10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

Form 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number

001-34126

HCI Group, Inc.

(Exact name of registrant as specified in its charter)

Florida	20-5961396
(State of Incorporation)	(IRS Employer Identification No.)

3802 Coconut Palm Drive
Tampa, FL 33619
(Address, including zip code, of principal executive offices)

(813) 849-9500
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Shares, no par value	HCI	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☑	Non-accelerated filer ☐	Smaller reporting company ☐
			Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

The aggregate number of shares of the registrant’s common stock, no par value, outstanding on May 1, 2023 was 8,596,673.

HCI GROUP, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

		Page
PART I – FINANCIAL INFORMATION
Item 1	Financial Statements
	Consolidated Balance Sheets:
	March 31, 2023 (unaudited) and December 31, 2022	1-2
	Consolidated Statements of Income:
	Three months ended March 31, 2023 and 2022 (unaudited)	3
	Consolidated Statements of Comprehensive Income:
	Three months ended March 31, 2023 and 2022 (unaudited)	4
	Consolidated Statements of Equity:
	Three months ended March 31, 2023 and 2022 (unaudited)	5-6
	Consolidated Statements of Cash Flows:
	Three months ended March 31, 2023 and 2022 (unaudited)	7-9
	Notes to Consolidated Financial Statements (unaudited)	10-37
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	38-49
Item 3	Quantitative and Qualitative Disclosures About Market Risk	50-51
Item 4	Controls and Procedures	52
PART II – OTHER INFORMATION
Item 1	Legal Proceedings	53
Item 1A	Risk Factors	53
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	53-54
Item 3	Defaults Upon Senior Securities	54
Item 4	Mine Safety Disclosures	54
Item 5	Other Information	54
Item 6	Exhibits	55-59
Signatures		60
Certifications

PART I – FINANCIAL INFORMATION

Item 1 – Financial Statements

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(Dollar amounts in thousands)

	March 31,		December 31,
	2023		2022
	(Unaudited)
Assets
Fixed-maturity securities, available for sale, at fair value (amortized cost: $531,899      and $494,197, respectively and allowance for credit losses: $0 and $0, respectively)	$	524,756	$	483,901
Equity securities, at fair value (cost: $38,575 and $36,272, respectively)		37,415		34,583
Limited partnership investments		24,520		25,702
Investment in unconsolidated joint venture, at equity		—		18
Real estate investments		43,562		71,388
Total investments		630,253		615,592
Cash and cash equivalents		302,025		234,863
Restricted cash		2,987		2,900
Accrued interest and dividends receivable		2,525		1,952
Income taxes receivable		707		2,807
Premiums receivable, net (allowance: $10,054 and $5,362, respectively)		44,966		34,998
Prepaid reinsurance premiums		27,063		66,627
Reinsurance recoverable, net of allowance for credit losses:
Paid losses and loss adjustment expenses (allowance: $0 and $0, respectively)		36,896		71,594
Unpaid losses and loss adjustment expenses (allowance: $453 and $454, respectively)		559,804		616,765
Deferred policy acquisition costs		46,632		45,522
Property and equipment, net		26,734		17,910
Right-of-use assets - operating leases		1,466		777
Intangible assets, net		7,686		10,578
Funds withheld for assumed business		45,274		48,772
Other assets		36,104		31,671
Total assets	$	1,771,122	$	1,803,328

(continued)

1

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Balance Sheets – (Continued)

(Dollar amounts in thousands)

	March 31,			December 31,
	2023			2022
	(Unaudited)
Liabilities and Equity
Losses and loss adjustment expenses	$	806,308		$	863,765
Unearned premiums		387,833			368,047
Advance premiums		25,834			18,587
Reinsurance payable on paid losses and loss adjustment expenses		7,043			8,606
Ceded reinsurance premiums payable		14,123			17,646
Accrued expenses		20,633			14,534
Reinsurance recovered in advance on unpaid losses		—			19,863
Deferred income taxes, net		3,160			1,704
Long-term debt		196,158			211,687
Lease liabilities - operating leases		1,422			721
Other liabilities		35,886			23,361
Total liabilities		1,498,400			1,548,521
Commitments and contingencies (Note 21)
Redeemable noncontrolling interest (Note 18)		92,865			93,553
Equity:
Common stock (no par value, 40,000,000 shares authorized, 8,596,673 and 8,598,682      shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively)		—			—
Additional paid-in capital		332			—
Retained income		185,028			172,482
Accumulated other comprehensive loss, net of taxes		(5,098	)		(9,886	)
Total stockholders’ equity		180,262			162,596
Noncontrolling interests		(405	)		(1,342	)
Total equity		179,857			161,254
Total liabilities, redeemable noncontrolling interest and equity	$	1,771,122		$	1,803,328

See accompanying Notes to Consolidated Financial Statements (unaudited).

2

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Income

(Unaudited)

(Dollar amounts in thousands, except per share amounts)

	Three Months Ended
	March 31,
	2023			2022
Revenue
Gross premiums earned	$	180,068		$	178,925
Premiums ceded		(70,509	)		(53,162	)
Net premiums earned		109,559			125,763
Net investment income		17,715			2,868
Net realized investment losses		(1,149	)		(314	)
Net unrealized investment gains (losses)		529			(3,576	)
Policy fee income		1,090			1,057
Other		1,285			1,242
Total revenue		129,029			127,040
Expenses
Losses and loss adjustment expenses		60,565			72,704
Policy acquisition and other underwriting expenses		22,720			29,408
General and administrative personnel expenses		13,502			14,034
Interest expense		2,801			601
Other operating expenses		6,305			6,292
Total expenses		105,893			123,039
Income before income taxes		23,136			4,001
Income tax expense		5,343			1,210
Net income		17,793			2,791
Net income attributable to redeemable noncontrolling    interest (Note 18)		(2,324	)		(2,248	)
Net (income) loss attributable to noncontrolling interests		(131	)		360
Net income after noncontrolling interests	$	15,338		$	903
Basic earnings per share	$	1.78		$	0.09
Diluted earnings per share	$	1.54		$	0.09

See accompanying Notes to Consolidated Financial Statements (unaudited).

3

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

(Unaudited)

(Amounts in thousands)

	Three Months Ended
	March 31,
	2023			2022
Net income	$	17,793		$	2,791
Other comprehensive income (loss):
Change in unrealized gain (loss) on investments:
Net unrealized gains (losses) arising during the period		2,415			(4,151	)
Reclassification adjustment for net realized losses		738			429
Net change in unrealized gains (losses)		3,153			(3,722	)
Deferred income taxes on above change		1,810			938
Total other comprehensive income (loss), net of income taxes		4,963			(2,784	)
Comprehensive income		22,756			7
Comprehensive (income) loss attributable to noncontrolling interests		(306	)		461
Comprehensive income after noncontrolling interests	$	22,450		$	468

See accompanying Notes to Consolidated Financial Statements (unaudited).

4

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Equity

For the Three Months Ended March 31, 2023

(Unaudited)

(Dollar amounts in thousands, except per share amount)

	Common Stock					Additional Paid-In			Retained			Accumulated Other Comprehensive Loss,			Total Stockholders’			Noncontrolling			Total
	Shares			Amount		Capital			Income			Net of Tax			Equity			Interests			Equity
Balance at December 31, 2022		8,598,682		$	—	$	—		$	172,482		$	(9,886	)	$	162,596		$	(1,342	)	$	161,254
Net income		—			—		—			17,488			—			17,488			305			17,793
Net income attributable to redeemable     noncontrolling interest		—			—		—			(2,150	)		—			(2,150	)		(174	)		(2,324	)
Total other comprehensive income, net of     income taxes		—			—		—			—			4,788			4,788			175			4,963
Issuance of restricted stock		6,000			—		—			—			—			—			—			—
Forfeiture of restricted stock		(2,125	)		—		—			—			—			—			—			—
Repurchase and retirement of common     stock		(5,884	)		—		(305	)		—			—			(305	)		—			(305	)
Dilution from subsidiary stock-based     compensation		—			—		—			—			—			—			631			631
Common stock dividends ($0.40 per share)		—			—		—			(3,432	)		—			(3,432	)		—			(3,432	)
Stock-based compensation		—			—		1,277			—			—			1,277			—			1,277
Additional paid-in capital shortfall     adjustment allocated to retained income		—			—		(640	)		640			—			—			—			—
Balance at March 31, 2023		8,596,673		$	—	$	332		$	185,028		$	(5,098	)	$	180,262		$	(405	)	$	179,857

See accompanying Notes to Consolidated Financial Statements (unaudited).

5

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Equity – (Continued)

For the Three Months Ended March 31, 2022

(Unaudited)

(Dollar amounts in thousands, except per share amount)

	Common Stock					Additional Paid-In			Retained			Accumulated Other Comprehensive Income (Loss),			Total Stockholders’			Noncontrolling			Total
	Shares			Amount		Capital			Income			Net of Tax			Equity			Interests			Equity
Balance at December 31, 2021		10,131,399		$	—	$	76,077		$	246,790		$	498		$	323,365		$	1,138		$	324,503
Net income (loss)		—			—		—			2,978			—			2,978			(187	)		2,791
Net income attributable to redeemable     noncontrolling interest		—			—		—			(2,075	)		—			(2,075	)		(173	)		(2,248	)
Total other comprehensive loss, net of     income taxes		—			—		—			—			(2,683	)		(2,683	)		(101	)		(2,784	)
Issuance of restricted stock		4,000			—		—			—			—			—			—			—
Forfeiture of restricted stock		(3,265	)		—		—			—			—			—			—			—
Repurchase and retirement of common     stock		(6,207	)		—		(398	)		—			—			(398	)		—			(398	)
Dilution from subsidiary stock-based     compensation		—			—		—			—			—			—			758			758
Common stock dividends ($0.40 per share)		—			—		—			(4,046	)		—			(4,046	)		—			(4,046	)
Stock-based compensation		—			—		3,452			—			—			3,452			—			3,452
Balance at March 31, 2022		10,125,927		$	—	$	79,131		$	243,647		$	(2,185	)	$	320,593		$	1,435		$	322,028

See accompanying Notes to Consolidated Financial Statements (unaudited).

6

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Unaudited)

(Amounts in thousands)

	Three Months Ended
	March 31,
	2023			2022
Cash flows from operating activities:
Net income after noncontrolling interests	$	15,338		$	903
Net income attributable to noncontrolling interests		2,455			1,888
Net income		17,793			2,791
Adjustments to reconcile net income to net cash provided by operating    activities:
Stock-based compensation expense		2,106			4,337
Net accretion of discount on investments in fixed-maturity    securities		(1,845	)		(3	)
Depreciation and amortization		2,230			1,516
Deferred income tax expense (benefit)		3,266			(5,967	)
Net realized investment losses		1,149			314
Net unrealized investment (gains) losses		(529	)		3,576
Credit loss expense - reinsurance recoverable		(1	)		(11	)
Loss from unconsolidated joint venture		—			13
Net income from limited partnership interests		(553	)		(1,780	)
Distributions received from limited partnership interests		303			811
Loss on extinguishment of debt		177			—
Gain on sales of real estate investments		(8,936	)		—
Foreign currency remeasurement loss		1			19
Other non-cash items		71			11
Changes in operating assets and liabilities:
Accrued interest and dividends receivable		(573	)		(321	)
Income taxes		2,100			7,145
Premiums receivable, net		(9,968	)		28,267
Prepaid reinsurance premiums		39,564			14,794
Reinsurance recoverable		91,660			7,065
Deferred policy acquisition costs		(1,110	)		4,025
Funds withheld for assumed business		3,498			(10,352	)
Other assets		(5,590	)		(3,102	)
Losses and loss adjustment expenses		(57,457	)		(2,373	)
Unearned premiums		19,786			(1,632	)
Advance premiums		7,247			10,127
Reinsurance payable on paid losses and loss adjustment expenses		(1,563	)		2,640
Reinsurance recovered in advance on unpaid losses		(19,863	)		—
Ceded reinsurance premiums payable		(3,523	)		1,581
Accrued expenses and other liabilities		19,669			(6,142	)
Net cash provided by operating activities		99,109			57,349

(continued)

7

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows – (Continued)

(Unaudited)

(Amounts in thousands)

	Three Months Ended
	March 31,
	2023			2022
Cash flows from investing activities:
Investments in limited partnership interests		(170	)		—
Return of excess investments in limited partnership interests		—			151
Distributions received from limited partnership interests		1,602			785
Distribution received from unconsolidated joint venture		18			—
Purchase of property and equipment		(1,469	)		(1,861	)
Purchase of real estate investments		(175	)		—
Purchase of intangible assets		—			(3,800	)
Purchase of fixed-maturity securities		(160,152	)		(122,557	)
Purchase of equity securities		(6,472	)		(11,486	)
Purchase of short-term and other investments		(10	)		—
Proceeds from sales of real estate investments		21,746			—
Proceeds from sales of fixed-maturity securities		11,060			9,058
Proceeds from calls, repayments and maturities of fixed-maturity securities		112,497			1,250
Proceeds from sales of equity securities		3,754			18,369
Proceeds from sales, redemptions and maturities of short-term and other investments		14			192
Net cash used in investing activities		(17,757	)		(109,899	)
Cash flows from financing activities:
Cash dividends paid		(3,432	)		(4,123	)
Cash dividends received under share repurchase forward contract		—			77
Cash dividends paid to redeemable noncontrolling interest		(3,012	)		(2,508	)
Repayment of long-term debt		(258	)		(249	)
Redemption of long-term debt		(6,895	)		—
Repurchases of common stock		(305	)		(398	)
Purchase of noncontrolling interests		(198	)		(127	)
Net cash used in financing activities		(14,100	)		(7,328	)
Effect of exchange rate changes on cash		(3	)		(25	)
Net increase (decrease) in cash, cash equivalents, and restricted cash		67,249			(59,903	)
Cash, cash equivalents, and restricted cash at beginning of period		237,763			631,343
Cash, cash equivalents, and restricted cash at end of period	$	305,012		$	571,440

(continued)

8

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows – (Continued)

(Unaudited)

(Amounts in thousands)

	Three Months Ended
	March 31,
	2023		2022
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$	35	$	32
Cash paid for interest	$	739	$	727
Non-cash investing and financing activities:
Unrealized gain (loss) on investments in available-for-sale securities, net of tax	$	4,963	$	(2,784	)
Sale of real estate investments:
Contingent consideration receivable	$	125	$	—
Long-term debt obligations assumed by the buyer	$	8,995	$	—
Acquisition of intangibles:
Contingent consideration payable	$	—	$	1,069

See accompanying Notes to Consolidated Financial Statements (unaudited).

9

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

Note 1 -- Nature of Operations

HCI Group, Inc., together with its subsidiaries (“HCI” or the “Company”), is primarily engaged in the property and casualty insurance business through two Florida domiciled insurance companies, Homeowners Choice Property & Casualty Insurance Company, Inc. (“HCPCI”) and TypTap Insurance Company (“TypTap”). Both HCPCI and TypTap are authorized to underwrite various homeowners’ property and casualty insurance products and allied lines business in the state of Florida and in other states. The operations of each insurance subsidiary are supported by HCI Group, Inc. and certain HCI subsidiaries. The operations of TypTap are also supported by TypTap Insurance Group, Inc. (“TTIG”), the Company’s majority-owned subsidiary, and certain TTIG subsidiaries. The Company emphasizes the use of internally developed technologies to collect and analyze claims and other supplemental data to assist in the underwriting process and generate savings as well as efficiency for the operations of the insurance subsidiaries. In addition, Greenleaf Capital, LLC, the Company’s real estate subsidiary, is primarily engaged in the business of owning and leasing real estate and operating marina facilities.

Note 2 -- Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited consolidated financial statements of HCI Group, Inc. and its majority-owned and controlled subsidiaries (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and the Securities and Exchange Commission (“SEC”) rules for interim financial reporting. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. However, in the opinion of management, the accompanying consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the Company’s financial position as of March 31, 2023 and the results of operations and cash flows for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results of operations to be expected for any subsequent interim period or for the fiscal year ending December 31, 2023. The accompanying unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2022 included in the Company’s Form 10-K, which was filed with the SEC on March 10, 2023.

In preparing the interim unaudited consolidated financial statements, management was required to make certain judgments, assumptions, and estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the financial reporting date and throughout the periods being reported upon. Certain of the estimates result from judgments that can be subjective and complex, and consequently actual results may differ from these estimates.

Material estimates that are particularly susceptible to significant change in the near term are related to the Company’s losses and loss adjustment expenses, which include amounts estimated for claims incurred but not yet reported. The Company uses various assumptions and actuarial data it believes to be reasonable under the circumstances to make these estimates. In addition, accounting policies specific to reinsurance with retrospective provisions, reinsurance recoverable, deferred income taxes, limited partnership investments, allowance for credit losses, and stock-based compensation expense involve significant judgments and estimates material to the Company’s consolidated financial statements.

10

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

In the case of assumed business, the Company relies entirely on the ceding insurance company to provide information about premiums, losses, and loss adjustment expenses. When the information is not available at the reporting date, the Company will make estimates based on all recent available data. Accordingly, the actual results could differ significantly from those estimates.

All significant intercompany balances and transactions have been eliminated.

Revenue from Claims Processing Services

Revenue related to claims processing services is included in other revenue in the consolidated statements of income. For the three months ended March 31, 2023 and 2022, revenues from claims processing services were $527 and $1,007, respectively.

Note 3 -- Recent Accounting Pronouncements

Accounting Standards Update No. 2023-01. In March 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2023-01 (“ASU 2023-01”) Leases (Topic 842). For public entities, this update amends the required amortization period for leasehold improvements associated with common control leases to be over the useful life of the leasehold improvements to the common control group, regardless of the lease term, as long as the lessee controls the use of the asset through a lease. In addition, if the lessor is sub-leasing the asset while simultaneously leasing the asset from an entity not within the same common control group, the amortization period may not exceed the amortization period of the common control group. Once the lessee no longer controls the use of the asset, the asset will be accounted for as a transfer between entities under common control through an adjustment to equity. ASU 2023-01 is effective for the Company beginning with the first quarter of 2024. The Company is evaluating the impact of this update on its financial position.

Note 4 -- Cash, Cash Equivalents, and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company’s consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows.

	March 31,		December 31,
	2023		2022
Cash and cash equivalents	$	302,025	$	234,863
Restricted cash		2,987		2,900
Total	$	305,012	$	237,763

Restricted cash represents funds in the Company’s sole ownership primarily held by certain states to meet regulatory requirements in which the Company’s insurance subsidiaries conduct business and not available for immediate business use. Funds withheld in an account for which the Company is a co-owner but not the named beneficiary are not considered restricted cash and are included in funds withheld for assumed business on the consolidated balance sheets.

In connection with the sale of the retail shopping center investment property in Melbourne, Florida to a non-affiliate as described in Note 5 -- “Investments” under Real Estate Investments, $87 of restricted cash was deposited in escrow in March 2023 with its release contingent on certain post-sale conditions being met.

11

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

Note 5 -- Investments

a) Available-for-Sale Fixed-Maturity Securities

The Company holds investments in fixed-maturity securities that are classified as available-for-sale. At March 31, 2023 and December 31, 2022, the cost or amortized cost, allowance for credit loss, gross unrealized gains and losses, and estimated fair value of the Company’s available-for-sale securities by security type were as follows:

	Cost or Amortized		Allowance for Credit		Gross Unrealized		Gross Unrealized			Estimated Fair
	Cost		Loss		Gain		Loss			Value
As of March 31, 2023
U.S. Treasury and U.S. government agencies	$	501,700	$	—	$	421	$	(6,495	)	$	495,626
Corporate bonds		28,312		—		39		(1,094	)		27,257
States, municipalities, and political subdivisions		1,393		—		1		(3	)		1,391
Exchange-traded debt		494		—		—		(12	)		482
Total	$	531,899	$	—	$	461	$	(7,604	)	$	524,756
As of December 31, 2022
U.S. Treasury and U.S. government agencies	$	463,648	$	—	$	59	$	(9,105	)	$	454,602
Corporate bonds		28,378		—		20		(1,205	)		27,193
States, municipalities, and political subdivisions		1,389		—		—		(6	)		1,383
Exchange-traded debt		683		—		2		(52	)		633
Redeemable preferred stock		99		—		—		(9	)		90
Total	$	494,197	$	—	$	81	$	(10,377	)	$	483,901

Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. The scheduled contractual maturities of fixed-maturity securities as of March 31, 2023 and December 31, 2022 are as follows:

	March 31, 2023				December 31, 2022
	Cost or		Estimated		Cost or		Estimated
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Available-for-sale
Due in one year or less	$	357,645	$	355,922	$	266,170	$	265,353
Due after one year through five years		170,850		165,769		223,153		214,307
Due after five years through ten years		2,910		2,583		4,380		3,797
Due after ten years		494		482		494		444
	$	531,899	$	524,756	$	494,197	$	483,901

Sales of Available-for-Sale Fixed-Maturity Securities

Proceeds received, and the gross realized gains and losses from sales of available-for-sale fixed-maturity securities, for the three months ended March 31, 2023 and 2022 were as follows:

			Gross Realized		Gross Realized
	Proceeds		Gains		Losses
Three months ended March 31, 2023	$	11,060	$	—	$	(738	)
Three months ended March 31, 2022	$	9,058	$	2	$	(431	)

12

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

Gross Unrealized Losses for Available-for-Sale Fixed-Maturity Securities

Securities with gross unrealized loss positions at March 31, 2023 and December 31, 2022, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows:

	Less Than Twelve Months					Twelve Months or Longer					Total
	Gross			Estimated		Gross			Estimated		Gross			Estimated
	Unrealized			Fair		Unrealized			Fair		Unrealized			Fair
As of March 31, 2023	Loss			Value		Loss			Value		Loss			Value
U.S. Treasury and U.S. government    agencies	$	(1,993	)	$	123,661	$	(4,502	)	$	115,681	$	(6,495	)	$	239,342
Corporate bonds		(774	)		19,228		(320	)		4,146		(1,094	)		23,374
States, municipalities, and political    subdivisions		(3	)		897		—			—		(3	)		897
Exchange-traded debt		(12	)		482		—			—		(12	)		482
Total available-for-sale securities	$	(2,782	)	$	144,268	$	(4,822	)	$	119,827	$	(7,604	)	$	264,095

	Less Than Twelve Months					Twelve Months or Longer					Total
	Gross			Estimated		Gross			Estimated		Gross			Estimated
	Unrealized			Fair		Unrealized			Fair		Unrealized			Fair
As of December 31, 2022	Loss			Value		Loss			Value		Loss			Value
U.S. Treasury and U.S. government    agencies	$	(8,701	)	$	269,116	$	(404	)	$	4,644	$	(9,105	)	$	273,760
Corporate bonds		(909	)		23,028		(296	)		2,541		(1,205	)		25,569
States, municipalities, and political    subdivisions		(6	)		1,383		—			—		(6	)		1,383
Exchange-traded debt		(52	)		463		—			—		(52	)		463
Redeemable preferred stock		(9	)		90		—			—		(9	)		90
Total available-for-sale securities	$	(9,677	)	$	294,080	$	(700	)	$	7,185	$	(10,377	)	$	301,265

At March 31, 2023 and December 31, 2022, there were 73 and 84 securities, respectively, in an unrealized loss position.

Allowance for Credit Losses of Available-for-Sale Fixed-Maturity Securities

The Company regularly reviews its individual investment securities for credit impairment. The Company considers various factors in determining whether a credit loss exists for each individual security, including-

•the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or earnings;

•the extent to which the market value of the security has been below its cost or amortized cost;

•general market conditions and industry or sector specific factors and other qualitative factors;

•nonpayment by the issuer of its contractually obligated interest and principal payments; and

•the Company’s intent and ability to hold the investment for a period of time sufficient to allow for the recovery of costs.

There was no balance or activity in the allowance for credit losses of available-for-sale fixed-maturity securities during the three months ended March 31, 2023 and 2022.

13

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

b) Equity Securities

The Company holds investments in equity securities measured at fair values which are readily determinable. At March 31, 2023 and December 31, 2022, the cost, gross unrealized gains and losses, and estimated fair value of the Company’s equity securities were as follows:

			Gross Unrealized		Gross Unrealized			Estimated Fair
	Cost		Gain		Loss			Value
March 31, 2023	$	38,575	$	2,399	$	(3,559	)	$	37,415
December 31, 2022	$	36,272	$	2,078	$	(3,767	)	$	34,583

The table below presents the portion of unrealized gains and losses in the Company’s consolidated statements of income related to equity securities still held.

	Three Months Ended
	March 31,
	2023			2022
Net gains (losses) recognized	$	114		$	(3,542	)
Exclude: Net realized (losses) gains recognized for     securities sold		(415	)		34
Net unrealized gains (losses) recognized	$	529		$	(3,576	)

Sales of Equity Securities

Proceeds received, and the gross realized gains and losses from sales of equity securities, for the three months ended March 31, 2023 and 2022 were as follows:

			Gross Realized		Gross Realized
	Proceeds		Gains		Losses
Three months ended March 31, 2023	$	3,754	$	17	$	(432	)
Three months ended March 31, 2022	$	18,369	$	1,420	$	(1,386	)

14

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

c) Limited Partnership Investments

The Company has interests in limited partnerships that are not registered or readily tradeable on a securities exchange. These partnerships are private equity funds managed by general partners who make decisions with regard to financial policies and operations. As such, the Company is not the primary beneficiary and does not consolidate these partnerships. The following table provides information related to the Company’s investments in limited partnerships:

	March 31, 2023						December 31, 2022
	Carrying		Unfunded				Carrying		Unfunded
Investment Strategy	Value		Balance		(%) (a)		Value		Balance		(%) (a)
Primarily in senior secured loans and, to a    limited extent, in other debt and equity    securities of private U.S. lower-middle-market    companies. (b)(c)(e)	$	4,062	$	—		15.37	$	4,146	$	—		15.37
Value creation through active distressed debt    investing primarily in bank loans, public and    private corporate bonds, asset-backed    securities, and equity securities received in    connection with debt restructuring. (b)(d)(e)		2,326		—		1.27		2,528		—		1.66
High returns and long-term capital appreciation    through investments in the power, utility and    energy industries, and in the infrastructure    sector. (b)(f)(g)		4,477		—		0.18		5,319		—		0.18
Value-oriented investments in less liquid and    mispriced senior and junior debts of private    equity-backed companies. (b)(h)(i)		3,258		—		0.56		3,470		—		0.56
Value-oriented investments in mature real    estate private equity funds and portfolios    globally. (b)(j)		7,581		2,982		1.32		7,457		3,125		1.32
Risk-adjusted returns on credit and equity    investments, primarily in private equity-owned    companies. (b)(k)		2,816		2,519		0.85		2,782		2,536		0.98
Total	$	24,520	$	5,501			$	25,702	$	5,661

(a)Represents the Company’s percentage investment in the fund at each balance sheet date.

(b)Except under certain circumstances, withdrawals from the funds or any assignments are not permitted. Distributions, except income from late admission of a new limited partner, will be received when underlying investments of the funds are liquidated.

(c)The term is expected to be two years following the maturity of the fund’s outstanding leverage. Although the capital commitment period has expired, follow-on investments and pending commitments may require additional fundings.

(d)The term has been extended for a second additional one-year period to June 30, 2023. Although the capital commitment period has ended, the general partner could still request an additional funding under certain circumstances.

(e)At the fund manager’s discretion, the term of the fund may be extended for up to two additional one-year periods.

(f)Expected to have a ten-year term. The capital commitment period has expired but the general partner may request additional funding for follow-on investment.

(g)With the consent of a supermajority of partners, the term of the fund may be extended for up to three additional one-year periods.

(h)Expected to have an eight-year term from the commencement date, which can be extended for up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners.

15

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

(i)The capital commitment period has ended but an additional funding may be requested.

(j)The term is expected to end November 27, 2027. The term may be extended for up to four additional one-year periods at the general partner’s discretion, and up to two additional one-year periods with the consent of the advisory committee.

(k)Expected to have an eight-year term after the final admission date. The term may be extended for an additional one-year period at the general partner’s discretion, and up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners.

The following is the summary of aggregated unaudited financial information of limited partnerships included in the investment strategy table above, which in certain cases is presented on a three-month lag due to the unavailability of information at the Company’s respective balance sheet dates. The financial statements of these limited partnerships are audited annually.

	Three Months Ended
	March 31,
	2023			2022
Operating results:
Total income	$	182,360		$	336,828
Total expenses		(2,257	)		(49,317	)
Net income	$	180,103		$	287,511

	March 31,		December 31,
	2023		2022
Balance sheet:
Total assets	$	5,228,330	$	5,119,695
Total liabilities	$	397,463	$	430,354

For the three months ended March 31, 2023 and 2022, the Company recognized net investment income from limited partnerships of $553 and $1,780, respectively. Included in net investment income for the three months ended March 31, 2023 was an estimated favorable change in net asset value of $124. During the three months ended March 31, 2023 and 2022, the Company received total cash distributions of $1,905 and $1,596, respectively, including returns on investment of $303 and $811, respectively.

At March 31, 2023 and December 31, 2022, the Company’s net cumulative contributed capital to the partnerships at each respective balance sheet date totaled $23,546 and $24,978, respectively, and the Company’s maximum exposure to loss aggregated $24,520 and $25,702, respectively.

d) Investment in Unconsolidated Joint Venture

Melbourne FMA, LLC, a wholly owned subsidiary, had an equity investment in FMKT Mel JV, a Florida limited liability company treated as a joint venture under U.S. GAAP. In January 2023, the Company received the final distribution of $18 from FMKT Mel JV, the unconsolidated joint venture that the Company had a 90% equity interest in, which was liquidated on December 31, 2022 following the sale of its last remaining outparcel in June 2022.

16

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

e) Real Estate Investments

Real estate investments consist of the following as of March 31, 2023 and December 31, 2022:

	March 31,			December 31,
	2023			2022
Land	$	29,471		$	38,327
Land improvements		4,387			12,138
Buildings and building improvements		12,544			29,410
Tenant and leasehold improvements		1,270			1,742
Other		1,593			1,649
Total, at cost		49,265			83,266
Less: accumulated depreciation and amortization		(5,703	)		(11,878	)
Real estate investments	$	43,562		$	71,388

Since January 1, 2023, a Tampa office building property that was previously leased to an unaffiliated company has been used in operations by the Company and serves as TTIG’s corporate headquarters. As a result, in January 2023, $8,135 was reclassified out of real estate investments to property and equipment, net on the consolidated balance sheet.

On March 31, 2023, the Company closed on its agreement to sell the retail shopping center investment property in Melbourne, Florida to a non-affiliate for a price of $18,500, and also closed on its agreement to sell the retail shopping center investment property in Sorrento, Florida to a non-affiliate for a price of $13,418. See additional information under f) Net Investment Income below. Depreciation and amortization expense related to real estate investments was $453 and $506 for the three months ended March 31, 2023 and 2022, respectively.

f) Net Investment Income

Net investment income (loss), by source, is summarized as follows:

	Three Months Ended
	March 31,
	2023			2022
Available-for-sale fixed-maturity securities	$	4,035		$	448
Equity securities		296			287
Investment expense		(129	)		(134	)
Limited partnership investments		553			1,780
Real estate investments		9,293			347
Loss from unconsolidated joint venture		—			(13	)
Cash and cash equivalents		3,667			153
Net investment income	$	17,715		$	2,868

For the three months ended March 31, 2023, income from real estate investments included a net realized gain of $6,476 resulting from the sale of the retail shopping center investment property in Melbourne, Florida in March 2023 for a price of $18,500, and also included a net realized gain of $2,460 resulting from the sale of the retail shopping center investment property in Sorrento, Florida in March 2023 for a price of $13,418.

17

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

g) Other Investments

From time to time, the Company may invest in financial assets other than stocks, mutual funds, and bonds. For the three months ended March 31, 2023 and 2022, net realized gains related to other investments were $4 and $81, respectively.

Note 6 -- Comprehensive Income (Loss)

Comprehensive income (loss) includes net income and other comprehensive income or loss, which for the Company includes changes in unrealized gains or losses of available-for-sale fixed-maturity securities carried at fair value and changes to any credit losses related to these investments. Reclassification adjustments for realized (gains) losses are reflected in net realized investment gains (losses) on the consolidated statements of income. The components of other comprehensive income or loss and the related tax effects allocated to each component were as follows:

	Three Months Ended							Three Months Ended
	March 31, 2023							March 31, 2022
	Before		Income			Net of		Before			Income			Net of
	Tax		Tax Effect			Tax		Tax			Tax Effect			Tax
Net unrealized gains (losses)	$	2,415	$	(1,997	)	$	4,412	$	(4,151	)	$	(1,047	)	$	(3,104	)
Reclassification adjustment for net    realized losses		738		187			551		429			109			320
Total other comprehensive income    (loss)	$	3,153	$	(1,810	)	$	4,963	$	(3,722	)	$	(938	)	$	(2,784	)

Note 7 -- Fair Value Measurements

The Company records and discloses certain financial assets at their estimated fair values. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows:

Level 1	–	Unadjusted quoted prices in active markets for identical assets.
Level 2	–	Other inputs that are observable for the asset, either directly or indirectly such as quoted prices for identical assets that are not observable throughout the full term of the asset.
Level 3	–	Inputs that are unobservable.

Valuation Methodology

Cash and Cash Equivalents

Cash and cash equivalents primarily consist of money-market funds and certificates of deposit maturing within 90 days. Their carrying value approximates fair value due to the short maturity and high liquidity of these funds.

18

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

Restricted Cash

Restricted cash represents cash held by state authorities or deposited in escrow. Its carrying value approximates fair value.

Fixed-Maturity and Equity Securities

Estimated fair values of the Company’s fixed-maturity and equity securities are determined in accordance with U.S. GAAP, using valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Fair values are generally measured using quoted prices in active markets for identical securities or other inputs that are observable either directly or indirectly, such as quoted prices for similar securities. In those instances where observable inputs are not available, fair values are measured using unobservable inputs. Unobservable inputs reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the security and are developed based on the best information available in the circumstances. Fair value estimates derived from unobservable inputs are significantly affected by the assumptions used, including the discount rates and the estimated amounts and timing of future cash flows. The derived fair value estimates cannot be substantiated by comparison to independent markets and are not necessarily indicative of the amounts that would be realized in a current market exchange.

The estimated fair values for securities that do not trade on a daily basis are determined by management, utilizing prices obtained from an independent pricing service and information provided by brokers, which are level 2 inputs. Management reviews the assumptions and methods utilized by the pricing service and then compares the relevant data and pricing to broker-provided data. The Company gains assurance of the overall reasonableness and consistent application of the assumptions and methodologies, and compliance with accounting standards for fair value determination through ongoing monitoring of the reported fair values.

Revolving Credit Facility

From time to time, the Company has an amount outstanding under a revolving credit facility. The interest rate is variable and is periodically adjusted based on the Secured Overnight Financing Rate (“SOFR”) plus a ten basis points adjustment plus a margin based on the debt-to-capital ratio. As a result, carrying value, when outstanding, approximates fair value.

Long-Term Debt

The following table summarizes components of the Company’s long-term debt and methods used in estimating their fair values:

	Maturity Date	Valuation Methodology
4.75% Convertible Senior Notes	2042	Quoted price
4.25% Convertible Senior Notes	2037	Quoted price
3.90% Promissory Note	*	Discounted cash flow method/Level 3 inputs
3.75% Callable Promissory Note	*	Discounted cash flow method/Level 3 inputs
4.55% Promissory Note	2036	Discounted cash flow method/Level 3 inputs

* Debt derecognized in March 2023. See Note 11 -- “Long-Term Debt” for additional information.

19

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

Assets Measured at Estimated Fair Value on a Recurring Basis

The following tables present information about the Company’s financial assets measured at estimated fair value on a recurring basis. The tables indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of March 31, 2023 and December 31, 2022:

	Fair Value Measurements Using
	(Level 1)		(Level 2)		(Level 3)		Total
As of March 31, 2023
Financial Assets:
Cash and cash equivalents	$	302,025	$	—	$	—	$	302,025
Restricted cash	$	2,987	$	—	$	—	$	2,987
Fixed-maturity securities:
U.S. Treasury and U.S. government agencies	$	487,750	$	7,876	$	—	$	495,626
Corporate bonds		27,257		—		—		27,257
State, municipalities, and political subdivisions		—		1,391		—		1,391
Exchange-traded debt		482		—		—		482
Total available-for-sale securities	$	515,489	$	9,267	$	—	$	524,756
Equity securities	$	37,415	$	—	$	—	$	37,415

	Fair Value Measurements Using
	(Level 1)		(Level 2)		(Level 3)		Total
As of December 31, 2022
Financial Assets:
Cash and cash equivalents	$	234,863	$	—	$	—	$	234,863
Restricted cash	$	2,900	$	—	$	—	$	2,900
Fixed-maturity securities:
U.S. Treasury and U.S. government agencies	$	446,233	$	8,369	$	—	$	454,602
Corporate bonds		27,193		—		—		27,193
State, municipalities, and political subdivisions		—		1,383		—		1,383
Exchange-traded debt		633		—		—		633
Redeemable preferred stock		90		—		—		90
Total available-for-sale securities	$	474,149	$	9,752	$	—	$	483,901
Equity securities	$	34,583	$	—	$	—	$	34,583

Liabilities Carried at Other Than Fair Value

The following tables present fair value information for liabilities that are carried on the consolidated balance sheets at amounts other than fair value as of March 31, 2023 and December 31, 2022:

	Carrying		Fair Value Measurements Using						Estimated
	Value		(Level 1)		(Level 2)		(Level 3)		Fair Value
As of March 31, 2023
Financial Liabilities:
Long-term debt:
4.75% Convertible Senior Notes	$	167,396	$	—	$	157,805	$	—	$	157,805
4.25% Convertible Senior Notes		23,916		—		22,089		—		22,089
4.55% Promissory Note		4,836		—		—		4,617		4,617
Total long-term debt	$	196,148	$	—	$	179,894	$	4,617	$	184,511

20

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

	Carrying		Fair Value Measurements Using						Estimated
	Value		(Level 1)		(Level 2)		(Level 3)		Fair Value
As of December 31, 2022
Financial Liabilities:
Long-term debt:
4.75% Convertible Senior Notes	$	167,126	$	—	$	133,167	$	—	$	133,167
4.25% Convertible Senior Notes		23,916		—		19,473		—		19,473
3.90% Promissory Note		8,943		—		—		8,152		8,152
3.75% Callable Promissory Note		6,789		—		—		6,171		6,171
4.55% Promissory Note		4,900		—		—		4,642		4,642
Total long-term debt	$	211,674	$	—	$	152,640	$	18,965	$	171,605

Note 8 -- Intangible Assets, Net

The Company’s intangible assets, net consist of the following:

	March 31,			December 31,
	2023			2022
Anchor tenant relationships (a)	$	—		$	1,761
In-place leases		410			3,579
Policy renewal rights		10,100			10,100
Non-compete agreements (b)		314			314
Total, at cost		10,824			15,754
Less: accumulated amortization		(3,138	)		(5,176	)
Intangible assets, net	$	7,686		$	10,578

(a)An anchor tenant is a tenant that attracts more customers than other tenants.

(b)Fully amortized.

The remaining weighted-average amortization periods for the intangible assets as of March 31, 2023 are summarized in the table below:

In-place leases	12.1 years
Policy renewal rights	3.1 years

In connection with the sales of the retail shopping center investment properties in Melbourne, Florida and Sorrento, Florida as described in Note 5 -- “Investments” under Real Estate Investments, the Company derecognized $2,200 of intangible assets, net on March 31, 2023.

At March 31, 2023 and December 31, 2022, contingent liabilities related to renewal rights intangible assets were $371 and are included in other liabilities on the consolidated balance sheets.

21

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

Note 9 -- Other Assets

The following table summarizes the Company’s other assets:

	March 31,		December 31,
	2023		2022
Benefits receivable related to retrospective reinsurance contract	$	23,310	$	16,317
Reimbursement and fees receivable under TPA service		5,339		7,303
Prepaid expenses		2,394		2,826
Deposits		709		491
Lease acquisition costs, net		696		832
Other		3,656		3,902
Total other assets	$	36,104	$	31,671

Management reviewed the collectability of the reimbursement and fees receivable under third-party administrator (“TPA”) service as of March 31, 2023 and, considering the net balance due to the counterparty as well as the balance of funds withheld for assumed business as of March 31, 2023, determined that an allowance for credit losses is not necessary for the reimbursement and fees receivable under TPA service.

Note 10 -- Revolving Credit Facility

At March 31, 2023, the Company had no borrowings outstanding under the credit facility. For the three months ended March 31, 2023 and 2022, interest expense was $25 and $89, respectively, including $25 and $25 of amortization of issuance costs, respectively. At March 31, 2023, the Company was in compliance with all required covenants and had available borrowing capacity of $50,000.

Note 11 -- Long-Term Debt

The following table summarizes the Company’s long-term debt:

	March 31,			December 31,
	2023			2022
4.75% Convertible Senior Notes, due June 1, 2042	$	172,500		$	172,500
4.25% Convertible Senior Notes, due March 1, 2037		23,916			23,916
3.90% Promissory Note, due through April 1, 2032		—			9,072
3.75% Callable Promissory Note, due through    September 1, 2036		—			6,871
4.55% Promissory Note, due through August 1, 2036		4,902			4,968
Finance lease liabilities, due through October 15, 2024		10			13
Total principal amount		201,328			217,340
Less: unamortized issuance costs		(5,170	)		(5,653	)
Total long-term debt	$	196,158		$	211,687

22

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

The following table summarizes future maturities of long-term debt as of March 31, 2023, which takes into consideration the assumption that the 4.75% Convertible Senior Notes and 4.25% Convertible Senior Notes are repurchased at their respective next earliest call dates:

Due in 12 months following March 31,
2023	$	280
2024		285
2025		297
2026		24,227
2027		172,826
Thereafter		3,413
Total	$	201,328

Information with respect to interest expense related to long-term debt is as follows:

	Three Months Ended
	March 31,
	2023		2022
Interest Expense:
Contractual interest	$	2,497	$	472
Non-cash expense (a)		279		40
Total	$	2,776	$	512

(a)Includes amortization of debt issuance costs.

4.25% Convertible Senior Notes

The Company’s recent cash dividends on common stock have exceeded $0.35 per share, resulting in adjustments to the conversion rate of the 4.25% Convertible Senior Notes. Accordingly, as of March 31, 2023, the conversion rate of the Company’s 4.25% Convertible Senior Notes was 16.5486 shares of common stock for each $1 in principal amount, which was the equivalent of approximately $60.43 per share.

There were no unamortized debt issuance costs for the 4.25% Convertible Senior Notes at March 31, 2023.

4.75% Convertible Senior Notes

The conversion rate of the 4.75% Convertible Senior Notes is currently 12.4166 shares of common stock for each $1 in principal amount, which is the equivalent of approximately $80.54 per share.

The effective interest rate for the 4.75% Convertible Senior Notes, taking into account both cash and non-cash components, approximates 5.6%. Had a 20-year term been used for the amortization of the issuance costs of the 4.75% Convertible Senior Notes, the annual effective interest rate charged to earnings would have decreased to approximately 5.0%. As of March 31, 2023, the remaining amortization period of the debt issuance costs was expected to be 4.2 years for the 4.75% Convertible Senior Notes.

23

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

3.90% Promissory Note

On March 31, 2023, in conjunction with the sale of the retail shopping center investment property in Melbourne, Florida for a price of $18,500, the buyer assumed the 3.90% Promissory Note from the Company which consisted of the $8,979 principal balance plus $16 of accrued interest at March 31, 2023.

3.75% Callable Promissory Note

On March 31, 2023, the Company made an early repayment of the entirety of its 3.75% Callable Promissory Note which included $6,775 of principal balance plus $22 of accrued interest. As a result, the Company incurred a $177 loss on extinguishment of debt. The note was collateralized by the retail shopping center investment property in Sorrento, Florida which was sold as described in Note 5 -- “Investments” under Real Estate Investments.

Note 12 -- Reinsurance

Reinsurance obtained from other insurance companies

The Company cedes a portion of its homeowners’ insurance exposure to other entities under catastrophe excess of loss reinsurance contracts and a portion of its flood insurance exposure under one quota share reinsurance agreement. Ceded premiums under most catastrophe excess of loss reinsurance contracts are subject to revision resulting from subsequent adjustments in total insured value. Under the terms of the quota share reinsurance agreement, the Company is entitled to a 30% ceding commission on ceded premiums written and a profit commission equal to 10% of net profit. On January 12, 2023, HCPCI and TypTap received approval from the Florida Office of Insurance Regulation (“FLOIR”) to discontinue flood insurance policies written in Florida with policy cancellation effective dates no later than May 31, 2023. The reason for discontinuation is primarily attributable to the increased costs and reduced availability of flood reinsurance. The discontinuation will not have a material impact to the Company’s results of operations.

The Company remains liable for claims payments in the event that any reinsurer is unable to meet its obligations under the reinsurance agreements. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities or economic characteristics of the reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. The Company contracts with a number of reinsurers to secure its annual reinsurance coverage, which generally becomes effective June 1st of each year. The Company purchases reinsurance each year taking into consideration probable maximum losses and reinsurance market conditions.

24

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

The impact of the reinsurance contracts on premiums written and earned is as follows:

	Three Months Ended
	March 31,
	2023			2022
Premiums Written:
Direct	$	207,423		$	171,981
Assumed		(7,569	)		5,313
Gross written		199,854			177,294
Ceded		(70,509	)		(53,162	)
Net premiums written	$	129,345		$	124,132
Premiums Earned:
Direct	$	172,905		$	148,846
Assumed		7,163			30,079
Gross earned		180,068			178,925
Ceded		(70,509	)		(53,162	)
Net premiums earned	$	109,559		$	125,763

During the three months ended March 31, 2023 and 2022, the Company recognized ceded losses of $2,751 and $870, respectively, as reductions in losses and loss adjustment expenses. At March 31, 2023 and December 31, 2022, there were 45 reinsurers participating in the Company’s reinsurance program. Total net amounts recoverable and receivable from reinsurers at March 31, 2023 and December 31, 2022 were $596,700 and $688,359, respectively. Approximately 60.6% of the reinsurance recoverable balance at March 31, 2023 was receivable from six reinsurers, one of which was the Florida Hurricane Catastrophe Fund, a tax-exempt state trust fund. Based on all available information considered in the rating-based method, the Company recognized decreases in credit loss expense of $1 and $11 for the three months ended March 31, 2023 and 2022, respectively. Allowances for credit losses related to the reinsurance recoverable balance were $453 and $454 at March 31, 2023 and December 31, 2022, respectively.

One of the existing reinsurance contracts includes retrospective provisions that adjust premiums in the event losses are minimal or zero. Prior to June 1, 2022, there were two reinsurance contracts with retrospective provisions. For the three months ended March 31, 2023 and 2022, the Company recognized reductions in premiums ceded of $6,993 and $1,484, respectively, related to these adjustments in the consolidated statements of income. See Note 21 -- “Commitments and Contingencies” for additional information.

Amounts receivable pursuant to retrospective provisions are reflected in other assets. At March 31, 2023 and December 31, 2022, other assets included $23,310 and $16,317, respectively, of amounts receivable pursuant to retrospective provisions. Management believes the credit risk associated with the collectability of these accrued benefits is minimal as the amount receivable is concentrated with one reinsurer with a good credit rating and the Company monitors the creditworthiness of this reinsurer based on available information about the reinsurer’s financial condition.

25

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

Reinsurance provided to other insurance companies

In 2022, the Company provided quota share reinsurance on all policies issued by United Property & Casualty Insurance Company, an insurance subsidiary of United Insurance Holdings Corporation (“United”), in the states of Connecticut, New Jersey, Massachusetts, and Rhode Island (collectively “Northeast Region”) and the states of Georgia, North Carolina, and South Carolina (collectively “Southeast Region”). These policies were renewed and/or replaced by the Company. As of the financial reporting date, there was no reinsurance provided to United by the Company. However, additional losses may be incurred pertaining to the previous coverage periods of the quota share reinsurance agreements.

For the three months ended March 31, 2023, assumed premiums written related to the Northeast Region’s insurance policies were $0, whereas for the three months ended March 31, 2022, $6,849 of assumed premiums written related to the Northeast Region’s insurance policies were derecognized, which primarily resulted from the return of the unearned portion of assumed written premiums subsequent to the Company’s renewal and/or replacement of insurance policies in New Jersey. At March 31, 2023, the Company had a net balance of $1,207 due to United related to the Northeast Region, consisting of payable on paid losses and loss adjustment expenses of $626 and ceding commission payable of $581. At December 31, 2022, the Company had a net balance of $1,581 due to United related to the Northeast Region, consisting of payable on paid losses and loss adjustment expenses of $1,000 and ceding commission payable of $581. Effective December 30, 2022, the Company’s quota share reinsurance agreement to provide 100% reinsurance on United’s policies in the Northeast Region was commuted.

For the three months ended March 31, 2023, $7,569 of assumed premiums written related to the Southeast Region’s insurance policies were derecognized, which primarily resulted from the return of the unearned portion of assumed written premiums subsequent to the Company’s renewal and/or replacement of insurance policies in the Southeast Region, whereas for the three months ended March 31, 2022 assumed premiums written related to the Southeast Region’s insurance policies were $12,162. At March 31, 2023, the Company had a net balance of $14,402 due to United related to the Southeast Region, consisting of premiums payable of $9,506 and payable on paid losses and loss adjustment expenses of $6,417, offset by ceding commission receivable of $1,521. At December 31, 2022, the Company had a net balance of $7,521 due to United related to the Southeast Region, consisting of payable on paid losses and loss adjustment expenses of $7,606 and ceding commission payable of $16, offset by premiums receivable of $101.

On February 27, 2023, United’s Florida-domiciled residential insurance subsidiary was placed into receivership by the State of Florida due to its financial insolvency. At March 31, 2023, the Company had a net amount due to United of $10,270 and funds withheld for assumed business in trust accounts totaling $45,274 for the benefit of policies assumed from United. As of March 31, 2023, the Company no longer provided TPA services to United. The Company cannot predict the actions a receiver might take, which may include restrictions on, or use of, funds held in trust. Any such actions could have a material adverse effect on the Company’s financial position and results of operations.

At March 31, 2023 and December 31, 2022, the balance of funds withheld for assumed business related to the Company’s quota share reinsurance agreements with United was $45,274 and $48,772, respectively.

26

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

Note 13 -- Losses and Loss Adjustment Expenses

The liability for losses and loss adjustment expenses (“LAE”) is determined on an individual case basis for all claims reported. The liability also includes amounts for unallocated expenses, anticipated future claims development and losses incurred but not reported.

The Company primarily writes insurance in states which could be exposed to hurricanes or other natural catastrophes. The occurrence of a major catastrophe could have a significant effect on the Company’s quarterly results and cause a temporary disruption of the normal operations of the Company. However, the Company is unable to predict the frequency or severity of any such events that may occur in the near term or thereafter.

Activity in the liability for losses and LAE is summarized as follows:

	Three Months Ended
	March 31,
	2023			2022
Net balance, beginning of period*	$	246,546		$	172,410
Incurred, net of reinsurance, related to:
Current period		56,698			70,076
Prior periods		3,867			2,628
Total incurred, net of reinsurance		60,565			72,704
Paid, net of reinsurance, related to:
Current period		(11,110	)		(18,796	)
Prior periods		(49,950	)		(46,481	)
Total paid, net of reinsurance		(61,060	)		(65,277	)
Net balance, end of period		246,051			179,837
Add: reinsurance recoverable before allowance for credit losses		560,257			54,955
Gross balance, end of period	$	806,308		$	234,792

* Net balance represents beginning-of-period liability for unpaid losses and LAE less beginning-of-period reinsurance recoverable for unpaid losses and LAE.

The establishment of loss and LAE reserves is an inherently uncertain process and changes in loss and LAE reserve estimates are expected as these estimates are subject to the outcome of future events. Changes in estimates, or differences between estimates and amounts ultimately paid, are reflected in the operating results of the period during which such estimates are adjusted. During the three months ended March 31, 2023, the Company recognized losses related to prior periods of $3,867 primarily to increase reserves in response to litigation and claim severity. Losses and LAE for the three months ended March 31, 2023 included net estimated losses of approximately $21,635 related to United policies assumed, renewed and/or replaced. Lower losses and LAE for the three months ended March 31, 2023 resulted from a decrease in claims and litigation related to Florida policies.

27

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

Note 14 -- Segment Information

The Company identifies its operating divisions or segments based on managerial emphasis, organizational structure and revenue source. The Company has four reportable segments: HCPCI insurance operations, TypTap Group, real estate operations, and corporate and other. Due to their economic characteristics, the Company’s property and casualty insurance division and reinsurance operations, excluding the insurance operations under TypTap Group, are grouped together into one reportable segment under HCPCI insurance operations. The TypTap Group segment includes its property and casualty insurance operations, information technology operations and its management company’s activities. The real estate operations segment includes companies engaged in operating commercial properties the Company owns for investment purposes or for use in its own operations. The corporate and other segment represents the activities of the holding companies and any other companies that do not meet the quantitative and qualitative thresholds for a reportable segment. The determination of segments may change over time due to changes in operational emphasis, revenues, and results of operations. The Company’s chief executive officer, who serves as the Company’s chief operating decision maker, evaluates each division’s financial and operating performance based on revenue and operating income.

For the three months ended March 31, 2023 and 2022, revenues from the HCPCI insurance operations segment before intracompany elimination represented 61.2% and 69.8%, respectively, and revenues from the TypTap Group segment represented 36.5% and 28.3%, respectively, of total revenues of all operating segments. At March 31, 2023 and December 31, 2022, HCPCI insurance operations’ total assets represented 52.5% and 53.4%, respectively, and TypTap Group’s total assets represented 39.0% and 37.9%, respectively, of the combined assets of all operating segments.

28

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

The following tables present segment information reconciled to the Company’s consolidated statements of income. Intersegment transactions are not eliminated from segment results. However, intracompany transactions are eliminated in segment results below.

	HCPCI
	Insurance			TypTap			Real		Corporate/			Reclassification/
For Three Months Ended March 31, 2023	Operations			Group			Estate (a)		Other (b)			Elimination			Consolidated
Revenue:
Gross premiums earned (c)	$	96,991		$	87,612		$	—	$	—		$	(4,535	)	$	180,068
Premiums ceded		(40,195	)		(34,823	)		—		—			4,509			(70,509	)
Net premiums earned		56,796			52,789			—		—			(26	)		109,559
Net income from investment portfolio		2,954			3,379			—		1,900			8,862			17,095
Gain from sales of real estate investments		—			—			8,936		—			(8,936	)		—
Policy fee income		563			527			—		—			—			1,090
Other		4,653			1,643			2,923		595			(8,529	)		1,285
Total revenue		64,966			58,338			11,859		2,495			(8,629	)		129,029
Expenses:
Losses and loss adjustment expenses		28,782			33,056			—		—			(1,273	)		60,565
Amortization of deferred policy acquisition costs		9,621			11,863			—		—			—			21,484
Other policy acquisition expenses		655			611			—		—			(30	)		1,236
Stock-based compensation expense		496			829			—		781			—			2,106
Interest expense		—			431			203		2,598			(431	)		2,801
Depreciation and amortization		139			956			627		202			(537	)		1,387
Loss on extinguishment of debt		—			—			177		—			(177	)		—
Personnel and other operating expenses		9,919			9,433			1,554		1,589			(6,181	)		16,314
Total expenses		49,612			57,179			2,561		5,170			(8,629	)		105,893
Income (loss) before income taxes	$	15,354		$	1,159		$	9,298	$	(2,675	)	$	—		$	23,136
Total revenue from non-affiliates (d)	$	56,929		$	61,286		$	11,051	$	1,926
Gross premiums written	$	85,153		$	114,701

(a)Other revenue under real estate primarily consisted of rental income from investment properties.

(b)Other revenue under corporate and other primarily consisted of revenue from marina business.

(c)Gross premiums earned under HCPCI Insurance Operations consist of $92,456 from HCPCI and $4,535 from a reinsurance company.

(d)Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation.

29

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

	HCPCI
	Insurance			TypTap			Real		Corporate/			Reclassification/
For Three Months Ended March 31, 2022	Operations			Group			Estate (a)		Other (b)			Elimination			Consolidated
Revenue:
Gross premiums earned (c)	$	119,305		$	60,622		$	—	$	—		$	(1,002	)	$	178,925
Premiums ceded		(36,953	)		(16,933	)		—		—			724			(53,162	)
Net premiums earned		82,352			43,689			—		—			(278	)		125,763
Net (loss) income from investment portfolio		(1,457	)		(16	)		—		316			135			(1,022	)
Policy fee income		654			403			—		—			—			1,057
Other		1,247			469			2,403		836			(3,713	)		1,242
Total revenue		82,796			44,545			2,403		1,152			(3,856	)		127,040
Expenses:
Losses and loss adjustment expenses		43,995			28,988			—		—			(279	)		72,704
Amortization of deferred policy acquisition costs		19,102			9,422			—		—			—			28,524
Other policy acquisition expenses		663			283			—		—			—			946
Stock-based compensation expense		1,144			885			—		2,308			—			4,337
Interest expense		—			200			227		374			(200	)		601
Depreciation and amortization		114			561			605		172			(623	)		829
Personnel and other operating expenses		7,318			7,493			1,307		1,734			(2,754	)		15,098
Total expenses		72,336			47,832			2,139		4,588			(3,856	)		123,039
Income (loss) before income taxes	$	10,460		$	(3,287	)	$	264	$	(3,436	)	$	—		$	4,001
Total revenue from non-affiliates (d)	$	81,733		$	44,823		$	2,064	$	449
Gross premiums written	$	91,141		$	86,153

(a)Other revenue under real estate primarily consisted of rental income from investment properties.

(b)Other revenue under corporate and other primarily consisted of revenue from marina business.

(c)Gross premiums earned under HCPCI Insurance Operations consist of $118,303 from HCPCI and $1,002 from a reinsurance company.

(d)Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation.

The following table presents segment assets reconciled to the Company’s total assets on the consolidated balance sheets:

	March 31,			December 31,
	2023			2022
Segments:
HCPCI Insurance Operations	$	880,107		$	912,233
TypTap Group		719,774			704,429
Real Estate Operations		119,646			126,001
Corporate and Other		150,118			159,378
Consolidation and Elimination		(98,523	)		(98,713	)
Total assets	$	1,771,122		$	1,803,328

30

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

Note 15 -- Leases

The table below summarizes the Company’s right-of-use (“ROU”) assets and corresponding liabilities for operating and finance leases:

	March 31,		December 31,
	2023		2022
Operating leases:
ROU assets	$	1,466	$	777
Liabilities	$	1,422	$	721
Finance leases:
ROU assets	$	80	$	80
Liabilities	$	10	$	13

The Company entered into a new lease effective March 2023 for its office space in Plantation, Florida which relates to its claims related administration. The new lease has an initial term of 5.25 years.

The following table summarizes the Company’s operating and finance leases in which the Company is a lessee:

		Renewal	Other Terms and
Class of Assets	Initial Term	Option	Conditions
Operating lease:
Office equipment	1 month	Yes	(a)
Office space	3 to 9 years	Yes	(a), (b)
Finance lease:
Office equipment	3 to 5 years	Not applicable	(c)

(a)There are no variable lease payments.

(b)Rent escalation provisions exist.

(c)There is a bargain purchase option.

As of March 31, 2023, maturities of lease liabilities were as follows:

	Leases
	Operating		Finance
Due in 12 months following March 31,
2023	$	258	$	9
2024		255		1
2025		264		—
2026		274		—
2027		315		—
Thereafter		336		—
Total lease payments		1,702		10
Less: interest		280		—
Total lease obligations	$	1,422	$	10

31

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

The following table provides quantitative information with regards to the Company’s operating and finance leases:

	Three Months Ended
	March 31,
	2023			2022
Lease costs:
Finance lease costs:
Amortization – ROU assets*	$	4		$	5
Operating lease costs*		52			374
Short-term lease costs*		93			110
Total lease costs	$	149		$	489
Cash paid for amounts included in the    measurement of lease liabilities:
Operating cash flows – operating leases	$	44		$	372
Financing cash flows – finance leases	$	4		$	5
	March 31,
	2023
Weighted-average remaining lease term:
Finance leases (in years)		0.9
Operating leases (in years)		6.4
Weighted-average discount rate:
Finance leases (%)		3.3	%
Operating leases (%)		5.9	%

* Included in other operating expenses on the consolidated statements of income.

The following table summarizes the Company’s operating leases in which the Company is a lessor:

		Renewal	Other Terms and
Class of Assets	Initial Term	Option	Conditions
Operating lease:
Retail space	3 to 15 years	Yes	(d)
Boat docks/wet slips	1 to 12 months	Yes	(d)

(d)There are no purchase options.

Note 16 -- Income Taxes

A valuation allowance must be established for deferred tax assets when it is more likely than not that the deferred tax assets will not be realized based on available evidence both positive and negative, including recent operating results, available tax planning strategies, and projected future taxable income. As of December 31, 2022, management concluded that it was more likely than not that the deferred tax assets would not be realized and therefore recorded a valuation allowance. The Company evaluates the realizability of its deferred tax assets each quarter, and as of March 31, 2023, based on all of the available evidence, management concluded that it is more likely than not that the deferred tax assets will be realized and therefore is releasing the entire valuation allowance in 2023, as a part of the effective tax rate. During the first quarter of 2023, approximately $890 of valuation allowance was released through income tax expense.

32

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

During the three months ended March 31, 2023 and 2022, the Company recorded approximately $5,343 and $1,210, respectively, of income tax expense, which resulted in effective tax rates of 23.1% and 30.2%, respectively. The decrease in the effective tax rate as compared with the corresponding period in the prior year was primarily attributable to the release of valuation allowance established in 2022 during the first quarter of 2023 and the decrease in non-deductible compensation expense. The Company’s estimated annual effective tax rate differs from the statutory federal tax rate due to state and foreign income taxes as well as certain nondeductible and tax-exempt items.

Note 17 -- Earnings Per Share

U.S. GAAP requires the Company to use the two-class method in computing basic earnings (loss) per share since holders of the Company’s restricted stock have the right to share in dividends, if declared, equally with common stockholders. These participating securities affect the computation of both basic and diluted earnings (loss) per share during periods of net income or loss. For a majority-owned subsidiary, its basic and diluted earnings (loss) per share are first computed separately. Then, the Company’s proportionate share in that majority-owned subsidiary’s earnings is added to the computation of both basic and diluted earnings (loss) per share at a consolidated level.

A summary of the numerator and denominator of the basic and diluted earnings per common share is presented below:

	Three Months Ended							Three Months Ended
	March 31, 2023							March 31, 2022
	Income			Shares (a)		Per Share		Income			Shares (a)		Per Share
	(Numerator)			(Denominator)		Amount		(Numerator)			(Denominator)		Amount
Net income	$	17,793						$	2,791
Less: Net income attributable to redeemable    noncontrolling interest		(2,324	)						(2,248	)
Less: TypTap Group’s net (income) loss    attributable to non-HCI common    stockholders and TypTap Group’s    participating securities		(131	)						360
Net income attributable to HCI		15,338							903
Less: Income attributable to participating    securities		(564	)						(52	)
Basic Earnings Per Share:
Income allocated to common stockholders		14,774			8,278	$	1.78		851			9,479	$	0.09
Effect of Dilutive Securities: *
Stock options		—			45				—			135
Convertible senior notes		1,921			2,537				—			—
Warrants		—			—				—			153
Diluted Earnings Per Share:
Income available to common stockholders    and assumed conversions	$	16,695			10,860	$	1.54	$	851			9,767	$	0.09

(a)Shares in thousands.

* For the three months ended March 31, 2023, warrants were excluded due to anti-dilutive effect. For the three months ended March 31, 2022, convertible senior notes were excluded due to anti-dilutive effect.

33

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

Note 18 -- Redeemable Noncontrolling Interest

The following table summarizes the activity of redeemable noncontrolling interest during the three months ended March 31, 2023 and 2022:

	2023			2022
Balance at January 1	$	93,553		$	89,955
Increase (decrease):
Accrued cash dividends		1,637			1,342
Accretion - increasing dividend rates		687			906
Dividends paid		(3,012	)		(2,508	)
Balance at March 31	$	92,865		$	89,695

For the three months ended March 31, 2023 and 2022, net income attributable to redeemable noncontrolling interest was $2,324 and $2,248, respectively, consisting of accrued cash dividends of $1,637 and $1,342, respectively, and accretion related to increasing dividend rates of $687 and $906, respectively.

Note 19 -- Equity

Stockholders’ Equity

Common Stock

The Company’s 2022 stock repurchase plan was considered expired and there was no new stock repurchase plan approved by the Board of Directors during the first quarter of 2023.

In March 2022, the Company’s Board of Directors authorized a plan to repurchase up to $20,000 of the Company’s common shares before commissions and fees during 2022. During the three months ended March 31, 2022, there were no shares repurchased by the Company under the 2022 stock repurchase plan.

On January 11, 2023, the Company’s Board of Directors declared a quarterly dividend of $0.40 per common share. The dividends were paid on March 17, 2023 to stockholders of record on February 17, 2023.

Warrants

At March 31, 2023, there were warrants outstanding and exercisable to purchase 750,000 shares of HCI common stock at an exercise price of $54.40. The warrants expire on February 26, 2025.

Noncontrolling Interests

At March 31, 2023, there were 81,016,355 shares of TTIG’s common stock outstanding, of which 6,016,355 shares were not owned by HCI.

During the three months ended March 31, 2023 and 2022, TTIG repurchased and retired a total of 34,108 and 21,744 shares, respectively, of its common stock surrendered by its employees to satisfy payroll tax liabilities associated with the vesting of restricted shares. The total cost of purchasing noncontrolling interests during the three months ended March 31, 2023 and 2022 was $198 and $127, respectively.

34

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

Note 20 -- Stock-Based Compensation

2012 Omnibus Incentive Plan

The Company currently has outstanding stock-based awards granted under the Plan which is currently active and available for future grants. At March 31, 2023, there were 1,112,330 shares available for grant.

Stock Options

Stock options granted and outstanding under the incentive plan vest over a period of four years and are exercisable over the contractual term of ten years.

A summary of the stock option activity for the three months ended March 31, 2023 and 2022 is as follows (option amounts not in thousands):

					Weighted
			Weighted		Average
			Average		Remaining	Aggregate
	Number of		Exercise		Contractual	Intrinsic
	Options		Price		Term	Value
Outstanding at January 1, 2023		440,000	$	45.25	5.6 years	$	—
Outstanding at March 31, 2023		440,000	$	45.25	5.3 years	$	3,146
Exercisable at March 31, 2023		412,500	$	45.07	5.2 years	$	3,031
Outstanding at January 1, 2022		440,000	$	45.25	6.6 years	$	18,119
Outstanding at March 31, 2022		440,000	$	45.25	6.3 years	$	10,494
Exercisable at March 31, 2022		357,500	$	44.23	6.0 years	$	8,891

There were no options exercised during the three months ended March 31, 2023 and 2022. For the three months ended March 31, 2023 and 2022, the Company recognized $90 and $184, respectively, of compensation expense related to stock options which is included in general and administrative personnel expenses. Deferred tax benefits related to stock options were $0 for the three months ended March 31, 2023 and 2022. At March 31, 2023 and December 31, 2022, there was $246 and $336, respectively, of unrecognized compensation expense related to nonvested stock options. The Company expects to recognize the remaining compensation expense over a weighted-average period of 10 months.

Restricted Stock Awards

From time to time, the Company has granted and may grant restricted stock awards to certain executive officers, other employees, and non-employee directors in connection with their service to the Company. The terms of the Company’s outstanding restricted stock grants may include service, performance, and market-based conditions. The determination of fair value with respect to the awards containing only service-based conditions is based on the market value of the Company’s common stock on the grant date. For awards with market-based conditions, the fair value is determined using a Monte Carlo simulation method, which calculates many potential outcomes for an award and then establishes fair value based on the most likely outcome.

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HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

Information with respect to the activity of unvested restricted stock awards during the three months ended March 31, 2023 and 2022 is as follows:

	Number of			Weighted
	Restricted			Average
	Stock			Grant Date
	Awards			Fair Value
Nonvested at January 1, 2023		342,459		$	39.86
Granted		6,000		$	51.76
Vested		(40,352	)	$	54.83
Forfeited		(2,125	)	$	40.33
Nonvested at March 31, 2023		305,982		$	38.11
Nonvested at January 1, 2022		679,997		$	39.72
Granted		4,000		$	70.58
Vested		(50,667	)	$	50.68
Forfeited		(3,265	)	$	45.85
Nonvested at March 31, 2022		630,065		$	39.00

The Company recognized compensation expense related to restricted stock, which is included in general and administrative personnel expenses, of $1,187 and $3,268 for the three months ended March 31, 2023 and 2022, respectively. At March 31, 2023 and December 31, 2022, there was approximately $7,086 and $8,048, respectively, of total unrecognized compensation expense related to nonvested restricted stock arrangements. The Company expects to recognize the remaining compensation expense over a weighted-average period of 2.0 years. The following table summarizes information about deferred tax benefits recognized and tax benefits realized related to restricted stock awards and paid dividends, and the fair value of vested restricted stock for the three months ended March 31, 2023 and 2022.

	Three Months Ended
	March 31,
	2023		2022
Deferred tax benefits recognized	$	263	$	652
Tax benefits realized for restricted stock and paid dividends	$	299	$	402
Fair value of vested restricted stock	$	2,213	$	2,568

Subsidiary Equity Plan

For the three months ended March 31, 2023 and 2022, TypTap Group recognized compensation expense related to its stock-based awards of $829 and $885, respectively. At March 31, 2023 and December 31, 2022, there was $6,999 and $7,876, respectively, of unrecognized compensation expense related to nonvested restricted stock and stock options.

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HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(Amounts in thousands, except share and per share amounts, unless otherwise stated)

Note 21 -- Commitments and Contingencies

Obligations under One Multi-Year Reinsurance Contract

As of March 31, 2023, the Company has a contractual obligation related to one multi-year reinsurance contract entered into effective June 1, 2022. The contract may be cancelled only with the other party’s consent or when its experience account is positive at the end of each contract year. The table below presents the future minimum aggregate premium amounts payable to the reinsurer.

Due in 12 months following March 31,
2023	$	91,350
2024		91,350
Total	$	182,700

Capital Commitments

As described in Note 5 -- “Investments” under Limited Partnership Investments, the Company is contractually committed to capital contributions for limited partnership interests. At March 31, 2023, there was an aggregate unfunded balance of $5,501.

FIGA Assessments

During 2022, the FLOIR approved assessments for the Florida Insurance Guaranty Association (“FIGA”) in order to secure funds for the payment of covered claims relating to the liquidation of three insurance companies. The FIGA assessments are levied on collected premiums of all covered lines of business except auto insurance. The surcharges, which are collectible from a policyholder, are assessed on new and renewal policies with specified effective dates.

The Company’s insurance subsidiaries, as member insurers, are required to collect and remit the pass-through assessments to FIGA on a quarterly basis. As of March 31, 2023, the FIGA assessments payable by the Company were $3,205.

Note 22 -- Subsequent Events

On April 10, 2023, the FLOIR approved an assessment for FIGA in order to secure funds for the payment of covered claims relating to the liquidation of one insurance company. The FIGA assessment will be levied at 1% on collected premiums of all covered lines of business except auto insurance. The surcharge, which is collectible from a policyholder, will be assessed on new and renewal policies with effective dates beginning October 1, 2023 through September 30, 2024 and continuing until the end of the assessment year in which the Series 2023A Bonds issued by the Florida Insurance Assistance Interlocal Agency have been paid in full.

On April 14, 2023, the Company’s Board of Directors declared a quarterly dividend of $0.40 per common share. The dividends are payable on June 16, 2023 to stockholders of record on May 19, 2023.

On April 19, 2023, the Company incorporated a new property and casualty insurance subsidiary, Tailrow Insurance Company (“Tailrow”), in the State of Florida. Tailrow currently has no operations.

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ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

You should read the following discussion under this Item 2 in conjunction with our consolidated financial statements and related notes and information included elsewhere in this quarterly report on Form 10-Q and in our Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 10, 2023. Unless the context requires otherwise, as used in this Form 10-Q, the terms “HCI,” “we,” “us,” “our,” “the Company,” “our company,” and similar references refer to HCI Group, Inc., a Florida corporation incorporated in 2006, and its subsidiaries. All dollar amounts in this Management’s Discussion and Analysis of Financial Condition and Results of Operations are in whole dollars unless specified otherwise.

Forward-Looking Statements

In addition to historical information, this quarterly report contains forward-looking statements as defined under federal securities laws. Such statements involve risks and uncertainties, such as statements about our plans, objectives, expectations, assumptions or future events. These statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from any future results, performances or achievements expressed or implied by the forward-looking statements. Typically, forward-looking statements can be identified by terminology such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” and similar expressions. The important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include but are not limited to the effects of governmental regulation; changes in insurance regulations; the frequency and extent of claims; uncertainties inherent in reserve estimates; catastrophic events; changes in the demand for, pricing of, availability of or collectability of reinsurance; restrictions on our ability to change premium rates; increased rate pressure on premiums; the severity and impact of a pandemic; and other risks and uncertainties detailed herein and from time to time in our SEC reports.

OVERVIEW – General

HCI Group, Inc. is a Florida-based InsurTech company with operations in property and casualty insurance, information technology services, insurance management, real estate and reinsurance. We manage our operations in the following organizational segments, based on managerial emphasis and evaluation of financial and operating performances:

a)HCPCI Insurance Operations

▪Property and casualty insurance

▪Reinsurance and other auxiliary operations

b)TypTap Group

▪Property and casualty insurance

▪Information technology

c)Real Estate Operations

d)Other Operations

▪Holding company operations

For the three months ended March 31, 2023 and 2022, revenues from HCPCI insurance operations before intracompany elimination represented 61.2% and 69.8%, respectively, and revenues from TypTap Group

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represented 36.5% and 28.3%, respectively, of total revenues of all operating segments. At March 31, 2023 and December 31, 2022, HCPCI insurance operations’ total assets represented 52.5% and 53.4%, respectively, and TypTap Group’s total assets represented 39.0% and 37.9%, respectively, of the combined assets of all operating segments. See Note 14 -- “Segment Information” to our unaudited consolidated financial statements under Item 1 of this Quarterly Report on Form 10-Q for additional information.

HCPCI Insurance Operations

Property and Casualty Insurance

HCPCI provides various forms of residential insurance products such as homeowners insurance, fire insurance, flood insurance and wind-only insurance. HCPCI is authorized to write residential property and casualty insurance in the states of Arkansas, California, Connecticut, Florida, Maryland, Massachusetts, New Jersey, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina and Texas. Currently, Florida is HCPCI’s primary market.

Due to the reduced availability and affordability of flood reinsurance coverage, HCPCI will cease to offer flood insurance policies in 2023. Gross premiums earned from such policies comprised less than 1% of total HCPCI gross premiums earned during 2022.

Reinsurance and other auxiliary operations

We have a Bermuda domiciled wholly-owned reinsurance subsidiary, Claddaugh Casualty Insurance Company Ltd (“Claddaugh”). We selectively retain risk in Claddaugh, reducing the cost of third-party reinsurance. Claddaugh fully collateralizes its exposure to HCPCI and TypTap by depositing funds into a trust account. Claddaugh may mitigate a portion of its risk through retrocession contracts, however Claddaugh did not enter into any retrocession contracts for the 2022-2023 treaty year. Currently, Claddaugh does not provide reinsurance to non-affiliates. Other auxiliary operations also include claim adjusting and processing services.

TypTap Group

TypTap Insurance Group, Inc. (“TTIG”), our majority-owned subsidiary, currently has four subsidiaries: TypTap Insurance Company (“TypTap”), TypTap Management Company, Exzeo USA, Inc., and Cypress Tech Development Company which also owns Exzeo Software Private Limited, a subsidiary domiciled in India. TTIG is primarily engaged in the property and casualty insurance business and is currently using internally developed technology to collect and analyze claims and other supplemental data to generate savings and efficiency for its insurance operations.

Property and Casualty Insurance

TypTap, TTIG’s insurance subsidiary, has been the primary source of our organic growth in gross written premium since 2016. TypTap’s policies in force have increased from 6,721 in January 2018 to 102,839 at March 31, 2023. TypTap has been successful in using internally developed proprietary technology to underwrite, select and write policies efficiently. As of April 28, 2023, TypTap has been approved to offer homeowners coverage in 29 states outside of Florida.

TypTap is also phasing out its flood insurance products during 2023 due to the reduced availability and affordability of flood reinsurance coverage. Gross premiums earned from such policies comprised less than 5% of total TypTap gross premiums earned during 2022.

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Information Technology

Our information technology operations include a team of experienced software developers with extensive knowledge in designing and creating web-based applications. The operations, which are located in Tampa, Florida and Noida, India, are focused on developing cloud-based, innovative products and services that support in-house operations as well as our third-party relationships with our agency partners and claim vendors. These products include SAMSTM, HarmonyTM, AtlasViewer® and ClaimColonyTM.

Real Estate Operations

Our real estate operations consist of multiple properties we own and operate for investment purposes and also properties we own and use for our own operations. Properties used in operations consist of two Tampa office buildings and an insurance operations site in Ocala, Florida. Our investment properties include retail shopping centers, two marinas, and undeveloped land near TTIG’s headquarters in Tampa, Florida.

In March 2023, we finalized the sales of two retail shopping center investment properties in Melbourne and Sorrento, Florida. See Real Estate Investments under Note 5 -- “Investments” to our unaudited consolidated financial statements under Item 1 of this Quarterly Report on Form 10-Q for additional information.

Other Operations

Holding company operations

Activities of our holding company, HCI Group, Inc., plus other companies that do not meet the quantitative and qualitative thresholds for a reportable segment comprise the operations of this segment.

Recent Events

On April 14, 2023, our Board of Directors declared a quarterly dividend of $0.40 per common share. The dividends are payable on June 16, 2023 to stockholders of record on May 19, 2023.

On April 19, 2023, we incorporated a new property and casualty insurance subsidiary, Tailrow Insurance Company (“Tailrow”), in the State of Florida. Tailrow currently has no operations.

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RESULTS OF OPERATIONS

The following table summarizes our results of operations for the three months ended March 31, 2023 and 2022 (dollar amounts in thousands, except per share amounts):

	Three Months Ended
	March 31,
	2023			2022
Revenue
Gross premiums earned	$	180,068		$	178,925
Premiums ceded		(70,509	)		(53,162	)
Net premiums earned		109,559			125,763
Net investment income		17,715			2,868
Net realized investment losses		(1,149	)		(314	)
Net unrealized investment gains (losses)		529			(3,576	)
Policy fee income		1,090			1,057
Other income		1,285			1,242
Total revenue		129,029			127,040
Expenses
Losses and loss adjustment expenses		60,565			72,704
Policy acquisition and other underwriting expenses		22,720			29,408
General and administrative personnel expenses		13,502			14,034
Interest expense		2,801			601
Other operating expenses		6,305			6,292
Total expenses		105,893			123,039
Income before income taxes		23,136			4,001
Income tax expense		5,343			1,210
Net income		17,793			2,791
Net income attributable to noncontrolling interests		(2,455	)		(1,888	)
Net income after noncontrolling interests	$	15,338		$	903
Ratios to Net Premiums Earned:
Loss Ratio		55.28	%		57.81	%
Expense Ratio		41.37	%		40.02	%
Combined Ratio		96.65	%		97.83	%
Ratios to Gross Premiums Earned:
Loss Ratio		33.63	%		40.63	%
Expense Ratio		25.17	%		28.14	%
Combined Ratio		58.80	%		68.77	%
Earnings Per Share Data:
Basic	$	1.78		$	0.09
Diluted	$	1.54		$	0.09

Comparison of the Three Months Ended March 31, 2023 to the Three Months Ended March 31, 2022

Our results of operations for the three months ended March 31, 2023 reflect net income of approximately $17,793,000 or $1.54 diluted earnings per share, compared with approximately $2,791,000 or $0.09 diluted earnings per share, for the three months ended March 31, 2022. The quarter-over-quarter increase was primarily due to an $18,117,000 net increase in income from our investment portfolio (consisting of net investment income and net realized and unrealized gains or losses), a $12,139,000 decrease in losses and loss adjustment expenses, and a $6,688,000 decrease in policy acquisition and other underwriting expenses, offset by a $17,347,000 increase in premiums ceded and a $2,200,000 increase in interest expense.

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Revenue

Gross Premiums Earned on a consolidated basis for the three months ended March 31, 2023 and 2022 were approximately $180,068,000 and $178,925,000, respectively. The $1,143,000 increase was primarily attributable to the effect of premium rate increases, offset by a reduction in the number of policies in force. Gross premiums earned from the United insurance policies assumed were $7,163,000 for the three months ended March 31, 2023 compared with $30,079,000 for the three months ended March 31, 2022. HCPCI gross premiums earned were $92,456,000 for the three months ended March 31, 2023 compared with $118,303,000 for the three months ended March 31, 2022. TypTap’s gross premiums earned were $87,612,000 compared with $60,622,000 for the same comparative period in 2022.

Premiums Ceded for the three months ended March 31, 2023 and 2022 were approximately $70,509,000 and $53,162,000, respectively, representing 39.2% and 29.7%, respectively, of gross premiums earned. The $17,347,000 increase was primarily attributable to higher reinsurance costs effective June 1, 2022 and an increased overall reinsurance coverage amount as a result of premium growth and expansion, offset by a net reduction in premiums ceded attributable to retrospective provisions under multi-year reinsurance contracts.

Our premiums ceded represent costs of reinsurance to cover losses from catastrophes that exceed the retention levels defined by our catastrophe excess of loss reinsurance contracts or to assume a proportional share of losses as defined in a quota share agreement. The rates we pay for reinsurance are based primarily on policy exposures reflected in gross premiums earned. Reinsurance costs can be decreased by a reduction in premiums ceded attributable to retrospective provisions under multi-year reinsurance contracts. For the three months ended March 31, 2023, premiums ceded included a decrease of $6,993,000 related to retrospective provisions compared with a decrease of $1,484,000 for the three months ended March 31, 2022. See “Economic Impact of Reinsurance Contract with Retrospective Provisions” under “Critical Accounting Policies and Estimates.”

Net Premiums Written for the three months ended March 31, 2023 and 2022 totaled approximately $129,345,000 and $124,132,000, respectively. Net premiums written represent the premiums charged on policies issued during a fiscal period less any applicable reinsurance costs. The increase in 2023 primarily resulted from the growth in TypTap’s business, offset by an increase in premiums ceded to reinsurers as described above. We had approximately 216,300 policies in force at March 31, 2023 (direct and assumed) as compared with approximately 283,900 policies in force at March 31, 2022.

Net Premiums Earned for the three months ended March 31, 2023 and 2022 were approximately $109,559,000 and $125,763,000, respectively, and reflect the gross premiums earned less reinsurance costs as described above.

The following is a reconciliation of our total Net Premiums Written to Net Premiums Earned for the three months ended March 31, 2023 and 2022 (amounts in thousands):

	Three Months Ended
	March 31,
	2023			2022
Net Premiums Written	$	129,345		$	124,132
(Increase) Decrease in Unearned Premiums		(19,786	)		1,631
Net Premiums Earned	$	109,559		$	125,763

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Net Investment Income for the three months ended March 31, 2023 and 2022 was approximately $17,715,000 and $2,868,000, respectively. The $14,847,000 increase was attributable to an $8,946,000 increase in income from real estate investments, a $3,587,000 increase in income from available-for-sale fixed-maturity securities and a $3,514,000 increase in interest income from cash and cash equivalents. See Net Investment Income under Note 5 -- “Investments” to our unaudited consolidated financial statements under Item 1 of this Quarterly Report on Form 10-Q.

Net Realized Investment Losses for the three months ended March 31, 2023 and 2022 were approximately $1,149,000 and $314,000, respectively. The $835,000 increase was primarily attributable to net realized losses of approximately $1,153,000 from sales of fixed-maturity and equity securities during the three months ended March 31, 2023 compared with net realized losses of approximately $395,000 from sales of these securities during the corresponding period in 2022.

Net Unrealized Investment Gains for the three months ended March 31, 2023 were approximately $529,000 compared with approximately $3,576,000 of net unrealized investment losses for the three months ended March 31, 2022. The increase was primarily attributable to an overall improvement in the equity market compared with the three months ended March 31, 2022.

Expenses

Our consolidated Losses and Loss Adjustment Expenses amounted to approximately $60,565,000 and $72,704,000 for the three months ended March 31, 2023 and 2022, respectively. The losses and loss adjustment expenses of HCPCI Insurance Operations were $28,782,000 and $43,995,000 for the three months ended March 31, 2023 and 2022, respectively. The decrease was primarily attributable to the lower number of Florida and non-Florida policies as well as fewer claims and less litigation related to Florida policies as compared with the first quarter of 2022. Losses and loss adjustment expenses for TypTap were $33,056,000 compared with $28,988,000 for the same comparative period. The increase was attributable to an increase in the number of non-Florida policies, offset by a positive effect resulting from a decrease in the amount of claims and litigation related to Florida policies when compared with the first quarter of 2022. See “Reserves for Losses and Loss Adjustment Expenses” under “Critical Accounting Policies and Estimates.”

Policy Acquisition and Other Underwriting Expenses for the three months ended March 31, 2023 and 2022 were approximately $22,720,000 and $29,408,000 on a consolidated basis, respectively, and primarily reflect the amortization of deferred acquisition costs such as commissions payable to agents for production and renewal of policies, catastrophe allowance paid to United, and premium taxes. Policy acquisition expenses for HCPCI Insurance Operations were $10,276,000 for the three months ended March 31, 2023 compared with $19,765,000 for the three months ended March 31, 2022. The decrease in amortized costs was primarily due to a reduction of policies in force. TypTap Group policy acquisition expenses were $12,474,000 compared with $9,705,000 for the same comparative period, with the increase in amortized costs attributable to the growth of TypTap’s non-Florida policies, offset by lower policy acquisition costs in Florida resulting from lower commissions and a higher mix of renewal versus new business in Florida.

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General and Administrative Personnel Expenses for the three months ended March 31, 2023 and 2022 were approximately $13,502,000 and $14,034,000, respectively. Our general and administrative personnel expenses include salaries, wages, payroll taxes, stock-based compensation expenses, and employee benefit costs. Factors such as merit increases, changes in headcount, and periodic restricted stock grants, among others, cause fluctuations in this expense. In addition, our personnel expenses are decreased by the capitalization of payroll costs related to projects to develop software for internal use and the payroll costs associated with the processing and settlement of certain catastrophe claims which are recoverable from reinsurers under reinsurance contracts. The period-over-period decrease of $532,000 was primarily attributable to a decrease in stock-based compensation expense, offset by an increase in the headcount of temporary and full-time employees and merit increases for non-executive employees effective in late February 2023.

Interest Expense for the three months ended March 31, 2023 and 2022 was approximately $2,801,000 and $601,000, respectively. The increase primarily resulted from interest expense related to our 4.75% Convertible Senior Notes issued in May 2022.

Income Tax Expense for the three months ended March 31, 2023 and 2022 was approximately $5,343,000 and $1,210,000, respectively, for state, federal, and foreign income taxes resulting in effective tax rates of 23.1% and 30.2%, respectively. The decrease in the effective tax rate was primarily attributable to the release of valuation allowance established in 2022 during the first quarter of 2023 and the decrease in non-deductible compensation expense.

Ratios:

The loss ratio applicable to the three months ended March 31, 2023 (losses and loss adjustment expenses incurred related to net premiums earned) was 55.3% compared with 57.8% for the three months ended March 31, 2022. The decrease was primarily attributable to the decrease in losses and loss adjustment expenses due to fewer claims and less litigation related to Florida policies as compared to the first quarter of 2022.

The expense ratio applicable to the three months ended March 31, 2023 (defined as total expenses excluding losses and loss adjustment expenses related to net premiums earned) was 41.4% compared with 40.0% for the three months ended March 31, 2022. The increase in our expense ratio was primarily attributable to the increase in reinsurance costs and the increase in interest expense, offset in part by the decrease in policy acquisition and other underwriting expenses.

The combined ratio (total of all expenses in relation to net premiums earned) is the measure of overall underwriting profitability before other income. Our combined ratio for the three months ended March 31, 2023 was 96.7% compared with 97.8% for the three months ended March 31, 2022. The decrease in 2023 was attributable to the factors described above.

Due to the impact our reinsurance costs have on net premiums earned from period to period, our management believes the combined ratio measured to gross premiums earned is more relevant in assessing overall performance. The combined ratio to gross premiums earned for the three months ended March 31, 2023 was 58.8% compared with 68.8% for the three months ended March 31, 2022. The decrease in 2023 was primarily attributable to the decrease in losses and loss adjustment expenses and the decrease in policy acquisition and other underwriting expenses, offset by the increase in interest expense.

Seasonality of Our Business

Our insurance business is seasonal as hurricanes and tropical storms affecting Florida, our primary market, and other southeastern states typically occur during the period from June 1st through November 30th of each year.

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Winter storms in the northeast usually occur during the period between December 1st and March 31st of each year. Also, with our reinsurance treaty year typically effective on June 1st of each year, any variation in the cost of our reinsurance, whether due to changes in reinsurance rates, coverage levels or changes in the total insured value of our policy base, will occur and be reflected in our financial results beginning on June 1st of each year.

LIQUIDITY AND CAPITAL RESOURCES

Throughout our history, our liquidity requirements have been met through issuances of our common and preferred stock, debt offerings and funds from operations. We expect our future liquidity requirements will be met by funds from operations, primarily the cash received by our insurance subsidiaries from premiums written and investment income. We may consider raising additional capital through debt and/or equity offerings to support our growth and future investment opportunities.

Our insurance subsidiaries require liquidity and adequate capital to meet ongoing obligations to policyholders and claimants and to fund operating expenses. In addition, we attempt to maintain adequate levels of liquidity and surplus to manage any differences between the duration of our liabilities and invested assets. In the insurance industry, cash collected for premiums from policies written is invested, interest and dividends are earned thereon, and losses and loss adjustment expenses are paid out over a period of years. This period of time varies by the circumstances surrounding each claim. With the exception of litigated claims, substantially all of our losses and loss adjustment expenses are fully settled and paid within approximately 90 days of the claim receipt date. Additional cash outflow occurs through payments of underwriting costs such as commissions, taxes, payroll, and general overhead expenses.

We believe that we maintain sufficient liquidity to pay claims and expenses, as well as to satisfy commitments in the event of unforeseen events such as reinsurer insolvencies, inadequate premium rates, or reserve deficiencies. We maintain a comprehensive reinsurance program at levels management considers adequate to diversify risk and safeguard our financial position.

In the future, we anticipate our primary use of funds will be to pay claims, reinsurance premiums, interest, and dividends and to fund operating expenses and real estate acquisitions.

Revolving Credit Facility, Convertible Senior Notes, Promissory Notes, and Finance Leases

The following table summarizes the principal and interest payment obligations of our indebtedness at March 31, 2023:

	Maturity Date	Payment Due Date
4.75% Convertible Senior Notes*	June 2042	June 1 and December 1
4.25% Convertible Senior Notes**	March 2037	March 1 and September 1
4.55% Promissory Note	Through August 2036	1st day of each month
Finance leases	Through October 2024	Various
Revolving credit facility	Through December 2023	January 1, April 1, July 1, October 1

*	At the option of the noteholders, we may be required to repurchase for cash all or any portion of the notes on June 1, 2027, June 1, 2032 or June 1, 2037.
**	At the option of the noteholders, we may be required to repurchase for cash all or any portion of the notes on March 1, 2027 or March 1, 2032.

See Note 11 -- “Long-Term Debt” to our unaudited consolidated financial statements under Item 1 of this Quarterly Report on Form 10-Q.

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Limited Partnership Investments

Our limited partnership investments consist of six private equity funds managed by their general partners. Two of these funds have unexpired capital commitments which are callable at the discretion of the fund’s general partner for funding new investments or expenses of the fund. Although capital commitments for the four remaining funds have expired, the general partners may request additional funds under certain circumstances. At March 31, 2023, there was an aggregate unfunded capital balance of $5,501,000. See Limited Partnership Investments under Note 5 -- “Investments” to our unaudited consolidated financial statements under Item 1 of this Quarterly Report on Form 10-Q.

Real Estate Investment

Real estate has long been a significant component of our overall investment portfolio. It diversifies our portfolio and helps offset the volatility of other higher-risk assets. Thus, we may consider expanding our real estate investment portfolio should an opportunity arise.

We had a 90% equity interest in FMKT Mel JV, LLC, a Florida limited liability company for which we were not the primary beneficiary. Following the sale of its last remaining outparcel in June 2022, FMKT Mel JV distributed its earnings during the third quarter of 2022 and the subsidiary was liquidated in December 2022. In January 2023, we received the final distribution of $18,000 from FMKT Mel JV.

Sources and Uses of Cash

Cash Flows for the Three Months Ended March 31, 2023

Net cash provided by operating activities for the three months ended March 31, 2023 was approximately $99,109,000, which consisted primarily of cash received from net premiums written, and reinsurance recoveries of approximately $94,412,000 less cash disbursed for operating expenses, losses and loss adjustment expenses and interest payments. Net cash used in investing activities of $17,757,000 was primarily due to the purchases of fixed-maturity and equity securities of $166,624,000 and purchases of property and equipment of $1,469,000, offset by the proceeds from calls, repayments and maturities of fixed-maturity securities of $112,497,000, the proceeds from sales of real estate investments of $21,746,000, the proceeds from sales of fixed-maturity and equity securities of $14,814,000, and distributions received from limited partnership investments of $1,602,000. Net cash used in financing activities totaled $14,100,000, which was primarily due to the redemption of long-term debt of $6,895,000, $3,432,000 of cash dividend payments, cash dividends paid to redeemable noncontrolling interest of $3,012,000, $305,000 of share repurchases, and repayments of long-term debt of $258,000.

Cash Flows for the Three Months Ended March 31, 2022

Net cash provided by operating activities for the three months ended March 31, 2022 was approximately $57,349,000, which consisted primarily of cash received from net premiums written, and reinsurance recoveries of approximately $7,936,000 less cash disbursed for operating expenses, losses and loss adjustment expenses and interest payments. Net cash used in investing activities of $109,899,000 was primarily due to the purchases of fixed-maturity and equity securities of $134,043,000, the purchase of intangible assets from United of $3,800,000, and the purchases of property and equipment of $1,861,000, offset by the proceeds from sales of fixed-maturity and equity securities of $27,427,000, the proceeds from calls, repayments and maturities of fixed-maturity securities of $1,250,000, and distributions received from limited partnership investments of $785,000. Net cash used in financing activities totaled $7,328,000, which was primarily due to $4,046,000 of net cash dividend

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payments, cash dividends paid to redeemable noncontrolling interest of $2,508,000, $398,000 of share repurchases, and repayments of long-term debt of $249,000.

Investments

The main objective of our investment policy is to maximize our after-tax investment income with a reasonable level of risk given the current financial market. Our excess cash is invested primarily in money market accounts, certificates of deposit, and fixed-maturity and equity securities.

At March 31, 2023, we had $562,171,000 of fixed-maturity and equity investments, which are carried at fair value. Changes in the general interest rate environment affect the returns available on new fixed-maturity investments. While a rising interest rate environment enhances the returns available on new investments, it reduces the market value of existing fixed-maturity investments and thus the availability of gains on disposition. A decline in interest rates reduces the returns available on new fixed-maturity investments but increases the market value of existing fixed-maturity investments, creating the opportunity for realized investment gains on disposition.

In the future, we may alter our investment policy with regard to investments in federal, state and municipal obligations, preferred and common equity securities and real estate mortgages, as permitted by applicable law, including insurance regulations.

OFF-BALANCE SHEET ARRANGEMENTS

As of March 31, 2023, we had unexpired capital commitments for limited partnerships in which we hold interests. Such commitments are not recognized in the consolidated financial statements but are required to be disclosed in the notes to the consolidated financial statements. See Note 21 -- “Commitments and Contingencies” to our unaudited consolidated financial statements under Item 1 of this Quarterly Report on Form 10-Q for additional information.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

We have prepared our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of these consolidated financial statements requires us to make estimates and judgments to develop amounts reflected and disclosed in our consolidated financial statements. Material estimates that are particularly susceptible to significant change in the near term are related to our losses and loss adjustment expenses, which include amounts estimated for claims incurred but not yet reported. We base our estimates on various assumptions and actuarial data we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates.

We believe our accounting policies specific to losses and loss adjustment expenses, reinsurance recoverable, reinsurance with retrospective provisions, deferred income taxes, stock-based compensation expense, limited partnership investments, acquired intangible assets, warrants, and redeemable noncontrolling interest involve our most significant judgments and estimates material to our consolidated financial statements.

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Reserves for Losses and Loss Adjustment Expenses

Our liability for losses and loss adjustment expense (“Reserves”) is specific to property insurance, which is our insurance subsidiaries’ only line of business. The Reserves include both case reserves on reported claims and our reserves for incurred but not reported (“IBNR”) losses. At each period end date, the balance of our Reserves is based on our best estimate of the ultimate cost of each claim for those known cases and the IBNR loss reserves are estimated based primarily on our historical experience. Changes in the estimated liability are charged or credited to operations as the losses and loss adjustment expenses are adjusted.

The IBNR represents our estimate of the ultimate cost of all claims that have occurred but have not been reported to us, and in some cases may not yet be known to the insured, and future development of reported claims. Estimating the IBNR component of our Reserves involves considerable judgment on the part of management. At March 31, 2023, $728,148,000 of the total $806,308,000 we have reserved for losses and loss adjustment expenses is attributable to our estimate of IBNR. The remaining $78,160,000 relates to known cases which have been reported but not yet fully settled in which case we have established a reserve based on currently available information and our best estimate of the cost to settle each claim. At March 31, 2023, $71,832,000 of the $78,160,000 in reserves for known cases relates to claims incurred during prior years.

Our Reserves decreased from $863,765,000 at December 31, 2022 to $806,308,000 at March 31, 2023. The $57,457,000 decrease is comprised of reductions in our Reserves of $57,247,000 primarily specific to Hurricane Ian and Hurricane Irma, and reductions in our non-catastrophe Reserves of $34,781,000 for 2022 and $11,018,000 for 2021 and prior loss years, offset by $45,589,000 in reserves established for the 2023 loss year. The Reserves established for 2023 claims are primarily driven by an allowance for those claims that have been incurred but not reported to the company as of March 31, 2023. The decrease of $103,046,000 specific to our 2022 and prior loss-years reserves is due to settlement of claims related to those loss years.

Based on all information known to us, we consider our Reserves at March 31, 2023 to be adequate to cover our claims for losses that have occurred as of that date including losses yet to be reported to us. However, these estimates are continually reviewed by management as they are subject to significant variability and may be impacted by trends in claim severity and frequency or unusual exposures that have not yet been identified. As part of the process, we review historical data and consider various factors, including known and anticipated regulatory and legal developments, changes in social attitudes, inflation and economic conditions. As experience develops and other data becomes available, these estimates are revised, as required, resulting in increases or decreases to the existing unpaid losses and loss adjustment expenses. Adjustments are reflected in the results of operations in the period in which they are made, and the liabilities may deviate substantially from prior estimates.

Economic Impact of Reinsurance Contract with Retrospective Provisions

From time to time, our reinsurance contracts may include retrospective provisions that adjust premiums in the event losses are minimal or zero. In accordance with accounting principles generally accepted in the United States of America, we will recognize an asset in the period in which the absence of loss experience obligates the reinsurer to pay cash or other consideration under the contract. In the event that a loss arises, we will derecognize such asset in the period in which a loss arises. Such adjustments to the asset, which accrue throughout the contract term, will negatively impact our operating results when a catastrophic loss event occurs during the contract term.

For the three months ended March 31, 2023 and 2022, we accrued benefits of $6,993,000 and $1,484,000, respectively. The accrual of benefits was recognized as a reduction in ceded premiums.

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As of March 31, 2023, we had $23,310,000 of accrued benefits, the amount that would be charged to earnings in the event we experience a catastrophic loss that exceeds the coverage limit provided under such agreement.

We believe the credit risk associated with the collectability of these accrued benefits is minimal based on available information about the reinsurer’s financial position and the reinsurer’s demonstrated ability to comply with contract terms.

The above and other accounting estimates and their related risks that we consider to be our critical accounting estimates are more fully described in our Annual Report on Form 10-K, which we filed with the SEC on March 10, 2023. For the three months ended March 31, 2023, there have been no other material changes with respect to any of our critical accounting policies.

RECENT ACCOUNTING PRONOUNCEMENTS

For information with respect to recent accounting pronouncements and the impact of these pronouncements on our unaudited consolidated financial statements, see Note 3 -- “Recent Accounting Pronouncements” to our consolidated financial statements under Item 1 of this Quarterly Report on Form 10-Q.

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ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our investment portfolio at March 31, 2023 included fixed-maturity and equity securities, the purposes of which are not for speculation. Our main objective is to maximize after-tax investment income and maintain sufficient liquidity to meet our obligations while minimizing market risk, which is the potential economic loss from adverse fluctuations in securities prices. We consider many factors including credit ratings, investment concentrations, regulatory requirements, anticipated fluctuation of interest rates, durations and market conditions in developing investment strategies. Our investment securities are managed primarily by outside investment advisors and are overseen by the investment committee appointed by our Board of Directors. From time to time, our investment committee may decide to invest in low-risk assets such as U.S. government bonds.

Our investment portfolio is exposed to interest rate risk, credit risk and equity price risk. Fiscal and economic uncertainties caused by any government action or inaction may exacerbate these risks and potentially have adverse impacts on the value of our investment portfolio.

We classify our fixed-maturity securities as available-for-sale and report any unrealized gains or losses, net of deferred income taxes, as a component of other comprehensive income within our stockholders’ equity. As such, any material temporary changes in their fair value can adversely impact the carrying value of our stockholders’ equity. In addition, we recognize any unrealized gains or losses related to our equity securities in our statement of income. As a result, our results of operations can be materially affected by the volatility in the equity market.

Interest Rate Risk

Our fixed-maturity securities are sensitive to potential losses resulting from unfavorable changes in interest rates. We manage the risk by analyzing anticipated movement in interest rates and considering our future capital needs.

The following table illustrates the impact of hypothetical changes in interest rates to the fair value of our fixed-maturity securities at March 31, 2023 (amounts in thousands):

Hypothetical Change in Interest Rates	Estimated Fair Value		Change in Estimated Fair Value			Percentage Increase (Decrease) in Estimated Fair Value
300 basis point increase	$	509,109	$	(15,647	)		-2.98	%
200 basis point increase		514,325		(10,431	)		-1.99	%
100 basis point increase		519,540		(5,216	)		-0.99	%
100 basis point decrease		529,972		5,216			0.99	%
200 basis point decrease		535,188		10,432			1.99	%
300 basis point decrease		540,404		15,648			2.98	%

Credit Risk

Credit risk can expose us to potential losses arising principally from adverse changes in the financial condition of the issuers of our fixed-maturity securities. We mitigate the risk by investing in fixed-maturity securities that are generally investment grade, by diversifying our investment portfolio to avoid concentrations in any single issuer or business sector, and by continually monitoring each individual security for declines in credit quality. While we emphasize credit quality in our investment selection process, significant downturns in the markets or general economy may impact the credit quality of our portfolio.

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The following table presents the composition of our fixed-maturity securities, by rating, at March 31, 2023 (amounts in thousands):

	Cost or		% of Total				% of Total
	Amortized		Amortized		Estimated		Estimated
Comparable Rating	Cost		Cost		Fair Value		Fair Value
AAA	$	157,981		30	$	158,007		30
AA+, AA, AA-		346,475		65		340,322		65
A+, A, A-		14,158		3		13,698		3
BBB+, BBB, BBB-		11,291		2		11,001		2
BB+, BB, BB-		1,994		—		1,728		—
Total	$	531,899		100	$	524,756		100

Equity Price Risk

Our equity investment portfolio at March 31, 2023 included common stocks, perpetual preferred stocks, mutual funds and exchange-traded funds. We may incur potential losses due to adverse changes in equity security prices. We manage the risk primarily through industry and issuer diversification and asset mix.

The following table illustrates the composition of our equity securities at March 31, 2023 (amounts in thousands):

			% of Total
	Estimated		Estimated
	Fair Value		Fair Value
Stocks by sector:
Consumer	$	7,605		20
Financial		4,481		12
Technology		1,901		5
Communications		1,706		5
Other (1)		998		3
		16,691		45
Mutual funds and exchange-traded funds by type:
Debt		16,799		45
Equity		3,749		10
Alternative		176		—
		20,724		55
Total	$	37,415		100

(1)Represents an aggregate of less than 5% sectors.

Foreign Currency Exchange Risk

At March 31, 2023, we did not have any material exposure to foreign currency related risk.

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ITEM 4 – CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our chief executive officer (our principal executive officer) and our chief financial officer (our principal financial and accounting officer), we have evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report, and, based on this evaluation, our chief executive officer and our chief financial officer have concluded that these disclosure controls and procedures are effective.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal controls over financial reporting during the quarter ended March 31, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Limitations on Effectiveness of Controls and Procedures

In designing and evaluating the disclosure controls and procedures, we recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, implementation of possible controls and procedures depends on management’s judgment in evaluating their benefits relative to costs.

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PART II – OTHER INFORMATION

ITEM 1 – LEGAL PROCEEDINGS

We are a party to claims and legal actions arising routinely in the ordinary course of our business. Although we cannot predict with certainty the ultimate resolution of the claims and lawsuits asserted against us, we do not believe that any currently pending legal proceedings to which we are a party will have a material adverse effect on our consolidated financial position, results of operations or cash flows.

ITEM 1A – RISK FACTORS

There have been no material changes in the risk factors previously disclosed in the section entitled “Risk Factors” in our Form 10-K, which was filed with the SEC on March 10, 2023.

ITEM 2 – UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(a)Sales of Unregistered Securities and Use of Proceeds

None.

(b)Repurchases of Securities

The table below summarizes the number of common shares surrendered by employees to satisfy payroll tax liabilities associated with the vesting of restricted shares (dollar amounts in thousands, except share and per share amounts):

	Total Number of Shares		Average Price Paid		Total Number of Shares Purchased as Part of Publicly Announced Plans		Maximum Dollar Value of Shares That May Yet Be Purchased Under The Plans
For the Month Ended	Purchased		Per Share		or Programs		or Programs
January 31, 2023		—	$	—		—	$	—
February 28, 2023		5,884	$	51.76		—	$	—
March 31, 2023		—	$	—		—	$	—
		5,884	$	51.76		—

Working Capital Restrictions and Other Limitations on the Payment of Dividends

We are not subject to working capital restrictions or other limitations on the payment of dividends. Our insurance subsidiaries, however, are subject to restrictions on the dividends they may pay. Those restrictions could impact HCI’s ability to pay future dividends.

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Under Florida law, a domestic insurer may not pay any dividend or distribute cash or other property to its stockholders except out of that part of its available and accumulated capital and surplus funds which is derived from realized net operating profits on its business and net realized capital gains. Additionally, a Florida domestic insurer may not make dividend payments or distributions to its stockholders without prior approval of the Florida Office of Insurance Regulation (“FLOIR”) if the dividend or distribution would exceed the larger of (1) the lesser of (a) 10.0% of its capital surplus or (b) net income, not including realized capital gains, plus a two year carry forward, (2) 10.0% of capital surplus with dividends payable constrained to unassigned funds minus 25% of unrealized capital gains or (3) the lesser of (a) 10.0% of capital surplus or (b) net investment income plus a three year carry forward with dividends payable constrained to unassigned funds minus 25% of unrealized capital gains.

Alternatively, a Florida domestic insurer may pay a dividend or distribution without the prior written approval of the FLOIR if (1) the dividend is equal to or less than the greater of (a) 10.0% of the insurer’s capital surplus as regards to policyholders derived from realized net operating profits on its business and net realized capital gains or (b) the insurer’s entire net operating profits and realized net capital gains derived during the immediately preceding calendar year, (2) the insurer will have policy holder capital surplus equal to or exceeding 115.0% of the minimum required statutory capital surplus after the dividend or distribution, (3) the insurer files a notice of the dividend or distribution with the FLOIR at least ten business days prior to the dividend payment or distribution and (4) the notice includes a certification by an officer of the insurer attesting that, after the payment of the dividend or distribution, the insurer will have at least 115% of required statutory capital surplus as to policyholders. Except as provided above, a Florida domiciled insurer may only pay a dividend or make a distribution (1) subject to prior approval by the FLOIR or (2) 30 days after the FLOIR has received notice of such dividend or distribution and has not disapproved it within such time.

During the three months ended March 31, 2023, our insurance subsidiaries paid dividends of $10,000,000 to HCI.

ITEM 3 – DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4 – MINE SAFETY DISCLOSURES

None.

ITEM 5 – OTHER INFORMATION

None.

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ITEM 6 – EXHIBITS

The following documents are filed as part of this report:

EXHIBIT
NUMBER	DESCRIPTION
3.1	Articles of Incorporation, with amendments. Incorporated by reference to the correspondingly numbered exhibit to our Form 10-Q filed August 7, 2013.
3.1.1	Articles of Amendment to Articles of Incorporation designating the rights, preferences and limitations of Series B Junior Participating Preferred Stock. Incorporated by reference to Exhibit 3.1 to our Form 8-K filed October 18, 2013.
3.1.2	Articles of Amendment to Articles of Incorporation cancelling the rights, preferences and limitations of Series B Junior Participating Preferred Stock. Incorporated by reference to Exhibit 3.1 to our Form 8-K filed May 15, 2020.
3.2	Bylaws, with amendments. Incorporated by reference to the correspondingly numbered exhibit to our Form 8-K filed September 13, 2019.
4.1	Form of common stock certificate. Incorporated by reference to the correspondingly numbered exhibit to our Form 10-Q filed November 7, 2013.
4.2	Common Stock Purchase Warrant, dated February 26, 2021, issued by HCI Group, Inc. to CB Snowbird Holdings, L.P. Incorporated by reference to Exhibit 4.1 of our Form 8-K filed March 1, 2021.
4.3	Indenture, dated May 23, 2022, by and between HCI Group, Inc. and The Bank of New York Mellon Trust Company, N.A. Incorporated by reference to the corresponding numbered exhibit to our Form 10-Q filed August 9, 2022.
4.6	Description of Securities Registered Under Section 12 of the Securities Exchange Act of 1934, as amended. Incorporated by reference to the corresponding numbered exhibit to our Form 10-K filed March 12, 2021.
4.9	See Exhibits 3.1, 3.1.1, 3.1.2 and 3.2 of this report for provisions of the Articles of Incorporation, as amended, and our Bylaws, as amended, defining certain rights of security holders.
4.10	Indenture, dated March 3, 2017, between HCI Group, Inc. and The Bank of New York Mellon Trust Company, N.A. Incorporated by reference to Exhibit 4.1 of our Form 8-K filed March 3, 2017.
4.11	Form of Global 4.25% Convertible Senior Note due 2037 (included in Exhibit 4.1). Incorporated by reference to Exhibit 4.1 of our Form 8-K filed March 3, 2017.
10.1	Preferred Stock Purchase Agreement, dated February 26, 2021, among TypTap Insurance Group, Inc., HCI Group, Inc., and CB Snowbird Holdings, L.P. Incorporated by reference to the corresponding numbered exhibit to our Form 8-K filed March 1, 2021.
10.2	Amended and Restated Articles of Incorporation of TypTap Insurance Group, Inc. filed February 26, 2021. Incorporated by reference to the corresponding numbered exhibit to our Form 8-K filed March 1, 2021.
10.3	Shareholders Agreement, dated February 26, 2021, among TypTap Insurance Group, Inc., CB Snowbird Holdings, L.P., HCI Group, Inc., and the other shareholders party thereto. Incorporated by reference to the corresponding numbered exhibit to our Form 8-K filed March 1, 2021.

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10.4	Parent Guaranty Agreement, dated February 26, 2021, between HCI Group, Inc. and CB Snowbird Holdings, L.P. Incorporated by reference to the corresponding numbered exhibit to our Form 8-K filed March 1, 2021.
10.5**	HCI Group, Inc. 2012 Omnibus Incentive Plan as revised April 26, 2022. Incorporated by reference to the corresponding numbered exhibit to our Form 10-Q filed May 6, 2022.
10.7**	Executive Employment Agreement dated November 23, 2016 between Mark Harmsworth and HCI Group, Inc. Incorporated by reference to the corresponding numbered exhibit to our Form 10-Q filed August 3, 2017.
10.8	Multi-Year Working Layer Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2022 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to Exhibit 10.131 to our Form 10-Q filed August 9, 2022.
10.9	Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2022 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to Exhibit 10.132 to our Form 10-Q filed August 9, 2022.
10.10	Reinstatement Premium Protection Reinsurance Contract effective June 1, 2022 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to Exhibit 10.133 to our Form 10-Q filed August 9, 2022.
10.11	Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2022 issued to TypTap Insurance Company by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to Exhibit 10.134 to our Form 10-Q filed August 9, 2022.
10.12	Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2022 issued to TypTap Insurance Company by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to Exhibit 10.135 to our Form 10-Q filed August 9, 2022.
10.13	Reinstatement Premium Protection Reinsurance Contract effective June 1, 2022 issued to TypTap Insurance Company by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to Exhibit 10.136 to our Form 10-Q filed August 9, 2022.
10.14	Reinstatement Premium Protection Reinsurance Contract effective June 1, 2022 issued to TypTap Insurance Company by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to Exhibit 10.137 to our Form 10-Q filed August 9, 2022.
10.15	Non-Florida Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2022 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. and TypTap Insurance Company by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to Exhibit 10.138 to our Form 10-Q filed August 9, 2022.

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10.16	Non-Florida Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2022 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. and TypTap Insurance Company by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to Exhibit 10.139 to our Form 10-Q filed August 9, 2022.
10.17	Sixth Layer Non-Florida Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2022 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. and TypTap Insurance Company by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to Exhibit 10.140 to our Form 10-Q filed August 9, 2022.
10.18	Non-Florida Reinstatement Premium Protection Reinsurance Contract effective June 1, 2022 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. and TypTap Insurance Company by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to Exhibit 10.141 to our Form 10-Q filed August 9, 2022.
10.19	Non-Florida Reinstatement Premium Protection Reinsurance Contract effective June 1, 2022 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. and TypTap Insurance Company by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to Exhibit 10.142 to our Form 10-Q filed August 9, 2022.
10.20	Flood Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2022 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. and TypTap Insurance Company by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to Exhibit 10.143 to our Form 10-Q filed August 9, 2022.
10.21	Property Catastrophe Shared Multi-Region Excess of Loss Reinsurance Contract effective June 1, 2022 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. and TypTap Insurance Company by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to Exhibit 10.144 to our Form 10-Q filed August 9, 2022.
10.22	Top Layer Flood/Wind Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2022 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. and TypTap Insurance Company by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to Exhibit 10.145 to our Form 10-Q filed August 9, 2022.
10.23	Reimbursement Contract effective June 1, 2022 between TypTap Insurance Company and the State Board of Administration of the State of Florida which administers the Florida Hurricane Catastrophe Fund. Incorporated by reference to Exhibit 10.146 to our Form 10-Q filed August 9, 2022.
10.24	Reimbursement Contract effective June 1, 2022 between Homeowners Choice Property & Casualty Insurance Company, Inc. and the State Board of Administration of the State of Florida which administers the Florida Hurricane Catastrophe Fund. Incorporated by reference to Exhibit 10.147 to our Form 10-Q filed August 9, 2022.
10.34	Joinder, Second Amendment to Credit Agreement and Modification of Other Loan Documents. Incorporated by reference to the corresponding numbered exhibit to our Form 8-K filed January 28, 2021.

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10.48**	TypTap Insurance Group, Inc. 2021 Equity Incentive Plan. Incorporated by reference to Exhibit 10.5 of our Form 8-K filed March 1, 2021.
10.49**	Form of Restricted Stock Award Agreement of TypTap Insurance Group, Inc. Incorporated by reference to Exhibit 10.6 of our Form 8-K filed March 1, 2021.
10.51**	Stock Option Agreement between Paresh Patel and TypTap Insurance Group, Inc. dated October 1, 2021. Incorporated by reference to Exhibit 99.1 to our Form 8-K filed October 7, 2021.
10.52**	TypTap Insurance Group, Inc. 2021 Omnibus Incentive Plan. Incorporated by reference to Exhibit 99.2 of our Form 8-K filed October 7, 2021.
10.53	Purchase Agreement, dated May 18, 2022, by and among HCI Group, Inc., JMP Securities LLC and Truist Securities, Inc., as representatives of the several purchasers named therein. Incorporated by reference to Exhibit 10.1 of our Form 8-K filed May 23, 2022.
10.57**	Form of executive restricted stock award contract. Incorporated by reference to the corresponding numbered exhibit to our Form 10-Q filed May 1, 2014.
10.58	Purchase Agreement, dated February 28, 2017, by and between HCI Group, Inc. and JMP Securities LLC and SunTrust Robinson Humphrey, Inc., as representatives of the several initial purchasers named therein. Incorporated by reference to Exhibit 10.1 of our Form 8-K filed February 28, 2017.
10.60	Credit Agreement, Promissory Note, Security and Pledge Agreement, dated December 5, 2018, between HCI Group, Inc. and Fifth Third Bank. Incorporated by reference to Exhibits 99.1, 99.2, and 99.3 of our Form 8-K filed December 6, 2018.
10.61	Fourth Amendment to Credit Agreement and Modification of Note and Other Loan Documents, dated November 7, 2022. Incorporated by reference to the corresponding numbered exhibit to our Form 10-Q filed November 9, 2022.
10.62	Fifth Amendment to Credit Agreement and Modification of Other Loan Documents, dated December 1, 2022. Incorporated by reference to Exhibit 99.1 to our Form 8-K filed December 7, 2022.
10.103**	Restricted Stock Award Contract between Paresh Patel and HCI Group, Inc. dated January 15, 2019. Incorporated by reference to Exhibit 99.1 to our Form 8-K filed January 22, 2019.
10.104**	Nonqualified Stock Option Agreement between Paresh Patel and HCI Group, Inc. dated January 15, 2019. Incorporated by reference to Exhibit 99.2 to our Form 8-K filed January 22, 2019.
10.105**	Restricted Stock Award Contract between Paresh Patel and HCI Group, Inc. dated January 16, 2020. Incorporated by reference to Exhibit 99.1 to our Form 8-K filed January 23, 2020.
10.106**	Nonqualified Stock Option Agreement between Paresh Patel and HCI Group, Inc. dated January 16, 2020. Incorporated by reference to Exhibit 99.2 to our Form 8-K filed January 23, 2020.
10.124	Property Quota Share Reinsurance Contract effective December 31, 2020 issued to United Property and Casualty Insurance Company by Homeowners Choice Property & Casualty Insurance Company. Incorporated by reference to the corresponding numbered exhibit to our Form 10-K filed March 10, 2022.
10.125	Renewal Rights Agreement effective January 18, 2021 by and among United Property and Casualty Insurance Company, United Insurance Holdings Corp., United Insurance Management, L.C. and Homeowners Choice Property & Casualty Insurance Company. Incorporated by reference to the corresponding numbered exhibit to our Form 10-K filed March 10, 2022.

58

10.126	Property Quota Share Reinsurance Contract effective June 1, 2021 issued to United Property and Casualty Insurance Company by Homeowners Choice Property & Casualty Insurance Company and TypTap Insurance Company. Incorporated by reference to the corresponding numbered exhibit to our Form 10-K filed March 10, 2022.
10.127	Renewal Rights Agreement effective December 30, 2021 by and among United Property and Casualty Insurance Company, United Insurance Holdings Corp., United Insurance Management, L.C. and Homeowners Choice Property & Casualty Insurance Company. Incorporated by reference to the corresponding numbered exhibit to our Form 10-K filed March 10, 2022.
10.128	Property Quota Share Reinsurance Contract effective December 31, 2021 issued to United Property and Casualty Insurance Company by Homeowners Choice Property & Casualty Insurance Company. Incorporated by reference to the corresponding numbered exhibit to our Form 10-K filed March 10, 2022.
10.129	Property Quota Share Reinsurance Contract effective June 1, 2022 issued to United Property and Casualty Insurance Company by TypTap Insurance Company. Incorporated by reference to the corresponding numbered exhibit to our Form 10-Q filed August 9, 2022.
31.1	Certification of the Chief Executive Officer
31.2	Certification of the Chief Financial Officer
32.1	Written Statement of the Chief Executive Officer Pursuant to 18 U.S.C.ss.1350
32.2	Written Statement of the Chief Financial Officer Pursuant to 18 U.S.C.ss.1350
101.INS	Inline XBRL Instance Document - the instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL documents.
101.SCH	Inline XBRL Taxonomy Extension Schema.
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase.
101.DEF	Inline XBRL Definition Linkbase.
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase.
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

** Management contract or compensatory plan.

59

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized, who have signed this report on behalf of the Company.

	HCI GROUP, INC.
May 10, 2023	By:	/s/ Paresh Patel
		Paresh Patel
		Chief Executive Officer
		(Principal Executive Officer)
May 10, 2023	By:	/s/ James Mark Harmsworth
		James Mark Harmsworth
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

A signed original of this document has been provided to HCI Group, Inc. and will be retained by HCI Group, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

60

EX-31

Exhibit 31.1

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Paresh Patel, certify that:

1. I have reviewed this quarterly report on Form 10-Q of HCI Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	/s/ Paresh Patel
May 10, 2023	Paresh Patel
	Chief Executive Officer (Principal Executive Officer)

A signed original of this document has been provided to HCI Group, Inc. and will be retained by HCI Group, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-31

Exhibit 31.2

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, James Mark Harmsworth, certify that:

1. I have reviewed this quarterly report on Form 10-Q of HCI Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	/s/ James Mark Harmsworth
May 10, 2023	James Mark Harmsworth
	Chief Financial Officer (Principal Financial and Accounting Officer)

A signed original of this document has been provided to HCI Group, Inc. and will be retained by HCI Group, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32

Exhibit 32.1

Written Statement of the Chief Executive Officer

Pursuant to 18 U.S.C. Section 1350

Solely for the purposes of complying with 18 U.S.C. ss.1350, I, the undersigned Chief Executive Officer of HCI Group, Inc. (the “Company”), hereby certify, based on my knowledge, that the Quarterly Report on Form 10-Q of the Company for the quarter ended March 31, 2023 as filed with the Securities and Exchange Commission on May 10, 2023 (the “Report”), fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended; and that information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Paresh Patel

Paresh Patel

Chief Executive Officer

May 10, 2023

A signed original of this document has been provided to HCI Group, Inc. and will be retained by HCI Group, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32

Exhibit 32.2

Written Statement of the Chief Financial Officer

Pursuant to 18 U.S.C. Section 1350

Solely for the purposes of complying with 18 U.S.C. ss.1350, I, the undersigned Chief Financial Officer of HCI Group, Inc. (the “Company”), hereby certify, based on my knowledge, that the Quarterly Report on Form 10-Q of the Company for the quarter ended March 31, 2023 as filed with the Securities and Exchange Commission on May 10, 2023 (the “Report”), fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended; and that information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ James Mark Harmsworth

James Mark Harmsworth

Chief Financial Officer

May 10, 2023

A signed original of this document has been provided to HCI Group, Inc. and will be retained by HCI Group, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2023	May 01, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Trading Symbol	HCI
Entity Registrant Name	HCI Group, Inc.
Entity Central Index Key	0001400810
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common Shares
Security Exchange Name	NYSE
Entity File Number	001-34126
Entity Incorporation, State or Country Code	FL
Entity Tax Identification Number	20-5961396
Entity Address, Address Line One	3802 Coconut Palm Drive
Entity Address, City or Town	Tampa
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33619
City Area Code	813
Local Phone Number	849-9500
Document Quarterly Report	true
Document Transition Report	false
Entity Common Stock, Shares Outstanding		8,596,673

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Assets
Fixed-maturity securities, available for sale, at fair value (amortized cost: $531,899 and $494,197, respectively and allowance for credit losses: $0 and $0, respectively)	$ 524,756	$ 483,901
Equity securities, at fair value (cost: $38,575 and $36,272, respectively)	37,415	34,583
Limited partnership investments	24,520	25,702
Investment in unconsolidated joint venture, at equity	0	18
Real estate investments	43,562	71,388
Total investments	630,253	615,592
Cash and cash equivalents	302,025	234,863
Restricted cash	2,987	2,900
Accrued interest and dividends receivable	2,525	1,952
Income taxes receivable	707	2,807
Premiums receivable, net (allowance: $10,054 and $5,362, respectively)	44,966	34,998
Prepaid reinsurance premiums	27,063	66,627
Reinsurance recoverable, net of allowance for credit losses:
Paid losses and loss adjustment expenses (allowance: $0 and $0 respectively)	36,896	71,594
Unpaid losses and loss adjustment expenses (allowance: $453 and $454, respectively)	559,804	616,765
Deferred policy acquisition costs	46,632	45,522
Property and equipment, net	26,734	17,910
Right-of-use assets - operating leases	1,466	777
Intangible assets, net	7,686	10,578
Funds withheld for assumed business	45,274	48,772
Other assets	36,104	31,671
Total assets	1,771,122	1,803,328
Liabilities and Equity
Losses and loss adjustment expenses	806,308	863,765
Unearned premiums	387,833	368,047
Advance premiums	25,834	18,587
Reinsurance payable on paid losses and loss adjustment expenses	7,043	8,606
Ceded reinsurance premiums payable	14,123	17,646
Accrued expenses	20,633	14,534
Reinsurance recovered in advance on unpaid losses	0	19,863
Deferred income taxes, net	3,160	1,704
Long-term debt	196,158	211,687
Lease liabilities - operating leases	1,422	721
Other liabilities	35,886	23,361
Total liabilities	1,498,400	1,548,521
Commitments and contingencies (Note 21)
Redeemable noncontrolling interest (Note 18)	92,865	93,553
Equity:
Common stock (no par value, 40,000,000 shares authorized, 8,596,673 and 8,598,682 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively)	0	0
Additional paid-in capital	332	0
Retained income	185,028	172,482
Accumulated other comprehensive loss, net of taxes	(5,098)	(9,886)
Total stockholders’ equity	180,262	162,596
Noncontrolling interests	(405)	(1,342)
Total equity	179,857	161,254
Total liabilities, redeemable noncontrolling interest and equity	$ 1,771,122	$ 1,803,328

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Available-for-sale Debt securities, Amortized cost	$ 531,899	$ 494,197
Available-for-sale Debt securities, Allowance for credit losses	0	0
Equity securities, cost	38,575	36,272
Premiums Receivable, Allowance	10,054	5,362
Paid losses and loss adjustments allowance	0	0
Unpaid losses and loss adjustments allowance	$ 453	$ 454
Common stock, no par value	$ 0	$ 0
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	8,596,673	8,598,682
Common stock, outstanding	8,596,673	8,598,682

XML

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023		Mar. 31, 2022
Revenue
Gross premiums earned	$ 180,068	[1]	$ 178,925	[2]
Premiums ceded	(70,509)		(53,162)
Net premiums earned	109,559		125,763
Net investment income	17,715		2,868
Net realized investment losses	(1,149)		(314)
Net unrealized investment gains (losses)	529		(3,576)
Policy fee income	1,090		1,057
Other	1,285		1,242
Total revenue	129,029		127,040
Expenses
Losses and loss adjustment expenses	60,565		72,704
Policy acquisition and other underwriting expenses	22,720		29,408
General and administrative personnel expenses	13,502		14,034
Interest expense	2,801		601
Other operating expenses	6,305		6,292
Total expenses	105,893		123,039
Income before income taxes	23,136		4,001
Income tax expense	5,343		1,210
Net income	17,793		2,791
Net income attributable to redeemable noncontrolling interest (Note 18)	(2,324)		(2,248)
Net (income) loss attributable to noncontrolling interests	(131)		(360)
Net income after noncontrolling interests	$ 15,338		$ 903
Basic earnings per share	$ 1.78		$ 0.09
Diluted earnings per share	$ 1.54		$ 0.09

[1] Gross premiums earned under HCPCI Insurance Operations consist of $92,456 from HCPCI and $4,535 from a reinsurance company.

[2] Gross premiums earned under HCPCI Insurance Operations consist of $118,303 from HCPCI and $1,002 from a reinsurance company.

XML

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 17,793	$ 2,791
Other comprehensive income (loss):
Net unrealized gains (losses) arising during the period	2,415	(4,151)
Reclassification adjustment for net realized losses	738	429
Net change in unrealized gains (losses)	3,153	(3,722)
Deferred income taxes on above change	1,810	938
Total other comprehensive income (loss), net of income taxes	4,963	(2,784)
Comprehensive income	22,756	7
Comprehensive (income) loss attributable to noncontrolling interests	(306)	461
Comprehensive income after noncontrolling interests	$ 22,450	$ 468

XML

Consolidated Statements of Equity (Unaudited) - USD ($)	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Income [Member]	Accumulated Other Comprehensive Income, Net of Tax [Member]	Total Stockholders' Equity [Member]	Noncontrolling Interests [Member]
Beginning Balance at Dec. 31, 2021	$ 324,503,000		$ 76,077,000	$ 246,790,000	$ 498,000	$ 323,365,000	$ 1,138,000
Beginning Balance, shares at Dec. 31, 2021		10,131,399
Net income (loss)	2,791,000			2,978,000		2,978,000	(187,000)
Net income attributable to redeemable noncontrolling interest (Note 18)	(2,248,000)			(2,075,000)		(2,075,000)	(173,000)
Total other comprehensive income (loss), net of income taxes	(2,784,000)				(2,683,000)	(2,683,000)	(101,000)
Issuance of restricted stock, shares		4,000
Forfeiture of restricted stock, shares		(3,265)
Repurchase and retirement of common stock, value	(398,000)		(398,000)			(398,000)
Repurchase and retirement of common stock, shares		(6,207)
Dilution from subsidiary stock-based compensation	758,000						758,000
Common stock dividends ($0.40 per share)	(4,046,000)			(4,046,000)		(4,046,000)
Stock-based compensation	3,452,000		3,452,000			3,452,000
Ending Balance at Mar. 31, 2022	322,028,000		79,131,000	243,647,000	(2,185,000)	320,593,000	1,435,000
Ending Balance, shares at Mar. 31, 2022		10,125,927
Beginning Balance at Dec. 31, 2022	161,254,000		0	172,482,000	(9,886,000)	162,596,000	(1,342,000)
Beginning Balance, shares at Dec. 31, 2022		8,598,682
Net income (loss)	17,793,000			17,488,000		17,488,000	305,000
Net income attributable to redeemable noncontrolling interest (Note 18)	(2,324,000)			(2,150,000)		(2,150,000)	(174,000)
Total other comprehensive income (loss), net of income taxes	4,963,000				4,788,000	4,788,000	175,000
Issuance of restricted stock, shares		6,000
Forfeiture of restricted stock, shares		(2,125)
Repurchase and retirement of common stock, value	(305,000)		(305,000)			(305,000)
Repurchase and retirement of common stock, shares		(5,884)
Dilution from subsidiary stock-based compensation	631,000						631,000
Common stock dividends ($0.40 per share)	(3,432,000)			(3,432,000)		(3,432,000)
Stock-based compensation	1,277,000		1,277,000			1,277,000
Additional paid-in capital shortfall adjustment allocated to retained income			(640,000)	640,000
Ending Balance at Mar. 31, 2023	$ 179,857,000		$ 332,000	$ 185,028,000	$ (5,098,000)	$ 180,262,000	$ (405,000)
Ending Balance, shares at Mar. 31, 2023		8,596,673

XML

Consolidated Statements of Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Common stock dividends	$ 0.40	$ 0.40

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net income after noncontrolling interests	$ 15,338	$ 903
Net income attributable to noncontrolling interests	2,455	1,888
Net income	17,793	2,791
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	2,106	4,337
Net accretion of discount on investments in fixed-maturity securities	(1,845)	(3)
Depreciation and amortization	2,230	1,516
Deferred income tax expense (benefit)	3,266	(5,967)
Net realized investment losses	1,149	314
Net unrealized investment (gains) losses	(529)	3,576
Credit loss expense - reinsurance recoverable	(1)	(11)
Loss from unconsolidated joint venture	0	13
Net income from limited partnership interests	(553)	(1,780)
Distributions received from limited partnership interests	303	811
Loss on extinguishment of debt	177	0
Gain on sales of real estate investments	(8,936)	0
Foreign currency remeasurement loss	1	19
Other non-cash items	71	11
Changes in operating assets and liabilities:
Accrued interest and dividends receivable	(573)	(321)
Income taxes	2,100	7,145
Premiums receivable, net	(9,968)	28,267
Prepaid reinsurance premiums	39,564	14,794
Reinsurance recoverable	91,660	7,065
Deferred policy acquisition costs	(1,110)	4,025
Funds withheld for assumed business	3,498	(10,352)
Other assets	(5,590)	(3,102)
Losses and loss adjustment expenses	(57,457)	(2,373)
Unearned premiums	19,786	(1,632)
Advance premiums	7,247	10,127
Reinsurance payable on paid losses and loss adjustment expenses	(1,563)	2,640
Reinsurance recovered in advance on unpaid losses	(19,863)	0
Ceded reinsurance premiums payable	(3,523)	1,581
Accrued expenses and other liabilities	19,669	(6,142)
Net cash provided by operating activities	99,109	57,349
Cash flows from investing activities:
Investments in limited partnership interests	(170)	0
Return of excess investments in limited partnership interests	0	151
Distributions received from limited partnership interests	1,602	785
Distribution received from unconsolidated joint venture	18	0
Purchase of property and equipment	(1,469)	(1,861)
Purchase of real estate investments	(175)	0
Purchase of intangible assets	0	(3,800)
Purchase of fixed-maturity securities	(160,152)	(122,557)
Purchase of equity securities	(6,472)	(11,486)
Purchase of short-term and other investments	(10)	0
Proceeds from sales of real estate investments	21,746	0
Proceeds from sales of fixed-maturity securities	11,060	9,058
Proceeds from calls, repayments and maturities of fixed-maturity securities	112,497	1,250
Proceeds from sales of equity securities	3,754	18,369
Proceeds from sales, redemptions and maturities of short-term and other investments	14	192
Net cash used in investing activities	(17,757)	(109,899)
Cash flows from financing activities:
Cash dividends paid	(3,432)	(4,123)
Cash dividends received under share repurchase forward contract	0	77
Cash dividends paid to redeemable noncontrolling interest	(3,012)	(2,508)
Repayment of long-term debt	(258)	(249)
Redemption of long-term debt	(6,895)	0
Repurchases of common stock	(305)	(398)
Purchase of noncontrolling interests	(198)	(127)
Net cash used in financing activities	(14,100)	(7,328)
Effect of exchange rate changes on cash	(3)	(25)
Net increase (decrease) in cash, cash equivalents, and restricted cash	67,249	(59,903)
Cash, cash equivalents, and restricted cash at beginning of period	237,763	631,343
Cash, cash equivalents, and restricted cash at end of period	305,012	571,440
Supplemental disclosure of cash flow information:
Cash paid for income taxes	35	32
Cash paid for interest	739	727
Non-cash investing and financing activities:
Unrealized gain (loss) on investments in available-for-sale securities, net of tax	4,963	(2,784)
Sale of real estate investments:
Contingent consideration receivable	125	0
Long-term debt obligations assumed by the buyer	8,995	0
Acquisition of intangibles:
Contingent consideration payable	$ 0	$ 1,069

XML

Nature of Operations

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations

Note 1 -- Nature of Operations

HCI Group, Inc., together with its subsidiaries (“HCI” or the “Company”), is primarily engaged in the property and casualty insurance business through two Florida domiciled insurance companies, Homeowners Choice Property & Casualty Insurance Company, Inc. (“HCPCI”) and TypTap Insurance Company (“TypTap”). Both HCPCI and TypTap are authorized to underwrite various homeowners’ property and casualty insurance products and allied lines business in the state of Florida and in other states. The operations of each insurance subsidiary are supported by HCI Group, Inc. and certain HCI subsidiaries. The operations of TypTap are also supported by TypTap Insurance Group, Inc. (“TTIG”), the Company’s majority-owned subsidiary, and certain TTIG subsidiaries. The Company emphasizes the use of internally developed technologies to collect and analyze claims and other supplemental data to assist in the underwriting process and generate savings as well as efficiency for the operations of the insurance subsidiaries. In addition, Greenleaf Capital, LLC, the Company’s real estate subsidiary, is primarily engaged in the business of owning and leasing real estate and operating marina facilities.

XML

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2 -- Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited consolidated financial statements of HCI Group, Inc. and its majority-owned and controlled subsidiaries (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and the Securities and Exchange Commission (“SEC”) rules for interim financial reporting. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. However, in the opinion of management, the accompanying consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the Company’s financial position as of March 31, 2023 and the results of operations and cash flows for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results of operations to be expected for any subsequent interim period or for the fiscal year ending December 31, 2023. The accompanying unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2022 included in the Company’s Form 10-K, which was filed with the SEC on March 10, 2023.

In preparing the interim unaudited consolidated financial statements, management was required to make certain judgments, assumptions, and estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the financial reporting date and throughout the periods being reported upon. Certain of the estimates result from judgments that can be subjective and complex, and consequently actual results may differ from these estimates.

Material estimates that are particularly susceptible to significant change in the near term are related to the Company’s losses and loss adjustment expenses, which include amounts estimated for claims incurred but not yet reported. The Company uses various assumptions and actuarial data it believes to be reasonable under the circumstances to make these estimates. In addition, accounting policies specific to reinsurance with retrospective provisions, reinsurance recoverable, deferred income taxes, limited partnership investments, allowance for credit losses, and stock-based compensation expense involve significant judgments and estimates material to the Company’s consolidated financial statements.

In the case of assumed business, the Company relies entirely on the ceding insurance company to provide information about premiums, losses, and loss adjustment expenses. When the information is not available at the reporting date, the Company will make estimates based on all recent available data. Accordingly, the actual results could differ significantly from those estimates.

All significant intercompany balances and transactions have been eliminated.

Revenue from Claims Processing Services

Revenue related to claims processing services is included in other revenue in the consolidated statements of income. For the three months ended March 31, 2023 and 2022, revenues from claims processing services were $527 and $1,007, respectively.

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Recent Accounting Pronouncements

3 Months Ended

Mar. 31, 2023

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

Note 3 -- Recent Accounting Pronouncements

Accounting Standards Update No. 2023-01. In March 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2023-01 (“ASU 2023-01”) Leases (Topic 842). For public entities, this update amends the required amortization period for leasehold improvements associated with common control leases to be over the useful life of the leasehold improvements to the common control group, regardless of the lease term, as long as the lessee controls the use of the asset through a lease. In addition, if the lessor is sub-leasing the asset while simultaneously leasing the asset from an entity not within the same common control group, the amortization period may not exceed the amortization period of the common control group. Once the lessee no longer controls the use of the asset, the asset will be accounted for as a transfer between entities under common control through an adjustment to equity. ASU 2023-01 is effective for the Company beginning with the first quarter of 2024. The Company is evaluating the impact of this update on its financial position.

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Cash, Cash Equivalents, and Restricted Cash

3 Months Ended

Mar. 31, 2023

Cash and Cash Equivalents [Abstract]

Cash, Cash Equivalents, and Restricted Cash

Note 4 -- Cash, Cash Equivalents, and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company’s consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows.

	March 31,		December 31,
	2023		2022
Cash and cash equivalents	$	302,025	$	234,863
Restricted cash		2,987		2,900
Total	$	305,012	$	237,763

Restricted cash represents funds in the Company’s sole ownership primarily held by certain states to meet regulatory requirements in which the Company’s insurance subsidiaries conduct business and not available for immediate business use. Funds withheld in an account for which the Company is a co-owner but not the named beneficiary are not considered restricted cash and are included in funds withheld for assumed business on the consolidated balance sheets.

In connection with the sale of the retail shopping center investment property in Melbourne, Florida to a non-affiliate as described in Note 5 -- “Investments” under Real Estate Investments, $87 of restricted cash was deposited in escrow in March 2023 with its release contingent on certain post-sale conditions being met.

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Investments

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Investments

Note 5 -- Investments

a) Available-for-Sale Fixed-Maturity Securities

The Company holds investments in fixed-maturity securities that are classified as available-for-sale. At March 31, 2023 and December 31, 2022, the cost or amortized cost, allowance for credit loss, gross unrealized gains and losses, and estimated fair value of the Company’s available-for-sale securities by security type were as follows:

	Cost or Amortized		Allowance for Credit		Gross Unrealized		Gross Unrealized			Estimated Fair
	Cost		Loss		Gain		Loss			Value
As of March 31, 2023
U.S. Treasury and U.S. government agencies	$	501,700	$	—	$	421	$	(6,495	)	$	495,626
Corporate bonds		28,312		—		39		(1,094	)		27,257
States, municipalities, and political subdivisions		1,393		—		1		(3	)		1,391
Exchange-traded debt		494		—		—		(12	)		482
Total	$	531,899	$	—	$	461	$	(7,604	)	$	524,756
As of December 31, 2022
U.S. Treasury and U.S. government agencies	$	463,648	$	—	$	59	$	(9,105	)	$	454,602
Corporate bonds		28,378		—		20		(1,205	)		27,193
States, municipalities, and political subdivisions		1,389		—		—		(6	)		1,383
Exchange-traded debt		683		—		2		(52	)		633
Redeemable preferred stock		99		—		—		(9	)		90
Total	$	494,197	$	—	$	81	$	(10,377	)	$	483,901

Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. The scheduled contractual maturities of fixed-maturity securities as of March 31, 2023 and December 31, 2022 are as follows:

	March 31, 2023				December 31, 2022
	Cost or		Estimated		Cost or		Estimated
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Available-for-sale
Due in one year or less	$	357,645	$	355,922	$	266,170	$	265,353
Due after one year through five years		170,850		165,769		223,153		214,307
Due after five years through ten years		2,910		2,583		4,380		3,797
Due after ten years		494		482		494		444
	$	531,899	$	524,756	$	494,197	$	483,901

Sales of Available-for-Sale Fixed-Maturity Securities

Proceeds received, and the gross realized gains and losses from sales of available-for-sale fixed-maturity securities, for the three months ended March 31, 2023 and 2022 were as follows:

			Gross Realized		Gross Realized
	Proceeds		Gains		Losses
Three months ended March 31, 2023	$	11,060	$	—	$	(738	)
Three months ended March 31, 2022	$	9,058	$	2	$	(431	)

Gross Unrealized Losses for Available-for-Sale Fixed-Maturity Securities

Securities with gross unrealized loss positions at March 31, 2023 and December 31, 2022, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows:

	Less Than Twelve Months					Twelve Months or Longer					Total
	Gross			Estimated		Gross			Estimated		Gross			Estimated
	Unrealized			Fair		Unrealized			Fair		Unrealized			Fair
As of March 31, 2023	Loss			Value		Loss			Value		Loss			Value
U.S. Treasury and U.S. government    agencies	$	(1,993	)	$	123,661	$	(4,502	)	$	115,681	$	(6,495	)	$	239,342
Corporate bonds		(774	)		19,228		(320	)		4,146		(1,094	)		23,374
States, municipalities, and political    subdivisions		(3	)		897		—			—		(3	)		897
Exchange-traded debt		(12	)		482		—			—		(12	)		482
Total available-for-sale securities	$	(2,782	)	$	144,268	$	(4,822	)	$	119,827	$	(7,604	)	$	264,095

	Less Than Twelve Months					Twelve Months or Longer					Total
	Gross			Estimated		Gross			Estimated		Gross			Estimated
	Unrealized			Fair		Unrealized			Fair		Unrealized			Fair
As of December 31, 2022	Loss			Value		Loss			Value		Loss			Value
U.S. Treasury and U.S. government    agencies	$	(8,701	)	$	269,116	$	(404	)	$	4,644	$	(9,105	)	$	273,760
Corporate bonds		(909	)		23,028		(296	)		2,541		(1,205	)		25,569
States, municipalities, and political    subdivisions		(6	)		1,383		—			—		(6	)		1,383
Exchange-traded debt		(52	)		463		—			—		(52	)		463
Redeemable preferred stock		(9	)		90		—			—		(9	)		90
Total available-for-sale securities	$	(9,677	)	$	294,080	$	(700	)	$	7,185	$	(10,377	)	$	301,265

At March 31, 2023 and December 31, 2022, there were 73 and 84 securities, respectively, in an unrealized loss position.

Allowance for Credit Losses of Available-for-Sale Fixed-Maturity Securities

The Company regularly reviews its individual investment securities for credit impairment. The Company considers various factors in determining whether a credit loss exists for each individual security, including-

•the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or earnings;

•the extent to which the market value of the security has been below its cost or amortized cost;

•general market conditions and industry or sector specific factors and other qualitative factors;

•nonpayment by the issuer of its contractually obligated interest and principal payments; and

•the Company’s intent and ability to hold the investment for a period of time sufficient to allow for the recovery of costs.

There was no balance or activity in the allowance for credit losses of available-for-sale fixed-maturity securities during the three months ended March 31, 2023 and 2022.

b) Equity Securities

The Company holds investments in equity securities measured at fair values which are readily determinable. At March 31, 2023 and December 31, 2022, the cost, gross unrealized gains and losses, and estimated fair value of the Company’s equity securities were as follows:

			Gross Unrealized		Gross Unrealized			Estimated Fair
	Cost		Gain		Loss			Value
March 31, 2023	$	38,575	$	2,399	$	(3,559	)	$	37,415
December 31, 2022	$	36,272	$	2,078	$	(3,767	)	$	34,583

The table below presents the portion of unrealized gains and losses in the Company’s consolidated statements of income related to equity securities still held.

	Three Months Ended
	March 31,
	2023			2022
Net gains (losses) recognized	$	114		$	(3,542	)
Exclude: Net realized (losses) gains recognized for     securities sold		(415	)		34
Net unrealized gains (losses) recognized	$	529		$	(3,576	)

Sales of Equity Securities

Proceeds received, and the gross realized gains and losses from sales of equity securities, for the three months ended March 31, 2023 and 2022 were as follows:

			Gross Realized		Gross Realized
	Proceeds		Gains		Losses
Three months ended March 31, 2023	$	3,754	$	17	$	(432	)
Three months ended March 31, 2022	$	18,369	$	1,420	$	(1,386	)

c) Limited Partnership Investments

The Company has interests in limited partnerships that are not registered or readily tradeable on a securities exchange. These partnerships are private equity funds managed by general partners who make decisions with regard to financial policies and operations. As such, the Company is not the primary beneficiary and does not consolidate these partnerships. The following table provides information related to the Company’s investments in limited partnerships:

	March 31, 2023						December 31, 2022
	Carrying		Unfunded				Carrying		Unfunded
Investment Strategy	Value		Balance		(%) (a)		Value		Balance		(%) (a)
Primarily in senior secured loans and, to a    limited extent, in other debt and equity    securities of private U.S. lower-middle-market    companies. (b)(c)(e)	$	4,062	$	—		15.37	$	4,146	$	—		15.37
Value creation through active distressed debt    investing primarily in bank loans, public and    private corporate bonds, asset-backed    securities, and equity securities received in    connection with debt restructuring. (b)(d)(e)		2,326		—		1.27		2,528		—		1.66
High returns and long-term capital appreciation    through investments in the power, utility and    energy industries, and in the infrastructure    sector. (b)(f)(g)		4,477		—		0.18		5,319		—		0.18
Value-oriented investments in less liquid and    mispriced senior and junior debts of private    equity-backed companies. (b)(h)(i)		3,258		—		0.56		3,470		—		0.56
Value-oriented investments in mature real    estate private equity funds and portfolios    globally. (b)(j)		7,581		2,982		1.32		7,457		3,125		1.32
Risk-adjusted returns on credit and equity    investments, primarily in private equity-owned    companies. (b)(k)		2,816		2,519		0.85		2,782		2,536		0.98
Total	$	24,520	$	5,501			$	25,702	$	5,661

(a)Represents the Company’s percentage investment in the fund at each balance sheet date.

(b)Except under certain circumstances, withdrawals from the funds or any assignments are not permitted. Distributions, except income from late admission of a new limited partner, will be received when underlying investments of the funds are liquidated.

(c)The term is expected to be two years following the maturity of the fund’s outstanding leverage. Although the capital commitment period has expired, follow-on investments and pending commitments may require additional fundings.

(d)The term has been extended for a second additional one-year period to June 30, 2023. Although the capital commitment period has ended, the general partner could still request an additional funding under certain circumstances.

(e)At the fund manager’s discretion, the term of the fund may be extended for up to two additional one-year periods.

(f)Expected to have a ten-year term. The capital commitment period has expired but the general partner may request additional funding for follow-on investment.

(g)With the consent of a supermajority of partners, the term of the fund may be extended for up to three additional one-year periods.

(h)Expected to have an eight-year term from the commencement date, which can be extended for up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners.

(i)The capital commitment period has ended but an additional funding may be requested.

(j)The term is expected to end November 27, 2027. The term may be extended for up to four additional one-year periods at the general partner’s discretion, and up to two additional one-year periods with the consent of the advisory committee.

(k)Expected to have an eight-year term after the final admission date. The term may be extended for an additional one-year period at the general partner’s discretion, and up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners.

The following is the summary of aggregated unaudited financial information of limited partnerships included in the investment strategy table above, which in certain cases is presented on a three-month lag due to the unavailability of information at the Company’s respective balance sheet dates. The financial statements of these limited partnerships are audited annually.

	Three Months Ended
	March 31,
	2023			2022
Operating results:
Total income	$	182,360		$	336,828
Total expenses		(2,257	)		(49,317	)
Net income	$	180,103		$	287,511

	March 31,		December 31,
	2023		2022
Balance sheet:
Total assets	$	5,228,330	$	5,119,695
Total liabilities	$	397,463	$	430,354

For the three months ended March 31, 2023 and 2022, the Company recognized net investment income from limited partnerships of $553 and $1,780, respectively. Included in net investment income for the three months ended March 31, 2023 was an estimated favorable change in net asset value of $124. During the three months ended March 31, 2023 and 2022, the Company received total cash distributions of $1,905 and $1,596, respectively, including returns on investment of $303 and $811, respectively.

At March 31, 2023 and December 31, 2022, the Company’s net cumulative contributed capital to the partnerships at each respective balance sheet date totaled $23,546 and $24,978, respectively, and the Company’s maximum exposure to loss aggregated $24,520 and $25,702, respectively.

d) Investment in Unconsolidated Joint Venture

Melbourne FMA, LLC, a wholly owned subsidiary, had an equity investment in FMKT Mel JV, a Florida limited liability company treated as a joint venture under U.S. GAAP. In January 2023, the Company received the final distribution of $18 from FMKT Mel JV, the unconsolidated joint venture that the Company had a 90% equity interest in, which was liquidated on December 31, 2022 following the sale of its last remaining outparcel in June 2022.

e) Real Estate Investments

Real estate investments consist of the following as of March 31, 2023 and December 31, 2022:

	March 31,			December 31,
	2023			2022
Land	$	29,471		$	38,327
Land improvements		4,387			12,138
Buildings and building improvements		12,544			29,410
Tenant and leasehold improvements		1,270			1,742
Other		1,593			1,649
Total, at cost		49,265			83,266
Less: accumulated depreciation and amortization		(5,703	)		(11,878	)
Real estate investments	$	43,562		$	71,388

Since January 1, 2023, a Tampa office building property that was previously leased to an unaffiliated company has been used in operations by the Company and serves as TTIG’s corporate headquarters. As a result, in January 2023, $8,135 was reclassified out of real estate investments to property and equipment, net on the consolidated balance sheet.

On March 31, 2023, the Company closed on its agreement to sell the retail shopping center investment property in Melbourne, Florida to a non-affiliate for a price of $18,500, and also closed on its agreement to sell the retail shopping center investment property in Sorrento, Florida to a non-affiliate for a price of $13,418. See additional information under f) Net Investment Income below. Depreciation and amortization expense related to real estate investments was $453 and $506 for the three months ended March 31, 2023 and 2022, respectively.

f) Net Investment Income

Net investment income (loss), by source, is summarized as follows:

	Three Months Ended
	March 31,
	2023			2022
Available-for-sale fixed-maturity securities	$	4,035		$	448
Equity securities		296			287
Investment expense		(129	)		(134	)
Limited partnership investments		553			1,780
Real estate investments		9,293			347
Loss from unconsolidated joint venture		—			(13	)
Cash and cash equivalents		3,667			153
Net investment income	$	17,715		$	2,868

For the three months ended March 31, 2023, income from real estate investments included a net realized gain of $6,476 resulting from the sale of the retail shopping center investment property in Melbourne, Florida in March 2023 for a price of $18,500, and also included a net realized gain of $2,460 resulting from the sale of the retail shopping center investment property in Sorrento, Florida in March 2023 for a price of $13,418.

g) Other Investments

From time to time, the Company may invest in financial assets other than stocks, mutual funds, and bonds. For the three months ended March 31, 2023 and 2022, net realized gains related to other investments were $4 and $81, respectively.

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Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Comprehensive Income (Loss)

Note 6 -- Comprehensive Income (Loss)

Comprehensive income (loss) includes net income and other comprehensive income or loss, which for the Company includes changes in unrealized gains or losses of available-for-sale fixed-maturity securities carried at fair value and changes to any credit losses related to these investments. Reclassification adjustments for realized (gains) losses are reflected in net realized investment gains (losses) on the consolidated statements of income. The components of other comprehensive income or loss and the related tax effects allocated to each component were as follows:

	Three Months Ended							Three Months Ended
	March 31, 2023							March 31, 2022
	Before		Income			Net of		Before			Income			Net of
	Tax		Tax Effect			Tax		Tax			Tax Effect			Tax
Net unrealized gains (losses)	$	2,415	$	(1,997	)	$	4,412	$	(4,151	)	$	(1,047	)	$	(3,104	)
Reclassification adjustment for net    realized losses		738		187			551		429			109			320
Total other comprehensive income    (loss)	$	3,153	$	(1,810	)	$	4,963	$	(3,722	)	$	(938	)	$	(2,784	)

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Fair Value Measurements

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 7 -- Fair Value Measurements

The Company records and discloses certain financial assets at their estimated fair values. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows:

Level 1	–	Unadjusted quoted prices in active markets for identical assets.
Level 2	–	Other inputs that are observable for the asset, either directly or indirectly such as quoted prices for identical assets that are not observable throughout the full term of the asset.
Level 3	–	Inputs that are unobservable.

Valuation Methodology

Cash and Cash Equivalents

Cash and cash equivalents primarily consist of money-market funds and certificates of deposit maturing within 90 days. Their carrying value approximates fair value due to the short maturity and high liquidity of these funds.

Restricted Cash

Restricted cash represents cash held by state authorities or deposited in escrow. Its carrying value approximates fair value.

Fixed-Maturity and Equity Securities

Estimated fair values of the Company’s fixed-maturity and equity securities are determined in accordance with U.S. GAAP, using valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Fair values are generally measured using quoted prices in active markets for identical securities or other inputs that are observable either directly or indirectly, such as quoted prices for similar securities. In those instances where observable inputs are not available, fair values are measured using unobservable inputs. Unobservable inputs reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the security and are developed based on the best information available in the circumstances. Fair value estimates derived from unobservable inputs are significantly affected by the assumptions used, including the discount rates and the estimated amounts and timing of future cash flows. The derived fair value estimates cannot be substantiated by comparison to independent markets and are not necessarily indicative of the amounts that would be realized in a current market exchange.

The estimated fair values for securities that do not trade on a daily basis are determined by management, utilizing prices obtained from an independent pricing service and information provided by brokers, which are level 2 inputs. Management reviews the assumptions and methods utilized by the pricing service and then compares the relevant data and pricing to broker-provided data. The Company gains assurance of the overall reasonableness and consistent application of the assumptions and methodologies, and compliance with accounting standards for fair value determination through ongoing monitoring of the reported fair values.

Revolving Credit Facility

From time to time, the Company has an amount outstanding under a revolving credit facility. The interest rate is variable and is periodically adjusted based on the Secured Overnight Financing Rate (“SOFR”) plus a ten basis points adjustment plus a margin based on the debt-to-capital ratio. As a result, carrying value, when outstanding, approximates fair value.

Long-Term Debt

The following table summarizes components of the Company’s long-term debt and methods used in estimating their fair values:

	Maturity Date	Valuation Methodology
4.75% Convertible Senior Notes	2042	Quoted price
4.25% Convertible Senior Notes	2037	Quoted price
3.90% Promissory Note	*	Discounted cash flow method/Level 3 inputs
3.75% Callable Promissory Note	*	Discounted cash flow method/Level 3 inputs
4.55% Promissory Note	2036	Discounted cash flow method/Level 3 inputs

* Debt derecognized in March 2023. See Note 11 -- “Long-Term Debt” for additional information.

Assets Measured at Estimated Fair Value on a Recurring Basis

The following tables present information about the Company’s financial assets measured at estimated fair value on a recurring basis. The tables indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of March 31, 2023 and December 31, 2022:

	Fair Value Measurements Using
	(Level 1)		(Level 2)		(Level 3)		Total
As of March 31, 2023
Financial Assets:
Cash and cash equivalents	$	302,025	$	—	$	—	$	302,025
Restricted cash	$	2,987	$	—	$	—	$	2,987
Fixed-maturity securities:
U.S. Treasury and U.S. government agencies	$	487,750	$	7,876	$	—	$	495,626
Corporate bonds		27,257		—		—		27,257
State, municipalities, and political subdivisions		—		1,391		—		1,391
Exchange-traded debt		482		—		—		482
Total available-for-sale securities	$	515,489	$	9,267	$	—	$	524,756
Equity securities	$	37,415	$	—	$	—	$	37,415

	Fair Value Measurements Using
	(Level 1)		(Level 2)		(Level 3)		Total
As of December 31, 2022
Financial Assets:
Cash and cash equivalents	$	234,863	$	—	$	—	$	234,863
Restricted cash	$	2,900	$	—	$	—	$	2,900
Fixed-maturity securities:
U.S. Treasury and U.S. government agencies	$	446,233	$	8,369	$	—	$	454,602
Corporate bonds		27,193		—		—		27,193
State, municipalities, and political subdivisions		—		1,383		—		1,383
Exchange-traded debt		633		—		—		633
Redeemable preferred stock		90		—		—		90
Total available-for-sale securities	$	474,149	$	9,752	$	—	$	483,901
Equity securities	$	34,583	$	—	$	—	$	34,583

Liabilities Carried at Other Than Fair Value

The following tables present fair value information for liabilities that are carried on the consolidated balance sheets at amounts other than fair value as of March 31, 2023 and December 31, 2022:

	Carrying		Fair Value Measurements Using						Estimated
	Value		(Level 1)		(Level 2)		(Level 3)		Fair Value
As of March 31, 2023
Financial Liabilities:
Long-term debt:
4.75% Convertible Senior Notes	$	167,396	$	—	$	157,805	$	—	$	157,805
4.25% Convertible Senior Notes		23,916		—		22,089		—		22,089
4.55% Promissory Note		4,836		—		—		4,617		4,617
Total long-term debt	$	196,148	$	—	$	179,894	$	4,617	$	184,511

	Carrying		Fair Value Measurements Using						Estimated
	Value		(Level 1)		(Level 2)		(Level 3)		Fair Value
As of December 31, 2022
Financial Liabilities:
Long-term debt:
4.75% Convertible Senior Notes	$	167,126	$	—	$	133,167	$	—	$	133,167
4.25% Convertible Senior Notes		23,916		—		19,473		—		19,473
3.90% Promissory Note		8,943		—		—		8,152		8,152
3.75% Callable Promissory Note		6,789		—		—		6,171		6,171
4.55% Promissory Note		4,900		—		—		4,642		4,642
Total long-term debt	$	211,674	$	—	$	152,640	$	18,965	$	171,605

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Intangible Assets, Net

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, Net

Note 8 -- Intangible Assets, Net

The Company’s intangible assets, net consist of the following:

	March 31,			December 31,
	2023			2022
Anchor tenant relationships (a)	$	—		$	1,761
In-place leases		410			3,579
Policy renewal rights		10,100			10,100
Non-compete agreements (b)		314			314
Total, at cost		10,824			15,754
Less: accumulated amortization		(3,138	)		(5,176	)
Intangible assets, net	$	7,686		$	10,578

(a)An anchor tenant is a tenant that attracts more customers than other tenants.

(b)Fully amortized.

The remaining weighted-average amortization periods for the intangible assets as of March 31, 2023 are summarized in the table below:

In-place leases	12.1 years
Policy renewal rights	3.1 years

In connection with the sales of the retail shopping center investment properties in Melbourne, Florida and Sorrento, Florida as described in Note 5 -- “Investments” under Real Estate Investments, the Company derecognized $2,200 of intangible assets, net on March 31, 2023.

At March 31, 2023 and December 31, 2022, contingent liabilities related to renewal rights intangible assets were $371 and are included in other liabilities on the consolidated balance sheets.

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Other Assets

3 Months Ended

Mar. 31, 2023

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Assets

Note 9 -- Other Assets

The following table summarizes the Company’s other assets:

	March 31,		December 31,
	2023		2022
Benefits receivable related to retrospective reinsurance contract	$	23,310	$	16,317
Reimbursement and fees receivable under TPA service		5,339		7,303
Prepaid expenses		2,394		2,826
Deposits		709		491
Lease acquisition costs, net		696		832
Other		3,656		3,902
Total other assets	$	36,104	$	31,671

Management reviewed the collectability of the reimbursement and fees receivable under third-party administrator (“TPA”) service as of March 31, 2023 and, considering the net balance due to the counterparty as well as the balance of funds withheld for assumed business as of March 31, 2023, determined that an allowance for credit losses is not necessary for the reimbursement and fees receivable under TPA service.

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Revolving Credit Facility

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Revolving Credit Facility

Note 10 -- Revolving Credit Facility

At March 31, 2023, the Company had no borrowings outstanding under the credit facility. For the three months ended March 31, 2023 and 2022, interest expense was $25 and $89, respectively, including $25 and $25 of amortization of issuance costs, respectively. At March 31, 2023, the Company was in compliance with all required covenants and had available borrowing capacity of $50,000.

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Long-Term Debt

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Long-Term Debt

Note 11 -- Long-Term Debt

The following table summarizes the Company’s long-term debt:

	March 31,			December 31,
	2023			2022
4.75% Convertible Senior Notes, due June 1, 2042	$	172,500		$	172,500
4.25% Convertible Senior Notes, due March 1, 2037		23,916			23,916
3.90% Promissory Note, due through April 1, 2032		—			9,072
3.75% Callable Promissory Note, due through    September 1, 2036		—			6,871
4.55% Promissory Note, due through August 1, 2036		4,902			4,968
Finance lease liabilities, due through October 15, 2024		10			13
Total principal amount		201,328			217,340
Less: unamortized issuance costs		(5,170	)		(5,653	)
Total long-term debt	$	196,158		$	211,687

The following table summarizes future maturities of long-term debt as of March 31, 2023, which takes into consideration the assumption that the 4.75% Convertible Senior Notes and 4.25% Convertible Senior Notes are repurchased at their respective next earliest call dates:

Due in 12 months following March 31,
2023	$	280
2024		285
2025		297
2026		24,227
2027		172,826
Thereafter		3,413
Total	$	201,328

Information with respect to interest expense related to long-term debt is as follows:

	Three Months Ended
	March 31,
	2023		2022
Interest Expense:
Contractual interest	$	2,497	$	472
Non-cash expense (a)		279		40
Total	$	2,776	$	512

(a)Includes amortization of debt issuance costs.

4.25% Convertible Senior Notes

The Company’s recent cash dividends on common stock have exceeded $0.35 per share, resulting in adjustments to the conversion rate of the 4.25% Convertible Senior Notes. Accordingly, as of March 31, 2023, the conversion rate of the Company’s 4.25% Convertible Senior Notes was 16.5486 shares of common stock for each $1 in principal amount, which was the equivalent of approximately $60.43 per share.

There were no unamortized debt issuance costs for the 4.25% Convertible Senior Notes at March 31, 2023.

4.75% Convertible Senior Notes

The conversion rate of the 4.75% Convertible Senior Notes is currently 12.4166 shares of common stock for each $1 in principal amount, which is the equivalent of approximately $80.54 per share.

The effective interest rate for the 4.75% Convertible Senior Notes, taking into account both cash and non-cash components, approximates 5.6%. Had a 20-year term been used for the amortization of the issuance costs of the 4.75% Convertible Senior Notes, the annual effective interest rate charged to earnings would have decreased to approximately 5.0%. As of March 31, 2023, the remaining amortization period of the debt issuance costs was expected to be 4.2 years for the 4.75% Convertible Senior Notes.

3.90% Promissory Note

On March 31, 2023, in conjunction with the sale of the retail shopping center investment property in Melbourne, Florida for a price of $18,500, the buyer assumed the 3.90% Promissory Note from the Company which consisted of the $8,979 principal balance plus $16 of accrued interest at March 31, 2023.

3.75% Callable Promissory Note

On March 31, 2023, the Company made an early repayment of the entirety of its 3.75% Callable Promissory Note which included $6,775 of principal balance plus $22 of accrued interest. As a result, the Company incurred a $177 loss on extinguishment of debt. The note was collateralized by the retail shopping center investment property in Sorrento, Florida which was sold as described in Note 5 -- “Investments” under Real Estate Investments.

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Reinsurance

3 Months Ended

Mar. 31, 2023

Insurance [Abstract]

Reinsurance

Note 12 -- Reinsurance

Reinsurance obtained from other insurance companies

The Company cedes a portion of its homeowners’ insurance exposure to other entities under catastrophe excess of loss reinsurance contracts and a portion of its flood insurance exposure under one quota share reinsurance agreement. Ceded premiums under most catastrophe excess of loss reinsurance contracts are subject to revision resulting from subsequent adjustments in total insured value. Under the terms of the quota share reinsurance agreement, the Company is entitled to a 30% ceding commission on ceded premiums written and a profit commission equal to 10% of net profit. On January 12, 2023, HCPCI and TypTap received approval from the Florida Office of Insurance Regulation (“FLOIR”) to discontinue flood insurance policies written in Florida with policy cancellation effective dates no later than May 31, 2023. The reason for discontinuation is primarily attributable to the increased costs and reduced availability of flood reinsurance. The discontinuation will not have a material impact to the Company’s results of operations.

The Company remains liable for claims payments in the event that any reinsurer is unable to meet its obligations under the reinsurance agreements. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities or economic characteristics of the reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. The Company contracts with a number of reinsurers to secure its annual reinsurance coverage, which generally becomes effective June 1st of each year. The Company purchases reinsurance each year taking into consideration probable maximum losses and reinsurance market conditions.

The impact of the reinsurance contracts on premiums written and earned is as follows:

	Three Months Ended
	March 31,
	2023			2022
Premiums Written:
Direct	$	207,423		$	171,981
Assumed		(7,569	)		5,313
Gross written		199,854			177,294
Ceded		(70,509	)		(53,162	)
Net premiums written	$	129,345		$	124,132
Premiums Earned:
Direct	$	172,905		$	148,846
Assumed		7,163			30,079
Gross earned		180,068			178,925
Ceded		(70,509	)		(53,162	)
Net premiums earned	$	109,559		$	125,763

During the three months ended March 31, 2023 and 2022, the Company recognized ceded losses of $2,751 and $870, respectively, as reductions in losses and loss adjustment expenses. At March 31, 2023 and December 31, 2022, there were 45 reinsurers participating in the Company’s reinsurance program. Total net amounts recoverable and receivable from reinsurers at March 31, 2023 and December 31, 2022 were $596,700 and $688,359, respectively. Approximately 60.6% of the reinsurance recoverable balance at March 31, 2023 was receivable from six reinsurers, one of which was the Florida Hurricane Catastrophe Fund, a tax-exempt state trust fund. Based on all available information considered in the rating-based method, the Company recognized decreases in credit loss expense of $1 and $11 for the three months ended March 31, 2023 and 2022, respectively. Allowances for credit losses related to the reinsurance recoverable balance were $453 and $454 at March 31, 2023 and December 31, 2022, respectively.

One of the existing reinsurance contracts includes retrospective provisions that adjust premiums in the event losses are minimal or zero. Prior to June 1, 2022, there were two reinsurance contracts with retrospective provisions. For the three months ended March 31, 2023 and 2022, the Company recognized reductions in premiums ceded of $6,993 and $1,484, respectively, related to these adjustments in the consolidated statements of income. See Note 21 -- “Commitments and Contingencies” for additional information.

Amounts receivable pursuant to retrospective provisions are reflected in other assets. At March 31, 2023 and December 31, 2022, other assets included $23,310 and $16,317, respectively, of amounts receivable pursuant to retrospective provisions. Management believes the credit risk associated with the collectability of these accrued benefits is minimal as the amount receivable is concentrated with one reinsurer with a good credit rating and the Company monitors the creditworthiness of this reinsurer based on available information about the reinsurer’s financial condition.

Reinsurance provided to other insurance companies

In 2022, the Company provided quota share reinsurance on all policies issued by United Property & Casualty Insurance Company, an insurance subsidiary of United Insurance Holdings Corporation (“United”), in the states of Connecticut, New Jersey, Massachusetts, and Rhode Island (collectively “Northeast Region”) and the states of Georgia, North Carolina, and South Carolina (collectively “Southeast Region”). These policies were renewed and/or replaced by the Company. As of the financial reporting date, there was no reinsurance provided to United by the Company. However, additional losses may be incurred pertaining to the previous coverage periods of the quota share reinsurance agreements.

For the three months ended March 31, 2023, assumed premiums written related to the Northeast Region’s insurance policies were $0, whereas for the three months ended March 31, 2022, $6,849 of assumed premiums written related to the Northeast Region’s insurance policies were derecognized, which primarily resulted from the return of the unearned portion of assumed written premiums subsequent to the Company’s renewal and/or replacement of insurance policies in New Jersey. At March 31, 2023, the Company had a net balance of $1,207 due to United related to the Northeast Region, consisting of payable on paid losses and loss adjustment expenses of $626 and ceding commission payable of $581. At December 31, 2022, the Company had a net balance of $1,581 due to United related to the Northeast Region, consisting of payable on paid losses and loss adjustment expenses of $1,000 and ceding commission payable of $581. Effective December 30, 2022, the Company’s quota share reinsurance agreement to provide 100% reinsurance on United’s policies in the Northeast Region was commuted.

For the three months ended March 31, 2023, $7,569 of assumed premiums written related to the Southeast Region’s insurance policies were derecognized, which primarily resulted from the return of the unearned portion of assumed written premiums subsequent to the Company’s renewal and/or replacement of insurance policies in the Southeast Region, whereas for the three months ended March 31, 2022 assumed premiums written related to the Southeast Region’s insurance policies were $12,162. At March 31, 2023, the Company had a net balance of $14,402 due to United related to the Southeast Region, consisting of premiums payable of $9,506 and payable on paid losses and loss adjustment expenses of $6,417, offset by ceding commission receivable of $1,521. At December 31, 2022, the Company had a net balance of $7,521 due to United related to the Southeast Region, consisting of payable on paid losses and loss adjustment expenses of $7,606 and ceding commission payable of $16, offset by premiums receivable of $101.

On February 27, 2023, United’s Florida-domiciled residential insurance subsidiary was placed into receivership by the State of Florida due to its financial insolvency. At March 31, 2023, the Company had a net amount due to United of $10,270 and funds withheld for assumed business in trust accounts totaling $45,274 for the benefit of policies assumed from United. As of March 31, 2023, the Company no longer provided TPA services to United. The Company cannot predict the actions a receiver might take, which may include restrictions on, or use of, funds held in trust. Any such actions could have a material adverse effect on the Company’s financial position and results of operations.

At March 31, 2023 and December 31, 2022, the balance of funds withheld for assumed business related to the Company’s quota share reinsurance agreements with United was $45,274 and $48,772, respectively.

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Losses and Loss Adjustment Expenses

3 Months Ended

Mar. 31, 2023

Insurance [Abstract]

Losses and Loss Adjustment Expenses

Note 13 -- Losses and Loss Adjustment Expenses

The liability for losses and loss adjustment expenses (“LAE”) is determined on an individual case basis for all claims reported. The liability also includes amounts for unallocated expenses, anticipated future claims development and losses incurred but not reported.

The Company primarily writes insurance in states which could be exposed to hurricanes or other natural catastrophes. The occurrence of a major catastrophe could have a significant effect on the Company’s quarterly results and cause a temporary disruption of the normal operations of the Company. However, the Company is unable to predict the frequency or severity of any such events that may occur in the near term or thereafter.

Activity in the liability for losses and LAE is summarized as follows:

	Three Months Ended
	March 31,
	2023			2022
Net balance, beginning of period*	$	246,546		$	172,410
Incurred, net of reinsurance, related to:
Current period		56,698			70,076
Prior periods		3,867			2,628
Total incurred, net of reinsurance		60,565			72,704
Paid, net of reinsurance, related to:
Current period		(11,110	)		(18,796	)
Prior periods		(49,950	)		(46,481	)
Total paid, net of reinsurance		(61,060	)		(65,277	)
Net balance, end of period		246,051			179,837
Add: reinsurance recoverable before allowance for credit losses		560,257			54,955
Gross balance, end of period	$	806,308		$	234,792

* Net balance represents beginning-of-period liability for unpaid losses and LAE less beginning-of-period reinsurance recoverable for unpaid losses and LAE.

The establishment of loss and LAE reserves is an inherently uncertain process and changes in loss and LAE reserve estimates are expected as these estimates are subject to the outcome of future events. Changes in estimates, or differences between estimates and amounts ultimately paid, are reflected in the operating results of the period during which such estimates are adjusted. During the three months ended March 31, 2023, the Company recognized losses related to prior periods of $3,867 primarily to increase reserves in response to litigation and claim severity. Losses and LAE for the three months ended March 31, 2023 included net estimated losses of approximately $21,635 related to United policies assumed, renewed and/or replaced. Lower losses and LAE for the three months ended March 31, 2023 resulted from a decrease in claims and litigation related to Florida policies.

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Segment Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Information

Note 14 -- Segment Information

The Company identifies its operating divisions or segments based on managerial emphasis, organizational structure and revenue source. The Company has four reportable segments: HCPCI insurance operations, TypTap Group, real estate operations, and corporate and other. Due to their economic characteristics, the Company’s property and casualty insurance division and reinsurance operations, excluding the insurance operations under TypTap Group, are grouped together into one reportable segment under HCPCI insurance operations. The TypTap Group segment includes its property and casualty insurance operations, information technology operations and its management company’s activities. The real estate operations segment includes companies engaged in operating commercial properties the Company owns for investment purposes or for use in its own operations. The corporate and other segment represents the activities of the holding companies and any other companies that do not meet the quantitative and qualitative thresholds for a reportable segment. The determination of segments may change over time due to changes in operational emphasis, revenues, and results of operations. The Company’s chief executive officer, who serves as the Company’s chief operating decision maker, evaluates each division’s financial and operating performance based on revenue and operating income.

For the three months ended March 31, 2023 and 2022, revenues from the HCPCI insurance operations segment before intracompany elimination represented 61.2% and 69.8%, respectively, and revenues from the TypTap Group segment represented 36.5% and 28.3%, respectively, of total revenues of all operating segments. At March 31, 2023 and December 31, 2022, HCPCI insurance operations’ total assets represented 52.5% and 53.4%, respectively, and TypTap Group’s total assets represented 39.0% and 37.9%, respectively, of the combined assets of all operating segments.

The following tables present segment information reconciled to the Company’s consolidated statements of income. Intersegment transactions are not eliminated from segment results. However, intracompany transactions are eliminated in segment results below.

	HCPCI
	Insurance			TypTap			Real		Corporate/			Reclassification/
For Three Months Ended March 31, 2023	Operations			Group			Estate (a)		Other (b)			Elimination			Consolidated
Revenue:
Gross premiums earned (c)	$	96,991		$	87,612		$	—	$	—		$	(4,535	)	$	180,068
Premiums ceded		(40,195	)		(34,823	)		—		—			4,509			(70,509	)
Net premiums earned		56,796			52,789			—		—			(26	)		109,559
Net income from investment portfolio		2,954			3,379			—		1,900			8,862			17,095
Gain from sales of real estate investments		—			—			8,936		—			(8,936	)		—
Policy fee income		563			527			—		—			—			1,090
Other		4,653			1,643			2,923		595			(8,529	)		1,285
Total revenue		64,966			58,338			11,859		2,495			(8,629	)		129,029
Expenses:
Losses and loss adjustment expenses		28,782			33,056			—		—			(1,273	)		60,565
Amortization of deferred policy acquisition costs		9,621			11,863			—		—			—			21,484
Other policy acquisition expenses		655			611			—		—			(30	)		1,236
Stock-based compensation expense		496			829			—		781			—			2,106
Interest expense		—			431			203		2,598			(431	)		2,801
Depreciation and amortization		139			956			627		202			(537	)		1,387
Loss on extinguishment of debt		—			—			177		—			(177	)		—
Personnel and other operating expenses		9,919			9,433			1,554		1,589			(6,181	)		16,314
Total expenses		49,612			57,179			2,561		5,170			(8,629	)		105,893
Income (loss) before income taxes	$	15,354		$	1,159		$	9,298	$	(2,675	)	$	—		$	23,136
Total revenue from non-affiliates (d)	$	56,929		$	61,286		$	11,051	$	1,926
Gross premiums written	$	85,153		$	114,701

(a)Other revenue under real estate primarily consisted of rental income from investment properties.

(b)Other revenue under corporate and other primarily consisted of revenue from marina business.

(c)Gross premiums earned under HCPCI Insurance Operations consist of $92,456 from HCPCI and $4,535 from a reinsurance company.

(d)Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation.

	HCPCI
	Insurance			TypTap			Real		Corporate/			Reclassification/
For Three Months Ended March 31, 2022	Operations			Group			Estate (a)		Other (b)			Elimination			Consolidated
Revenue:
Gross premiums earned (c)	$	119,305		$	60,622		$	—	$	—		$	(1,002	)	$	178,925
Premiums ceded		(36,953	)		(16,933	)		—		—			724			(53,162	)
Net premiums earned		82,352			43,689			—		—			(278	)		125,763
Net (loss) income from investment portfolio		(1,457	)		(16	)		—		316			135			(1,022	)
Policy fee income		654			403			—		—			—			1,057
Other		1,247			469			2,403		836			(3,713	)		1,242
Total revenue		82,796			44,545			2,403		1,152			(3,856	)		127,040
Expenses:
Losses and loss adjustment expenses		43,995			28,988			—		—			(279	)		72,704
Amortization of deferred policy acquisition costs		19,102			9,422			—		—			—			28,524
Other policy acquisition expenses		663			283			—		—			—			946
Stock-based compensation expense		1,144			885			—		2,308			—			4,337
Interest expense		—			200			227		374			(200	)		601
Depreciation and amortization		114			561			605		172			(623	)		829
Personnel and other operating expenses		7,318			7,493			1,307		1,734			(2,754	)		15,098
Total expenses		72,336			47,832			2,139		4,588			(3,856	)		123,039
Income (loss) before income taxes	$	10,460		$	(3,287	)	$	264	$	(3,436	)	$	—		$	4,001
Total revenue from non-affiliates (d)	$	81,733		$	44,823		$	2,064	$	449
Gross premiums written	$	91,141		$	86,153

(a)Other revenue under real estate primarily consisted of rental income from investment properties.

(b)Other revenue under corporate and other primarily consisted of revenue from marina business.

(c)Gross premiums earned under HCPCI Insurance Operations consist of $118,303 from HCPCI and $1,002 from a reinsurance company.

(d)Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation.

The following table presents segment assets reconciled to the Company’s total assets on the consolidated balance sheets:

	March 31,			December 31,
	2023			2022
Segments:
HCPCI Insurance Operations	$	880,107		$	912,233
TypTap Group		719,774			704,429
Real Estate Operations		119,646			126,001
Corporate and Other		150,118			159,378
Consolidation and Elimination		(98,523	)		(98,713	)
Total assets	$	1,771,122		$	1,803,328

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Leases

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Leases

Note 15 -- Leases

The table below summarizes the Company’s right-of-use (“ROU”) assets and corresponding liabilities for operating and finance leases:

	March 31,		December 31,
	2023		2022
Operating leases:
ROU assets	$	1,466	$	777
Liabilities	$	1,422	$	721
Finance leases:
ROU assets	$	80	$	80
Liabilities	$	10	$	13

The Company entered into a new lease effective March 2023 for its office space in Plantation, Florida which relates to its claims related administration. The new lease has an initial term of 5.25 years.

The following table summarizes the Company’s operating and finance leases in which the Company is a lessee:

		Renewal	Other Terms and
Class of Assets	Initial Term	Option	Conditions
Operating lease:
Office equipment	1 month	Yes	(a)
Office space	3 to 9 years	Yes	(a), (b)
Finance lease:
Office equipment	3 to 5 years	Not applicable	(c)

(a)There are no variable lease payments.

(b)Rent escalation provisions exist.

(c)There is a bargain purchase option.

As of March 31, 2023, maturities of lease liabilities were as follows:

	Leases
	Operating		Finance
Due in 12 months following March 31,
2023	$	258	$	9
2024		255		1
2025		264		—
2026		274		—
2027		315		—
Thereafter		336		—
Total lease payments		1,702		10
Less: interest		280		—
Total lease obligations	$	1,422	$	10

The following table provides quantitative information with regards to the Company’s operating and finance leases:

	Three Months Ended
	March 31,
	2023			2022
Lease costs:
Finance lease costs:
Amortization – ROU assets*	$	4		$	5
Operating lease costs*		52			374
Short-term lease costs*		93			110
Total lease costs	$	149		$	489
Cash paid for amounts included in the    measurement of lease liabilities:
Operating cash flows – operating leases	$	44		$	372
Financing cash flows – finance leases	$	4		$	5
	March 31,
	2023
Weighted-average remaining lease term:
Finance leases (in years)		0.9
Operating leases (in years)		6.4
Weighted-average discount rate:
Finance leases (%)		3.3	%
Operating leases (%)		5.9	%

* Included in other operating expenses on the consolidated statements of income.

The following table summarizes the Company’s operating leases in which the Company is a lessor:

		Renewal	Other Terms and
Class of Assets	Initial Term	Option	Conditions
Operating lease:
Retail space	3 to 15 years	Yes	(d)
Boat docks/wet slips	1 to 12 months	Yes	(d)

(d)There are no purchase options.

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Income Taxes

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Note 16 -- Income Taxes

A valuation allowance must be established for deferred tax assets when it is more likely than not that the deferred tax assets will not be realized based on available evidence both positive and negative, including recent operating results, available tax planning strategies, and projected future taxable income. As of December 31, 2022, management concluded that it was more likely than not that the deferred tax assets would not be realized and therefore recorded a valuation allowance. The Company evaluates the realizability of its deferred tax assets each quarter, and as of March 31, 2023, based on all of the available evidence, management concluded that it is more likely than not that the deferred tax assets will be realized and therefore is releasing the entire valuation allowance in 2023, as a part of the effective tax rate. During the first quarter of 2023, approximately $890 of valuation allowance was released through income tax expense.

During the three months ended March 31, 2023 and 2022, the Company recorded approximately $5,343 and $1,210, respectively, of income tax expense, which resulted in effective tax rates of 23.1% and 30.2%, respectively. The decrease in the effective tax rate as compared with the corresponding period in the prior year was primarily attributable to the release of valuation allowance established in 2022 during the first quarter of 2023 and the decrease in non-deductible compensation expense. The Company’s estimated annual effective tax rate differs from the statutory federal tax rate due to state and foreign income taxes as well as certain nondeductible and tax-exempt items.

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Earnings Per Share

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Earnings Per Share

Note 17 -- Earnings Per Share

U.S. GAAP requires the Company to use the two-class method in computing basic earnings (loss) per share since holders of the Company’s restricted stock have the right to share in dividends, if declared, equally with common stockholders. These participating securities affect the computation of both basic and diluted earnings (loss) per share during periods of net income or loss. For a majority-owned subsidiary, its basic and diluted earnings (loss) per share are first computed separately. Then, the Company’s proportionate share in that majority-owned subsidiary’s earnings is added to the computation of both basic and diluted earnings (loss) per share at a consolidated level.

A summary of the numerator and denominator of the basic and diluted earnings per common share is presented below:

	Three Months Ended							Three Months Ended
	March 31, 2023							March 31, 2022
	Income			Shares (a)		Per Share		Income			Shares (a)		Per Share
	(Numerator)			(Denominator)		Amount		(Numerator)			(Denominator)		Amount
Net income	$	17,793						$	2,791
Less: Net income attributable to redeemable    noncontrolling interest		(2,324	)						(2,248	)
Less: TypTap Group’s net (income) loss    attributable to non-HCI common    stockholders and TypTap Group’s    participating securities		(131	)						360
Net income attributable to HCI		15,338							903
Less: Income attributable to participating    securities		(564	)						(52	)
Basic Earnings Per Share:
Income allocated to common stockholders		14,774			8,278	$	1.78		851			9,479	$	0.09
Effect of Dilutive Securities: *
Stock options		—			45				—			135
Convertible senior notes		1,921			2,537				—			—
Warrants		—			—				—			153
Diluted Earnings Per Share:
Income available to common stockholders    and assumed conversions	$	16,695			10,860	$	1.54	$	851			9,767	$	0.09

(a)Shares in thousands.

* For the three months ended March 31, 2023, warrants were excluded due to anti-dilutive effect. For the three months ended March 31, 2022, convertible senior notes were excluded due to anti-dilutive effect.

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Redeemable Noncontrolling Interest

3 Months Ended

Mar. 31, 2023

Noncontrolling Interest [Abstract]

Redeemable Noncontrolling Interest

Note 18 -- Redeemable Noncontrolling Interest

The following table summarizes the activity of redeemable noncontrolling interest during the three months ended March 31, 2023 and 2022:

	2023			2022
Balance at January 1	$	93,553		$	89,955
Increase (decrease):
Accrued cash dividends		1,637			1,342
Accretion - increasing dividend rates		687			906
Dividends paid		(3,012	)		(2,508	)
Balance at March 31	$	92,865		$	89,695

For the three months ended March 31, 2023 and 2022, net income attributable to redeemable noncontrolling interest was $2,324 and $2,248, respectively, consisting of accrued cash dividends of $1,637 and $1,342, respectively, and accretion related to increasing dividend rates of $687 and $906, respectively.

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Equity

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Equity

Note 19 -- Equity

Stockholders’ Equity

Common Stock

The Company’s 2022 stock repurchase plan was considered expired and there was no new stock repurchase plan approved by the Board of Directors during the first quarter of 2023.

In March 2022, the Company’s Board of Directors authorized a plan to repurchase up to $20,000 of the Company’s common shares before commissions and fees during 2022. During the three months ended March 31, 2022, there were no shares repurchased by the Company under the 2022 stock repurchase plan.

On January 11, 2023, the Company’s Board of Directors declared a quarterly dividend of $0.40 per common share. The dividends were paid on March 17, 2023 to stockholders of record on February 17, 2023.

Warrants

At March 31, 2023, there were warrants outstanding and exercisable to purchase 750,000 shares of HCI common stock at an exercise price of $54.40. The warrants expire on February 26, 2025.

Noncontrolling Interests

At March 31, 2023, there were 81,016,355 shares of TTIG’s common stock outstanding, of which 6,016,355 shares were not owned by HCI.

During the three months ended March 31, 2023 and 2022, TTIG repurchased and retired a total of 34,108 and 21,744 shares, respectively, of its common stock surrendered by its employees to satisfy payroll tax liabilities associated with the vesting of restricted shares. The total cost of purchasing noncontrolling interests during the three months ended March 31, 2023 and 2022 was $198 and $127, respectively.

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Stock-Based Compensation

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Note 20 -- Stock-Based Compensation

2012 Omnibus Incentive Plan

The Company currently has outstanding stock-based awards granted under the Plan which is currently active and available for future grants. At March 31, 2023, there were 1,112,330 shares available for grant.

Stock Options

Stock options granted and outstanding under the incentive plan vest over a period of four years and are exercisable over the contractual term of ten years.

A summary of the stock option activity for the three months ended March 31, 2023 and 2022 is as follows (option amounts not in thousands):

					Weighted
			Weighted		Average
			Average		Remaining	Aggregate
	Number of		Exercise		Contractual	Intrinsic
	Options		Price		Term	Value
Outstanding at January 1, 2023		440,000	$	45.25	5.6 years	$	—
Outstanding at March 31, 2023		440,000	$	45.25	5.3 years	$	3,146
Exercisable at March 31, 2023		412,500	$	45.07	5.2 years	$	3,031
Outstanding at January 1, 2022		440,000	$	45.25	6.6 years	$	18,119
Outstanding at March 31, 2022		440,000	$	45.25	6.3 years	$	10,494
Exercisable at March 31, 2022		357,500	$	44.23	6.0 years	$	8,891

There were no options exercised during the three months ended March 31, 2023 and 2022. For the three months ended March 31, 2023 and 2022, the Company recognized $90 and $184, respectively, of compensation expense related to stock options which is included in general and administrative personnel expenses. Deferred tax benefits related to stock options were $0 for the three months ended March 31, 2023 and 2022. At March 31, 2023 and December 31, 2022, there was $246 and $336, respectively, of unrecognized compensation expense related to nonvested stock options. The Company expects to recognize the remaining compensation expense over a weighted-average period of 10 months.

Restricted Stock Awards

From time to time, the Company has granted and may grant restricted stock awards to certain executive officers, other employees, and non-employee directors in connection with their service to the Company. The terms of the Company’s outstanding restricted stock grants may include service, performance, and market-based conditions. The determination of fair value with respect to the awards containing only service-based conditions is based on the market value of the Company’s common stock on the grant date. For awards with market-based conditions, the fair value is determined using a Monte Carlo simulation method, which calculates many potential outcomes for an award and then establishes fair value based on the most likely outcome.

Information with respect to the activity of unvested restricted stock awards during the three months ended March 31, 2023 and 2022 is as follows:

	Number of			Weighted
	Restricted			Average
	Stock			Grant Date
	Awards			Fair Value
Nonvested at January 1, 2023		342,459		$	39.86
Granted		6,000		$	51.76
Vested		(40,352	)	$	54.83
Forfeited		(2,125	)	$	40.33
Nonvested at March 31, 2023		305,982		$	38.11
Nonvested at January 1, 2022		679,997		$	39.72
Granted		4,000		$	70.58
Vested		(50,667	)	$	50.68
Forfeited		(3,265	)	$	45.85
Nonvested at March 31, 2022		630,065		$	39.00

The Company recognized compensation expense related to restricted stock, which is included in general and administrative personnel expenses, of $1,187 and $3,268 for the three months ended March 31, 2023 and 2022, respectively. At March 31, 2023 and December 31, 2022, there was approximately $7,086 and $8,048, respectively, of total unrecognized compensation expense related to nonvested restricted stock arrangements. The Company expects to recognize the remaining compensation expense over a weighted-average period of 2.0 years. The following table summarizes information about deferred tax benefits recognized and tax benefits realized related to restricted stock awards and paid dividends, and the fair value of vested restricted stock for the three months ended March 31, 2023 and 2022.

	Three Months Ended
	March 31,
	2023		2022
Deferred tax benefits recognized	$	263	$	652
Tax benefits realized for restricted stock and paid dividends	$	299	$	402
Fair value of vested restricted stock	$	2,213	$	2,568

Subsidiary Equity Plan

For the three months ended March 31, 2023 and 2022, TypTap Group recognized compensation expense related to its stock-based awards of $829 and $885, respectively. At March 31, 2023 and December 31, 2022, there was $6,999 and $7,876, respectively, of unrecognized compensation expense related to nonvested restricted stock and stock options.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 21 -- Commitments and Contingencies

Obligations under One Multi-Year Reinsurance Contract

As of March 31, 2023, the Company has a contractual obligation related to one multi-year reinsurance contract entered into effective June 1, 2022. The contract may be cancelled only with the other party’s consent or when its experience account is positive at the end of each contract year. The table below presents the future minimum aggregate premium amounts payable to the reinsurer.

Due in 12 months following March 31,
2023	$	91,350
2024		91,350
Total	$	182,700

Capital Commitments

As described in Note 5 -- “Investments” under Limited Partnership Investments, the Company is contractually committed to capital contributions for limited partnership interests. At March 31, 2023, there was an aggregate unfunded balance of $5,501.

FIGA Assessments

During 2022, the FLOIR approved assessments for the Florida Insurance Guaranty Association (“FIGA”) in order to secure funds for the payment of covered claims relating to the liquidation of three insurance companies. The FIGA assessments are levied on collected premiums of all covered lines of business except auto insurance. The surcharges, which are collectible from a policyholder, are assessed on new and renewal policies with specified effective dates.

The Company’s insurance subsidiaries, as member insurers, are required to collect and remit the pass-through assessments to FIGA on a quarterly basis. As of March 31, 2023, the FIGA assessments payable by the Company were $3,205.

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Subsequent Events

3 Months Ended

Mar. 31, 2023

Subsequent Events [Abstract]

Subsequent Events

Note 22 -- Subsequent Events

On April 10, 2023, the FLOIR approved an assessment for FIGA in order to secure funds for the payment of covered claims relating to the liquidation of one insurance company. The FIGA assessment will be levied at 1% on collected premiums of all covered lines of business except auto insurance. The surcharge, which is collectible from a policyholder, will be assessed on new and renewal policies with effective dates beginning October 1, 2023 through September 30, 2024 and continuing until the end of the assessment year in which the Series 2023A Bonds issued by the Florida Insurance Assistance Interlocal Agency have been paid in full.

On April 14, 2023, the Company’s Board of Directors declared a quarterly dividend of $0.40 per common share. The dividends are payable on June 16, 2023 to stockholders of record on May 19, 2023.

On April 19, 2023, the Company incorporated a new property and casualty insurance subsidiary, Tailrow Insurance Company (“Tailrow”), in the State of Florida. Tailrow currently has no operations.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited consolidated financial statements of HCI Group, Inc. and its majority-owned and controlled subsidiaries (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and the Securities and Exchange Commission (“SEC”) rules for interim financial reporting. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. However, in the opinion of management, the accompanying consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the Company’s financial position as of March 31, 2023 and the results of operations and cash flows for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results of operations to be expected for any subsequent interim period or for the fiscal year ending December 31, 2023. The accompanying unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2022 included in the Company’s Form 10-K, which was filed with the SEC on March 10, 2023.

In preparing the interim unaudited consolidated financial statements, management was required to make certain judgments, assumptions, and estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the financial reporting date and throughout the periods being reported upon. Certain of the estimates result from judgments that can be subjective and complex, and consequently actual results may differ from these estimates.

Material estimates that are particularly susceptible to significant change in the near term are related to the Company’s losses and loss adjustment expenses, which include amounts estimated for claims incurred but not yet reported. The Company uses various assumptions and actuarial data it believes to be reasonable under the circumstances to make these estimates. In addition, accounting policies specific to reinsurance with retrospective provisions, reinsurance recoverable, deferred income taxes, limited partnership investments, allowance for credit losses, and stock-based compensation expense involve significant judgments and estimates material to the Company’s consolidated financial statements.

In the case of assumed business, the Company relies entirely on the ceding insurance company to provide information about premiums, losses, and loss adjustment expenses. When the information is not available at the reporting date, the Company will make estimates based on all recent available data. Accordingly, the actual results could differ significantly from those estimates.

All significant intercompany balances and transactions have been eliminated.

Revenue from Claims Processing Services

Revenue from Claims Processing Services

Revenue related to claims processing services is included in other revenue in the consolidated statements of income. For the three months ended March 31, 2023 and 2022, revenues from claims processing services were $527 and $1,007, respectively.

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Cash, Cash Equivalents, and Restricted Cash (Tables)

3 Months Ended

Mar. 31, 2023

Cash and Cash Equivalents [Abstract]

Summary of Cash, Cash Equivalents, and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company’s consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows.

	March 31,		December 31,
	2023		2022
Cash and cash equivalents	$	302,025	$	234,863
Restricted cash		2,987		2,900
Total	$	305,012	$	237,763

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Investments (Tables)

3 Months Ended

Mar. 31, 2023

Summary of Amortized Cost, Allowance for Credit Loss, Gross Unrealized Gains and Losses, and Estimated Fair Value of Available-for-Sale Securities

The Company holds investments in fixed-maturity securities that are classified as available-for-sale. At March 31, 2023 and December 31, 2022, the cost or amortized cost, allowance for credit loss, gross unrealized gains and losses, and estimated fair value of the Company’s available-for-sale securities by security type were as follows:

	Cost or Amortized		Allowance for Credit		Gross Unrealized		Gross Unrealized			Estimated Fair
	Cost		Loss		Gain		Loss			Value
As of March 31, 2023
U.S. Treasury and U.S. government agencies	$	501,700	$	—	$	421	$	(6,495	)	$	495,626
Corporate bonds		28,312		—		39		(1,094	)		27,257
States, municipalities, and political subdivisions		1,393		—		1		(3	)		1,391
Exchange-traded debt		494		—		—		(12	)		482
Total	$	531,899	$	—	$	461	$	(7,604	)	$	524,756
As of December 31, 2022
U.S. Treasury and U.S. government agencies	$	463,648	$	—	$	59	$	(9,105	)	$	454,602
Corporate bonds		28,378		—		20		(1,205	)		27,193
States, municipalities, and political subdivisions		1,389		—		—		(6	)		1,383
Exchange-traded debt		683		—		2		(52	)		633
Redeemable preferred stock		99		—		—		(9	)		90
Total	$	494,197	$	—	$	81	$	(10,377	)	$	483,901

Scheduled Contractual Maturities of Fixed-Maturity Securities

The scheduled contractual maturities of fixed-maturity securities as of March 31, 2023 and December 31, 2022 are as follows:

	March 31, 2023				December 31, 2022
	Cost or		Estimated		Cost or		Estimated
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Available-for-sale
Due in one year or less	$	357,645	$	355,922	$	266,170	$	265,353
Due after one year through five years		170,850		165,769		223,153		214,307
Due after five years through ten years		2,910		2,583		4,380		3,797
Due after ten years		494		482		494		444
	$	531,899	$	524,756	$	494,197	$	483,901

Summary of Proceeds Received and Gross Realized Gains and Losses from Sales of Available-for-Sale Securities

Proceeds received, and the gross realized gains and losses from sales of available-for-sale fixed-maturity securities, for the three months ended March 31, 2023 and 2022 were as follows:

			Gross Realized		Gross Realized
	Proceeds		Gains		Losses
Three months ended March 31, 2023	$	11,060	$	—	$	(738	)
Three months ended March 31, 2022	$	9,058	$	2	$	(431	)

Summary of Securities with Gross Unrealized Loss Positions Aggregated by Investment Category

Securities with gross unrealized loss positions at March 31, 2023 and December 31, 2022, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows:

	Less Than Twelve Months					Twelve Months or Longer					Total
	Gross			Estimated		Gross			Estimated		Gross			Estimated
	Unrealized			Fair		Unrealized			Fair		Unrealized			Fair
As of March 31, 2023	Loss			Value		Loss			Value		Loss			Value
U.S. Treasury and U.S. government    agencies	$	(1,993	)	$	123,661	$	(4,502	)	$	115,681	$	(6,495	)	$	239,342
Corporate bonds		(774	)		19,228		(320	)		4,146		(1,094	)		23,374
States, municipalities, and political    subdivisions		(3	)		897		—			—		(3	)		897
Exchange-traded debt		(12	)		482		—			—		(12	)		482
Total available-for-sale securities	$	(2,782	)	$	144,268	$	(4,822	)	$	119,827	$	(7,604	)	$	264,095

	Less Than Twelve Months					Twelve Months or Longer					Total
	Gross			Estimated		Gross			Estimated		Gross			Estimated
	Unrealized			Fair		Unrealized			Fair		Unrealized			Fair
As of December 31, 2022	Loss			Value		Loss			Value		Loss			Value
U.S. Treasury and U.S. government    agencies	$	(8,701	)	$	269,116	$	(404	)	$	4,644	$	(9,105	)	$	273,760
Corporate bonds		(909	)		23,028		(296	)		2,541		(1,205	)		25,569
States, municipalities, and political    subdivisions		(6	)		1,383		—			—		(6	)		1,383
Exchange-traded debt		(52	)		463		—			—		(52	)		463
Redeemable preferred stock		(9	)		90		—			—		(9	)		90
Total available-for-sale securities	$	(9,677	)	$	294,080	$	(700	)	$	7,185	$	(10,377	)	$	301,265

Summary of Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Equity Securities

At March 31, 2023 and December 31, 2022, the cost, gross unrealized gains and losses, and estimated fair value of the Company’s equity securities were as follows:

			Gross Unrealized		Gross Unrealized			Estimated Fair
	Cost		Gain		Loss			Value
March 31, 2023	$	38,575	$	2,399	$	(3,559	)	$	37,415
December 31, 2022	$	36,272	$	2,078	$	(3,767	)	$	34,583

Summary of Unrealized Gains and Losses for Equity Securities

The table below presents the portion of unrealized gains and losses in the Company’s consolidated statements of income related to equity securities still held.

	Three Months Ended
	March 31,
	2023			2022
Net gains (losses) recognized	$	114		$	(3,542	)
Exclude: Net realized (losses) gains recognized for     securities sold		(415	)		34
Net unrealized gains (losses) recognized	$	529		$	(3,576	)

Summary of Proceeds Received, Gross Realized Gains and Losses from Sales of Equity Securities

Proceeds received, and the gross realized gains and losses from sales of equity securities, for the three months ended March 31, 2023 and 2022 were as follows:

			Gross Realized		Gross Realized
	Proceeds		Gains		Losses
Three months ended March 31, 2023	$	3,754	$	17	$	(432	)
Three months ended March 31, 2022	$	18,369	$	1,420	$	(1,386	)

Schedule of Company's Investments in Limited Partnerships

The following table provides information related to the Company’s investments in limited partnerships:

	March 31, 2023						December 31, 2022
	Carrying		Unfunded				Carrying		Unfunded
Investment Strategy	Value		Balance		(%) (a)		Value		Balance		(%) (a)
Primarily in senior secured loans and, to a    limited extent, in other debt and equity    securities of private U.S. lower-middle-market    companies. (b)(c)(e)	$	4,062	$	—		15.37	$	4,146	$	—		15.37
Value creation through active distressed debt    investing primarily in bank loans, public and    private corporate bonds, asset-backed    securities, and equity securities received in    connection with debt restructuring. (b)(d)(e)		2,326		—		1.27		2,528		—		1.66
High returns and long-term capital appreciation    through investments in the power, utility and    energy industries, and in the infrastructure    sector. (b)(f)(g)		4,477		—		0.18		5,319		—		0.18
Value-oriented investments in less liquid and    mispriced senior and junior debts of private    equity-backed companies. (b)(h)(i)		3,258		—		0.56		3,470		—		0.56
Value-oriented investments in mature real    estate private equity funds and portfolios    globally. (b)(j)		7,581		2,982		1.32		7,457		3,125		1.32
Risk-adjusted returns on credit and equity    investments, primarily in private equity-owned    companies. (b)(k)		2,816		2,519		0.85		2,782		2,536		0.98
Total	$	24,520	$	5,501			$	25,702	$	5,661

(a)Represents the Company’s percentage investment in the fund at each balance sheet date.

(b)Except under certain circumstances, withdrawals from the funds or any assignments are not permitted. Distributions, except income from late admission of a new limited partner, will be received when underlying investments of the funds are liquidated.

(c)The term is expected to be two years following the maturity of the fund’s outstanding leverage. Although the capital commitment period has expired, follow-on investments and pending commitments may require additional fundings.

(d)The term has been extended for a second additional one-year period to June 30, 2023. Although the capital commitment period has ended, the general partner could still request an additional funding under certain circumstances.

(e)At the fund manager’s discretion, the term of the fund may be extended for up to two additional one-year periods.

(f)Expected to have a ten-year term. The capital commitment period has expired but the general partner may request additional funding for follow-on investment.

(g)With the consent of a supermajority of partners, the term of the fund may be extended for up to three additional one-year periods.

(h)Expected to have an eight-year term from the commencement date, which can be extended for up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners.

(i)The capital commitment period has ended but an additional funding may be requested.

(j)The term is expected to end November 27, 2027. The term may be extended for up to four additional one-year periods at the general partner’s discretion, and up to two additional one-year periods with the consent of the advisory committee.

(k)Expected to have an eight-year term after the final admission date. The term may be extended for an additional one-year period at the general partner’s discretion, and up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners.

Summary of Unaudited Financial Information and Unaudited Financial Position

The following is the summary of aggregated unaudited financial information of limited partnerships included in the investment strategy table above, which in certain cases is presented on a three-month lag due to the unavailability of information at the Company’s respective balance sheet dates. The financial statements of these limited partnerships are audited annually.

	Three Months Ended
	March 31,
	2023			2022
Operating results:
Total income	$	182,360		$	336,828
Total expenses		(2,257	)		(49,317	)
Net income	$	180,103		$	287,511

	March 31,		December 31,
	2023		2022
Balance sheet:
Total assets	$	5,228,330	$	5,119,695
Total liabilities	$	397,463	$	430,354

Summary of Real Estate Investments

Real estate investments consist of the following as of March 31, 2023 and December 31, 2022:

	March 31,			December 31,
	2023			2022
Land	$	29,471		$	38,327
Land improvements		4,387			12,138
Buildings and building improvements		12,544			29,410
Tenant and leasehold improvements		1,270			1,742
Other		1,593			1,649
Total, at cost		49,265			83,266
Less: accumulated depreciation and amortization		(5,703	)		(11,878	)
Real estate investments	$	43,562		$	71,388

Investment Income (Loss) Summarized

Net investment income (loss), by source, is summarized as follows:

	Three Months Ended
	March 31,
	2023			2022
Available-for-sale fixed-maturity securities	$	4,035		$	448
Equity securities		296			287
Investment expense		(129	)		(134	)
Limited partnership investments		553			1,780
Real estate investments		9,293			347
Loss from unconsolidated joint venture		—			(13	)
Cash and cash equivalents		3,667			153
Net investment income	$	17,715		$	2,868

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Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Schedule of Components of Other Comprehensive Income or Loss and Related Tax Effects Allocated to Each Component

The components of other comprehensive income or loss and the related tax effects allocated to each component were as follows:

	Three Months Ended							Three Months Ended
	March 31, 2023							March 31, 2022
	Before		Income			Net of		Before			Income			Net of
	Tax		Tax Effect			Tax		Tax			Tax Effect			Tax
Net unrealized gains (losses)	$	2,415	$	(1,997	)	$	4,412	$	(4,151	)	$	(1,047	)	$	(3,104	)
Reclassification adjustment for net    realized losses		738		187			551		429			109			320
Total other comprehensive income    (loss)	$	3,153	$	(1,810	)	$	4,963	$	(3,722	)	$	(938	)	$	(2,784	)

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Components of Long-Term Debt and Methods Used in Estimating Fair Values

The following table summarizes components of the Company’s long-term debt and methods used in estimating their fair values:

	Maturity Date	Valuation Methodology
4.75% Convertible Senior Notes	2042	Quoted price
4.25% Convertible Senior Notes	2037	Quoted price
3.90% Promissory Note	*	Discounted cash flow method/Level 3 inputs
3.75% Callable Promissory Note	*	Discounted cash flow method/Level 3 inputs
4.55% Promissory Note	2036	Discounted cash flow method/Level 3 inputs

* Debt derecognized in March 2023. See Note 11 -- “Long-Term Debt” for additional information.

Assets Measured at Estimated Fair Value on a Recurring Basis

The following tables present information about the Company’s financial assets measured at estimated fair value on a recurring basis. The tables indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of March 31, 2023 and December 31, 2022:

	Fair Value Measurements Using
	(Level 1)		(Level 2)		(Level 3)		Total
As of March 31, 2023
Financial Assets:
Cash and cash equivalents	$	302,025	$	—	$	—	$	302,025
Restricted cash	$	2,987	$	—	$	—	$	2,987
Fixed-maturity securities:
U.S. Treasury and U.S. government agencies	$	487,750	$	7,876	$	—	$	495,626
Corporate bonds		27,257		—		—		27,257
State, municipalities, and political subdivisions		—		1,391		—		1,391
Exchange-traded debt		482		—		—		482
Total available-for-sale securities	$	515,489	$	9,267	$	—	$	524,756
Equity securities	$	37,415	$	—	$	—	$	37,415

	Fair Value Measurements Using
	(Level 1)		(Level 2)		(Level 3)		Total
As of December 31, 2022
Financial Assets:
Cash and cash equivalents	$	234,863	$	—	$	—	$	234,863
Restricted cash	$	2,900	$	—	$	—	$	2,900
Fixed-maturity securities:
U.S. Treasury and U.S. government agencies	$	446,233	$	8,369	$	—	$	454,602
Corporate bonds		27,193		—		—		27,193
State, municipalities, and political subdivisions		—		1,383		—		1,383
Exchange-traded debt		633		—		—		633
Redeemable preferred stock		90		—		—		90
Total available-for-sale securities	$	474,149	$	9,752	$	—	$	483,901
Equity securities	$	34,583	$	—	$	—	$	34,583

Schedule of Fair Value Information for Financial Liabilities Carried on Balance Sheet

The following tables present fair value information for liabilities that are carried on the consolidated balance sheets at amounts other than fair value as of March 31, 2023 and December 31, 2022:

	Carrying		Fair Value Measurements Using						Estimated
	Value		(Level 1)		(Level 2)		(Level 3)		Fair Value
As of March 31, 2023
Financial Liabilities:
Long-term debt:
4.75% Convertible Senior Notes	$	167,396	$	—	$	157,805	$	—	$	157,805
4.25% Convertible Senior Notes		23,916		—		22,089		—		22,089
4.55% Promissory Note		4,836		—		—		4,617		4,617
Total long-term debt	$	196,148	$	—	$	179,894	$	4,617	$	184,511

	Carrying		Fair Value Measurements Using						Estimated
	Value		(Level 1)		(Level 2)		(Level 3)		Fair Value
As of December 31, 2022
Financial Liabilities:
Long-term debt:
4.75% Convertible Senior Notes	$	167,126	$	—	$	133,167	$	—	$	133,167
4.25% Convertible Senior Notes		23,916		—		19,473		—		19,473
3.90% Promissory Note		8,943		—		—		8,152		8,152
3.75% Callable Promissory Note		6,789		—		—		6,171		6,171
4.55% Promissory Note		4,900		—		—		4,642		4,642
Total long-term debt	$	211,674	$	—	$	152,640	$	18,965	$	171,605

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Intangible Assets, Net (Tables)

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets, Net

The Company’s intangible assets, net consist of the following:

	March 31,			December 31,
	2023			2022
Anchor tenant relationships (a)	$	—		$	1,761
In-place leases		410			3,579
Policy renewal rights		10,100			10,100
Non-compete agreements (b)		314			314
Total, at cost		10,824			15,754
Less: accumulated amortization		(3,138	)		(5,176	)
Intangible assets, net	$	7,686		$	10,578

(a)An anchor tenant is a tenant that attracts more customers than other tenants.

(b)Fully amortized.

Schedule of Remaining Weighted-Average Amortization Period for Intangible Assets

The remaining weighted-average amortization periods for the intangible assets as of March 31, 2023 are summarized in the table below:

In-place leases	12.1 years
Policy renewal rights	3.1 years

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Other Assets (Tables)

3 Months Ended

Mar. 31, 2023

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Summary of Other Assets

The following table summarizes the Company’s other assets:

	March 31,		December 31,
	2023		2022
Benefits receivable related to retrospective reinsurance contract	$	23,310	$	16,317
Reimbursement and fees receivable under TPA service		5,339		7,303
Prepaid expenses		2,394		2,826
Deposits		709		491
Lease acquisition costs, net		696		832
Other		3,656		3,902
Total other assets	$	36,104	$	31,671

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Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Summary of Long-term Debt

The following table summarizes the Company’s long-term debt:

	March 31,			December 31,
	2023			2022
4.75% Convertible Senior Notes, due June 1, 2042	$	172,500		$	172,500
4.25% Convertible Senior Notes, due March 1, 2037		23,916			23,916
3.90% Promissory Note, due through April 1, 2032		—			9,072
3.75% Callable Promissory Note, due through    September 1, 2036		—			6,871
4.55% Promissory Note, due through August 1, 2036		4,902			4,968
Finance lease liabilities, due through October 15, 2024		10			13
Total principal amount		201,328			217,340
Less: unamortized issuance costs		(5,170	)		(5,653	)
Total long-term debt	$	196,158		$	211,687

Summary of Future Maturities of Long-Term Debt

The following table summarizes future maturities of long-term debt as of March 31, 2023, which takes into consideration the assumption that the 4.75% Convertible Senior Notes and 4.25% Convertible Senior Notes are repurchased at their respective next earliest call dates:

Due in 12 months following March 31,
2023	$	280
2024		285
2025		297
2026		24,227
2027		172,826
Thereafter		3,413
Total	$	201,328

Schedule of Interest Expense Related to Long-Term Debt

Information with respect to interest expense related to long-term debt is as follows:

	Three Months Ended
	March 31,
	2023		2022
Interest Expense:
Contractual interest	$	2,497	$	472
Non-cash expense (a)		279		40
Total	$	2,776	$	512

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Reinsurance (Tables)

3 Months Ended

Mar. 31, 2023

Insurance [Abstract]

Impact of the Reinsurance Contracts on Premiums Written and Earned

The impact of the reinsurance contracts on premiums written and earned is as follows:

	Three Months Ended
	March 31,
	2023			2022
Premiums Written:
Direct	$	207,423		$	171,981
Assumed		(7,569	)		5,313
Gross written		199,854			177,294
Ceded		(70,509	)		(53,162	)
Net premiums written	$	129,345		$	124,132
Premiums Earned:
Direct	$	172,905		$	148,846
Assumed		7,163			30,079
Gross earned		180,068			178,925
Ceded		(70,509	)		(53,162	)
Net premiums earned	$	109,559		$	125,763

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Losses and Loss Adjustment Expenses (Tables)

3 Months Ended

Mar. 31, 2023

Insurance [Abstract]

Liability for Unpaid Losses and Loss Adjustment Expenses

Activity in the liability for losses and LAE is summarized as follows:

	Three Months Ended
	March 31,
	2023			2022
Net balance, beginning of period*	$	246,546		$	172,410
Incurred, net of reinsurance, related to:
Current period		56,698			70,076
Prior periods		3,867			2,628
Total incurred, net of reinsurance		60,565			72,704
Paid, net of reinsurance, related to:
Current period		(11,110	)		(18,796	)
Prior periods		(49,950	)		(46,481	)
Total paid, net of reinsurance		(61,060	)		(65,277	)
Net balance, end of period		246,051			179,837
Add: reinsurance recoverable before allowance for credit losses		560,257			54,955
Gross balance, end of period	$	806,308		$	234,792

* Net balance represents beginning-of-period liability for unpaid losses and LAE less beginning-of-period reinsurance recoverable for unpaid losses and LAE.

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Summary of Segment Information Reconciled to Consolidated Statements of Income

The following tables present segment information reconciled to the Company’s consolidated statements of income. Intersegment transactions are not eliminated from segment results. However, intracompany transactions are eliminated in segment results below.

	HCPCI
	Insurance			TypTap			Real		Corporate/			Reclassification/
For Three Months Ended March 31, 2023	Operations			Group			Estate (a)		Other (b)			Elimination			Consolidated
Revenue:
Gross premiums earned (c)	$	96,991		$	87,612		$	—	$	—		$	(4,535	)	$	180,068
Premiums ceded		(40,195	)		(34,823	)		—		—			4,509			(70,509	)
Net premiums earned		56,796			52,789			—		—			(26	)		109,559
Net income from investment portfolio		2,954			3,379			—		1,900			8,862			17,095
Gain from sales of real estate investments		—			—			8,936		—			(8,936	)		—
Policy fee income		563			527			—		—			—			1,090
Other		4,653			1,643			2,923		595			(8,529	)		1,285
Total revenue		64,966			58,338			11,859		2,495			(8,629	)		129,029
Expenses:
Losses and loss adjustment expenses		28,782			33,056			—		—			(1,273	)		60,565
Amortization of deferred policy acquisition costs		9,621			11,863			—		—			—			21,484
Other policy acquisition expenses		655			611			—		—			(30	)		1,236
Stock-based compensation expense		496			829			—		781			—			2,106
Interest expense		—			431			203		2,598			(431	)		2,801
Depreciation and amortization		139			956			627		202			(537	)		1,387
Loss on extinguishment of debt		—			—			177		—			(177	)		—
Personnel and other operating expenses		9,919			9,433			1,554		1,589			(6,181	)		16,314
Total expenses		49,612			57,179			2,561		5,170			(8,629	)		105,893
Income (loss) before income taxes	$	15,354		$	1,159		$	9,298	$	(2,675	)	$	—		$	23,136
Total revenue from non-affiliates (d)	$	56,929		$	61,286		$	11,051	$	1,926
Gross premiums written	$	85,153		$	114,701

(a)Other revenue under real estate primarily consisted of rental income from investment properties.

(b)Other revenue under corporate and other primarily consisted of revenue from marina business.

(c)Gross premiums earned under HCPCI Insurance Operations consist of $92,456 from HCPCI and $4,535 from a reinsurance company.

(d)Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation.

	HCPCI
	Insurance			TypTap			Real		Corporate/			Reclassification/
For Three Months Ended March 31, 2022	Operations			Group			Estate (a)		Other (b)			Elimination			Consolidated
Revenue:
Gross premiums earned (c)	$	119,305		$	60,622		$	—	$	—		$	(1,002	)	$	178,925
Premiums ceded		(36,953	)		(16,933	)		—		—			724			(53,162	)
Net premiums earned		82,352			43,689			—		—			(278	)		125,763
Net (loss) income from investment portfolio		(1,457	)		(16	)		—		316			135			(1,022	)
Policy fee income		654			403			—		—			—			1,057
Other		1,247			469			2,403		836			(3,713	)		1,242
Total revenue		82,796			44,545			2,403		1,152			(3,856	)		127,040
Expenses:
Losses and loss adjustment expenses		43,995			28,988			—		—			(279	)		72,704
Amortization of deferred policy acquisition costs		19,102			9,422			—		—			—			28,524
Other policy acquisition expenses		663			283			—		—			—			946
Stock-based compensation expense		1,144			885			—		2,308			—			4,337
Interest expense		—			200			227		374			(200	)		601
Depreciation and amortization		114			561			605		172			(623	)		829
Personnel and other operating expenses		7,318			7,493			1,307		1,734			(2,754	)		15,098
Total expenses		72,336			47,832			2,139		4,588			(3,856	)		123,039
Income (loss) before income taxes	$	10,460		$	(3,287	)	$	264	$	(3,436	)	$	—		$	4,001
Total revenue from non-affiliates (d)	$	81,733		$	44,823		$	2,064	$	449
Gross premiums written	$	91,141		$	86,153

(a)Other revenue under real estate primarily consisted of rental income from investment properties.

(b)Other revenue under corporate and other primarily consisted of revenue from marina business.

(c)Gross premiums earned under HCPCI Insurance Operations consist of $118,303 from HCPCI and $1,002 from a reinsurance company.

(d)Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation.

Summary of Segment Assets Reconciled to Consolidated Balance Sheets

The following table presents segment assets reconciled to the Company’s total assets on the consolidated balance sheets:

	March 31,			December 31,
	2023			2022
Segments:
HCPCI Insurance Operations	$	880,107		$	912,233
TypTap Group		719,774			704,429
Real Estate Operations		119,646			126,001
Corporate and Other		150,118			159,378
Consolidation and Elimination		(98,523	)		(98,713	)
Total assets	$	1,771,122		$	1,803,328

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Leases (Tables)

3 Months Ended

Mar. 31, 2023

Disclosure Of Leases [Abstract]

Disclosure of right-of-use assets and liabilities for operating and finance leases

The table below summarizes the Company’s right-of-use (“ROU”) assets and corresponding liabilities for operating and finance leases:

	March 31,		December 31,
	2023		2022
Operating leases:
ROU assets	$	1,466	$	777
Liabilities	$	1,422	$	721
Finance leases:
ROU assets	$	80	$	80
Liabilities	$	10	$	13

Disclosure of operating and finance leases of lessee

The following table summarizes the Company’s operating and finance leases in which the Company is a lessee:

		Renewal	Other Terms and
Class of Assets	Initial Term	Option	Conditions
Operating lease:
Office equipment	1 month	Yes	(a)
Office space	3 to 9 years	Yes	(a), (b)
Finance lease:
Office equipment	3 to 5 years	Not applicable	(c)

(a)There are no variable lease payments.

(b)Rent escalation provisions exist.

(c)There is a bargain purchase option.

Disclosure of lease liabilities maturities

As of March 31, 2023, maturities of lease liabilities were as follows:

	Leases
	Operating		Finance
Due in 12 months following March 31,
2023	$	258	$	9
2024		255		1
2025		264		—
2026		274		—
2027		315		—
Thereafter		336		—
Total lease payments		1,702		10
Less: interest		280		—
Total lease obligations	$	1,422	$	10

Disclosure of quantitative information of operating and finance leases

The following table provides quantitative information with regards to the Company’s operating and finance leases:

	Three Months Ended
	March 31,
	2023			2022
Lease costs:
Finance lease costs:
Amortization – ROU assets*	$	4		$	5
Operating lease costs*		52			374
Short-term lease costs*		93			110
Total lease costs	$	149		$	489
Cash paid for amounts included in the    measurement of lease liabilities:
Operating cash flows – operating leases	$	44		$	372
Financing cash flows – finance leases	$	4		$	5
	March 31,
	2023
Weighted-average remaining lease term:
Finance leases (in years)		0.9
Operating leases (in years)		6.4
Weighted-average discount rate:
Finance leases (%)		3.3	%
Operating leases (%)		5.9	%

* Included in other operating expenses on the consolidated statements of income.

Disclosure of operating leases of lessor entity

The following table summarizes the Company’s operating leases in which the Company is a lessor:

		Renewal	Other Terms and
Class of Assets	Initial Term	Option	Conditions
Operating lease:
Retail space	3 to 15 years	Yes	(d)
Boat docks/wet slips	1 to 12 months	Yes	(d)

(d)There are no purchase options.

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Summary of Numerator and Denominator of Basic and Diluted Earnings Per Common Share

A summary of the numerator and denominator of the basic and diluted earnings per common share is presented below:

	Three Months Ended							Three Months Ended
	March 31, 2023							March 31, 2022
	Income			Shares (a)		Per Share		Income			Shares (a)		Per Share
	(Numerator)			(Denominator)		Amount		(Numerator)			(Denominator)		Amount
Net income	$	17,793						$	2,791
Less: Net income attributable to redeemable    noncontrolling interest		(2,324	)						(2,248	)
Less: TypTap Group’s net (income) loss    attributable to non-HCI common    stockholders and TypTap Group’s    participating securities		(131	)						360
Net income attributable to HCI		15,338							903
Less: Income attributable to participating    securities		(564	)						(52	)
Basic Earnings Per Share:
Income allocated to common stockholders		14,774			8,278	$	1.78		851			9,479	$	0.09
Effect of Dilutive Securities: *
Stock options		—			45				—			135
Convertible senior notes		1,921			2,537				—			—
Warrants		—			—				—			153
Diluted Earnings Per Share:
Income available to common stockholders    and assumed conversions	$	16,695			10,860	$	1.54	$	851			9,767	$	0.09

(a)Shares in thousands.

* For the three months ended March 31, 2023, warrants were excluded due to anti-dilutive effect. For the three months ended March 31, 2022, convertible senior notes were excluded due to anti-dilutive effect.

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Redeemable Noncontrolling Interest (Tables)

3 Months Ended

Mar. 31, 2023

Noncontrolling Interest [Abstract]

Summary of Activity of Redeemable Noncontrolling Interest

The following table summarizes the activity of redeemable noncontrolling interest during the three months ended March 31, 2023 and 2022:

	2023			2022
Balance at January 1	$	93,553		$	89,955
Increase (decrease):
Accrued cash dividends		1,637			1,342
Accretion - increasing dividend rates		687			906
Dividends paid		(3,012	)		(2,508	)
Balance at March 31	$	92,865		$	89,695

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Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Summary of Company's Stock Option Plan Activity

A summary of the stock option activity for the three months ended March 31, 2023 and 2022 is as follows (option amounts not in thousands):

					Weighted
			Weighted		Average
			Average		Remaining	Aggregate
	Number of		Exercise		Contractual	Intrinsic
	Options		Price		Term	Value
Outstanding at January 1, 2023		440,000	$	45.25	5.6 years	$	—
Outstanding at March 31, 2023		440,000	$	45.25	5.3 years	$	3,146
Exercisable at March 31, 2023		412,500	$	45.07	5.2 years	$	3,031
Outstanding at January 1, 2022		440,000	$	45.25	6.6 years	$	18,119
Outstanding at March 31, 2022		440,000	$	45.25	6.3 years	$	10,494
Exercisable at March 31, 2022		357,500	$	44.23	6.0 years	$	8,891

Information with Respect to Unvested Restricted Stock Awards and Incentive Plan

Information with respect to the activity of unvested restricted stock awards during the three months ended March 31, 2023 and 2022 is as follows:

	Number of			Weighted
	Restricted			Average
	Stock			Grant Date
	Awards			Fair Value
Nonvested at January 1, 2023		342,459		$	39.86
Granted		6,000		$	51.76
Vested		(40,352	)	$	54.83
Forfeited		(2,125	)	$	40.33
Nonvested at March 31, 2023		305,982		$	38.11
Nonvested at January 1, 2022		679,997		$	39.72
Granted		4,000		$	70.58
Vested		(50,667	)	$	50.68
Forfeited		(3,265	)	$	45.85
Nonvested at March 31, 2022		630,065		$	39.00

Information about Deferred Tax Benefits Recognized Related to Restricted Stock Awards, Paid Dividends and the Fair Value of Vested Restricted Stock

The following table summarizes information about deferred tax benefits recognized and tax benefits realized related to restricted stock awards and paid dividends, and the fair value of vested restricted stock for the three months ended March 31, 2023 and 2022.

	Three Months Ended
	March 31,
	2023		2022
Deferred tax benefits recognized	$	263	$	652
Tax benefits realized for restricted stock and paid dividends	$	299	$	402
Fair value of vested restricted stock	$	2,213	$	2,568

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Aggregate Premium Amounts Payable to Reinsurer

The table below presents the future minimum aggregate premium amounts payable to the reinsurer.

Due in 12 months following March 31,
2023	$	91,350
2024		91,350
Total	$	182,700

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Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Summary Of Significant Accounting Policies [Line Items]
Other	$ 1,285	$ 1,242
Claims processing services
Summary Of Significant Accounting Policies [Line Items]
Other	$ 527	$ 1,007

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Cash, Cash Equivalents, and Restricted Cash - Summary of Cash, Cash Equivalents, and Restricted Cash (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	$ 302,025	$ 234,863
Restricted cash	2,987	2,900
Total	$ 305,012	$ 237,763

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Cash, Cash Equivalents, and Restricted Cash (Additional Information) (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Restricted cash	$ 2,987	$ 2,900
Pineda Landings Melbourne [Member]
Restricted cash	$ 87

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Investments - Summary of Amortized Cost, Allowance for Credit Loss, Gross Unrealized Gains and Losses, and Estimated Fair Value of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Schedule of Available-for-sale Securities [Line Items]
Fixed-maturity securities, Cost or Amortized Cost	$ 531,899	$ 494,197
Allowance for Credit Loss	0	0
Fixed-maturity securities, Gross Unrealized Gain	461	81
Fixed-maturity securities, Gross Unrealized Loss	(7,604)	(10,377)
Fixed-maturity securities, Estimated Fair Value	524,756	483,901
Fixed-Maturity Securities [Member] | U.S. Treasury and U.S. Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed-maturity securities, Cost or Amortized Cost	501,700	463,648
Fixed-maturity securities, Gross Unrealized Gain	421	59
Fixed-maturity securities, Gross Unrealized Loss	(6,495)	(9,105)
Fixed-maturity securities, Estimated Fair Value	495,626	454,602
Fixed-Maturity Securities [Member] | Corporate Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed-maturity securities, Cost or Amortized Cost	28,312	28,378
Fixed-maturity securities, Gross Unrealized Gain	39	20
Fixed-maturity securities, Gross Unrealized Loss	(1,094)	(1,205)
Fixed-maturity securities, Estimated Fair Value	27,257	27,193
Fixed-Maturity Securities [Member] | States, Municipalities, and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed-maturity securities, Cost or Amortized Cost	1,393	1,389
Fixed-maturity securities, Gross Unrealized Gain	1
Fixed-maturity securities, Gross Unrealized Loss	(3)	(6)
Fixed-maturity securities, Estimated Fair Value	1,391	1,383
Fixed-Maturity Securities [Member] | Exchange-Traded Debt [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed-maturity securities, Cost or Amortized Cost	494	683
Fixed-maturity securities, Gross Unrealized Gain	0	2
Fixed-maturity securities, Gross Unrealized Loss	(12)	(52)
Fixed-maturity securities, Estimated Fair Value	$ 482	633
Fixed-Maturity Securities [Member] | Redeemable Preferred Stock [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed-maturity securities, Cost or Amortized Cost		99
Fixed-maturity securities, Gross Unrealized Loss		(9)
Fixed-maturity securities, Estimated Fair Value		$ 90

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Investments - Scheduled Contractual Maturities of Fixed-Maturity Securities (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Due in one year or less, Cost or Amortized Cost	$ 357,645	$ 266,170
Due after one year through five years, Cost or Amortized Cost	170,850	223,153
Due after five years through ten years, Cost or Amortized Cost	2,910	4,380
Due after ten years, Cost or Amortized Cost	494	494
Fixed-maturity securities, Cost or Amortized Cost	531,899	494,197
Due in one year or less, Estimated Fair Value	355,922	265,353
Due after one year through five years, Estimated Fair Value	165,769	214,307
Due after five years through ten years, Estimated Fair Value	2,583	3,797
Due after ten years, Estimated Fair Value	482	444
Estimated Fair Value Total	$ 524,756	$ 483,901

XML

Investments - Summary of Sales of Available-for-sale Fixed-Maturity Securities (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Schedule of Available-for-sale Securities [Line Items]
Proceeds	$ 11,060	$ 9,058
Fixed-Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Proceeds	11,060	9,058
Gross Realized Gains	0	2
Gross Realized Losses	$ (738)	$ (431)

XML

Investments - Summary of Securities with Gross Unrealized Loss Positions Aggregated by Investment Category (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Loss, Less than Twelve Months	$ (2,782)	$ (9,677)
Estimated Fair Value, Less than Twelve Months	144,268	294,080
Gross Unrealized Loss, Twelve Months or Longer	(4,822)	(700)
Estimated Fair Value, Twelve Months or Longer	119,827	7,185
Gross Unrealized Loss, Total	(7,604)	(10,377)
Estimated Fair Value, Total	264,095	301,265
U.S. Treasury and U.S. Government Agencies [Member] | Fixed-Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Loss, Less than Twelve Months	(1,993)	(8,701)
Estimated Fair Value, Less than Twelve Months	123,661	269,116
Gross Unrealized Loss, Twelve Months or Longer	(4,502)	(404)
Estimated Fair Value, Twelve Months or Longer	115,681	4,644
Gross Unrealized Loss, Total	(6,495)	(9,105)
Estimated Fair Value, Total	239,342	273,760
Corporate Bonds [Member] | Fixed-Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Loss, Less than Twelve Months	(774)	(909)
Estimated Fair Value, Less than Twelve Months	19,228	23,028
Gross Unrealized Loss, Twelve Months or Longer	(320)	(296)
Estimated Fair Value, Twelve Months or Longer	4,146	2,541
Gross Unrealized Loss, Total	(1,094)	(1,205)
Estimated Fair Value, Total	23,374	25,569
States, Municipalities, and Political Subdivisions [Member] | Fixed-Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Loss, Less than Twelve Months	(3)	(6)
Estimated Fair Value, Less than Twelve Months	897	1,383
Gross Unrealized Loss, Twelve Months or Longer	0	0
Estimated Fair Value, Twelve Months or Longer	0	0
Gross Unrealized Loss, Total	(3)	(6)
Estimated Fair Value, Total	897	1,383
Exchange-Traded Debt [Member] | Fixed-Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Loss, Less than Twelve Months	(12)	(52)
Estimated Fair Value, Less than Twelve Months	482	463
Gross Unrealized Loss, Twelve Months or Longer	0	0
Estimated Fair Value, Twelve Months or Longer	0	0
Gross Unrealized Loss, Total	(12)	(52)
Estimated Fair Value, Total	$ 482	463
Redeemable Preferred Stock [Member] | Fixed-Maturity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Gross Unrealized Loss, Less than Twelve Months		(9)
Estimated Fair Value, Less than Twelve Months		90
Gross Unrealized Loss, Twelve Months or Longer		0
Estimated Fair Value, Twelve Months or Longer		0
Gross Unrealized Loss, Total		(9)
Estimated Fair Value, Total		$ 90

XML

Investments (Securities with Gross Unrealized Loss Positions) - Additional Information (Detail) - Security	Mar. 31, 2023	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Number of securities in an unrealized loss position	73	84

XML

Investments (Allowance for Credit Losses of Available-for-Sale Fixed-Maturity Securities) - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Allowance for credit losses of available-for-sale debt securities	$ 0	$ 0

XML

Investments - Summary of Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Equity Securities (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Cost	$ 38,575	$ 36,272
Gross Unrealized Gain	2,399	2,078
Gross Unrealized Loss	(3,559)	(3,767)
Equity Securities	$ 37,415	$ 34,583

XML

Investments - Summary of Unrealized Gains and Losses in Consolidated Statements of Income (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Gain (Loss) on Securities [Line Items]
Net unrealized gains (losses) recognized	$ 529	$ (3,576)
Equity Securities [Member]
Gain (Loss) on Securities [Line Items]
Net gains (losses) recognized	114	(3,542)
Exclude: Net realized (losses) gains recognized for securities sold	$ (415)	$ 34

XML

Investments - Summary of Proceeds Received and The Gross Realized Gains and Losses From Sales of Equity Securities (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Debt and Equity Securities, FV-NI [Line Items]
Proceeds	$ 3,754	$ 18,369
Equity Securities [Member]
Debt and Equity Securities, FV-NI [Line Items]
Proceeds	3,754	18,369
Gross Realized Gains	17	1,420
Gross Realized Losses	$ (432)	$ (1,386)

XML

Investments - Schedule of Company's Investments in Limited Partnerships (Detail) - USD ($) $ in Thousands		3 Months Ended	12 Months Ended
		Mar. 31, 2023	Dec. 31, 2022
Investment Securities [Line Items]
Carrying Value		$ 24,520	$ 25,702
Unfunded balance		5,501	5,661
Private US Lower Middle Market Companies [Member]
Investment Securities [Line Items]
Carrying Value	[1],[2],[3]	4,062	4,146
Unfunded balance	[1],[2],[3]	$ 0	$ 0
Percentage investment held by the entity	[1],[2],[3],[4]	15.37%	15.37%
Bank Loans Public and Private Corporate Bonds Asset Backed Securities Equity and Debt Restructuring [Member]
Investment Securities [Line Items]
Carrying Value	[1],[2],[5]	$ 2,326	$ 2,528
Unfunded balance	[1],[2],[5]	$ 0	$ 0
Percentage investment held by the entity	[1],[2],[4],[5]	1.27%	1.66%
Power Utility and Energy Industries and Infrastructure [Member]
Investment Securities [Line Items]
Carrying Value	[2],[6],[7]	$ 4,477	$ 5,319
Unfunded balance	[2],[6],[7]	$ 0	$ 0
Percentage investment held by the entity	[2],[4],[6],[7]	0.18%	0.18%
Senior and Junior Debts of Private Equity-Backed Companies [Member]
Investment Securities [Line Items]
Carrying Value	[2],[8],[9]	$ 3,258	$ 3,470
Unfunded balance	[2],[8],[9]	$ 0	$ 0
Percentage investment held by the entity	[2],[4],[8],[9]	0.56%	0.56%
Mature Real Estate Private Equity Funds And Portfolios Globally [Member]
Investment Securities [Line Items]
Carrying Value	[2],[10]	$ 7,581	$ 7,457
Unfunded balance	[2],[10]	$ 2,982	$ 3,125
Percentage investment held by the entity	[2],[4],[10]	1.32%	1.32%
Credit and Equity Investments, Primarily in Private Equity-Owned Companies [Member]
Investment Securities [Line Items]
Carrying Value	[2],[11]	$ 2,816	$ 2,782
Unfunded balance	[2],[11]	$ 2,519	$ 2,536
Percentage investment held by the entity	[2],[4],[11]	0.85%	0.98%

[1] At the fund manager’s discretion, the term of the fund may be extended for up to two additional one-year periods.

[2] Except under certain circumstances, withdrawals from the funds or any assignments are not permitted. Distributions, except income from late admission of a new limited partner, will be received when underlying investments of the funds are liquidated.

[3] The term is expected to be two years following the maturity of the fund’s outstanding leverage. Although the capital commitment period has expired, follow-on investments and pending commitments may require additional fundings.

[4] Represents the Company’s percentage investment in the fund at each balance sheet date.

[5] The term has been extended for a second additional one-year period to June 30, 2023. Although the capital commitment period has ended, the general partner could still request an additional funding under certain circumstances.

[6] Expected to have a ten-year term. The capital commitment period has expired but the general partner may request additional funding for follow-on investment.

[7] With the consent of a supermajority of partners, the term of the fund may be extended for up to three additional one-year periods.

[8] Expected to have an eight-year term from the commencement date, which can be extended for up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners.

[9] The capital commitment period has ended but an additional funding may be requested.

[10] The term is expected to end November 27, 2027. The term may be extended for up to four additional one-year periods at the general partner’s discretion, and up to two additional one-year periods with the consent of the advisory committee.

[11] Expected to have an eight-year term after the final admission date. The term may be extended for an additional one-year period at the general partner’s discretion, and up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners.

XML

Investments - Schedule of Company's Investments in Limited Partnerships (Parenthetical) (Detail)	3 Months Ended
	Mar. 31, 2023
Private US Lower Middle Market Companies [Member]
Schedule Of Investments [Line Items]
Expected term	2 years
Bank Loans Public and Private Corporate Bonds Asset Backed Securities Equity and Debt Restructuring [Member]
Schedule Of Investments [Line Items]
Investment Additional Maturity Term	2 years
Maturity date	Jun. 30, 2023
Power Utility and Energy Industries and Infrastructure [Member]
Schedule Of Investments [Line Items]
Expected term	10 years
Investment Additional Maturity Term	3 years
Senior and Junior Debts of Private Equity-Backed Companies [Member]
Schedule Of Investments [Line Items]
Expected term	8 years
Investment additional maturity term	2 years
Mature Real Estate Private Equity Funds And Portfolios Globally [Member]
Schedule Of Investments [Line Items]
Maturity date	Nov. 27, 2027
Investment additional maturity term	2 years
Investment additional maturity term	4 years
Credit and Equity Investments, Primarily in Private Equity-Owned Companies [Member]
Schedule Of Investments [Line Items]
Expected term	8 years
Investment additional maturity term	1 year
Investment additional maturity term	2 years

XML

Investments - Summary of Unaudited Financial Information and Unaudited Financial Position of Limited Partnerships (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Schedule Of Equity Method Investments [Line Items]
Total income	$ 129,029	$ 127,040
Net income	17,793	2,791
Balance sheet:
Total assets	1,771,122		$ 1,803,328
Total liabilities	1,498,400		1,548,521
Limited Partnership [Member]
Schedule Of Equity Method Investments [Line Items]
Total income	182,360	336,828
Total expenses	(2,257)	(49,317)
Net income	180,103	$ 287,511
Balance sheet:
Total assets	5,228,330		5,119,695
Total liabilities	$ 397,463		$ 430,354

XML

Investments (Limited Partnership Investments) - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Schedule Of Investments [Line Items]
Recognized investment income	$ 553	$ 1,780
Return on investment	303	811
Limited Partnership [Member]
Schedule Of Investments [Line Items]
Recognized investment income	553	1,780
Estimated favorable change in net asset value	124
Cash distributions	1,905	1,596
Return on investment	303	$ 811
Company's net cumulative contributed capital to the partnership	23,546		$ 24,978
Maximum exposure loss relating to VIE	$ 24,520		$ 25,702

XML

Investments (Investment in Unconsolidated Joint Venture) - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jan. 31, 2023	Dec. 31, 2022
Variable Interest Entity, Not Primary Beneficiary [Member]
Schedule Of Investments [Line Items]
Percentage of equity interest		90.00%
FMKT Mel JV, LLC [Member]
Schedule Of Investments [Line Items]
Cash distribution	$ 18

XML

Investments - Summary of Real Estate Investments (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Real Estate [Abstract]
Land	$ 29,471	$ 38,327
Land improvements	4,387	12,138
Buildings and building improvements	12,544	29,410
Tenant and leasehold improvements	1,270	1,742
Other	1,593	1,649
Total, at cost	49,265	83,266
Less: accumulated depreciation and amortization	(5,703)	(11,878)
Real estate investments	$ 43,562	$ 71,388

XML

Investments (Real Estate Investments) - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Jan. 31, 2023	Mar. 31, 2023	Mar. 31, 2022
Schedule Of Investments [Line Items]
Real estate investments to property and equipment, net	$ 8,135
Pineda Landings Melbourne [Member]
Schedule Of Investments [Line Items]
Real estate investments sale price		$ 18,500
Real Estate Investments [Member]
Schedule Of Investments [Line Items]
Depreciation and amortization expenses under real estate investments		453	$ 506
Real Estate Investments [Member] | Pineda Landings Melbourne [Member]
Schedule Of Investments [Line Items]
Real estate investments sale price		18,500
Real Estate Investments [Member] | Sorrento Hills Village Sorrento [Member]
Schedule Of Investments [Line Items]
Real estate investments sale price		$ 13,418

XML

Investments - Investment Income (Loss) Summarized (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Schedule Of Investments [Line Items]
Recognized investment income	$ 553	$ 1,780
Real estate investments	9,293	347
Net Investment Income	17,715	2,868
Available-for-Sale-Fixed-Maturity Securities [Member]
Schedule Of Investments [Line Items]
Investment income	4,035	448
Equity Securities [Member]
Schedule Of Investments [Line Items]
Investment income	296	287
Investment Expense [Member]
Schedule Of Investments [Line Items]
Investment expense	(129)	(134)
Limited Partnership Investment [Member]
Schedule Of Investments [Line Items]
Recognized investment income	553	1,780
Loss From Unconsolidated Joint Venture [Member]
Schedule Of Investments [Line Items]
Investment income	0	(13)
Cash and Cash Equivalents [Member]
Schedule Of Investments [Line Items]
Investment income	$ 3,667	$ 153

XML

Investments (Investment Income (Loss) Summarized) - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net Investment Income [Line Items]
Gain on sale of investment real estate	$ 8,936	$ 0
Pineda Landings Melbourne [Member]
Net Investment Income [Line Items]
Real Estate Investments Sale Price	18,500
Real Estate Investments [Member] | Pineda Landings Melbourne [Member]
Net Investment Income [Line Items]
Gain on sale of investment real estate	6,476
Real Estate Investments Sale Price	18,500
Real Estate Investments [Member] | Sorrento Hills Village Sorrento [Member]
Net Investment Income [Line Items]
Gain on sale of investment real estate	2,460
Real Estate Investments Sale Price	$ 13,418

XML

Investments (Other Investments) - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Other Investments [Member]
Schedule Of Investments [Line Items]
Net realized gains	$ 4	$ 81

XML

Comprehensive Income (Loss) - Schedule of Components of Other Comprehensive Income or Loss and Related Tax Effects Allocated to Each Component (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Before Tax
Net unrealized gains (losses)	$ 2,415	$ (4,151)
Reclassification adjustment for net realized losses	738	429
Net change in unrealized gains (losses)	3,153	(3,722)
Income Tax Effect
Net unrealized gains (losses)	(1,997)	(1,047)
Reclassification adjustment for net realized losses	187	109
Total other comprehensive income (loss)	(1,810)	(938)
Net of Tax
Net unrealized gains (losses)	4,412	(3,104)
Reclassification adjustment for net realized losses	551	320
Total other comprehensive income (loss), net of income taxes	$ 4,963	$ (2,784)

XML

Fair Value Measurements - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]
Money Market Funds and Certificate Of Deposit Maturity Period	90 days

XML

Fair Value Measurements - Components of Long-Term Debt and Methods Used in Estimating Fair Values (Detail)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
4.75% Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date	2042
Valuation Methodology	Quoted price
4.25% Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date	2037
Valuation Methodology	Quoted price
3.90% Promissory Note [Member]
Debt Instrument [Line Items]
Valuation Methodology		Discounted cash flow method/Level 3 inputs
3.75% Callable Promissory Note [Member]
Debt Instrument [Line Items]
Valuation Methodology		Discounted cash flow method/Level 3 inputs
4.55% Promissory Note [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date	2036
Valuation Methodology	Discounted cash flow method/Level 3 inputs

XML

Fair Value Measurements - Components of Long-Term Debt and Methods Used in Estimating Fair Values (Parenthetical) (Detail)	Mar. 31, 2023	Dec. 31, 2022
4.75% Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument stated interest rate	4.75%
4.25% Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument stated interest rate	4.25%
3.90% Promissory Note [Member]
Debt Instrument [Line Items]
Debt instrument stated interest rate		3.90%
3.75% Callable Promissory Note [Member]
Debt Instrument [Line Items]
Debt instrument stated interest rate		3.75%
4.55% Promissory Note [Member]
Debt Instrument [Line Items]
Debt instrument stated interest rate	4.55%

XML

Fair Value Measurements - Financial Assets Measured at Fair Value (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financial Assets:
Restricted cash	$ 2,987	$ 2,900
Debt Securities, Available-for-Sale	524,756	483,901
Equity Securities	37,415	34,583
Fair Value, Measurements, Recurring [Member]
Financial Assets:
Cash and cash equivalents	302,025	234,863
Restricted cash	2,987	2,900
Debt Securities, Available-for-Sale	524,756	483,901
Equity Securities	37,415	34,583
Fair Value, Measurements, Recurring [Member] | (Level 1) [Member]
Financial Assets:
Cash and cash equivalents	302,025	234,863
Restricted cash	2,987	2,900
Debt Securities, Available-for-Sale	515,489	474,149
Equity Securities	37,415	34,583
Fair Value, Measurements, Recurring [Member] | (Level 2) [Member]
Financial Assets:
Debt Securities, Available-for-Sale	9,267	9,752
U.S. Treasury and U.S. Government Agencies [Member] | Fair Value, Measurements, Recurring [Member]
Financial Assets:
Debt Securities, Available-for-Sale	495,626	454,602
U.S. Treasury and U.S. Government Agencies [Member] | Fair Value, Measurements, Recurring [Member] | (Level 1) [Member]
Financial Assets:
Debt Securities, Available-for-Sale	487,750	446,233
U.S. Treasury and U.S. Government Agencies [Member] | Fair Value, Measurements, Recurring [Member] | (Level 2) [Member]
Financial Assets:
Debt Securities, Available-for-Sale	7,876	8,369
Corporate Bonds [Member] | Fair Value, Measurements, Recurring [Member]
Financial Assets:
Debt Securities, Available-for-Sale	27,257	27,193
Corporate Bonds [Member] | Fair Value, Measurements, Recurring [Member] | (Level 1) [Member]
Financial Assets:
Debt Securities, Available-for-Sale	27,257	27,193
States, Municipalities, and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member]
Financial Assets:
Debt Securities, Available-for-Sale	1,391	1,383
States, Municipalities, and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | (Level 2) [Member]
Financial Assets:
Debt Securities, Available-for-Sale	1,391	1,383
Exchange-Traded Debt [Member] | Fair Value, Measurements, Recurring [Member]
Financial Assets:
Debt Securities, Available-for-Sale	482	633
Exchange-Traded Debt [Member] | Fair Value, Measurements, Recurring [Member] | (Level 1) [Member]
Financial Assets:
Debt Securities, Available-for-Sale	$ 482	633
Redeemable Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member]
Financial Assets:
Debt Securities, Available-for-Sale		90
Redeemable Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | (Level 1) [Member]
Financial Assets:
Debt Securities, Available-for-Sale		$ 90

XML

Fair Value Measurements - Schedule of Fair Value Information for Financial Liabilities Carried on Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financial Liabilities:
Total long-term debt	$ 196,158	$ 211,687
Carrying Value [Member]
Financial Liabilities:
Total long-term debt	196,148	211,674
Carrying Value [Member] | 4.75% Convertible Senior Notes [Member]
Financial Liabilities:
Total long-term debt	167,396	167,126
Carrying Value [Member] | 4.25% Convertible Senior Notes [Member]
Financial Liabilities:
Total long-term debt	23,916	23,916
Carrying Value [Member] | 3.90% Promissory Note [Member]
Financial Liabilities:
Total long-term debt		8,943
Carrying Value [Member] | 3.75% Callable Promissory Note [Member]
Financial Liabilities:
Total long-term debt		6,789
Carrying Value [Member] | 4.55% Promissory Note [Member]
Financial Liabilities:
Total long-term debt	4,836	4,900
Estimate of Fair Value Measurement [Member]
Financial Liabilities:
Total long-term debt	184,511	171,605
Estimate of Fair Value Measurement [Member] | (Level 2) [Member]
Financial Liabilities:
Total long-term debt	179,894	152,640
Estimate of Fair Value Measurement [Member] | (Level 3) [Member]
Financial Liabilities:
Total long-term debt	4,617	18,965
Estimate of Fair Value Measurement [Member] | 4.75% Convertible Senior Notes [Member]
Financial Liabilities:
Total long-term debt	157,805	133,167
Estimate of Fair Value Measurement [Member] | 4.75% Convertible Senior Notes [Member] | (Level 2) [Member]
Financial Liabilities:
Total long-term debt	157,805	133,167
Estimate of Fair Value Measurement [Member] | 4.25% Convertible Senior Notes [Member]
Financial Liabilities:
Total long-term debt	22,089	19,473
Estimate of Fair Value Measurement [Member] | 4.25% Convertible Senior Notes [Member] | (Level 2) [Member]
Financial Liabilities:
Total long-term debt	22,089	19,473
Estimate of Fair Value Measurement [Member] | 3.90% Promissory Note [Member]
Financial Liabilities:
Total long-term debt		8,152
Estimate of Fair Value Measurement [Member] | 3.90% Promissory Note [Member] | (Level 3) [Member]
Financial Liabilities:
Total long-term debt		8,152
Estimate of Fair Value Measurement [Member] | 3.75% Callable Promissory Note [Member]
Financial Liabilities:
Total long-term debt		6,171
Estimate of Fair Value Measurement [Member] | 3.75% Callable Promissory Note [Member] | (Level 3) [Member]
Financial Liabilities:
Total long-term debt		6,171
Estimate of Fair Value Measurement [Member] | 4.55% Promissory Note [Member]
Financial Liabilities:
Total long-term debt	4,617	4,642
Estimate of Fair Value Measurement [Member] | 4.55% Promissory Note [Member] | (Level 3) [Member]
Financial Liabilities:
Total long-term debt	$ 4,617	$ 4,642

XML

Fair Value Measurements - Schedule of Fair Value Information for Financial Liabilities Carried on Consolidated Balance Sheets (Parenthetical) (Detail)	Mar. 31, 2023	Dec. 31, 2022
4.75% Convertible Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument stated interest rate	4.75%
4.25% Convertible Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument stated interest rate	4.25%
3.90% Promissory Note [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument stated interest rate		3.90%
3.75% Callable Promissory Note [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument stated interest rate		3.75%
4.55% Promissory Note [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument stated interest rate	4.55%
Carrying Value [Member] | 4.75% Convertible Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument stated interest rate	4.75%	4.75%
Carrying Value [Member] | 4.25% Convertible Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument stated interest rate	4.25%	4.25%
Carrying Value [Member] | 3.90% Promissory Note [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument stated interest rate		3.90%
Carrying Value [Member] | 3.75% Callable Promissory Note [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument stated interest rate		3.75%
Carrying Value [Member] | 4.55% Promissory Note [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument stated interest rate	4.55%	4.55%

XML

Intangible Assets, Net - Details of Intangible Assets, Net (Detail) - USD ($) $ in Thousands		Mar. 31, 2023	Dec. 31, 2022
Finite Lived Intangible Assets [Line Items]
Total, at cost		$ 10,824	$ 15,754
Less: accumulated amortization		(3,138)	(5,176)
Intangible assets, net		7,686	10,578
Anchor Tenant Relationships [Member]
Finite Lived Intangible Assets [Line Items]
Total, at cost	[1]	0	1,761
Leases, Acquired-in-Place [Member]
Finite Lived Intangible Assets [Line Items]
Total, at cost		410	3,579
Policy Renewal Rights [Member] | United [Member]
Finite Lived Intangible Assets [Line Items]
Total, at cost		10,100	10,100
Noncompete Agreements [Member]
Finite Lived Intangible Assets [Line Items]
Total, at cost	[2]	$ 314	$ 314

[1] An anchor tenant is a tenant that attracts more customers than other tenants.

[2] Fully amortized.

XML

Intangible Assets, Net - Schedule of Remaining Weighted-Average Amortization Period for Intangible Assets (Detail)	3 Months Ended
	Mar. 31, 2023
Leases, Acquired-in-Place [Member]
Finite Lived Intangible Assets [Line Items]
Remaining weighted-average amortization period	12 years 1 month 6 days
Policy Renewal Rights [Member]
Finite Lived Intangible Assets [Line Items]
Remaining weighted-average amortization period	3 years 1 month 6 days

XML

Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Finite Lived Intangible Assets [Line Items]
Intangible assets	$ 10,824	$ 15,754
Proceeds From Sale Of Intangible Assets	2,200
Other Liabilities [Member]
Finite Lived Intangible Assets [Line Items]
Asset Acquisition, Contingent Consideration, Liability	$ 371	$ 371

XML

Other Assets - Summary of Other Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Benefits receivable related to retrospective reinsurance contract	$ 23,310	$ 16,317
Reimbursement and fees receivable under TPA service	5,339	7,303
Prepaid expenses	2,394	2,826
Deposits	709	491
Lease acquisition costs, net	696	832
Other	3,656	3,902
Total other assets	$ 36,104	$ 31,671

XML

Revolving Credit Facility - Additional Information (Detail) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Line of Credit Facility [Line Items]
Interest Expense		$ 2,801	$ 601
Amortization of Debt Issuance Costs	[1]	279	40
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Interest Expense		25	89
Amortization of Debt Issuance Costs		25	$ 25
Revolving credit facility		0
Credit facility, maximum borrowing capacity		$ 50,000

[1] Includes amortization of debt issuance costs.

XML

Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Total principal amount	$ 201,328	$ 217,340
Finance Lease, Liability	10	13
Less: unamortized issuance costs	(5,170)	(5,653)
Total long-term debt	196,158	211,687
4.75% Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Total principal amount	172,500	172,500
4.25% Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Total principal amount	23,916	23,916
Less: unamortized issuance costs	0
3.90% Promissory Note [Member]
Debt Instrument [Line Items]
Total principal amount	0	9,072
3.75% Callable Promissory Note [Member]
Debt Instrument [Line Items]
Total principal amount	0	6,871
4.55% Promissory Note [Member]
Debt Instrument [Line Items]
Total principal amount	$ 4,902	$ 4,968

XML

Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail)	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
4.75% Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument stated interest rate	4.75%
Debt instrument, maturity date	Jun. 01, 2042
4.25% Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument stated interest rate	4.25%
Debt instrument, maturity date	Mar. 01, 2037
3.90% Promissory Note [Member]
Debt Instrument [Line Items]
Debt instrument stated interest rate		3.90%
Debt instrument, maturity date	Apr. 01, 2032
3.75% Callable Promissory Note [Member]
Debt Instrument [Line Items]
Debt instrument stated interest rate		3.75%
Debt instrument, maturity date	Sep. 01, 2036
4.55% Promissory Note [Member]
Debt Instrument [Line Items]
Debt instrument stated interest rate	4.55%
Debt instrument, maturity date	Aug. 01, 2036
Finance Lease Liabilities [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date	Oct. 15, 2024

XML

Long-Term Debt - Additional Information (Detail) $ / shares in Units, $ in Thousands		3 Months Ended
	Mar. 31, 2023 USD ($) $ / shares	Mar. 31, 2023 USD ($) $ / shares	Mar. 31, 2022 USD ($) $ / shares	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
Loss on extinguishment of debt		$ 177	$ 0
Cash dividends on common stock | $ / shares		$ 0.40	$ 0.40
Less: unamortized issuance costs	$ 5,170	$ 5,170		$ 5,653
Pineda Landings Melbourne [Member]
Debt Instrument [Line Items]
Real Estate Investments Sale Price	$ 18,500	$ 18,500
4.25% Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument stated interest rate	4.25%	4.25%
Convertible debt, conversion ratio		16.5486
Convertible debt, conversion price | $ / shares	$ 60.43	$ 60.43
Less: unamortized issuance costs	$ 0	$ 0
4.25% Convertible Senior Notes [Member] | Minimum [Member]
Debt Instrument [Line Items]
Cash dividends on common stock | $ / shares		$ 0.35
4.75% Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument stated interest rate	4.75%	4.75%
Convertible debt, conversion ratio		12.4166
Convertible debt, conversion price | $ / shares	$ 80.54	$ 80.54
Debt issuance costs, remaining amortization period		4 years 2 months 12 days
Debt instrument interest rate effective percentage till final maturity		5.00%
Debt instrument interest rate effective percentage	5.60%	5.60%
3.90% Promissory Note [Member]
Debt Instrument [Line Items]
Debt instrument stated interest rate				3.90%
Decrease in Interest Payable, Net	$ 16
Notes Reduction		$ 8,979
3.75% Callable Promissory Note [Member]
Debt Instrument [Line Items]
Debt instrument stated interest rate				3.75%
Loss on extinguishment of debt		$ 177
Repayments of Long-Term Debt	6,775
Decrease in Interest Payable, Net	$ 22

XML

Long-Term Debt - Summary of Future Maturities of Long-Term Debt (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Long-Term Debt, Rolling Maturity [Abstract]
2023	$ 280
2024	285
2025	297
2026	24,227
2027	172,826
Thereafter	3,413
Total	$ 201,328	$ 217,340

XML

Long-Term Debt - Schedule of Interest Expense Related to Long-Term Debt (Detail) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Interest Expense, Debt [Abstract]
Contractual interest		$ 2,497	$ 472
Non-cash expense (a)	[1]	279	40
Total		$ 2,776	$ 512

[1] Includes amortization of debt issuance costs.

XML

Reinsurance - Additional Information (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) Reinsurer	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($) Reinsurer
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items]
Percentage of ceding commission on ceded premiums written	30.00%
Profit commission on net profit	10.00%
Reinsurance recoverable	$ 596,700		$ 688,359
Ceded losses recognized as a reduction in losses and loss adjustment expenses	2,751	$ 870
Decrease in credit loss expense	1	11
Allowances for credit losses related to the reinsurance recoverable balance	453		454
Reduction in premiums ceded	6,993	1,484
Other Assets	36,104		31,671
Benefits receivable related to retrospective reinsurance contract	23,310		16,317
Funds withheld for assumed business	45,274		48,772
Assumed premiums written	(7,569)	5,313
Premiums receivable	44,966		34,998
Reinsurance payable on paid losses and loss adjustment expenses	7,043		8,606
United [Member]
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items]
Funds withheld for assumed business	45,274		48,772
Net amount due to entity	10,270
Northeast Region [Member] | United [Member]
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items]
Net amount payable	1,207		1,581
Assumed premiums written	0	(6,849)
Ceding commission payable	581		581
Reinsurance payable on paid losses and loss adjustment expenses	626		1,000
Southeast Region [Member] | United [Member]
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items]
Net amount payable	14,402		7,521
Assumed premiums written	(7,569)	$ 12,162
Premiums receivable			101
Ceding commission payable			16
Reinsurance payable on paid losses and loss adjustment expenses	6,417		$ 7,606
Premiums payable	9,506
Ceding commission receivable	$ 1,521
Forty Five Reinsurers [Member]
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items]
Number of reinsurers | Reinsurer	45		45
Reinsurance Recoverable for Paid and Unpaid Claims and Claims Adjustments [Member] | Reinsurer Concentration Risk [Member]
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items]
Number of reinsurers | Reinsurer	6
Reinsurance Recoverable for Paid and Unpaid Claims and Claims Adjustments [Member] | Reinsurer Concentration Risk [Member] | Reinsurance [Member]
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items]
Percentage of reinsurance recoverable major reinsurers	60.60%

XML

Reinsurance - Impact of the Reinsurance Contracts on Premiums Written and Earned (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023		Mar. 31, 2022
Premiums Written:
Direct	$ 207,423		$ 171,981
Assumed	(7,569)		5,313
Gross written	199,854		177,294
Ceded	(70,509)		(53,162)
Net premiums written	129,345		124,132
Premiums Earned:
Direct	172,905		148,846
Assumed	7,163		30,079
Gross earned	180,068	[1]	178,925	[2]
Ceded	(70,509)		(53,162)
Net premiums earned	$ 109,559		$ 125,763

[1] Gross premiums earned under HCPCI Insurance Operations consist of $92,456 from HCPCI and $4,535 from a reinsurance company.

[2] Gross premiums earned under HCPCI Insurance Operations consist of $118,303 from HCPCI and $1,002 from a reinsurance company.

XML

Losses and Loss Adjustment Expenses - Losses and LAE (Detail) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Net balance, beginning of period*	[1]	$ 246,546	$ 172,410
Incurred, net of reinsurance, related to:
Current period		56,698	70,076
Prior periods		3,867	2,628
Total incurred, net of reinsurance		60,565	72,704
Paid, net of reinsurance, related to:
Current period		(11,110)	(18,796)
Prior periods		(49,950)	(46,481)
Total paid, net of reinsurance		(61,060)	(65,277)
Net balance, end of period		246,051	179,837
Add: reinsurance recoverable before allowance for credit losses		560,257	54,955
Gross balance, end of period		$ 806,308	$ 234,792	$ 863,765

[1] Net balance represents beginning-of-period liability for unpaid losses and LAE less beginning-of-period reinsurance recoverable for unpaid losses and LAE.

XML

Losses and Loss Adjustment Expenses - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Reserves For Losses And Loss Adjustment Expenses [Line Items]
Claims and claim adjustment expenses prior period development	$ 3,867	$ 2,628
Total incurred, net of reinsurance	60,565	$ 72,704
United [Member]
Reserves For Losses And Loss Adjustment Expenses [Line Items]
Total incurred, net of reinsurance	21,635
Accident Year 2022 and Prior [Member]
Reserves For Losses And Loss Adjustment Expenses [Line Items]
Claims and claim adjustment expenses prior period development	$ 3,867

XML

Segment Information - Additional Information (Detail) - Segment	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Segment Reporting Information [Line Items]
Number of operating divisions	4
Sales Revenue, Net [Member] | Segment Concentration Risk [Member] | HCPCI Insurance Operations [Member]
Segment Reporting Information [Line Items]
Concentration risk, percentage	61.20%	69.80%
Sales Revenue, Net [Member] | Segment Concentration Risk [Member] | TypTap Insurance Group
Segment Reporting Information [Line Items]
Concentration risk, percentage	36.50%	28.30%
Assets [Member] | Segment Concentration Risk [Member] | HCPCI Insurance Operations [Member]
Segment Reporting Information [Line Items]
Concentration risk, percentage	52.50%		53.40%
Assets [Member] | Segment Concentration Risk [Member] | TypTap Insurance Group
Segment Reporting Information [Line Items]
Concentration risk, percentage	39.00%		37.90%

XML

Segment Information - Summary of Segment Information Reconciled to Consolidated Statements of Income (Detail) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2023		Mar. 31, 2022
Revenue:
Gross premiums earned		$ 180,068	[1]	$ 178,925	[2]
Premiums ceded		(70,509)		(53,162)
Net premiums earned		109,559		125,763
Net income (loss) from investment portfolio		17,095		(1,022)
Gain from sales of real estate investments		8,936		0
Policy fee income		1,090		1,057
Other		1,285		1,242
Total revenue		129,029		127,040
Expenses:
Losses and loss adjustment expenses		60,565		72,704
Amortization of deferred policy acquisition costs		21,484		28,524
Other policy acquisition expenses		1,236		946
Stock-based compensation expense		2,106		4,337
Interest expense		2,801		601
Depreciation and amortization		1,387		829
Loss on extinguishment of debt		177		0
Personnel and other operating expenses		16,314		15,098
Total expenses		105,893		123,039
Income (loss) before income taxes		23,136		4,001
Gross premiums written		199,854		177,294
Operating Segments [Member] | HCPCI Insurance Operations [Member]
Revenue:
Gross premiums earned		96,991	[1]	119,305	[2]
Premiums ceded		(40,195)		(36,953)
Net premiums earned		56,796		82,352
Net income (loss) from investment portfolio		2,954		(1,457)
Policy fee income		563		654
Other		4,653		1,247
Total revenue		64,966		82,796
Expenses:
Losses and loss adjustment expenses		28,782		43,995
Amortization of deferred policy acquisition costs		9,621		19,102
Other policy acquisition expenses		655		663
Stock-based compensation expense		496		1,144
Depreciation and amortization		139		114
Personnel and other operating expenses		9,919		7,318
Total expenses		49,612		72,336
Income (loss) before income taxes		15,354		10,460
Total revenue from non-affiliates		56,929	[3]	81,733	[4]
Gross premiums written		85,153		91,141
Operating Segments [Member] | TypTap Insurance Group
Revenue:
Gross premiums earned		87,612	[1]	60,622	[2]
Premiums ceded		(34,823)		(16,933)
Net premiums earned		52,789		43,689
Net income (loss) from investment portfolio		3,379		(16)
Policy fee income		527		403
Other		1,643		469
Total revenue		58,338		44,545
Expenses:
Losses and loss adjustment expenses		33,056		28,988
Amortization of deferred policy acquisition costs		11,863		9,422
Other policy acquisition expenses		611		283
Stock-based compensation expense		829		885
Interest expense		431		200
Depreciation and amortization		956		561
Personnel and other operating expenses		9,433		7,493
Total expenses		57,179		47,832
Income (loss) before income taxes		1,159		(3,287)
Total revenue from non-affiliates		61,286	[3]	44,823	[4]
Gross premiums written		114,701		86,153
Operating Segments [Member] | Real Estate Operations [Member]
Revenue:
Gain from sales of real estate investments		8,936
Other		2,923	[5]	2,403	[6]
Total revenue		11,859	[5]	2,403	[6]
Expenses:
Interest expense		203	[5]	227	[6]
Depreciation and amortization		627	[5]	605	[6]
Loss on extinguishment of debt	[5]	177
Personnel and other operating expenses		1,554	[5]	1,307	[6]
Total expenses		2,561	[5]	2,139	[6]
Income (loss) before income taxes		9,298	[5]	264	[6]
Total revenue from non-affiliates		11,051	[3],[5]	2,064	[4],[6]
Operating Segments [Member] | Corporate and Other [Member]
Revenue:
Net income (loss) from investment portfolio		1,900	[7]	316	[8]
Other		595	[7]	836	[8]
Total revenue		2,495	[7]	1,152	[8]
Expenses:
Stock-based compensation expense		781	[7]	2,308	[8]
Interest expense		2,598	[7]	374	[8]
Depreciation and amortization		202	[7]	172	[8]
Personnel and other operating expenses		1,589	[7]	1,734	[8]
Total expenses		5,170	[7]	4,588	[8]
Income (loss) before income taxes		(2,675)	[7]	(3,436)	[8]
Total revenue from non-affiliates		1,926	[3],[7]	449	[4],[8]
Intersegment Eliminations [Member]
Revenue:
Gross premiums earned		(4,535)	[1]	(1,002)	[2]
Premiums ceded		4,509		724
Net premiums earned		(26)		(278)
Net income (loss) from investment portfolio		8,862		135
Gain from sales of real estate investments		(8,936)
Other		(8,529)		(3,713)
Total revenue		(8,629)		(3,856)
Expenses:
Losses and loss adjustment expenses		(1,273)		(279)
Other policy acquisition expenses		(30)
Interest expense		(431)		(200)
Depreciation and amortization		(537)		(623)
Loss on extinguishment of debt		(177)
Personnel and other operating expenses		(6,181)		(2,754)
Total expenses		$ (8,629)		$ (3,856)

[1] Gross premiums earned under HCPCI Insurance Operations consist of $92,456 from HCPCI and $4,535 from a reinsurance company.

[2] Gross premiums earned under HCPCI Insurance Operations consist of $118,303 from HCPCI and $1,002 from a reinsurance company.

[3] Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation.

[4] Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation.

[5] Other revenue under real estate primarily consisted of rental income from investment properties.

[6] Other revenue under real estate primarily consisted of rental income from investment properties.

[7] Other revenue under corporate and other primarily consisted of revenue from marina business.

[8] Other revenue under corporate and other primarily consisted of revenue from marina business.

XML

Segment Information - Summary of Segment Information Reconciled to Consolidated Statements of Income (Parenthetical) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023		Mar. 31, 2022
Segment Reporting Information [Line Items]
Gross premiums earned	$ 180,068	[1]	$ 178,925	[2]
Reinsurance [Member]
Segment Reporting Information [Line Items]
Gross premiums earned	4,535		1,002
HCPCI [Member]
Segment Reporting Information [Line Items]
Gross premiums earned	$ 92,456		$ 118,303

[1] Gross premiums earned under HCPCI Insurance Operations consist of $92,456 from HCPCI and $4,535 from a reinsurance company.

[2] Gross premiums earned under HCPCI Insurance Operations consist of $118,303 from HCPCI and $1,002 from a reinsurance company.

XML

Segment Information - Summary of Segment Assets Reconciled to Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Segment Reporting Information [Line Items]
Total assets	$ 1,771,122	$ 1,803,328
Consolidation, Eliminations [Member]
Segment Reporting Information [Line Items]
Total assets	(98,523)	(98,713)
HCPCI Insurance Operations [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total assets	880,107	912,233
TypTap Insurance Group | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total assets	719,774	704,429
Real Estate Operations [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total assets	119,646	126,001
Corporate and Other [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total assets	$ 150,118	$ 159,378

XML

Leases - Summary of Right-of-use Assets and Liabilities for Operating and Finance Leases (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Operating leases:
ROU Assets	$ 1,466	$ 777
Lease liabilities - operating leases	$ 1,422	$ 721
Finance leases:
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, Plant and Equipment, Net	Property, Plant and Equipment, Net
ROU assets	$ 80	$ 80
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Long Term Debt And Finance Lease Obligations Excluding Line Of Credit	Long Term Debt And Finance Lease Obligations Excluding Line Of Credit
Liabilities	$ 10	$ 13

XML

Leases - Summary of the Company's operating and finance leases - the Company is lessee (Detail)	3 Months Ended
	Mar. 31, 2023
Office Equipment [Member]
Operating lease:
Initial Term	1 month	[1]
Renewal Option	true	[1]
Office Equipment [Member] | Minimum [Member]
Finance lease:
Initial Term	3 years	[2]
Office Equipment [Member] | Maximum [Member]
Finance lease:
Initial Term	5 years	[2]
Office space [Member]
Operating lease:
Renewal Option	true	[1],[3]
Office space [Member] | Minimum [Member]
Operating lease:
Initial Term	3 years	[1],[3]
Office space [Member] | Maximum [Member]
Operating lease:
Initial Term	9 years	[1],[3]

[1] There are no variable lease payments.

[2] There is a bargain purchase option.

[3] Rent escalation provisions exist.

XML

Leases - Maturities of lease liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Leases [Abstract]
2023	$ 258
2024	255
2025	264
2026	274
2027	315
Thereafter	336
Total lease payments	1,702
Less: interest	280
Total lease obligations	1,422	$ 721
2023	9
2024	1
2025	0
2026	0
2027	0
Thereafter	0
Total lease payments	10
Less: interest	0
Total lease obligations	$ 10	$ 13

XML

Leases -The Company's operating and finance leases (Detail) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Finance lease costs:
Amortization - ROU assets	[1]	$ 4	$ 5
Operating lease costs	[1]	52	374
Short-term lease costs	[1]	93	110
Total lease costs		149	489
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows – operating leases		44	372
Financing cash flows – finance leases		$ 4	$ 5
Weighted-average remaining lease term:
Finance leases (in years)		10 months 24 days
Operating leases (in years)		6 years 4 months 24 days
Weighted-average discount rate:
Finance leases		3.30%
Operating leases		5.90%

[1] * Included in other operating expenses on the consolidated statements of income.

XML

Leases - Summary of the Company's operating leases - the Company is lessor (Detail)	3 Months Ended
	Mar. 31, 2023	[1]
Retail space [Member]
Operating lease:
Renewal Option	true
Retail Site [Member] | Minimum [Member]
Operating lease:
Initial Term	3 years
Retail Site [Member] | Maximum [Member]
Operating lease:
Initial Term	15 years
Boat docks/wet slips [Member]
Operating lease:
Renewal Option	true
Boat docks/wet slips [Member] | Minimum [Member]
Operating lease:
Initial Term	1 month
Boat docks/wet slips [Member] | Maximum [Member]
Operating lease:
Initial Term	12 months

[1] There are no purchase options.

XML

Leases (Additional Information) (Details)	Mar. 31, 2023
Five Point Two Five Years [Member]
Disclosure Of Leases [Line Items]
Initial Term	5 years 3 months

XML

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income tax expense	$ 5,343	$ 1,210
Reduction in income tax expense attributable to decrease in valuation allowance	$ 890
Effective tax rate	23.10%	30.20%

XML

Earnings Per Share - Summary of Numerator and Denominator of Basic and Fully Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income (loss)		$ 17,793	$ 2,791
Less: Net income attributable to redeemable noncontrolling interest		(2,324)	(2,248)
Less: TypTap Group's net (income) loss attributable to non-HCI common stockholders and TypTap Group's participating securities		(131)	360
Net income after noncontrolling interests		15,338	903
Less: Income attributable to participating securities		(564)	(52)
Basic Earnings Per Share:
Income allocated to common stockholders (Numerator)		$ 14,774	$ 851
Income allocated to common stockholders, Shares (Denominator)	[1]	8,278	9,479
Basic earnings per share		$ 1.78	$ 0.09
Diluted Earnings Per Share:
Income available to common stockholders and assumed conversions (Numerator)		$ 16,695	$ 851
Income available to common stockholders and assumed conversions (Denominator)	[1]	10,860	9,767
Diluted earnings per share		$ 1.54	$ 0.09
Warrant [Member]
Diluted Earnings Per Share:
Dilutive Securities, Shares (Denominator)	[1],[2]		153
Convertible Senior Notes [Member]
Diluted Earnings Per Share:
Convertible senior notes (Numerator)	[2]	$ 1,921
Dilutive Securities, Shares (Denominator)	[1],[2]	2,537
Stock Options [Member]
Diluted Earnings Per Share:
Dilutive Securities, Shares (Denominator)	[1],[2]	45	135

[1] Shares in thousands.

[2] For the three months ended March 31, 2023, warrants were excluded due to anti-dilutive effect. For the three months ended March 31, 2022, convertible senior notes were excluded due to anti-dilutive effect.

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Redeemable Noncontrolling Interest - Summary of Activity of Redeemable Noncontrolling Interest (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Temporary Equity, Carrying Amount, Including Portion Attributable to Noncontrolling Interests [Abstract]
Beginning Balance	$ 93,553	$ 89,955
Increase (decrease):
Accrued cash dividends	1,637	1,342
Accretion - increasing dividend rates	687	906
Cash dividends paid to redeemable noncontrolling interest	(3,012)	(2,508)
Ending Balance	$ 92,865	$ 89,695

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Redeemable Noncontrolling Interest - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Temporary Equity [Line Items]
Net income attributable to redeemable noncontrolling interest	$ 2,324	$ 2,248
Accrued cash dividends	1,637	1,342
Accretion - increasing dividend rates	$ 687	$ 906

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Equity (Common Stock) - Additional Information (Detail) - USD ($)	Jan. 11, 2023	Mar. 31, 2022
Class of Stock [Line Items]
Common stock repurchase authorized amount		$ 20,000,000
Dividends per common share	$ 0.40
Dividends, date of declared	Jan. 11, 2023
Dividends, date of record	Feb. 17, 2023
Dividends, date of payment	Mar. 17, 2023

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Equity (Warrants) - Additional Information (Detail)	Mar. 31, 2023 $ / shares shares
Class of Stock [Line Items]
Warrants | shares	750,000
Exercise price | $ / shares	$ 54.40
Warrants Expiration Date	Feb. 26, 2025

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Equity (Noncontrolling Interest) - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Class of Stock [Line Items]
Common stock, outstanding	8,596,673		8,598,682
Purchase of noncontrolling interests	$ 198	$ 127
Common Stock [Member]
Class of Stock [Line Items]
Repurchase and retirement of common stock, shares	5,884	6,207
TTIG [Member]
Class of Stock [Line Items]
Common stock, outstanding	81,016,355
Repurchase and retirement of common stock, shares	34,108	21,744
Purchase of noncontrolling interests	$ 198	$ 127
TTIG [Member] | Noncontrolling Interests [Member]
Class of Stock [Line Items]
Common stock, outstanding	6,016,355

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Stock-Based Compensation (2012 Omnibus Incentive Plan) - Additional Information (Detail)	Mar. 31, 2023 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares available for grant	1,112,330

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Stock-Based Compensation (Stock Options) - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercised	0	0
Recognized compensation expenses	$ 2,106	$ 4,337
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options vesting period	4 years
Stock options exercisable contractual term	10 years
Recognized compensation expenses	$ 90	184
Deferred tax benefits recognized	0	$ 0
Unrecognized compensation expense related to nonvested stock options	$ 246		$ 336
Recognition of remaining compensation expense over a weighted-average period	10 months

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Stock-Based Compensation - Summary of Company's Stock Option Plan Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward]
Outstanding, Beginning Balance, Number of Options	440,000	440,000	440,000
Outstanding, Ending Balance, Number of Options	440,000	440,000	440,000	440,000
Exercisable, Number of Options	412,500	357,500
Outstanding, Beginning Balance, Weighted Average Exercise Price	$ 45.25	$ 45.25	$ 45.25
Outstanding, Ending Balance, Weighted Average Exercise Price	45.25	45.25	$ 45.25	$ 45.25
Exercisable, Weighted-Average Exercise Price	$ 45.07	$ 44.23
Outstanding, Weighted-Average Remaining Contractual Term	5 years 3 months 18 days	6 years 3 months 18 days	5 years 7 months 6 days	6 years 7 months 6 days
Exercisable, Weighted-Average Remaining Contractual Term	5 years 2 months 12 days	6 years
Outstanding, Aggregate Intrinsic Value	$ 3,146	$ 10,494	$ 0	$ 18,119
Exercisable, Aggregate Intrinsic Value	$ 3,031	$ 8,891

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Stock Based Compensation - Information with Respect to Unvested Restricted Stock Awards and Incentive Plan (Detail) - Restricted Stock [Member] - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning balance, shares	342,459	679,997
Granted, Number of Restricted Stock Awards	6,000	4,000
Vested, Number of Restricted Stock Awards	(40,352)	(50,667)
Forfeited, Number of Restricted Stock Awards	(2,125)	(3,265)
Ending balance, shares	305,982	630,065
Nonvested, Weighted-Average Grant Date Fair Value, Beginning balance	$ 39.86	$ 39.72
Granted, Weighted-Average Grant Date Fair Value	51.76	70.58
Vested, Weighted-Average Grant Date Fair Value	54.83	50.68
Forfeited, Weighted-Average Grant Date Fair Value	40.33	45.85
Nonvested, Weighted-Average Grant Date Fair Value, Ending balance	$ 38.11	$ 39.00

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Stock-Based Compensation (Restricted Stock Awards) - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized compensation expenses	$ 2,106	$ 4,337
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized compensation expenses	1,187	$ 3,268
Unrecognized compensation expense related to nonvested restricted stock	$ 7,086		$ 8,048
Recognition of remaining compensation expense over a weighted-average period	2 years

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Stock-Based Compensation - Information about Deferred Tax Benefits Recognized Related to Restricted Stock Awards, Paid Dividends and the Fair Value of Vested Restricted Stock (Detail) - Restricted Stock [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred tax benefits recognized	$ 263	$ 652
Tax benefits realized for restricted stock and paid dividends	299	402
Fair value of vested restricted stock	$ 2,213	$ 2,568

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Stock-Based Compensation (Subsidiary Equity Plan) - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized compensation expenses	$ 2,106	$ 4,337
TTIG [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized compensation expenses	829	$ 885
Unrecognized compensation expense related to nonvested restricted stock and stock options	$ 6,999		$ 7,876

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Commitments and Contingencies - Schedule of Future Minimum Aggregate Premium Amounts Payable to Reinsurer (Detail) $ in Thousands	Mar. 31, 2023 USD ($)
Contractual Obligation, Fiscal Year Maturity [Abstract]
2023	$ 91,350
2024	91,350
Total	$ 182,700

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Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Unfunded balance	$ 5,501	$ 5,661
Amount of FIGA assessments payable	$ 3,205

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Subsequent Events - Additional Information (Detail) - $ / shares	Apr. 14, 2023	Apr. 10, 2023	Jan. 11, 2023
Subsequent Event [Line Items]
Dividends per common share			$ 0.40
Dividends, date of declared			Jan. 11, 2023
Dividends, date of record			Feb. 17, 2023
Dividends, date of paid			Mar. 17, 2023
Subsequent Event [Member]
Subsequent Event [Line Items]
Dividends per common share	$ 0.40
Percentage of FIGA assessment levied on collected premium		1.00%
Dividends, date of declared	Apr. 14, 2023
Dividends, date of record	May 19, 2023
Dividends, date of paid	Jun. 16, 2023