for the offering, and Truist Securities acted as joint book-running manager. Oppenheimer & Co. acted as book-running manager.

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