Note 26 — Condensed Financial Information of HCI Group, Inc.

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

Balance Sheets


	December 31,
	2016		2015
Assets
Cash and cash equivalents	$	2,297	$	2,282
Fixed-maturity securities, available for sale, at fair value		4,483		4,307
Equity securities, available for sale, at fair value		7,289		6,598
Limited partnership investments, at equity		21,906		19,217
Investment in subsidiaries		411,398		361,664
Property and equipment, net		664		860
Income tax receivable		1,563		—
Other assets		940		784

Total assets	$	450,540	$	395,712

Liabilities and Stockholders’ Equity
Accrued expenses and other liabilities	$	2,952	$	3,674
Income tax payable		—		1,279
Deferred income taxes, net		949		2,226
Long-term debt		121,436		129,429
Due to related parties		81,457		21,382

Total liabilities		206,794		157,990
Total stockholders’ equity		243,746		237,722

Total liabilities and stockholders’ equity	$	450,540	$	395,712

Statements of Income


	Years Ended December 31,
	2016			2015			2014
Net investment income (loss)	$	1,204		$	(2,401	)	$	739
Net realized gains		151			108			309
Other-than-temporary impairment losses		(15	)		(75	)		—
Gain on repurchases of convertible senior notes		153			—			—
Other income		—			30			120
Interest expense		(10,346	)		(10,754	)		(10,453	)
Operating expenses		(5,158	)		(7,346	)		(7,745	)

Loss before income tax benefit and equity in income of subsidiaries		(14,011	)		(20,438	)		(17,030	)
Income tax benefit		4,878			7,835			6,462

Net loss before equity in income of subsidiaries		(9,133	)		(12,603	)		(10,568	)
Equity in income of subsidiaries		38,154			78,464			73,232

Net income	$	29,021		$	65,861		$	62,664


Statements of Cash Flows
	Years Ended December 31,
	2016			2015			2014
Cash flows from operating activities:
Net income	$	29,021		$	65,861		$	62,664
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Stock-based compensation		2,878			4,341			5,502
Net realized investment gains		(151	)		(108	)		(309	)
Amortization of premiums on investments in fixed-maturity securities		—			1			—
Depreciation and amortization		3,899			3,996			3,712
(Income) loss from limited partnership investments		(523	)		3,277			90
Distributions from limited partnership interests		544			12			—
Other-than-temporary impairment losses		15			75			—
Gain on repurchases of convertible senior notes		(153	)		—			—
Equity in income of subsidiaries		(38,154	)		(78,464	)		(73,232	)
Deferred income taxes		(1,542	)		(3,218	)		(2,058	)
Changes in operating assets and liabilities:
Income taxes receivable		(1,563	)		2,596			(814	)
Other assets		(129	)		228			629
Accrued expenses and other liabilities		(716	)		689			1,116
Income taxes payable		(1,518	)		1,279			—
Due to related parties		60,075			(14,831	)		11,520

Net cash provided by (used in) operating activities		51,983			(14,266	)		8,820

Cash flows from investing activities:
Investment in limited partnership interest		(2,710	)		(19,956	)		(2,640	)
Purchase of fixed-maturity securities		(371	)		(384	)		(2,616	)
Purchase of equity securities		(2,853	)		(3,196	)		(7,000	)
Purchases of property and equipment		(202	)		(371	)		(277	)
Proceeds from sales of fixed-maturity securities		423			259			—
Proceeds from calls, repayments and maturities of fixed-maturity securities		130			—			—
Proceeds from sales of equity securities		2,602			5,475			5,212
Dividends received from subsidiary		19,000			92,700			—
Investment in subsidiaries		(25,250	)		(78,536	)		(8,402	)

Net cash used in investing activities		(9,231	)		(4,009	)		(15,723	)



	Years Ended December 31,
	2016			2015			2014
Cash flows from financing activities:
Repurchases of common stock		(464	)		(792	)		(643	)
Repurchases of common stock under share repurchase plan		(20,026	)		(1,610	)		(38,354	)
Cash dividends paid to stockholders		(12,438	)		(12,428	)		(12,355	)
Cash dividends received under share repurchase forward contract		747			747			685
Proceeds from exercise of stock options		150			263			125
Repurchases of convertible senior notes		(11,347	)		—			—
Redemption of Series A preferred stock		—			—			(34	)
Debt issuance costs paid		—			—			(234	)
Tax benefits on stock-based compensation		641			2,295			2,080

Net cash used in financing activities		(42,737	)		(11,525	)		(48,730	)

Net increase (decrease) in cash and cash equivalents		15			(29,800	)		(55,633	)
Cash and cash equivalents at beginning of year		2,282			32,082			87,715

Cash and cash equivalents at end of year	$	2,297		$	2,282		$	32,082