HCI Group, Inc. (NYSE:HCI) Q3 2023 Earnings Call Transcript

Paresh Patel: Mark, I think it’s going to be very similar to what we’ve said in the past, right? And I think we had said, when all is said and done, we will end up with somewhere like pick a number between 40,000 to 70,000 policies, somewhere in that kind of range, yes. In terms of policy count, percentages, you can sort of say that, somewhere between 33% and 65% or so, yes?

Mark Hughes: That seems to be pretty good. Is that a function of less competition or more astute picking? You’re picking policies that others have overlooked, or I guess you’re saying that’s not inconsistent with the past?

Paresh Patel: Yes, so I think I’ll just make some general comments. So we are expecting somewhere between that, and I just did the calculator math, sorry, it’s between 40% and 60%, right, is what we’re expecting our success rate to be. I don’t necessarily know that everybody else is also in the 40% to 60% range. We haven’t followed everybody closely enough to know that. We just know that, we run our own race, and that was what we were kind of hoping to get, and we seem to be achieving that mechanism, because that’s what our technology enables us to do, yes? We try to make it a smooth and easy transition for Citizens’ policyholders, and because of that, large numbers of them are look at this as a favorable opportunity to leave Citizens and join us and that’s what they do and then they stay with us.

To give you an idea because Casey asked earlier about takeouts, we have policyholders now who are on their 17th renewal with us. And these are people we depopulated from Citizens back in 2007. So as you’re watching this play out, we run our own race and we know how our book behaves.

Operator: Matt Carletti with JMP.

Matthew Carletti: Thank you. Just a couple of numbers, housekeeping questions, probably for Mark. Net written premium and TypTap at surplus if you have or surplus at TypTap if you have it.

Mark Harmsworth: Yes, so net written premium consolidated was $132 million, $132.1 million, and then TypTap surplus $91.6 million.

Operator: At this time, this concludes our question and answer session. I would now like to turn the call back over to Paresh Patel, who has a few closing remarks.

Paresh Patel: Thank you. On behalf of the entire management team, I would like to thank our shareholders, employees, agents, and most importantly, our policyholders for their continued support. Thank you.

Operator: At this time, this concludes our question and answer session. This concludes today’s call. You may now disconnect.