Condensed Financial Information of HCI Group, Inc.

12 Months Ended

Dec. 31, 2023

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Information of HCI Group, Inc.

Note 29 -- Condensed Financial Information of HCI Group, Inc.

Condensed financial information of HCI Group, Inc. is as follows:

Balance Sheets

	December 31,
	2023		2022
Assets
Cash and cash equivalents	$	175,762	$	102,755
Fixed-maturity securities, available-for-sale, at fair value		—		34
Equity securities, at fair value		9,445		8,662
Limited partnership investments		17,517		19,446
Note receivable – related party		83,146		58,102
Investment in subsidiaries		335,934		274,785
Property and equipment, net		836		805
Right-of-use assets - operating leases		7,116		7,631
Other assets		1,691		1,515
Total assets	$	631,447	$	473,735
Liabilities and Stockholders’ Equity
Accrued expenses and other liabilities	$	3,039	$	1,618
Lease liabilities - operating leases		7,351		7,607
Income tax payable		7,180		8,427
Deferred income taxes, net		651		2
Long-term debt		191,746		191,042
Due to related parties		111,183		102,443
Total liabilities		321,150		311,139
Total stockholders’ equity		310,297		162,596
Total liabilities and stockholders’ equity	$	631,447	$	473,735

Statements of Income

	Years Ended December 31,
	2023			2022			2021
Net investment income	$	7,607		$	5,498		$	3,115
Net realized investment (losses) gains		(554	)		(1,154	)		3,344
Net unrealized investment gains (losses)		1,060			(1,609	)		92
Other income		2			1,138			222
Interest expense		(10,397	)		(6,876	)		(5,467	)
Debt conversion expense		—			—			(1,754	)
Operating expenses		(6,398	)		(9,877	)		(9,056	)
Loss before income tax benefit and equity in income (loss) of subsidiaries		(8,680	)		(12,880	)		(9,504	)
Income tax benefit		2,336			1,700			2,086
Net loss before equity in income (loss) of subsidiaries		(6,344	)		(11,180	)		(7,418	)
Equity in income (loss) of subsidiaries		70,832			(47,331	)		9,274
Net income (loss)	$	64,488		$	(58,511	)	$	1,856

Statements of Cash Flows

	Years Ended December 31,
	2023			2022			2021
Cash flows from operating activities:
Net income (loss)	$	64,488		$	(58,511	)	$	1,856
Adjustments to reconcile net income (loss) to net cash (used in)    provided by operating activities:
Stock-based compensation expense		4,323			6,430			5,874
Net realized investment losses (gains)		554			1,154			(3,344	)
Net unrealized investment (gains) losses		(1,060	)		1,609			(92	)
Net (accretion of discount) amortization of premiums on investments    in fixed-maturity securities		(41	)		(110	)		3
Depreciation and amortization		1,633			1,403			1,490
Net income from limited partnership investments		(737	)		(3,345	)		(2,608	)
Distributions from limited partnership interests		833			2,123			1,477
Debt conversion expense		—			—			1,754
Equity in (income) loss of subsidiaries		(70,832	)		47,331			(9,274	)
Deferred income taxes		649			(895	)		232
Changes in operating assets and liabilities:
Income taxes		(1,247	)		11,708			5,067
Other assets		383			(2,805	)		2,679
Accrued expenses and other liabilities		1,165			4,078			(5,620	)
Due to related parties		8,340			38,696			5,360
Net cash provided by operating activities		8,451			48,866			4,854
Cash flows from investing activities:
Investments in limited partnership interests		(1,192	)		(1,261	)		(2,616	)
Investment in note receivable – related party		(25,000	)		(15,000	)		(40,000	)
Purchase of fixed-maturity securities		(26,585	)		(52,576	)		(1,685	)
Purchase of equity securities		(4,904	)		(11,406	)		(76,786	)
Purchase of short-term and other investments		(81	)		(42	)		(1,307	)
Purchase of intangible assets		—			(3,800	)		—
Purchase of property and equipment		(478	)		(581	)		(365	)
Proceeds from sales of fixed-maturity securities		33			86			134
Proceeds from calls, repayments and maturities of fixed-maturity    securities		26,626			54,178			145
Proceeds from sales of equity securities		4,660			10,975			78,555
Proceeds from sales, redemptions and maturities of short-term and other    investments		53			570			3,618
Collection of note receivable – related party		—			—			23,280
Distributions received from limited partnership interests		3,025			4,759			2,567
Dividends received from subsidiary		40,500			51,500			41,900
Investment in subsidiaries		(22,000	)		(41,868	)		(10,000	)
Net cash (used in) provided by investing activities		(5,343	)		(4,466	)		17,440

(continued)

Statements of Cash Flows – (Continued)

	Years Ended December 31,
	2023			2022			2021
Cash flows from financing activities:
Net proceeds from issuance of common stock		84,572			—			—
Repurchases of common stock		(784	)		(71,242	)		(1,314	)
Repurchases of common stock under share repurchase plan		—			(17,070	)		—
Debt issuance costs		(170	)		(6,041	)		(152	)
Cash dividends paid		(13,719	)		(15,233	)		(14,065	)
Cash dividends received under share repurchase forward contract		—			76			306
Net (repayment) borrowing under revolving credit facility		—			(15,000	)		(8,750	)
Debt conversion expense paid		—			—			(1,895	)
Proceeds from issuance of long-term debt		—			172,500			—
Repayment of long-term debt		—			(1	)		(2	)
Net cash provided by (used in) financing activities		69,899			47,989			(25,872	)
Net increase (decrease) in cash and cash equivalents		73,007			92,389			(3,578	)
Cash and cash equivalents at beginning of year		102,755			10,366			13,944
Cash and cash equivalents at end of year	$	175,762		$	102,755		$	10,366