HCI Group (NYSE: HCI) reported Q4 EPS of $0.47, versus $1.05 reported last year.

Net income totaled $4.6 million or 47 cents diluted earnings per share compared with $11.1 million or $1.05 diluted earnings per share in the fourth quarter of 2015.

Gross premiums earned totaled $92.4 million compared with $101.9 million in the same period in 2015. The decrease was attributable to expected policy attrition as well as a previously announced rate decrease that went into effect January 1, 2016.

Premiums ceded decreased to $29.1 million or 31.4% of gross premiums earned from $40.3 million or 39.6% of gross premiums earned in the fourth quarter of 2015. The decrease was attributable to the lower cost of the 2016/17 reinsurance program which began June 1, 2016, as compared with the 2015/16 program, which began June 1, 2015.

Net premiums earned (defined as gross premiums earned less premiums ceded to reinsurance companies) were $63.4 million compared with $61.6 million in the same period in 2015.

Investment related income increased to $4.8 million compared with $1.2 million in the same period in 2015. The increase in 2016 was primarily due to $1.2 million of income from limited partnership investments in 2016 versus losses of $0.4 million in 2015 as well as net realized gains from investment sales of $1.7 million in 2016 as compared with $45,000 of net realized investment losses for the quarter ended December 31, 2015. Additionally, the company recognized net non-cash charges of $1 million in the fourth quarter of 2016 and $0.8 million in the fourth quarter of 2015 due to declines in the fair value of securities determined to be other than temporary.

A remeasurement gain of $4 million resulted from the company’s real estate division, Greenleaf Capital, acquiring full ownership of a shopping center property in which it had previously held a 90% non-controlling interest. Subsequent to the acquisition, the company incurred an impairment loss of approximately $0.4 million due to the unexpected closure of one tenant’s business.

Losses and loss adjustment expenses were $45.4 million compared with $21.4 million in the same period in 2015. The increase was due primarily to the impact of Hurricanes Hermine and Matthew, the latter accounting for approximately $21 million in losses and loss adjustment expenses. In addition, we continued to strengthen reserves in response to trends involving assignment of insurance benefits and related litigation.

Policy acquisition and other underwriting expenses were $10.1 million compared with $11.1 million in the comparable period in 2015.

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