DEF 14A: HCI Group, Inc. Announces Details for 2024 Annual Meeting of Shareholders

HCI Group, Inc. will hold its Annual Meeting of Shareholders on June 11, 2024, to elect directors, ratify the appointment of auditors, and approve executive compensation.

Summary

• HCI Group, Inc. will hold its Annual Meeting of Shareholders on June 11, 2024, at its Tampa headquarters.
• Shareholders of record as of April 15, 2024, are eligible to vote on the election of three Class A directors, the ratification of FORVIS, LLP as the independent auditor, and the approval of executive compensation.
• In 2023, HCI Group increased shareholder equity through improved operating results and a common stock offering that generated $85 million in proceeds.
• The company's book value per share increased by 76% during 2023.
• HCI Group has been profitable in 60 of the last 65 quarters and has paid dividends for 54 consecutive quarters.
• The company returned $421 million to shareholders since inception, including $13.8 million in dividends paid in 2023.
• Shareholder engagement efforts in 2023 included outreach to shareholders representing approximately 65% of outstanding common shares and direct dialog with shareholders representing over 32% of the company's outstanding common stock.
• The Board of Directors recommends voting for the election of Karin Coleman, Eric Hoffman, and Sue Watts as Class A directors, for the ratification of FORVIS, LLP, and for the approval of executive compensation.

Sentiment

Score: 8

Explanation: The document presents a positive outlook with strong financial results and shareholder returns, indicating a favorable sentiment.

Positives

• HCI Group increased shareholder equity through improved operating results and a common stock offering that generated $85 million in proceeds.
• Book value per share increased by 76% to $33.36 at December 31, 2023, from $18.91 at December 31, 2022.
• The company has been profitable in 60 of the last 65 quarters and has paid dividends in 54 consecutive quarters.
• HCI Group returned $421 million to shareholders since inception, including $13.8 million of dividends paid in 2023.
• Shareholder engagement efforts in 2023 included outreach to shareholders representing approximately 65% of outstanding common shares and direct dialog with shareholders representing over 32% of the company's outstanding common stock.

Risks

• The most material environmental risk to the Company is that of extreme weather.
• Climate change may cause an increase in the number and intensity of extreme weather events that may affect our profitability.

Future Outlook

In 2023, HCI continued to execute on several key initiatives and the Company remains on a path to reaching our long-term objectives, including profitable growth and prudent management of our balance sheet.

Management Comments

• The Compensation Committee believes that our compensation plan continues to align with the financial performance of the Company.
• We look forward to continuing an active dialog with our shareholders through our ongoing outreach efforts.
• We value input from each of our shareholders and encourage you to vote your proxy.

Industry Context

The document benchmarks HCI Group's performance against a core peer group of publicly held property and casualty insurance companies based in Florida, highlighting the company's strong shareholder returns relative to its peers.

Comparison to Industry Standards

• The document compares HCI's CEO compensation to that of American Coastal Insurance Corporation, Heritage Insurance Holdings, Inc., and Universal Insurance Holdings, Inc.
• HCI's total shareholder return over the past five years was 99%, compared with a negative return for the company's core peer group over the same period.
• The document provides a table summarizing the share price performance and dividend payouts of companies in the Core Peer Group based on the disclosures in their filings with the Securities and Exchange Commission.

Related Party Transactions

• In February 2021, Centerbridge Partners invested $100 million into the Company's subsidiary TypTap Insurance Group Inc.
• Our director Eric Hoffman is also a Senior Managing Director of Centerbridge Partners.
• For one of the RPP contracts, Oxbridge Reinsurance Limited (Oxbridge) participated as a subscribing reinsurer in 2023.
• One of the Company's non-employee directors, Jay Madhu, serves as Oxbridge's chairman of its board of directors and chief executive officer and is an investor in that company.

Stakeholder Impact

• Shareholders will have the opportunity to vote on key company matters.
• Employees are subject to a Code of Ethics and anti-hedging policy.
• The company is committed to community contribution and a diverse work environment.

Next Steps

• Shareholders are encouraged to vote their proxy by internet, phone, or mail.
• The company will continue to engage in robust and continuous dialog with our shareholders regarding various issues, including corporate governance, compensation and environmental and social matters.

Key Dates

Keywords

shareholders, directors, compensation, governance, auditor, HCI Group, annual meeting