HCI boosts Q1 profits by cutting reinsurance costs

Florida-based homeowners’ insurer HCI reduced reinsurance purchases in the first quarter of 2017, boosting profits while price increases caused premium drop.

Premiums ceded decreased to $28.6 million or 31.2 percent of gross premiums earned from $40.4 million or 40.9 percent of gross premiums earned in the first quarter of 2016, reducing the cost of its reinsurance programme.

At the same time, the company’s gross premiums earned declined to $91.6 million in the first quarter from $98.8 million in the same period in 2016. The decrease was attributable to policy attrition as well as the tailing effect of a rate decrease effective on new and renewal policies beginning in January 2016, the company said in a statement.

Net income in the first quarter totalled $12 million compared to $6.1 million a year ago.

Losses and loss adjustment expenses were $25.5 million compared with $27.1 million in the same period in 2016. The decrease was primarily due to a lower level of adverse weather-related events in the first quarter of 2017 when compared with the unusually high level of adverse weather-related events that occurred in the first quarter of 2016.

The combined ratio improved to 77.1 percent compared with 87.3 percent over the period.

Today’s stories

Allianz Australia reveals new CEO amid reshuffle

Investment returns drive Third Point Re to profit in Q1

Severe wind and hail storm cause underwriting loss at Liberty Mutual in Q1

Lloyd's and Zurich representatives join Australia’s Insurance Council Board

Assured Guaranty Q1 profit jumps on acquisition, business improvement

HDI hires from Liberty Mutual to strengthen UK and Ireland claims team

Diekmann replaces Perlet as Allianz chairman

Ryan Specialty Group hires technology leader from Aon

Did you enjoy reading this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.