I believe they are adequately positioned for the hurricane risk. They have minted money for last five years based on very favorable wind in Florida. The funny part is, even with a major wind event they will come out stronger and make even more money after the event. Plus they have some additional ideas they are working on. Strong buy imo.
This company will collapse, its just a matter of time. Simply because, its reinsurance program is practically non-existence for a book that is entirely on the gulf. "They have minted money..." they have been paying out underwriting profits to shareholders rather than building up their surplus.
No well run insurance company trades 3X book value, especially one that positions all of its risks in a hurricane prone area with the little amount of reinsurance, Homeowners Choice chose to purchase.
This company should be broken up as it is a financial threat to its shareholder, policyholders and the tax payers