HCI Group, Inc.

Good afternoon, and welcome to HCI Group's third quarter 2023 earnings call. My name is Mike, 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 December 7, 2023, starting later today. The call is also being broadcast live via webcast and available via webcast replay until November 7, 2024. 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, Mike, and good afternoon. Welcome to HCI Group's third quarter 2023 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 operational update, Mark will review our financial performance for the third quarter of 2023, and then Parish will provide a strategic update. To access today's webcast, please visit the investor information section of our corporate website at www.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 could have material adverse effects on the company's business, financial conditions, and results of operations. HCI Group disclaims all obligations to update any forward-looking statements. Now, with that, I'd like to turn the call over to Karen Coleman, Chief Operating Officer. Karen.

Thank you, Matt, and welcome, everyone. HCI Group reported another strong quarter with pre-tax income of $20.1 million and diluted earnings per share of $1.34. This was a great result as the third quarter included $6.5 million of catastrophe losses from Hurricane Adalia, which made landfall in Florida as a Cat 3 hurricane. This marks the third straight quarter of pre-tax income over $20 million and brings year-to-date pre-tax income to over $63 million. Gross premiums earned increased almost 4% in the third quarter. Our consolidated gross loss ratio was 35.4% in the quarter, but adjusting for the Hurricane Adalia losses that I mentioned, our gross loss ratio saw a sequential improvement to approximately 32%. We remain on a path of continued improvement in our underlying gross loss ratio, which Mark will elaborate on in a few minutes. Legislative reforms introduced last year in Florida have been effective. They are continuing to bring stability to the Florida homeowners market and provide policyholders with greater consumer choice. Similar to prior quarters, each of our business segments had a positive contribution to our quarterly results. At our insurance divisions, Homeowners Choice generated another quarter of consistent earnings and Tip Tap Insurance Group reported its third straight quarter of GAAP profitability. In investments, net investment income totaled $9.4 million, almost entirely from our cash and fixed income holdings. Our investment portfolio generated another quarter of steady income and has benefited from the current rate environment. HCI is pursuing top line growth in the fourth quarter, and the company is currently adding customers from citizens. In total, HCI Group is approved to assume up to 125,000 policies which includes the recent approval by the Florida Office of Insurance Regulation for a second citizen's assumption by TIP-TAP. We won't know for a few weeks the exact number of policies that elect to move to HCI, but our expectation is that HCI could add between $150 million to $250 million of in-force premium. Finally, HCI Group continued to deliver on its commitment to shareholders, paying a dividend of 40 cents per share our 52nd consecutive quarterly dividend. To summarize, HCI Group delivered another quarter of solid profitability, and we think there is an opportunity to build on our momentum. Now I'll turn it over to Mark to provide more details on our financial results.