HCI Group expects to pay $600-$750M to policy holdes from Hurricanes

HCI Group announced the estimated losses attributable to Hurricanes Debby, Helene, and Milton. “Across all three events, HCI expects to pay $600 to $750M to our policyholders to help them rebuild their lives.” Net retained losses from Hurricanes Debby and Helene, after considering reinsurance recoveries as well as the reversal of benefits accrued under a multi-year reinsurance agreement, are expected to result in a net expense to the company in the third quarter of approximately $60M Including this loss, the company expects to report a pre-tax profit for the third quarter of 2024. Fourth Quarter Update: Net retained losses from Hurricane Milton, after considering reinsurance recoveries as well as the reversal of benefits accrued under a multi-year reinsurance agreement, is expected to result in a net expense to the company in the fourth quarter of approximately $125M “The company is able to absorb these losses because of our strong balance sheet, our conservative reinsurance program with over $2B of occurrence reinsurance limit and over $3 billion of aggregate reinsurance limit, and our profitability,” said HCI’s Chairman and Chief Executive Officer Paresh Patel. “We are continuing our participation in Citizens’ Depopulation Program in the fourth quarter and early indications show a strong rate of adoption.”