What happened
Shares of the insurance and real estate company HCI Group (HCI +2.59%) had risen roughly 11% as of 1:17 p.m. ET Wednesday after the company reported earnings results for the fourth quarter of 2021.
So what
HCI Group reported diluted earnings per share of $0.01 on total revenue of $112.3 million. Excluding net unrealized gains, HCI reported a net loss of $0.14 earnings per share. However, analysts had been projecting an adjusted net loss of $0.38, so the company beat estimates. HCI also beat analyst expectations for revenue.
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"In 2021 we grew our premiums by a third and we reported a profit for the year," HCI Group Chairman and CEO Paresh Patel said in a statement. He added, "Further, we deleveraged our balance sheet and grew book value by 24%. We enter 2022 poised for another year of profitable growth."
Net premiums earned rose from roughly $262.5 million in 2020 to more than $377 million in 2021. Meanwhile, the consolidated gross-loss ratio edged up slightly on a year-over-year basis but was stable and still under 40%. HCI also continued to grow its insurtech homeowner's insurance unit, TypTap, which expanded from one state to 12 states in 2021 and generated gross premiums of close to $250 million.
NYSE: HCI
Key Data Points
Now what
HCI Group made a lot of progress last year. The insurance company grew revenue, grew its footprint, grew book value per share nicely, and paid its 45th consecutive quarterly dividend. Plus, management thinks TypTap will see "periods of profitability" this year, so I think the company is in good shape.
