Third Quarter Pre-Tax Income of $90.6 million and Diluted EPS of $4.90
Book Value Per Share Increased to $63.41
Gross Loss Ratio of 22.0%
Tampa, Fla. – November 6, 2025 – HCI Group, Inc. (NYSE:HCI), reported pre-tax income of $90.6 million and net income of $67.9 million for the third quarter of 2025 compared with pre-tax income of $14.1 million and net income of $9.4 million for the third quarter of 2024. Net income after noncontrolling interests was $65.5 million compared with $5.7 million in the third quarter of 2024. Diluted earnings per share were $4.90 in the third quarter of 2025, compared with $0.52 in the third quarter of 2024.
Management Commentary
“This was another strong quarter, marked by solid profitability, industry-leading net combined ratios, and meaningful growth in book value per share,” said HCI Group Chairman and Chief Executive Officer Paresh Patel. “Most importantly, we progressed our initiative to unlock shareholder value and establish Exzeo as an independent, publicly traded entity which was achieved earlier this week.”
Third Quarter 2025 Commentary
Gross premiums earned in the third quarter of 2025 increased by 13.4% to $301.1 million from $265.5 million in the third quarter of 2024 as a result of a higher volume of policies in force.
Premiums ceded for reinsurance in the third quarter of 2025 were $106.1 million compared with $109.7 million in the third quarter of 2024.
Losses and loss adjustment expenses in the third quarter of 2025 were $66.2 million compared with $105.7 million in the third quarter of 2024. Losses and loss adjustment expenses in the third quarter of 2024 included net losses of $40.0 million from Hurricane Helene. The gross loss ratio was 22.0% in the third quarter of 2025 compared with 39.8% in the third quarter of 2024, reflecting the lower catastrophic event activity as well as lower claim frequency on other non-catastrophic claims.
Policy acquisition and other underwriting expenses in the third quarter of 2025 were $31.7 million compared with $26.1 million in the third quarter of 2024. The increase was driven by a higher volume of premiums in force.
General and administrative personnel expenses in the third quarter of 2025 increased to $20.8 million from $19.2 million in the third quarter of 2024. The increase was primarily attributable to an increase in incentive compensation.
Interest expense in the third quarter of 2025 decreased to $1.0 million from $3.4 million for the third quarter of 2024 as a result of the conversion of the 4.75% Convertible Senior Notes during the second quarter of 2025.
Other operating expenses in the third quarter of 2025 decreased to $6.1 million from $6.8 million in the third quarter of 2024. The decrease was primarily attributable to a decrease in bank service charges and other miscellaneous operating expenses.
Year-to-Date 2025 Results
For the nine months ended September 30, 2025, the Company reported pre-tax income of $285.3 million and net income of $212.4 million compared with pre-tax income of $167.5 million and net income of $123.4 million for the nine months ended September 30, 2024. Net income after noncontrolling interests was $201.4 million compared with $107.4 million for the nine months ended September 30, 2024. Diluted earnings per share were $15.47 for the nine months ended September 30, 2025, compared with $8.59 for the nine months ended September 30, 2024.
Gross premiums earned for the nine months of 2025 increased by 15.1% to $904.1 million from $785.7 million in the same period of 2024 as a result of a higher volume of policies in force.
Premiums ceded for reinsurance for the nine months of 2025 were $308.2 million compared with $254.5 million for the nine months of 2024. The increase was primarily attributable to growth in the number of policies in force and total insured value.
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Losses and loss adjustment expenses for the nine months of 2025 were $189.9 million compared with $264.0 million for the nine months of 2024. Losses and loss adjustment expenses in the nine months ended of 2024 included net losses of $40.0 million from Hurricane Helene. The gross loss ratio for the nine months of 2025 was 21.0% compared to 33.6% for the nine months of 2024, reflecting the lower catastrophic event activity as well as lower claim frequency on other non-catastrophic claims.
Policy acquisition and other underwriting expenses for the nine months of 2025 were $89.5 million compared with $71.7 million for the nine months of 2024. The increase was driven by a higher volume of premiums in force.
General and administrative personnel expenses for the nine months of 2025 increased to $61.3 million from $52.9 million for the nine months of 2024. The increase was primarily attributable to an increase in stock-based and other incentive compensation, and employee health benefits.
Interest expense for the nine months of 2025 decreased to $8.1 million from $10.0 million for the nine months of 2024 as a result of the conversion of the 4.75% Convertible Senior Notes during the second quarter of 2025.
Other operating expenses for the nine months of 2025 decreased to $20.6 million from $22.0 million for the nine months of 2024. The decrease was primarily due to a decrease in bank service charges and other miscellaneous operating expenses; partially offset by a $1.1 million debt conversion charge in connection with the conversion of our 4.75% Convertible Senior Notes during the second quarter of 2025.
Conference Call
HCI Group will hold a conference call later today, November 6, 2025, to discuss these financial results. Chairman and Chief Executive Officer Paresh Patel, Chief Operating Officer Karin Coleman and Chief Financial Officer Mark Harmsworth will host the call starting at 4:45 p.m. Eastern time.
Interested parties can listen to the live presentation by dialing the listen-only number below or by clicking the webcast link available on the Investor Information section of the company's website at www.hcigroup.com.
Listen-only toll-free number: (877) 545-0320
Listen-only international number: (973) 528-0002
Entry Code: 310078
Please call the conference telephone number 10 minutes before the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at (949) 574-3860.
A replay of the call will be available by telephone after 8:00 p.m. Eastern time on the same day as the call and via the Investor Information section of the HCI Group website at www.hcigroup.com through November 6, 2026.
Toll-free replay number: (877) 481-4010
International replay number: (919) 882-2331
Replay ID: 53155
About HCI Group, Inc.
HCI Group, Inc. is a holding company with two distinct operating units. The first unit includes four top-performing insurance companies, a captive reinsurance company, and operations in claims management and real estate. The second unit, called Exzeo Group, is a leading innovator of insurance technology that utilizes advanced underwriting algorithms and data analytics. Exzeo empowers property and casualty insurers to transform underwriting outcomes and achieve industry-leading results.
HCI's common shares trade on the New York Stock Exchange under the ticker symbol "HCI" and are included in the Russell 2000 and S&P SmallCap 600 Index. HCI Group, Inc. regularly publishes financial and other information in the Investor Information section of the company’s website. For more information about HCI Group and its subsidiaries, visit www.hcigroup.com. Exzeo’s common shares trade on the New York Stock Exchange under the ticker symbol “XZO.” For more information about Exzeo, visit www.exzeo.com.
Forward-Looking Statements
This news release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "estimate," "expect," "intend," "plan," "confident," "prospects" and "project" and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and
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conditions, but rather are subject to various risks and uncertainties. For example, the estimation of reserves for losses and loss adjustment expenses is an inherently imprecise process involving many assumptions and considerable management judgment. Some of these risks and uncertainties are identified in the company's filings with the Securities and Exchange Commission. Should any risks or uncertainties develop into actual events, these developments could have material adverse effects on the company's business, financial condition and results of operations. HCI Group, Inc. disclaims all obligations to update any forward-looking statements.
Company Contact:
Nat Otis
Investor Relations
HCI Group, Inc.
Tel (813) 405-5341
notis@hcigroup.com
Investor Relations Contact:
Matt Glover
Gateway Group, Inc.
Tel (949) 574-3860
HCI@gateway-grp.com
- Tables to follow -
3
HCI GROUP, INC. AND SUBSIDIARIES
Selected Financial Metrics
(Unaudited)
(In thousands, except share and per share amounts)
Q3 2025
Q3 2024
Gross Written Premiums:
Homeowners Choice
$
182,863
$
165,208
TypTap Insurance Company
109,963
93,716
Condo Owners Reciprocal Exchange
6,380
11,455
Tailrow Reciprocal Exchange
15,965
-
Total Gross Written Premiums
315,171
270,379
Gross Premiums Earned:
Homeowners Choice
156,904
139,822
TypTap Insurance Company
124,613
108,266
Condo Owners Reciprocal Exchange
10,499
17,430
Tailrow Reciprocal Exchange
9,063
-
Total Gross Premiums Earned
301,079
265,518
Gross Premiums Earned Loss Ratio
22.0
%
39.8
%
Per Share Metrics
Diluted EPS
$
4.90
$
0.52
Dividends per share
$
0.40
$
0.40
Book value per share at the end of period
$
63.41
$
43.45
Shares outstanding at the end of period
12,959,362
10,479,076
4
HCI GROUP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands, except share amounts)
September 30, 2025
December 31, 2024
(Unaudited)
Assets
Fixed-maturity securities, available for sale, at fair value (amortized cost: $559,378 and $719,536, respectively and allowance for credit losses: $0 and $0, respectively)
$
562,094
$
718,537
Equity securities, at fair value (cost: $59,821 and $52,030, respectively)
64,479
56,200
Limited partnership investments
18,936
20,802
Real estate investments
104,651
79,120
Other investments
5,000
-
Total investments
755,160
874,659
Cash and cash equivalents
987,933
532,471
Restricted cash
3,739
3,714
Accrued interest and dividends receivable
7,572
6,008
Income taxes receivable
2,547
463
Deferred income tax assets, net
619
72
Premiums receivable, net (allowance: $5,052 and $5,891, respectively)
70,225
50,582
Prepaid reinsurance premiums
65,593
92,060
Reinsurance recoverable, net of allowance for credit losses:
Paid losses and loss adjustment expenses (allowance: $0 and $0, respectively)
34,442
36,062
Unpaid losses and loss adjustment expenses (allowance: $130 and $186, respectively)
295,200
522,379
Deferred policy acquisition costs
67,446
54,303
Property and equipment, net
29,400
29,544
Right-of-use-assets - operating leases
1,005
1,182
Intangible assets, net
3,290
5,206
Funds withheld for assumed business
7,496
11,690
Other assets
15,112
9,818
Total assets
$
2,346,779
$
2,230,213
Liabilities, Redeemable Noncontrolling Interests and Equity
Losses and loss adjustment expenses
$
615,635
$
845,900
Unearned premiums
641,576
584,703
Advance premiums
43,018
18,867
Reinsurance payable on paid losses and loss adjustment expenses
1,369
2,496
Ceded reinsurance premiums payable
3,760
18,313
Assumed premiums payable
613
2,176
Accrued expenses
46,811
17,677
Income taxes payable
19,061
5,451
Deferred income tax liabilities, net
6,576
2,830
Revolving credit facility
38,000
44,000
Long-term debt
32,078
185,254
Lease liabilities - operating leases
997
1,185
Other liabilities
41,716
32,320
Total liabilities
1,491,210
1,761,172
Commitments and contingencies
Redeemable noncontrolling interests
3,223
1,691
Equity:
Common stock, (no par value, 40,000,000 shares authorized, 12,959,362 and 10,767,184 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively)
—
—
Additional paid-in capital
300,703
122,289
Retained earnings
519,037
331,793
Accumulated other comprehensive income (loss)
2,036
(749
)
Total stockholders' equity
821,776
453,333
Noncontrolling interests
30,570
14,017
Total equity
852,346
467,350
Total liabilities, redeemable noncontrolling interest and equity
$
2,346,779
$
2,230,213
5
HCI GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share data)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
Revenue
Gross premiums earned
$
301,079
$
265,518
$
904,090
$
785,723
Premiums ceded
(106,088
)
(109,694
)
(308,245
)
(254,513
)
Net premiums earned
194,991
155,824
595,845
531,210
Net investment income
17,529
13,714
47,725
44,662
Net realized investment gains
618
2,846
1,940
3,058
Net unrealized investment gains
1,214
657
488
3,825
Policy fee income
1,569
1,229
5,265
3,337
Other
429
1,047
3,440
2,084
Total revenue
216,350
175,317
654,703
588,176
Expenses
Losses and loss adjustment expenses
66,153
105,736
189,901
263,982
Policy acquisition and other underwriting expenses
31,652
26,104
89,490
71,695
General and administrative personnel expenses
20,806
19,175
61,274
52,920
Interest expense
1,019
3,421
8,147
10,022
Other operating expenses
6,121
6,801
20,561
22,021
Total expenses
125,751
161,237
369,373
420,640
Income before income taxes
90,599
14,080
285,330
167,536
Income tax expense
22,711
4,688
72,933
44,089
Net income
$
67,888
$
9,392
$
212,397
$
123,447
Net income attributable to redeemable noncontrolling interests
—
—
—
(10,149
)
Net income attributable to noncontrolling interests
(2,381
)
(3,710
)
(11,046
)
(5,929
)
Net income after noncontrolling interests
$
65,507
$
5,682
$
201,351
$
107,369
Basic earnings per share
$
5.05
$
0.54
$
16.96
$
10.42
Diluted earnings per share
$
4.90
$
0.52
$
15.47
$
8.59
Dividends per share
$
0.40
$
0.40
$
1.20
$
1.20
6
HCI GROUP, INC. AND SUBSIDIARIES
(Unaudited)
(In thousands, except per share amount)
A summary of the numerator and denominator of basic and diluted earnings per common share is presented below.
Three Months Ended
Nine Months Ended
September 30, 2025
September 30, 2025
Income
Shares
Per Share
Income
Shares
Per Share
(Numerator)
(Denominator)
Amount
(Numerator)
(Denominator)
Amount
Net income
$
67,888
$
212,397
Less: Net income attributable to noncontrolling interests
(2,381
)
(11,046
)
Net income attributable to HCI
65,507
201,351
Less: Income attributable to participating securities
(2,385
)
(8,030
)
Basic Earnings Per Share:
Income attributable to common stockholders
63,122
12,487
$
5.05
193,321
11,399
$
16.96
Effect of Dilutive Securities:
Stock options
—
398
—
383
Convertible senior notes
—
—
4,879
1,068
Warrants
—
7
—
7
Net impact from reallocation of undistributed earnings to participating securities
