HCI Group, Inc. (NYSE:HCI) Q2 2022 Earnings Conference Call August 9, 2022 8:30 AM ET
Company Participants
Matt Glover - IR
Paresh Patel - Chairman and CEO
Karin Coleman - COO
Mark Harmsworth - CFO
Conference Call Participants
Matt Carletti - JMP
Mark Hughes - Truist
Operator
Good morning, ladies and gentlemen, and welcome to the PCTEL Second Quarter 2022 Earnings Release Conference Call. At this time all participants are in a listen-only mode. At the conclusion of our prepared remarks, we will conduct a question-and-answer session. As a reminder, this conference is being recorded.
I will now turn the call over to Kevin McGowan (sic) [Matt Glover], the company's CFO. Kevin, the floor is yours.
Matt Glover
Thank you, Jenny. This is Matt Glover from Gateway Investor Relations. Thank you, and good morning. Welcome to HCI Group's second quarter 2022 earnings call. On today's call is Karin Coleman, HCI's Chief Operating Officer; Mark Harmsworth's, HCI's Chief Financial Officer; and Paresh Patel, HCI's Chairman and Chief Executive Officer.
Following Karin's opening remarks, Mark will review our financial performance for the second quarter of 2022 and then Paresh will provide an operational outlook. To access today's webcast, please visit the Investor Information section of our corporate website at hcigroup.com.
Before we begin, I'd like to take the 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 and 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 should have material adverse effects on the Company's business, financial conditions and results of operations. HCI Group disclaims all the 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, and good morning, everyone.
The second quarter of 2022 marked another quarter of growth. Our insurance division gross premiums earning were up 30%, and our national expansion continues with premium outside of Florida approaching a quarter of our business.
There were two main items that impacted our financial results. First, investment income with unrealized losses were impacted by market declines, and second, we strengthened reserves in response to inflation and litigation. These two items resulted in an $8.5 million loss for the quarter. And strengthening reserves resulted in a 7% increase to our loss ratio. To offset this, we filed meaningful rate increases, 10% at Homeowners Choice, and 12% at TypTap.