HCI Group reports rise in Q2 profit

Overview

• HCI Group fiscal Q2 diluted EPS rises to $5.18 from $4.24 yr/yr

• Gross premiums earned in fiscal Q2 up 14.8% yr/yr to $302.6 mln

• Gross loss ratio improves to 21.3% from 29.7% yr/yr

Result Drivers

• PREMIUM GROWTH - Gross premiums earned increased by 14.8% due to a higher volume of policies in force

• LOSS REDUCTION - Decline in claims and litigation frequency led to lower losses and loss adjustment expenses

• EXPENSE INCREASE - Higher gross premiums drove up policy acquisition and underwriting expenses

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "buy"

• Wall Street's median 12-month price target for Hci Group Inc is $197.50, about 29.2% above its August 6 closing price of $139.86

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNXbjPyl5