HCI Group, the Florida-focused insurance holding company, has announced its in-force premiums have reached a new milestone of $1 billion, thanks to the addition of $30 million of premiums assumed by its digital insurtech company TypTap after a takeout from Florida Citizens.
The Florida Office of Insurance Regulation had approved TypTap Insurance Company to assume up to 25,000 policies from Florida’s Citizens Property Insurance Corporation back in October, as part of the depopulation efforts to shrink the state-backed insurer of last resort.
As it turns out, TypTap assumed approximately 6,800 policies from Florida Citizens for around $30 million of additional premium, but is now also expecting to complete a further assumption of policies from Citizens Property Insurance Corporation in January 2024.
HCI has been growing strongly, with the Citizens depopulation program a route through which it can acquire more policies in its target region of Florida.
HCI Group subsidiary Homeowners Choice Property & Casualty Insurance Company completed a successful takeout of approximately 53,750 policies from Citizens in November.
Then, HCI raised more capital through a public offering of its equity this month, aiming to put the proceeds to work to fund the continued assumption of policies from the state’s insurer of last resort.
All of which shows a concerted focus on assuming Florida property insurance risk, which HCI feels is attractive at current pricing, it seems.
Paresh Patel, HCI’s chairman and chief executive officer commented, “TypTap has successfully completed the first of its two assumptions from Citizens. With this assumption of policies from Citizens, HCI reached a significant milestone of writing over $1 billion of in-force premium. This is a tremendous accomplishment as the company started 2023 with less than $740 million of in-force premium.”
The company has also noted improvements in the state’s insurance market thanks to the legislative reforms enacted, something that was echoed recently by one of the best known catastrophe bond fund managers.
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