HCI Group

HCI is modelling a decrease in claim frequency of about 15%-20% and in litigation frequency of about 3% owing to Florida legal reforms.

The company is confident it has sufficient additional reinsurance capacity should claims begin to develop outside of initial expectations.

The Florida carrier suggested that Ian will not exhaust the state’s reinsurance Cat Fund.

The company sees and opportunity to grow market share in the state.

The ceded premium ratio declined by 2.1 points to 31%.

The chunky deal comes as many reinsurers are heavily cutting their Florida cat books.

The Florida carrier has yet to finalise its programs as it awaits potential reforms.

The company’s convertible notes now have $24mn outstanding.

The deal follows a similar transaction on northeast business in January.

The financials from the listed Floridians show them plotting a path through challenges by exposure management and rate rises, but reinsurers are still picking up notable storm losses from this reinsurance-reliant group.

Storm losses were down 30% to $13mn, but the prior-year result had benefitted from a one-off gain.

The insurer had a record quarter for earned premiums, linking the boost to the growth of TypTap, which recorded $39mn in earned premiums.