U.S. GAAP requires the Company to use the two-class method in computing basic earnings (loss) per share since holders of the Company’s restricted stock have the right to share in dividends, if declared, equally with common stockholders. These participating securities affect the computation of both basic and diluted earnings (loss) per share during periods of net income or loss. For a majority-owned subsidiary, its basic and diluted earnings (loss) per share are first computed separately. Then, the Company’s proportionate share in that majority-owned subsidiary’s earnings is added to the computation of both basic and diluted earnings (loss) per share at a consolidated level.

A summary of the numerator and denominator of the basic and diluted earnings per common share is presented below:


	Three Months Ended							Three Months Ended
	September 30, 2023							September 30, 2022
	Income			Shares (a)		Per Share		Loss			Shares (a)		Per Share
	(Numerator)			(Denominator)		Amount		(Numerator)			(Denominator)		Amount
Net income (loss)	$	15,669						$	(51,503	)
Less: Net income attributable to redeemable noncontrolling interest		(2,349	)						(2,285	)
Less: TypTap Group’s net (income) loss attributable to non-HCI common stockholders and TypTap Group’s participating securities		(163	)						2,829
Net income (loss) attributable to HCI		13,157							(50,959	)
Less: (Income) loss attributable to participating securities		(411	)						3,289
Basic Earnings (Loss) Per Share:
Income (loss) allocated to common stockholders		12,746			8,317	$	1.53		(47,670	)		8,427	$	(5.66	)
Effect of Dilutive Securities: *
Stock options		—			88				—			—
Convertible senior notes		1,927			2,538				—			—
Warrants		—			32				—			—
Diluted Earnings (Loss) Per Share:
Income (loss) available to common stockholders and assumed conversions	$	14,673			10,975	$	1.34	$	(47,670	)		8,427	$	(5.66	)

(a)

Shares in thousands.

* For the three months ended September 30, 2022, convertible senior notes, stock options, and warrants were excluded due to anti-dilutive effect.


	Nine Months Ended							Nine Months Ended
	September 30, 2023							September 30, 2022
	Income			Shares (a)		Per Share		Loss			Shares (a)		Per Share
	(Numerator)			(Denominator)		Amount		(Numerator)			(Denominator)		Amount
Net income (loss)	$	48,344						$	(57,254	)
Less: Net income attributable to redeemable noncontrolling interest		(7,010	)						(6,801	)
Less: TypTap Group’s net (income) loss attributable to non-HCI common stockholders and TypTap Group’s participating securities		(396	)						4,018
Net income (loss) attributable to HCI		40,938							(60,037	)
Less: (Income) loss attributable to participating securities		(1,395	)						3,855
Basic Earnings (Loss) Per Share:
Income (loss) allocated to common stockholders		39,543			8,299	$	4.76		(56,182	)		8,972	$	(6.26	)
Effect of Dilutive Securities: *
Stock options		—			68				—			—
Convertible senior notes		5,771			2,538				—			—
Diluted Earnings (Loss) Per Share:
Income (loss) available to common stockholders and assumed conversions	$	45,314			10,905	$	4.16	$	(56,182	)		8,972	$	(6.26	)

(a)

Shares in thousands.

* For the nine months ended September 30, 2023, warrants were excluded due to anti-dilutive effect. For the nine months ended

September 30, 2022, convertible senior notes, stock options, and warrants were excluded due to anti-dilutive effect.