Hci Group, Inc. · NYSE:HCI
Hci — Merger or Acquisition (May 2018)
10 slides from Hci's merger presentation, May 2, 2018
Slide 1: Summary Presentation for Federated National's Board of Directors
STRICTLY CONFIDENTIAL – Summary Presentation for Federated National’s Board of Directors April 18, 2018 01
Slide 2: Important Cautions Regarding Forward-Looking Statements
Important Cautions Regarding Forward- STRICTLY CONFIDENTIAL Looking Statements TM NYSE:HCI STRICTLY CONFIDENTIAL This presentation includes certain forward-looking statements and information, including statements regarding plans, strategies and expectations of HCI Group, Inc. (“HCI” or the “Company”
Slide 3: HCI's Proposal for HCI/Federated National Combination
HCI’s Proposal for HCI/Federated National STRICTLY CONFIDENTIAL Combination TM NYSE:HCI STRICTLY CONFIDENTIAL HCI proposes to merge with Federated National in an all-stock transaction that offers an implied market premium of [20]% to Federated National’s shareholders. Additionally, our proposal prov
Slide 4: A Highly Compelling Offer for Federated National Shareholders
A Highly Compelling Offer for Federated STRICTLY CONFIDENTIAL National Shareholders TM NYSE:HCI STRICTLY CONFIDENTIAL Offer price of $[19.55] per share with valuation floor provides market premium certainty to Federated National shareholders and significant upside in combined company Transaction exp
Slide 5: Strength of Combined Management Team
Strength of Combined Management Team TM NYSE:HCI STRICTLY CONFIDENTIAL Together, HCI and Federated National will have among the most experienced teams in the industry. Federated National executives will play key roles in the combined company’s operations Strengthened Organization Bruce Simberg Pares
Slide 6: Combined Company Metrics
Combined Company Metrics STRICTLY CONFIDENTIAL TM NYSE:HCI Pro Forma Book Value per Share (12/31/17) $35.00 (1) $29.35 $30.00 $25.00 $22.14 $20.00 $16.29 $15.00 $10.00 $5.00 – HCI Federated National Pro Forma Combined Pro Forma Gross Premiums Earned per Share (CY2017A) $ 70.00 $63.02 (2) $ 60.00 $ 5
Slide 7: Combination Results in #2 Publicly-Traded Florida P&C Insurer
Combination Results in #2 Publicly-Traded Florida P&C Insurer STRICTLY CONFIDENTIAL TM NYSE:HCI Annualized Gross Premiums Written in Florida (Q4 2017) (1) $935 $814 $534 $537 HRTG UIHC HCI + FederatedUVE National Total Assets (12/31/17) (2) $2,060 $1,771 $1,789 (3) $1,455 UVE HRTG HCI + FederatedUIH
Slide 8: Potential for Increased Earnings and Stock Upside
Potential for Increased Earnings and Stock Upside STRICTLY CONFIDENTIAL TM NYSE:HCI The pro forma combined company could generate 2020E earnings well in excess of those shown on slide 5 The tables below show potential share prices for HCI, based on a range of estimates for pro forma earnings per sha
Slide 9: Key Benefits for Federated National Shareholders
Key Benefits for Federated National Shareholders STRICTLY CONFIDENTIAL TM NYSE:HCI Creation of premier, Florida-based homeowners insurance company — with #2 market 1 position among publicly-traded peers (based on premiums written, assets and equity) Improved operating margins with integration of Fed
Slide 10: HCI
HCI TM