HCI Group, Inc.

Good morning and welcome to HCI Group's second quarter 2022 earnings call. My name is Jenny and I will be your conference operator. 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 September 8, 2022, starting later today. The call is also being broadcast live via webcast and available via webcast replay until August 9, 2023. On the investor information section of HCI Group's website at www.hcigroup.com. I would now like to turn the call over to Matt Glover, Gateway Investor Relations. Matt, please proceed.

Thank you, Jenny. This is Matt Glover from Gateway Investor Relations. Thank you and good morning. Welcome to HCI Group's second quarter 2022 earnings call. On today's call is Karen Coleman, HCI's Chief Operating Officer, Mark Harmsworth, HCI's Chief Financial Officer, and Parish Patel, HCI's Chairman and Chief Executive Officer. Following Karen's opening remarks, Mark will review our financial performance for the second quarter of 2022, and then Parish will provide an operational outlook. To access today's webcast, please visit the investor information section of our corporate website at hcigroup.com. Before we begin, I'd 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 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 should 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, Chief Operating Officer. Karen?

Thank you, and good morning, everyone. The second quarter of 2022 marked another quarter of growth. Our insurance division growth premiums earned were up 30% and our national expansion continued with premium outside of Florida approaching a quarter of our business. There were two main items that impacted our financial results. First, investment income with unrealized losses were impacted by market decline. And second, we strengthened reserves in response to inflation and litigation. These two items resulted in an $8.5 million loss for the quarter. In strengthening reserves, it resulted in a 7.8% increase to our loss ratio. To offset this, we filed meaningful rate increases, 10% at Homeowner's Choice and 12% at TipTap. We also executed on a number of key items this quarter. First, we raised more than $170 million through issuance of convertible notes increasing our flexibility at a time when capital is scarce across our industry. Parrish will speak more to this in remarks. Second, we finalized our reinsurance with pricing and terms comparable to last year while maintaining a conservative program with modest retentions and substantial limits. With reinsurance in place, Deltek reaffirmed our A exceptional ratings at both homeowner's choice and TIP TAP. And third, we continue to optimize our balance sheet, repositioning our investment portfolio to generate income. Finally, we remain committed to returning capital to shareholders through dividends and share repurchases, and continue to view our stock as an attractive investment. During the quarter, we repurchased shares representing approximately 10% of the company, and we paid a dividend of 40 cents per share, our 47th consecutive quarterly dividend. In summary, we continue to position HCI to take advantage of the opportunities in front of us while managing the business to maximize return for our shareholders. And now I'll turn it over to Mark who will provide more detail on our financial results.