HCI Group, Inc.

Good afternoon and welcome to HCI Group's second quarter 2021 earnings call. My name is Matthew and I'll be your conference operator this afternoon. At this time, all participants will be on 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 September 5th, 2021, starting later this evening. The call is also being broadcast live via webcast and available via webcast replay until August 5th, 2022 on the investor information section of HCI Group's website at www.hcigroup.com. I would now like to turn the call over to Rachel Swansinger, investor relations for HCI. Rachel, please proceed.

Thank you and good afternoon. Welcome to HCI Group's first quarter 2021 earnings call. With me on today's call is Karen Coleman, our Chief Operating Officer, Mark Harmsworth, our Chief Financial Officer, and Parish Patel, our Chairman and Chief Executive Officer. Following Karen's opening remarks, Mark will review our financial performance for the second quarter of 2021 and then Parish will provide an operational outlook and then we will take your questions. To access today's webcast, please visit the Investor Information section of our corporate website at www.hcigroup.com. Before we begin, I would like to take the opportunity to remind our listeners that today's presentation 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 insurgencies. Some of these risks and insurgencies are identified in the company's filings with the Securities and Exchange Commission. Should any risks or insurgencies develop into actual events, these developments could have material adverse effects on the company's business, financial conditions, and results of operations. HCI Group disclaims all the obligations to update any forward-looking statements. Now with that, I would like to turn the call over to Karen Coleman, our Chief Operating Officer. Karen? Thank you, Rachel, and welcome, everyone.

It has been another productive quarter for HCI as we continue to execute on our strategic goals and position the company for long-term success. The second quarter was marked by several notable events. In June, we paid a $0.40 per share dividend, our 43rd consecutive quarterly dividend. At the insurance division, consolidated annualized gross premiums is approaching $600 million. We successfully restructured our reinsurance program by purchasing four separate reinsurance towers to reflect the operational separation of the two insurance companies with total costs within our expectations. Details were covered in our July 19th Form 8-K. We benefited from strong support by our long-standing reinsurance partners, as well as participation from new reinsurance capacities. In connection with our ongoing transaction with United Property and Casualty Insurance Company, HCI entered into a new quota share reinsurance agreement in June. As part of the transition of policy from UPC to HCI, we have agreed to provide 100% quota share reinsurance on all of UPC's in-force new and renewal policies for four Northeast states. Under the new agreement, each of our insurance subsidiaries takes 50% of the quota share business. We're close to finalizing all of the regulatory approvals to transact business in those four states, which also includes approvals of the transition of UPC policies to us. On our last call, we stated that TIFTAP was on track to reach its goal of $200 million by year end. Well, because of its growth in addition of UPC business, TITFAP has reached its goal well ahead of schedule by surpassing $200 million at the end of the second quarter. Also, the Florida Legislature recently passed Senate Bill 76 with intent to curb claims and litigation abuses. In a lead up to the July 1st effective date of the law, similar to our peers, we did see an increase in litigation filings. However, post-July 1st, we expect an improvement in litigation trends. After quarter's end on July 7th, Tropical Storm Elsa made landfall in a sparsely populated region of West Central Florida. Overall, we don't see Elsa as a significant event. At the Real Estate Division, Greenleaf Capital, we continue to be pleased with our performance. All of our operating properties are generating a profit. We've had tremendous success creating shareholder value through these real estate investments. As a reminder, last year we sold one of our properties for a gain of $37 million, And even with that sale, we still have over $30 million of unrealized gains in the real estate portfolio. And with that, I'll turn it over to Mark to discuss our financial results for the second quarter and first six months of 2021. Mark?