Fourth Quarter Pre-Tax Income of $144 million and Diluted EPS of $7.25
Full Year 2025 Pre-Tax Income of $429 million and Diluted EPS of $22.72
Gross Loss Ratio of 15.6% for the fourth quarter and 19.6% for the full year 2025
Tampa, Fla. – February 25, 2026 – HCI Group, Inc. (NYSE:HCI), reported pre-tax income of $144 million and net income of $108 million in the fourth quarter of 2025 compared with pre-tax income of $6 million and net income of $4 million in the fourth quarter of 2024. Net income after noncontrolling interests in the fourth quarter of 2025 was $98 million compared with $3 million in the fourth quarter of 2024. Diluted earnings per share were $7.25 in the fourth quarter of 2025 compared with $0.23 diluted earnings per share in the fourth quarter of 2024.
Management Commentary
“2025 was a very successful year for HCI, delivering record earnings and shareholder returns. In addition to our operating performance, HCI successfully executed the IPO of Exzeo, a leading technology platform.” said HCI Group Chairman and Chief Executive Officer Paresh Patel. “Looking forward to 2026, we are exploring new areas of growth, both organically and through acquisition. In the meantime, we plan to invest in ourselves through a soon-to-be announced share buyback program.”
Fourth Quarter 2025 Results
Gross premiums earned in the fourth quarter of 2025 were $332 million compared with $297 million in the fourth quarter of 2024. The increase was driven by a higher volume of insurance policies in force.
Premiums ceded for reinsurance in the fourth quarter of 2025 were $106 million compared with $151 million in the fourth quarter of 2024. The fourth quarter of 2024 included a $51 million non-recurring amount related to Hurricane Milton.
Losses and loss adjustment expenses in the fourth quarter of 2025 were $52 million compared with $111 million in the fourth quarter of 2024. Losses and loss adjustment expenses in the fourth quarter of 2024 included a net loss of $78 million from Hurricane Milton, partially offset by $24 million of favorable development. Losses and loss adjustment expenses in the fourth quarter of 2025 included $6 million of favorable development. The gross loss ratio for the fourth quarter of 2025 was 15.6%.
Policy acquisition and other underwriting expenses in the fourth quarter of 2025 were $33 million compared with $28 million in the fourth quarter of 2024. The increase was driven by a higher volume of premiums in force.
Interest expense in the fourth quarter of 2025 was $1 million compared with $3 million for the fourth quarter of 2024. The fourth quarter of 2024 included $2 million of interest expense on the 4.75% convertible notes which have since been redeemed.
Full Year 2025 Results
Pre-tax income was $429 million and net income was $320 million in 2025 compared with pre-tax income of $173 million and net income of $128 million in 2024. Net income after noncontrolling interests in 2025 was $299 million compared with $110 million in 2024. Diluted earnings per share were $22.72 in 2025 compared with $8.89 diluted earnings per share in 2024.
Gross premiums earned in 2025 were $1,236 million compared with $1,083 million in 2024. The increase was driven by a higher volume of policies in force.
Premiums ceded for reinsurance in 2025 were $414 million compared with $406 million in 2024. The increase was driven by a higher volume of policies in force, partially offset by a $63 million non-recurring amount included in 2024 related to Hurricane Milton and Hurricane Helene.
Losses and loss adjustment expenses in 2025 were $242 million compared with $375 million in 2024. Losses and loss adjustment expenses in 2024 included net losses of $128 million from Hurricanes Milton, Helene, and Debby. The gross loss ratio for the full year 2025 was 19.6%.
1
Policy acquisition and other underwriting expenses in 2025 were $122 million compared with $99 million in 2024. The increase was driven by a higher volume of premiums in force.
General and administrative personnel expenses in 2025 were $72 million compared with $63 million in 2024. The increase was primarily attributable to an increase in stock-based and other incentive compensation as well as an increase in salaries and wages.
Interest expense in 2025 was $9 million compared with $13 million in 2024. The full year of 2024 included $9 million of interest expense on the 4.75% convertible notes which were redeemed during the second quarter of 2025.
Conference Call
HCI Group will hold a conference call later today, February 25, 2026, 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: (888) 506-0062
Listen-only international number: (973) 528-0011
Entry Code: 935522
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 February 25, 2027.
Toll-free replay number: (877) 481-4010
International replay number: (919) 882-2331
Replay ID: 53584
About HCI Group, Inc.
HCI Group, Inc. is a diversified holding company engaged in insurance, reinsurance, real estate, claims services, and insurance technology. The HCI Group portfolio of companies includes multiple P&C underwriters and exchanges, a captive reinsurer, a claims management business, a commercial real estate investment company, and leading insurance technology company Exzeo. HCI was founded in 2006 and operates in 13 states.
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 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
2
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)
Three Months Ended
Years Ended
December 31,
December 31,
2025
2024
2025
2024
Gross Written Premiums:
Homeowners Choice
$
125,483
$
145,085
$
652,569
$
593,943
TypTap Insurance Company
140,901
174,980
503,672
491,413
Condo Owners Reciprocal Exchange
3,060
14,435
31,001
81,411
Tailrow Reciprocal Exchange
64,364
-
107,528
-
Total Gross Written Premiums
$
333,808
$
334,500
$
1,294,770
$
1,166,767
Gross Premiums Earned:
Homeowners Choice
$
167,795
$
156,342
$
637,741
$
589,137
TypTap Insurance Company
129,259
123,807
502,756
442,876
Condo Owners Reciprocal Exchange
9,054
17,348
47,688
51,207
Tailrow Insurance Exchange
25,947
-
47,960
-
Total Gross Premiums Earned
$
332,055
$
297,497
$
1,236,145
$
1,083,220
Gross loss ratio
15.6
%
37.2
%
19.6
%
34.6
%
Per Share Metrics
Diluted earnings per share
$
7.25
$
0.23
$
22.72
$
8.89
Dividends per share
$
0.40
$
0.40
$
1.60
$
1.60
Book value per share at the end of period
$
80.13
$
42.10
$
80.13
$
42.10
Shares outstanding at the end of period
12,992,147
10,767,184
12,992,147
10,767,184
4
HCI GROUP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands, except share amounts)
December 31, 2025
December 31, 2024
(Unaudited)
Assets
Fixed-maturity securities, available for sale, at fair value (amortized cost: $595,383 and $719,536, respectively and allowance for credit losses: $0 and $0, respectively)
$
597,329
$
718,537
Equity securities, at fair value (cost: $61,597 and $52,030, respectively)
65,890
56,200
Limited partnership investments
17,690
20,802
Real estate investments
103,746
79,120
Other investments
5,000
-
Total investments
789,655
874,659
Cash and cash equivalents
1,210,126
532,471
Restricted cash
3,748
3,714
Income taxes receivable
1,332
463
Deferred income tax assets, net
2,237
72
Premiums receivable, net (allowance: $4,469 and $5,891, respectively)
57,494
50,582
Prepaid reinsurance premiums
50,127
92,060
Reinsurance recoverable, net of allowance for credit losses:
Paid losses and loss adjustment expenses (allowance: $0 and $0, respectively)
27,855
36,062
Unpaid losses and loss adjustment expenses (allowance: $97 and $186, respectively)
262,041
522,379
Deferred policy acquisition costs
59,722
54,303
Property and equipment, net
28,939
29,544
Intangible assets, net
2,683
5,206
Funds withheld for assumed business
5,254
11,690
Other assets
27,715
17,008
Total assets
$
2,528,928
$
2,230,213
Liabilities, Redeemable Noncontrolling Interests and Equity
Losses and loss adjustment expenses
$
576,495
$
845,900
Unearned premiums
643,328
584,703
Advance premiums
19,302
18,867
Reinsurance payable on paid losses and loss adjustment expenses
—
2,496
Ceded reinsurance premiums payable
27,591
18,313
Assumed premiums payable
1,744
2,176
Income taxes payable
12,782
5,451
Deferred income tax liabilities, net
3,814
2,830
Revolving credit facility
36,000
44,000
Long-term debt
31,877
185,254
Accrued expenses and other liabilities
61,351
51,182
Total liabilities
1,414,284
1,761,172
Commitments and contingencies
Redeemable noncontrolling interests
3,359
1,691
Equity:
Common stock, (no par value, 40,000,000 shares authorized, 12,992,147 and 10,767,184 shares issued and outstanding, respectively)
—
—
Additional paid-in capital
428,109
122,289
Retained earnings
611,509
331,793
Accumulated other comprehensive income (loss)
1,459
(749
)
Total stockholders' equity
1,041,077
453,333
Noncontrolling interests
70,208
14,017
Total equity
1,111,285
467,350
Total liabilities, redeemable noncontrolling interests and equity
$
2,528,928
$
2,230,213
5
HCI GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share data)
Three Months Ended
Years Ended
December 31,
December 31,
2025
2024
2025
2024
Revenue
Gross premiums earned
$
332,055
$
297,497
$
1,236,145
$
1,083,220
Premiums ceded
(106,234
)
(151,146
)
(414,479
)
(405,659
)
Net premiums earned
225,821
146,351
821,666
677,561
Net investment income
17,686
14,486
65,411
59,148
Net realized investment gains
813
326
2,753
3,384
Net unrealized investment (losses) gains
(365
)
(1,181
)
123
2,644
Policy fee income
1,593
1,302
6,858
4,639
Other
695
591
4,135
2,675
Total revenue
246,243
161,875
900,946
750,051
Expenses
Losses and loss adjustment expenses
51,926
110,727
241,827
374,708
Policy acquisition and other underwriting expenses
32,936
27,707
122,426
99,402
General and administrative personnel expenses
10,851
10,231
72,125
63,152
Interest expense
1,009
3,322
9,156
13,344
Other operating expenses
5,521
3,997
26,082
26,018
Total expenses
102,243
155,984
471,616
576,624
Income before income taxes
144,000
5,891
429,330
173,427
Income tax expense
36,002
1,757
108,935
45,846
Net income
$
107,998
$
4,134
$
320,395
$
127,581
Net income attributable to redeemable noncontrolling interests
—
—
—
(10,149
)
Net income attributable to noncontrolling interests
(10,344
)
(1,550
)
(21,390
)
(7,479
)
Net income after noncontrolling interests
$
97,654
$
2,584
$
299,005
$
109,953
Basic earnings per share
$
7.50
$
0.24
$
24.58
$
10.59
Diluted earnings per share
$
7.25
$
0.23
$
22.72
$
8.89
Dividends per share
$
0.40
$
0.40
$
1.60
$
1.60
6
HCI GROUP, INC. AND SUBSIDIARIES
(Unaudited)
(In thousands, except per share amount)
The computations of basic and diluted earnings per share for the periods presented were as follows:
Three Months Ended
Year Ended
December 31, 2025
December 31, 2025
Income
Shares
Per Share
Income
Shares
Per Share
(Numerator)
(Denominator)
Amount
(Numerator)
(Denominator)
Amount
Net income
$
107,998
$
320,395
Less: Net income attributable to noncontrolling interests
(10,344
)
(21,390
)
Net income after noncontrolling interests
97,654
299,005
Less: Income attributable to participating securities
(3,961
)
(12,041
)
Basic Earnings Per Share:
Income attributable to common stockholders
93,693
12,495
$
7.50
286,964
11,675
$
24.58
Effect of Dilutive Securities:
Stock options
—
429
—
397
Convertible senior notes
—
—
4,879
799
Warrants
—
8
—
7
Net impact from reallocation of undistributed earnings to participating securities
