$HCI

Florida homeowners insurer HCI Group: 18% true FCF yield, $4B reinsurance program, legally mandated customer pipeline from Citizens Insurance. I also pulled 15 years of data instead of just the good 3. The honest normalized yield is closer to 12%. Here's why I still own it.

HCI Group trades at an 8x P/E with a normalized 12% free cash flow yield (18% reported, but 3-year phenomenon with embedded reserve release). The structural tailwinds—Florida tort reform, improved underwriting technology, Citizens Insurance pipeline mandated by law's 20% rule, and verified $4.06B reinsurance coverage limiting first-event losses to $163M—create an attractive entry despite genuine hurricane tail risk that has not been tested under the improved business model.