The offering comprised 1,150,000 shares of its common stock at a price of $78 per share, excluding underwriting discounts and commissions.

HCI Group confirms that this figure includes the underwriters’ option to acquire an additional 150,000 shares of common stock, and notably, this option was fully exercised. The exercise of this option resulted in additional net proceeds to the company amounting to approximately $11.1 million, after factoring in underwriting discounts and commissions, along with estimated offering expenses.

In total, the net proceeds from the offering, after accounting for underwriting discounts, commissions, and estimated offering expenses, reached approximately $85 million. HCI Group has outlined its intentions to allocate these net proceeds, including those associated with the exercise of the underwriters’ option, for general corporate purposes. This encompasses the ongoing assumption of policies from Citizens Property Insurance Corporation.

HCI Group’s strategic move follows the successful assumption of approximately 53,750 policies from Citizens Property Insurance Corporation by its largest subsidiary, Homeowners Choice Property & Casualty Insurance Company, in November. Citizens Company’s JMP Securities served as the lead book-running manager for the offering, with Truist Securities as the joint book-running manager, and Oppenheimer & Co. as the book-running manager.

The funds raised are expected to bolster HCI Group’s financial position and support its corporate initiatives, including the continued assumption of insurance policies.