 TAMPA, Fla., Aug. 06, 2020 GLOBE NEWSWIRE -- HCI Group, Inc. NYSE:HCI, an InsurTech company with operations in insurance, software development and real estate, reported results for the three and six months ended June 30, 2020. Second Quarter 2020 - Financial Results Net income for the second quarter of 2020 totaled 8.9 million or 1.08 diluted earnings per share compared with 7.6 million or 0.90 diluted earnings per share in the second quarter of 2019. Adjusted net income a non-GAAP measure which excludes net unrealized gains or losses on equity securities for the quarter was 6.8 million or 0.86 diluted earnings per share compared with 6.6 million or 0.81 diluted earnings per share in the second quarter of 2019. The company has included in this press release an explanation of adjusted net income as well as a reconciliation to net income and earnings per share calculated in accordance with generally accepted accounting principles known as GAAP.Consolidated gross written premiums of 171.9 million for the second quarter of 2020 were up 28.9 from 133.4 million in the second quarter of 2019. The increase was due to the continued growth of TypTap Insurance Company, HCIs technology-driven insurance subsidiary and the policies transitioned from Anchor Property Casualty Insurance Company through a policy replacement agreement in the second quarter of 2020. In-force premiums for TypTap at June 30, 2020 stood at 75.5 million compared to 28.4 million at June 30, 2019.Consolidated gross premiums earned of 107.8 million for the second quarter of 2020 were up 29.4 from 83.3 million in the second quarter of 2019, again driven by the growth of TypTap and the policies transitioned from Anchor.Premiums ceded for the second quarter of 2020 increased to 34.4 million from 31.3 million in the second quarter of 2019 and represented 31.9 and 37.6, respectively, of gross premiums earned. The 3.1 million increase was attributable to increased reinsurance costs effective June 1, 2020 with the beginning of the new reinsurance year and a greater level of reinsurance coverage.Net investment income was 1.6 million compared with 4.2 million in the second quarter of 2019. The decrease was primarily due to lower income from limited partnership investments and cash equivalent instruments. Net realized investment gains were 1.4 million in the second quarter of 2020 compared with 0.1 million of losses in the same period of 2019. The gains in the second quarter of 2020 were primarily due to sales intended to rebalance the Companys investment portfolio. Net unrealized investment gains were 2.9 million in the second quarter of 2020 compared with 1.3 million in 2019. The unrealized investment gains in the second quarter of 2020 reflect an increase in the fair value of equity securities resulting from an improved economic outlook since the disruption caused by COVID-19.Losses and loss adjustment expenses were 39.8 million compared with 24.3 million in the same period in 2019. The increase of 15.5 million was primarily related to the increase in gross premiums earned, change in premium mix and reserves for weather-related losses in the quarter.Policy acquisition and other underwriting expenses were 13.0 million compared with 10.1 million in the same quarter of 2019. The increase relates to premium growth in TypTap.Six Months Ended June 30, 2020 - Financial Results Net income for the six months ended June 30, 2020 totaled 9.5 million or 1.23 diluted earnings per share compared with 14.3 million or 1.72 diluted earnings per share for the six months ended June 30, 2019. The decrease was primarily due to a net decrease in income from the Companys investment portfolio of 15.0 million, an increase in losses and loss adjustment expenses of 16.6 million, an increase in policy acquisition and other underwriting expense of 5.1 million, and an increase in general and administrative personnel expenses of 2.7 million, offset by an increase in net premiums earned of 32.0 million, which contributed to a decrease in pre-tax income of 7.1 million.Adjusted net income a non-GAAP measure which excludes unrealized gains or losses on equity securities for the six-month period was 10.9 million or 1.41 diluted earnings per share compared with 9.4 million or 1.15 diluted earnings per share in the same period of 2019. An explanation of this non-GAAP financial measure and reconciliations to the applicable GAAP numbers accompany this press release.Consolidated gross written premiums for the six months increased 23.6 to 248.5 million in 2020 from 201.1 million in 2019. The increase was due to the continued growth of TypTap and the policies transitioned from Anchor in the second quarter of 2020.Gross premiums earned increased to 200.2 million from 165.9 million in the same period in 2019. The increase was primarily attributable to the growth of TypTaps business and the Anchor policies transitioned.Premiums ceded were 65.1 million or 32.5 of gross premiums earned compared with 62.7 million or 37.8 of gross premiums earned during the same period in 2019. The increase was attributable to increased reinsurance costs effective June 1, 2020 and a higher level of reinsurance coverage.Net investment income was 1.4 million compared with 7.5 million in the six months ended June 30, 2019. The decrease was primarily due to a loss of 2.7 million from limited partnership investments in 2020 as opposed to income of 0.8 million in 2019. In addition, interest income from cash, cash equivalents, and short-term investments was lower by 1.6 million in 2020 compared with the same period in 2019 due to a lowering of investment yields, particularly on cash. Net unrealized investment losses for the period were 1.9 million compared to net unrealized investment gains of 6.6 million in the same period in 2019, reflecting a deterioration in the fair value of equity securities caused by the COVID-19 pandemic.Losses and loss adjustment expenses for the six months ended June 30, 2020 and 2019 were 67.9 million and 51.3 million, respectively. The increase of 16.6 million was primarily attributable to the increase in gross premiums earned and change in premium mix, offset by lower prior year development.Policy acquisition and other underwriting expenses were 24.8 million compared with 19.8 million in the same period in 2019. The increase relates to premium growth in TypTap.Management Commentary Our second quarter results demonstrate that HCI has entered a period of revenue and income growth, said HCI Group Chairman and Chief Executive Officer Paresh Patel. We expect this growth to accelerate in the coming years as we expand TypTap into additional states and more agents and prospective policyholders discover TypTaps quick, simplified user experience.Conference CallHCI Group will hold a conference call later today, August 6, 2020, to discuss these financial results. Chairman and Chief Executive Officer Paresh Patel and Chief Financial Officer Mark Harmsworth will host the call starting at 4:45 p.m. Eastern time. A question and answer session will follow managements presentation.Interested parties can listen to the live presentation by dialing the listen-only number below or by clicking the webcast link available on the Investor Information section of the companys website at toll-free number: 844 369-8774Listen-only international number: 862 298-0844Please call the conference telephone number 10 minutes before the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 949 574-3860.A replay of the call will be available by telephone after 8:00 p.m. Eastern time on the same day as the call and via the Investor Information section of the HCI Group website at through September 5, 2020.Toll-free replay number: 877 481-4010 International replay number: 919 882-2331 Replay ID: 35775About HCI Group, Inc.HCI Group, Inc. is an InsurTech company with operations in insurance, software development and real estate. HCIs leading insurance operation, TypTap Insurance Company, is a rapidly growing, technology-driven insurance company, which provides homeowners insurance and flood insurance primarily in Florida. TypTaps operations are powered in large part by insurance-related information technology developed by HCIs software subsidiary, Exzeo USA, Inc. HCIs largest subsidiary, Homeowners Choice Property Casualty Insurance Company, Inc., provides homeowners insurance primarily in Florida. HCIs real estate subsidiary, Greenleaf Capital, LLC, owns and operates multiple properties in Florida, including office buildings, retail centers and marinas.The companys common shares trade on the New York Stock Exchange under the ticker symbol HCI and are included in the Russell 2000 and SP SmallCap 600 Index. HCI Group, Inc. regularly publishes financial and other information in the Investor Information section of the companys website. For more information about HCI Group and its subsidiaries, visit StatementsThis news release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as anticipate, estimate, expect, intend, plan, confident, prospects 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. 