HCI - Earnings call transcript Q2 2018

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Operator

Good afternoon, and welcome to the HCI Group Incorporated Second Quarter 2018 earnings call. My name is Tim, and I will be your conference operator this afternoon. At this time, all participants will be in a listen-only mode. [Operator Instructions].

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 September 2, 2018, starting later this evening. Group’s being until via the September section the also via and Investor is of replay www.hcigroup.com. webcast X, HCI call broadcast webcast live available Information This at website XXXX, on would HCI’s Vice Mitchell, like to Investor Senior turn call President the I over now Kevin Relations. of to proceed. please Sir,

Kevin Mitchell

Executive to Financial Thanks today our Patel, are Welcome Second Officer; Harmsworth, XXXX Chief HCI Chief our Mark you, and good Earnings Quarter Officer. Paresh Chairman Group’s afternoon. Call. me and With

will Mark and remarks, Following our call financial to quarter opening Paresh’s an outlook. the for review and then back performance business the turn operational Paresh for update

take will our we visit website the access Relations your Finally, today’s corporate webcast, please questions. To at of section hcigroup.com. Investor

to questions listeners responses intended such expect, Private XXXX. Before forward-looking and presentation and as contain today’s may Securities are remind of estimate, signify our words and pursuant would we Litigation the begin, I to to that Words statements. expressions anticipate, to statements like project similar forward-looking made to Act the and other plan Reform opportunity intend, take

guarantees future Forward-looking not rather risks and of to are results uncertainties. but and are statements subject conditions various

the Group, these disclaims over that develop these Exchange uncertainties the and our all call of identified Inc. HCI and Patel, obligation any operations. turn of filings have material or would are I could Paresh? said, With Chairman and the results now forward-looking Paresh update and statements. developments conditions Some the like business, with into financial on Securities Commission. to in CEO. the to company’s risks risks any events, Should company’s uncertainties actual effects adverse to

Paresh Patel

accounting share, for – $X.XX represents and a in Kevin, you, some earnings indicates noise, quarter QX per XXXX our We which Mark earned discuss solid his as release will includes welcome, remarks. press HCI. this diluted Thank another but everyone.

in dividend X/X for quarter, dividends. completed we X.X% per deliver we increased to our flood, our for highlights program shareholder per almost cash We and similar is quarter. reinsurance repurchases reduced coverage last but continue retention quarterly We XXXX, contract through to to our by risk $XX our $X.XXX million. Looking share year. cost, at to excluding The share XXXX year, the the value by

real Capital our is Florida. Clearwater, – to a added Greenleaf estate in Our to based our subsidiary, our property, shopping and ninth, another retail it’s which portfolio, center,

Our in reached second an three Basically, entering than while launched technology-based important years. we five Despite subsidiary, offer can subsidiary now it the TypTap just despite which have quarter. It could with call. And last in flood we hurricanes over the questions. we’ll the I walk – our the for is over hurricanes we moment. now insurance years, on has – talk homeowners Mark? at in inception. a later with cumulatively profitability Home, And business. more – TypTap, by it TypTap that, do that TypTap, who in two impacted X,XXX earned being two profit milestone. has the since $XX profitable insurance has three is in building of the policies force million success and will TypTap homeowners two turn us more financial performance questions, insurance through will But the to And with Mark, on premium for

Mark Harmsworth

last per the Fully $X.X same adjusted $X.XX diluted a to quarter behind GAAP basis, In numbers. same explain just going or read some share on hit some earnings Thanks, I’ll the last of QX, in a Paresh. versus compared year. $X.X year. our net the basis after-tax million was press so things all an million the $X.XX quarter were on I know few you’ve release, and of income in on the highlights $X.XX

significantly that unusual were onetime results, share. the these reduced after-tax earnings While and with an was there transaction income happy net we quarter non-cash per in

let certain this to remaining will a This anniversary members. issued shares were personnel and First, in never expenses vest impacted not and in block explain unvested met, market-based million added of quarter. million shares and the places: because cumulative so May be paid XXXX, second shares financials board $X.X be XXX,XXX few on it. expensed. grant, to and targets on restricted This these the we five-year operating to of $XXX,XXX needed was $X.X executives a expense addressed. of the So price the me of of May In this to dividend to had year

effective income our Second, tax this tax rate calculating expense from quarter. difference therefore, the expense, a for increased is permanent

been to Third, The non-cash asset by onetime $X.X in reduced quarter. to total earnings was EPS our expense earnings this income adjustment diluted $X.XX. current $X.XX in this impact is the this income GAAP fully would by after-tax tax increased tax per further reduce per related million been and share second quarter this and of transaction, $X.XX. the had deferred have accounting million and be adjusted off, written fully a diluted Again, by Absent have adjustment. would share $X.X

per a increase of the The met, Also, and Because financial not for share will shares and never million this these book over forfeited. earnings as economic positive a dividend, will which threshold statement, share. vest shares shareholders. share when its share were count will increase up prices drop negative shares, be X.XX alignment shows will as good a actually in reduce our fully consequences. per value result, shows the it year, they it’s While in expire terms

Okay, said, there mention income more are to wanted just so that’s things two statement. the I from

reported the non-cat quarter reported year. expenses. adjustment loss last same down lawsuits were and from significantly loss QX, and claims First, In

in because and factors, this expense some $XX.X versus year. and quarter last expense the second the was other second quarter and largely of same the our quarter loss million claim. of however, than $XX.X quarter result The of year last earned is premiums higher year. than first XX% slightly earned this the was, weather-related expense growth quarter a in XX% of significantly premium loss this growth As Loss of lower million

million reinsurance announced per we As be should over know, it’s tower on May quarter, as for you been quarters. agreements few said, which, the last and June new between to same reinsurance XXXX Paresh is as $XX recently million and expected, the other about XXXX. $XX Based these our

the think dropped This repeating While this, I our that as Paresh financial it reinsurance million tremendous while our flat, $XX been mentioned is reduced enhancement deserves has has materially already costs $XX position. risk to consolidated are retention our a to company’s million. from

balance the to sheet. Now

Irma which estimated expense Irma ultimate the to quarter second Hurricane As and last increased no of in quarter estimated statement. offset year on adjustment we year, the the where we’ve for $XXX our million, million. you has to know, to ultimate this, In course, adjustment recoverable. Hurricane the of third balance an sheet $XXX reinsurance to our income an to is reserves, struck impact The was and by is there this impact

at you some The looking the sheet notice in other balance movement might our investments. thing is

First, just million a estate We $XX about in mentioned, $X.X and Paresh nine value about a as XX,XXX property over properties of now with with purchased five-acre million. $XXX we new our closed in base with a estate acquisition the cost have portfolio. $X.X a square-foot property in real for sorry. Clearwater building We on retail million million, of portfolio our market real – I’m

investment the of $XXX about by we our reduced short-term our have beginning the than fixed-term $XX from five X. year, Second, securities and we to some to securities This years average has rebalanced portfolio. investment increased by positions million reduced term million. Since in in our less about maturity

much higher compensated book on the income by with somewhat, yields declined yield slightly been the and average that’s While risk. be lower result should higher investment cash,

More take mark-to-market that will rates we advantage importantly, have the liquidity adjustments. increase, as while to of minimizing

comments few a management. Just on capital

just the $XX, June, To the in about bought average year XXX,XXX we just bringing we the million committed price back used had plan, buyback average at purchase just $XX of and sorry. shares of price over During I’m $XX. – at $XX.X quarter, have to under for so million total shares the we of of XXXX used an our under an the XXX,XXX buybacks X% end

about left. we $X.X So have million

a just strategy dividend reduced X%. in per $X.XXX part quarter. buyback to April, is over to from our increase the we share announced by we program months, share calendar XX over reduce As have you $X.XX Back past and count, of know, our count the long-term

due in to I on just with little very flow. the we dividend the share increase reductions count steady impact to However, mentioned, were cash able

While as X% dividends the every receiving of dollar a more shareholder is in the amount dividend, was paid June ago. year was it total in same

It a summarize. us. quarter was good to just for quickly So

our to exposure returns around $X turn And an balance cost. the our risk our strong a while balance event increase with earning and portfolio cat a – in sheet reducing in We’re Paresh. combined investment and our mid-XXs, strong reducing maintaining enhancing we’re reducing liquidity, I’ll in significantly maintaining and that, the ratio and share, without liquidity to back keeping it reinsurance

Paresh Patel

some I traded Mark. anniversary people significant company. wanted that’s XXth to most a three not you, clocked year but publicly is as days Monday, me. for Thank ago, Last it note to probably our things

calls, issues means doing in of in we Looking the on I’ve is lot whatever the the and – And that, at earnings these public relevant as through and been them. discuss our call of one simple a are are math every this that items probably this XXth a quarter, company.

Sometimes, plans. we growth discuss

ahead keep But ago, and at We we five last positive of in But XXXX doing that we of it has also over going did no years XXXX we we’re money. count dividend shares Dividend and is and call. of lies wanted show the it’s every the but any listen them if share to quarter, paying going by on we years, original but moment. from Sometimes, the maintaining of it us. in now we’ve at this doing QX for are have business, things $X.XX the the years results the at you $X.XX opportunity we why great key we outcomes actually look five still XX% I shareholders, this Mark and quarter, about that presents The about? to it we though, over where balance XX where opportunity. years can operation. It a this ago, headed given It back XX positive share year, the there look that $X.XX is – ago, a the And to quite up last for in on, quarter, years five represents talk technology and some years years and dividends a than gone of while point, the XXXX. a the has is of about those share more. reasons business, up profitable of And what consistent back and reported owned and doesn’t what where am we What does call few long-term. quarter. point, greater been to Out have five it is we maturity, a last and record. come about great to has keep – last inflection one calls, And the Obviously, down a company the how years, XX% buy few shareholders if the where talk we’re those to come. XX%. an lost talking in what a From happen we been we been what’s won’t stock had the stake comments were this variety earnings to item, illustrates from every the continue to. make it’s because developing you sure I made it’s of XX discuss long-term maintaining in

saying TypTap a Let’s – am – is ago, So years about? TypTap and this that second. business is about Flood, for now I is we started what that profitable. talk we’re what that a X.XX talking

it or any do maybe, technology if know the average?" just implemented say, we’ve been as happens. profitable it. any And seen we cat what results works. could three hurricanes, In "How you claims got never It’s through just and results had events, and TypTap’s Now you’re to lucky," or we than were "Well, cat you we isn’t case, that better the that serious have underwriting doing prove actually

We a book. similar wind outcome the have Homeowners side on Choice on the

highlighted the now we just working, Mark as implemented have items, expand that technology those using in such way is we the technology business. can a the So

quarter, terrible are at flood And the we and – can looking opportunity in through What et And that Florida. we us exit, that the much AOB to our is entire of on the country. Tri-County can do oh, few second writing we for both right? and Broward in minefield. get expand talked as we write now and homeowners are cetera. states NFIP. to Dade way, we – growth County So because business looked it Florida overlooked market, the because by do throughout just forward homeowner outside to about represent side, refocus and technology Tri-County. including our We I in in everybody’s the market, years, problems, billion profitably, going This represents last know, a lets They’re business a can not should almost been $X now you great smaller walk there, what’s right? the than started is

and So the opportunity. we NFIP is that are after we are a market, market, $X going going after which billion

get billion – going plus are and are We we all of those $X to nor trying of not billion to. all $X that

being share one has outside of where are we it percentage top strategy out I We of more of turn questions. that, is on over share trying buybacks our of and please That dividend profits. are is that long-term its Operator, and small get the headed – to increases. opportunity but instructions. layered than the a now to call that With to, will share provide

Operator

[Operator Instructions].

your line the proceed from Arash of Please with comes Soleimani of question. question first Our KBW.

Arash Soleimani

Hi. evening. Good

you on for quick some, from guys you current numbers. development. called – that see that XQ? first the development a I year So accident it, Was question just XXXX had

Mark Harmsworth

had bit some million, – we not was No, adverse but we a of from years. – less prior it $X than little had

Arash Soleimani

Okay.

was So that years. prior

operations you Okay. did additional in And the reinsurance. then press release, mention in

collateral that anymore? you what using So by you’re if not mean do

Paresh Patel

losses a are what it Arash, what you what Can – you to? you bit? referring are exactly elaborate – are

Arash Soleimani

reinsurance. It says carrier it in insurance basically, description – the says, Yes, sorry. the in HCI additional where just homeowners of operations with

color wanted to more the I on reinsurance. So just get

Paresh Patel

is other other still and does some reinsurance collateral past Yes, functioning. contract is cetera. and it et from there the have still things, And

on liquidated the collateral, book not wind just for program HCI it’s the We XXXX have that XXXX, it’s reinsurance year.

Arash Soleimani

that to a that, any operations say Does are material would way whole? it in to irrelevant any you and results? immaterial have currently Or HCI as that’s current

Paresh Patel

And irrelevant. forget: gets and don’t anyway, at generally HCI immaterial the level It’s collateral consolidated Group yes? out

Arash Soleimani

engaged is transaction collateral Okay. no that of kind third-party there in? But is

Paresh Patel

No.

Arash Soleimani

can I – And in for you trying what pipeline was how guess, increases to about at or I the okay. that’s this you look the talk rate year potential environment? rate

Paresh Patel

this Obviously, We rate year, that that had we – in filing obviously of for we need. what rate for moment data, late year. a cetera, back Yes, are collecting – obviously, time, end our XXXX have through resulted At September we we do the obviously, the And we in annual some done, may can. The increase filings. started are as last filing will rate a is that rate which running actuary at the et opinion to rate when last our for all our XXXX. adjustment book.

made. we it, to rate also need. adjustment may We they will review discuss a the opinion their opinion as number and strong don’t if or then what But will we time, there to will be, – IRR, we from provide much, and rate how will up and data that the a have at this who moment down, adjustment we there, an will or you have would an in of yes? what as statement be sort are And to

Arash Soleimani

loss did you this quarter? And Okay. Irma, of guys gross see creeps terms any in

Paresh Patel

we’re... Mark think said just I

Mark Harmsworth

– $XXX million from yes, Arash, ultimate, to the up bumped million. We from $XXX

Arash Soleimani

you quarter Okay. interest buying there guys there front? further been Has there mentioned, on – last that And FedNat. in any developments – been has any I have think,

Paresh Patel

M&A specifically in asking about you or general? Are FedNat

Arash Soleimani

there. you there to could have report guess about FedNat else if start carrier anything combine does the work on not can if FedNat is maybe Florida in appetite talk and then out? And I any you with to we with Maybe both. see

Paresh Patel

Okay.

FedNat part it last did were So the conversations is – when – the even I I mentioned been had call, in piece terminated. easy say because, earnings

us. was it’s So and it have over. There discussions over between further no then, been still

their between be buy sellers come that of companies along. opportunities at buyer as cetera, sometimes to had, been gap et know the still some and involving any day, rational is us, But value the what other are a think I not us. what, willing end far involving at think, there As to there M&A, seems sometimes have I the I conversations companies at.

are at And think aren’t they so that of. mean just don’t aware doesn’t I we’re That any what imminent, least, transactions I’m there, aware of.

Arash Soleimani

And gross Okay. I you this, you think did Mark, can but mention the written? premiums repeat

Mark Harmsworth

Gross written were total million. $XXX.X premiums

Arash Soleimani

answers. you Thank the right. for All great. Okay, very much

Mark Harmsworth

Thank you.

Operator

line the question Carletti Matthew JMP with of comes securities. next question. from Our Please of proceed your

Matthew Carletti

Good thanks. Hey, afternoon.

Paresh Patel

Good afternoon, Matt.

Matthew Carletti

of AOCB-related start numbers Irma, the little bit give guys you behind little – with a increase huge of else the gross. on the it? Is you had the bit of Can main something color a a stuff of us reopening – of there’s just give expected, and it little you kind has of that that maybe us than pace but kind caught faster is or there in kind being driver not

Paresh Patel

Paresh. it’s Matt,

and causing thinking think et this as speaking coming right, really not industry we am just for it’s I where what’s And policyholders, have I cetera, I’m analyzed whole. for a this, from. our about

the So to made up that claims to expense Keys a the there, but, they picking went development, there’s probably with claims the landfall of are roof had illustrate is is there in up is looked those severely actually, at and I imagine pre-Irma, basically, the Keys places roof that’s materials by Irma example, in what October is in he the and settle form are what the in $XX,XXX roof we to where November, case the takes X. a people’s and And that where adjuster roofs total and least as of places the shortage like the and used fixed of it written mean at or cat are been – a to additional what not in through new in this and all a replace. Marco claims. to is that measured going said we now Island cost the What get house, labor in said our Island. cat like four the our area, and house seeing And were those roof cost a Back developing roofs – damaged. Marco

insured. we So probably that and that lot that that the And that’s get. $XX,XXX Obviously, price up, behind will stand is our a costing maybe claim an point, stuffs, insured the $XX,XXX. roof go can other cost now best at of And yes?

Matthew Carletti

Okay.

not surge, related?. demand So, anything litigation

Paresh Patel

No.

Kevin Mitchell

Yes, that coming coming coming litigation mean, there and and would I that, a surge never we – but litigation in are there be it. Paresh that’s demand And... is we in, that – as be when new we we some some, anticipated assumed original our assumed of But There Matt, sort a surprise, we in, said, we should estimates, but claims it’s driving in. lot. is not built

Paresh Patel

they’re do to anticipated. we’re And going

Mark Harmsworth

smaller claims. they’re and dollar Yes,

So of it’s fairly a sort finite problem.

Matthew Carletti

and mentioned kind years just, refocusing topic, probably in you And you you’ve success focusing of just bit and technology when then risks. but Okay, kind color good I some little both of little us to a on for bit being was to the to a the in the other I topic able good give kind just things that next of versus is seen could understand of TypTap clue maybe got kind Can of good and to looking give hoping on you’ve that, like that where learned of said, things in like of lessons and to, being color just the great. house kind even find minefield that Tri-County? you I you and on you of date, tiptoe Paresh, one growth. not it’s And us think, maybe into comes Tri-County it a through risk X.X it a a on the attributes being competitively the to risk bit just more use and kind one the you’re sensitive

Paresh Patel

there’s voice several of which I What’s how be with opinion hurricanes Okay, And the is getting time. one so talking said the that competitive we what things be were we companies wasn’t good. popular are in we this flood at we through years good business a at TypTap prices, the lone profitably happened us ago, right? first all, at of And a the flood. But about I side, the this wilderness. clearly, at there from could is, when happened, know three which of lots it agree think on point, has into flood and into done, business. that And that’s the guess, getting gone point, could it they started done is

their lot do U.S. a It’s bailed in business, will Congress Case which still is here. You flood out money. events and of and there’s last by homes flood can the not of experience, be you in the bad point, Harvey, out outcomes. in TypTap that business, get the despite all into cost healthy risks, been different because needed where to with year. good you And they what and were NFIP of That’s vast bailed happened right? they felt

And works actually that that good the along. the the so what write. experience a lived to through we from both comes business know we cat to in increasingly confident we want from don’t it’s getting we that we versus until about experience, hurricanes. write as speak great side, are want and business what’s well That’s as the So flood long-term having

et the in On the wind thing cetera. side, same it’s Tri-County,

see how piece We last been our but blow wind Irma, blow. been cetera. we building does as to make when et it monitoring profitable do systems And good the us, watching how also the one to to having the performs wind it how be the completed does as not idea making for can gone out a four how get book, quarter have only book our last perform if maintaining actually loss and tools very business data book for to when puzzle of because and and turned an we’ve the best this, and through a to years doesn’t

assembling value things how so big do us – together, who because writing And a been made terms while TypTap, Tri-County Obviously, portfolio. life down and write in apply is a to are the know bring that’s people in who agent. profitable a these live much about go think for – all of and are of there decent, And with can and business, in insured easier always about yes. there the telling So Tri-County. who time we light, hard-working insurance. negative a they everybody of grow including it’s to Because talked we people, need we lot

ago, years a flood decent, five We’ve product thought great like people good a insurance. good hard-working when needed product at Just never differently. to a been offer price shy to actually, – others our

Matthew Carletti

Great. much you and very Thank color on anniversary. for XX-year the congrats the

Paresh Patel

you. Thank

Operator

[Operator Instructions].

your Our the with Hughes Please line of SunTrust. of next Mark proceed from question comes question.

Mark Hughes

you. thank Yes,

the On worthwhile? it you spotted of? proprietary that take is presumably is make up Tri-County, something going enough has Or come in pricing something advantage of have that Florida, – it there’s South the you’re to there that to

Paresh Patel

bad And that that the be and business able house-by-house over or separate look or is down Really, profitable you whatever, not. can code come on I unprofitable getting it I just or can a what to we’ve we or at go rooftop-by-rooftop bad difference makes from that builds this business. at at or zip and is of predict able say it got a whether area saying is good Instead up pricing’s don’t all being level advantage stuff. and good know potentially is an good edge give to looking is what or time. almost

in We when told of the were all and logic that identify And in Tri-County. didn’t to so later, doing stopped. of in PIT of There’s we a stopped it good we the and out basis actually else were business business. that’s and would now state. apply a distinguish policies to of have on nobody do on because be and of to It’s Why counts these We do XXXX, we premiums, tools, throughout lots good used ran the years number lots ability same the was It’s in just when there back see they doing takeouts we of takeouts right when that business able business tools had still Others and out business. We still them. ‘XX out Citizens. Tri-County. there. us capability any so stop? XXXX, Citizens we safe, those what on. now we business attracts that’s rooftop-by-rooftop same between the and And good have we to Looking

underwrite policy interest almost policyholder can a instantaneously when is, from whatever yes? the expresses at premium the So we

Mark Hughes

that have the slightly. material line? a it into question premiums of quarters, last couple to down point, be written will down Just How but call top flat, the sort gross roll of about of, been that broader your

that of Tri-County to You’ve growth? in might gotten the help the whatever transition context question before. When you sustainably policies? does how line top So is some of that get these

Paresh Patel

a now we thinking see it it, unless states the growth profitable to Yes, this to one Yes, just maintaining didn’t book into the one differently feel about our doing got that. business the we are it helps so bottom Mark, unless this forever we little a it we see keep you in We otherwise, that it’s or more homeowners book grown we that confident are line. because seems business, write either And have that – because, a start haven’t in about think multiple so we that reasons to policy, activity. we XXXX, top policy a can could would two we’d of of growing things premium we we now because will write mean the are the reasons brought that again. of would growing up now your like business that wasted But could don’t on QX incremental especially expect activity. is, make our call And from we whether it expanded we start that once It’s or early add earned write sense. we It can way creates but line, is question, profitably. But – early we a if do of time Obviously, incremental answer tell. the lot in Tri-County state will could. the it’s business to where you days, like to of we bit by of business of throughout lot opportunity yes? a

Mark Hughes

front, sense here? – and whether the to Do going you storm AOB the getting – About that situation? you Has not is any there on – Understood. judge feeling respite so you’re the you’re effect? got after claims, therefore, way the have any the lawyers direct plaintiff are

Paresh Patel

is they as some claims. is there the color. mathematical Yes, more – there but that, I daily are risk you, the way judging can of give don’t I know on plaintiffs like Irma focused on than you if absolutely a tell some would short-term,

And there is that the state. up, of that, concerning, with Having will said down throughout are dealt slightly also be forms which that So the numbers Irma. some are for we firms setting firms the then new what Irma up state is the of law looking that, there. these revenue, other law could because AOB is when plaintiffs, is and somewhere is road, concern throughout spread picking

to in that major So in AOB none in be problem up about construed concern us to this point that if of might be of we’ve taken detrimental the be And thing not the short-term, care while it talked a the whole. industry time. any long-term, to it things could in it’s be is and is the in believing as diminishing or the us a not call a way should of respite,

Mark Hughes

this there anything was commission ratio unusual? Was premiums. to up The quarter compared

Paresh Patel

of we wind premiums things of one from have It’s on it. unearned of had be gone books. cash But reason season to those have into our – because that can our portfolio could QX renew. think days policies tends perkiness we only book to we our of. is max that been by sections when with it amount some Not the The large does go wanted and legacy to

Mark Harmsworth

it’s Mark, Mark.

earned. of thinking relationship then premiums that the and right? between You’re gross Is commissions

Mark Hughes

expedition expense. Policy yes. Correct,

Mark Harmsworth

got there’s you so Yes, that bunch things in there, they to capitalize of get that remember a we then ways. amortized different and

in are go are So of gross those there. gross different to things amortized. are operationally, nothing correlation gross just connection there’s with the in But based There There’s is expenses or exactly that written. premiums treated premiums never that won’t way some earned. a direct up premiums some earned. some they that on necessarily It’s straight-line are there down that

Mark Hughes

for What’s year, your half the latest of thinking on for year? next the tax back rate

Mark Harmsworth

we XX% said if I much under XX%. the call accounting in I you kind range tax on cumulative and prepared it’s developed six look be our expected Yes, weird at about through those the similar half, tax since rate our it half. be Nothing There that the months, expectations. was it is And to that treatment we to rate in for effective of has second XX%. the last changed just so that first remarks. first But my went for I would the for expect

So I the number. still XX% is right think about

Mark Hughes

may And then you know has it’s much? I XQ, raining been a it the not have early so and view, very weather in far but

Paresh Patel

summer to little a a dramatic It rain nothing and our volumes, the concerning. been get up has rainy but summer. summer. bit same compared or in most are It’s expectations. in overly first It the especially, We quarter, Florida. rains It’s within the

Mark Hughes

Yes.

very Okay. much. Thank you

Paresh Patel

Thanks, Mark.

Operator

would conference I conference. portion back the Mr. audio over are to Kevin the further no closing of to the for There turn remarks. like Mitchell now questions

Kevin Mitchell

the from progress appreciation receive On updating would support to behalf on look future. and, our Thank near we you shareholders, you. of forward like We our our our I to management most continued for entire in employees, express the the importantly, team, agents policyholders.

Operator

conference. for today’s Thank concludes your you This participation.

day. your this of disconnect may your at Have You a time. rest lines wonderful

HCI (HCI) 4 Aug 182018 Q2 Earnings call transcript