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TAMPA, Fla., Nov. 5, 2013 (GLOBE NEWSWIRE) --
HCI Group, Inc. (NYSE:HCI) reported results today for the three and nine months ended September 30, 2013.
Third Quarter 2013 - Financial Results
Income available to common stockholders in the third quarter of 2013 totaled $13.4 million or $1.13 diluted earnings per common share, compared with $2.8 million or $0.27 diluted earnings per common share in the third quarter of 2012.
Gross premiums earned in the third quarter of 2013 increased 53.0% to $81.2 million from $53.1 million in the same period in 2012. The increase was primarily due to policies assumed from Citizens Property Insurance Corporation in November 2012.
Net premiums earned (defined as gross premiums earned less premiums ceded to reinsurance companies) in the third quarter of 2013 increased 73.0% to $52.9 million from $30.6 million in the same period in 2012. Premiums ceded in the third quarter of 2013 were 34.8% of the company's gross premiums earned, compared with 42.4% during the same period in 2012.
Losses and loss adjustment expenses during the third quarter of 2013 were $14.5 million compared with $15.0 million in the same period in 2012.
Policy acquisition and other underwriting expenses in the third quarter of 2013 were $8.9 million compared with $6.6 million in the previous year period. The increase was primarily attributable to commissions and premium taxes related to an increase in policy renewals. Other operating expenses, which include a variety of general and administrative expenses, totaled $8.8 million in the third quarter of 2013 compared with $4.7 million in the third quarter of 2012. The change was primarily due to increases in compensation and related expenses.
Interest expense from the company's senior notes issued in January 2013 totaled $847,000 in the third quarter of 2013.
Third Quarter 2013 - Financial Ratios
The company's loss ratio applicable to the third quarter of 2013 (defined as losses and loss adjustment expenses related to net premiums earned) was 27.4% compared with 49.1% in the third quarter of 2012. The loss ratio was positively impacted by a significant increase in premiums earned during the third quarter of 2013 as compared with the third quarter of 2012. In addition, third quarter 2012 results included losses totaling approximately $3.2 million related to claims from Tropical Storm Debby and Tropical Storm Isaac, which occurred in June and August 2012, respectively.