HCI Group, Inc. (NYSE:HCI) Q1 2018 Earnings Conference Call - Preliminary Transcript

May 01, 2018 • 04:45 pm ET


HCI Group, Inc. (NYSE:HCI) Q1 2018 Earnings Conference Call - Preliminary Transcript


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Good afternoon, and welcome to HCI Group's First Quarter 2018 Earnings Conference Call. My name is Latonia, and I will be your conference operator this afternoon. At this time, all participants will be in a listen-only mode.

Before we begin today's call, I would like to remind everyone that this conference call is being recorded and will be available for replay through June 01, 2018, starting later this evening. The call is also being broadcast live via webcast and available via webcast replay until June 01, 2018, on the Investor Information section of the HCI Group website at www.hcigroup.com.

I would now like to turn the call over to Mr. Kevin Mitchell, Vice President of Investor Relations for HCI Group. Sir, please proceed.

Kevin Mitchell

Thank you, and good afternoon. Welcome to HCI Group's first quarter 2018 earnings call. With me today are Paresh Patel, our Chairman and Chief Executive Officer; and Mark Harmsworth, our Chief Financial Officer.

Following Paresh's opening remarks, Mark will review our financial performance for the quarter and then turn the call back to Paresh for an operational update and business outlook. Finally, we will take your questions. To access today's webcast, please visit the Investor Information section of our corporate website at hcigroup.com.

Before we begin, I would like to take the opportunity to remind our listeners that today's presentations and responses to questions may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as anticipate, estimate, expect, intend, plan and project and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. Some of these risks and uncertainties are identified in the company's filings with the Securities and Exchange Commission. Should any risks or uncertainties develop into actual events, these developments could have material adverse effects on the company's business, financial conditions and results of operations. HCI Group, Inc. disclaims all the obligations to update any forward-looking statements.

With that said, I would now like to turn the call over to Paresh Patel, our Chairman and CEO. Paresh?

Paresh Patel

Thank you, Kevin, and welcome, everyone. The first quarter was another positive one for us. We earned $10.8 million and as Mark will discuss in greater detail $12.7 million on a non-GAAP adjusted basis. Also we continued our normal path of paying dividends, repurchasing shares and increasing book value. Here are some noteworthy events from the quarter.

We experienced positive non-GAAP claims trends with fewer claims and fewer losses. We think this is because of good weather. Also the contracted public adjusted focusing on hurricane Irma and also the implementation of our positive underwriting technology. We'll talk about that more later.

Hurricane Irma claims have unfolded as we predicted last October. We are comfortable with our current loss estimate. We also repositioned much of our investment portfolio due to changes in the tax code and the flattening yield curve and finally after