HCI Group, Inc. (NYSE:HCI) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement
Our principal operating subsidiary, Homeowners Choice Property& Casualty Insurance Company, Inc., has entered into an Assumption Agreement, effective November9, 2017, with Citizens Property Insurance Corporation, an entity created by the Florida Legislature. The agreement sets forth the terms by which our insurance subsidiary may assume policies from Citizens when such assumptions are approved by the Florida Office of Insurance Regulation. The Assumption Agreement appears as Exhibit 10.24 to this Form 8-K.
Item 1.01 Compensatory Arrangements of Certain Officers
On December1, 2016, our compensation committee established a plan to award cash bonuses to certain of our executives, including “named executive officers,” as set forth below.
|
Name and office |
Cash Bonus | |
|
Mark Harmsworth, chief financial officer |
$ | 100,000 |
|
Anthony Saravanos, president—real estate division |
$ | 90,000 |
|
Karin Coleman, vice president—corporate services |
$ | 90,000 |
|
Andrew L. Graham, general counsel |
$ | 90,000 |
Mr.Harmsworth was entitled to a 2017 cash bonus of not less than $100,000 under his executive employment agreement. The other discretionary bonuses are less than those awarded in 2016. Our chief executive officer, Paresh Patel, was not awarded a discretionary cash bonus.
Earlier in 2017, the compensation committee, with the assistance of Willis Towers Watson, a leading compensation advisory firm, established a comprehensive compensation plan for Mr.Patel which included an annual salary, equity based awards and an annual performance-based cash bonus. The committee opted not to exercise discretion to award a cash bonus to Mr.Patel outside of that comprehensive plan. Given the losses caused by Hurricane Irma in 2017, it is extremely unlikely Mr.Patel will meet the performance measures contained within the cash bonus portion of the plan and, accordingly, Mr.Patel will not receive a cash bonus for 2017.
Item 1.01 Exhibits.
Exhibit 10.24 Assumption Agreement.
2
HCI Group, Inc. ExhibitEX-10.24 2 d450382dex1024.htm EX-10.24 EX-10.24 Exhibit 10.24 2017 Assumption Agreement THIS ASSUMPTION AGREEMENT (the Agreement) is effective as of the 9th Day of November 2017 by and between Homeowners Choice Property & Casualty Insurance Company,…To view the full exhibit click here
About HCI Group, Inc. (NYSE:HCI)
HCI Group, Inc. (HCI) is a holding company. The Company is engaged in providing property and casualty insurance to homeowners, condominium owners, and tenants in the state of Florida through its subsidiaries. The Company operates through property and casualty insurance operations segment. The Company’s operations include Insurance Operations and Other Operations. The Company’s Insurance Operations include property and casualty insurance, and reinsurance. HCI’s Other Operations include information technology (IT) and real estate. The Company, through its subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., provides property and casualty insurance. Its real estate operations consist of properties it owns, operations located at those owned properties and investments in approximately three commercial development projects. Its IT operations are focused on developing cloud-based products or services, including Exzeo, Proplet and Atlas Viewer.