HCI Group Inc. (NYSE:HCI) Q1 2023 Results Conference Call May 9, 2023 4:45 PM ET

Company Participants

Matt Glover - Senior MD

Karin Coleman - COO & Director

James Harmsworth - CFO

Pareshbhai Patel - Founder, Chairman, President & CEO

Conference Call Participants

Mark Hughes - Truist

Matt Carletti - JMP

Operator

Good afternoon and welcome to HCI Group's First Quarter 2023 Earnings Call. My name is John, and I will be your conference operator. [Operator Instructions] Before we begin today's call, I would like to remind everyone that this conference is being recorded and will be available for replay through June 8, 2023, starting later today.

The call is also being broadcast live via webcast and available via webcast replay until May 9, 2024, on the Investor Information section of HCI Group's website at www.hcigroup.com.

I will now turn the call over to Matt Glover, Gateway Investor Relations. Matt, please proceed.

Matt Glover

Thank you, John, and good afternoon, everyone. Welcome to HCI Group's First Quarter 2023 Earnings Call. On today's call is Karin Coleman, HCI's Chief Operating Officer; Mark Harmsworth, HCI's Chief Financial Officer; and Paresh Patel, HCI's Chairman and Chief Executive Officer. Following Karin's operational update, Mark will review our financial performance for the first quarter of 2023, and then Paresh will provide a strategic update. To access today's webcast, please visit the Investor Information section of our corporate website at www.hcigroup.com.

Before we begin, I'd like to take this opportunity to remind our listeners that today's presentation and responses to questions may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as anticipate, estimate, expect, intend, plan, 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.

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 conditions and results of operations. HCI Group disclaims all obligations to update any forward-looking statements. Now with that, I'd like to turn the call over to Karin Coleman, Chief Operating Officer. Karin?

Karin Coleman

Thank you, Matt, and welcome, everyone. HCI Group reported a strong first quarter with pretax income of $23.1 million and diluted earnings per share of $1.54. Our Homeowners Choice, TypTap and Greenleaf subsidiaries all contributed to earnings with several noteworthy accomplishments during the quarter. TypTap Insurance Group, our insurance and technology subsidiary, reached a milestone with its first quarter of profitability on a GAAP basis and more than $350 million of in-force premium. At both of our insurance companies, loss ratios improved from last quarter, driven by lower claim volumes partially due to legislative reforms enacted in Florida last year.