Third Quarter Pre-Tax Income of $116 million
Diluted EPS of $6.45
Gross Loss Ratio of 20.7%
TAMPA, Fla., Nov. 04, 2026 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE:HCI), reported pre-tax income of $116 million and net income of $86 million in the third quarter of 2026 compared with pre-tax income of $91 million and net income of $68 million in the third quarter of 2025. Net income after noncontrolling interests in the third quarter of 2026 was $83 million compared with $66 million in the third quarter of 2025. Diluted earnings per share were $6.45 in the third quarter of 2026 compared with $4.90 diluted earnings per share in the third quarter of 2025.
Management Commentary
"Earnings accelerated this quarter as greater operating leverage combined with modest premium growth to drive more profit to the bottom line," said HCI Group Chairman and Chief Executive Officer Paresh Patel. "Our performance illustrates that internal operating decisions can be as important as external market conditions."
Third Quarter 2026 Results
Gross premiums earned in the third quarter of 2026 were $316 million compared with $301 million in the third quarter of 2025. The increase of 5% was driven by a higher volume of insurance policies in force while average premium per policy remained relatively consistent.
Premiums ceded for reinsurance in the third quarter of 2026 were $97 million compared with $106 million in the third quarter of 2025. The decrease was a result of lower costs associated with the company’s new 2026-2027 catastrophe reinsurance programs, which began on June 1, 2026.
Net investment income in the third quarter of 2026 was $22 million compared with $18 million in the third quarter of 2025. The increase was primarily driven by growth in invested assets.
Losses and loss adjustment expenses in the third quarter of 2026 were $65 million compared with $66 million in the third quarter of 2025. Loss and loss adjustment expenses in the third quarter of 2026 included a small amount of favorable prior year development.
Policy acquisition and other underwriting expenses were $32 million for both the third quarter of 2026 and the third quarter of 2025.
General and administrative personnel expenses in the third quarter of 2026 were $24 million compared with $21 million in the third quarter of 2025. The increase was driven by additional personnel, annual merit increases, and stock-based compensation.
Nine Months Ended September 30, 2026 Results
For the nine months ended September 30, 2026, HCI Group reported pre-tax income of $343 million and net income of $254 million compared with pre-tax income of $285 million and net income of $212 million for the nine months ended September 30, 2025. Net income after noncontrolling interests was $231 million for the nine months ended September 30, 2026 compared with $201 million for the nine months ended September 30, 2025. Diluted earnings per share were $17.48 for the nine months ended September 30, 2026 compared with $15.47 for the nine months ended September 30, 2025.
Gross premiums earned for the nine months ended September 30, 2026 were $963 million compared with $904 million for the nine months ended September 30, 2025. The increase of 7% was driven by a higher volume of insurance policies in force while average premium per policy remained relatively consistent.
Premiums ceded for reinsurance for the nine months ended September 30, 2026 were $303 million compared with $308 million for the nine months ended September 30, 2025. The decrease was a result of lower costs associated with the company’s new 2026-2027 catastrophe reinsurance programs, which began on June 1, 2026.
Net investment income for the nine months ended September 30, 2026 was $58 million compared with $48 million for the nine months ended September 30, 2025. The increase was primarily driven by growth in invested assets.
Losses and loss adjustment expenses for the nine months ended September 30, 2026 were $202 million compared with $190 million for the nine months ended September 30, 2025. The gross loss ratio was 21.0% for both the nine months ended September 30, 2026 and 2025.
Policy acquisition and other underwriting expenses for the nine months ended September 30, 2026 were $96 million compared with $89 million for the nine months ended September 30, 2025. The increase was driven by a higher volume of premiums in force.
General and administrative personnel expenses for the nine months ended September 30, 2026 were $70 million compared with $61 million for the nine months ended September 30, 2025. The increase was driven by additional personnel, annual merit increases, and stock-based compensation.
Share Repurchase
On March 3, 2026, HCI Group announced a share repurchase program to repurchase up to $80 million of shares of HCI common stock through February 27, 2027. In the third quarter of 2026, HCI Group repurchased 30,721 shares for $6 million. The share repurchase program was completed on July 17, 2026, with a total of 504,330 shares repurchased for $80 million.
Conference Call
HCI Group will hold a conference call later today, November 4, 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: 794892
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 Group at (949) 574-3860.
A replay of the call will be available after 8:00 p.m. Eastern Time on the same day through November 19, 2026 and a replay of the webcast will be available on the Investor Relations section of the HCI Group website at www.hcigroup.com through November 4, 2027.
Toll-free replay number: (877) 481-4010
International replay number: (919) 882-2331
Replay ID: 54651
About HCI Group, Inc.
HCI Group, Inc. is a diversified holding company founded in 2006 which, through its subsidiaries, is engaged in homeowners insurance, reinsurance, real estate, insurance claims services, and insurance technology. The HCI Group portfolio of companies includes multiple property and casualty underwriters, exchanges, and captive reinsurers as well as a claims management business, a commercial real estate investment company, and a leading insurance technology company, Exzeo Group.
HCI Group'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. Further, future cash flow and earnings may limit HCI’s ability or willingness to engage in share buybacks. 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) 355-5341
notis@hcigroup.com
Investor Relations Contact:
Matt Glover
Gateway Group, Inc.
Tel (949) 574-3860
HCI@gateway-grp.com
| HCI GROUP, INC. AND SUBSIDIARIES Selected Financial Metrics (Unaudited) (In thousands, except share and per share amounts) | ||||||||
| Three Months Ended | ||||||||
| September 30, | ||||||||
| 2026 | 2025 | |||||||
| Gross Written Premiums: | ||||||||
| Homeowners Choice | $ | 185,401 | $ | 182,863 | ||||
| TypTap Insurance Company | 107,355 | 109,963 | ||||||
| Condo Owners Reciprocal Exchange | 24,879 | 6,380 | ||||||
| Tailrow Reciprocal Exchange | 35,415 | 15,965 | ||||||
| Total Gross Written Premiums | $ | 353,050 | $ | 315,171 | ||||
| Gross Premiums Earned: | ||||||||
| Homeowners Choice | $ | 158,496 | $ | 156,904 | ||||
| TypTap Insurance Company | 120,789 | 124,613 | ||||||
| Condo Owners Reciprocal Exchange | 8,321 | 10,499 | ||||||
| Tailrow Insurance Exchange | 28,466 | 9,063 | ||||||
| Total Gross Premiums Earned | $ | 316,072 | $ | 301,079 | ||||
| Gross loss and loss adjustment expense ratio | 20.7 | % | 22.0 | % | ||||
| Per Share Metrics | ||||||||
| Diluted earnings per share | $ | 6.45 | $ | 4.90 | ||||
| Dividends per share | $ | 0.40 | $ | 0.40 | ||||
| Book value per share at the end of period | $ | 90.15 | $ | 63.41 | ||||
| Shares outstanding at the end of period | 12,437,958 | 12,959,362 | ||||||
| HCI GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) (In thousands, except share amounts) | ||||||||
| September 30, 2026 | December 31, 2025 | |||||||
| Assets | ||||||||
| Fixed-maturity securities, available-for-sale, at fair value (amortized cost: $1,295,000 and $595,383, respectively and allowance for credit losses: $0 and $0, respectively) | $ | 1,241,444 | $ | 597,329 | ||||
| Equity securities, at fair value (cost: $57,091 and $61,597, respectively) | 59,244 | 65,890 | ||||||
| Limited partnership investments | 16,076 | 17,690 | ||||||
| Real estate investments | 102,683 | 103,746 | ||||||
| Other investments | 5,000 | 5,000 | ||||||
| Total investments | 1,424,447 | 789,655 | ||||||
| Cash and cash equivalents | 743,527 | 1,210,126 | ||||||
| Restricted cash | 4,600 | 3,748 | ||||||
| Income taxes receivable | 2,612 | 1,332 | ||||||
| Deferred income tax assets, net | 9,817 | 2,237 | ||||||
| Premiums receivable, net (allowance: $5,271 and $4,469, respectively) | 81,265 | 57,494 | ||||||
| Prepaid reinsurance premiums | 49,860 | 50,127 | ||||||
| Reinsurance recoverable, net of allowance for credit losses: | ||||||||
| Paid losses and loss adjustment expenses (allowance: $0 and $0, respectively) | 24,835 | 27,855 | ||||||
| Unpaid losses and loss adjustment expenses (allowance: $62 and $97, respectively) | 211,187 | 262,041 | ||||||
| Deferred policy acquisition costs | 72,892 | 59,722 | ||||||
| Property and equipment, net | 26,861 | 28,939 | ||||||
| Intangible assets, net | 1,864 | 2,683 | ||||||
| Funds withheld for assumed business | 4,512 | 5,254 | ||||||
| Other assets | 55,483 | 27,715 | ||||||
| Total assets | $ | 2,713,762 | $ | 2,528,928 | ||||
| Liabilities, Redeemable Noncontrolling Interests and Equity | ||||||||
| Losses and loss adjustment expenses | $ | 549,607 | $ | 576,495 | ||||
| Unearned premiums | 696,313 | 643,328 | ||||||
| Advance premiums | 38,263 | 19,302 | ||||||
| Ceded reinsurance premiums payable | 10,467 | 27,591 | ||||||
| Assumed premiums payable | 941 | 1,744 | ||||||
| Income taxes payable | 27,067 | 12,782 | ||||||
| Deferred income tax liabilities, net | 247 | 3,814 | ||||||
| Revolving credit facility | 36,000 | 36,000 | ||||||
| Long-term debt | 31,255 | 31,877 | ||||||
| Accrued expenses and other liabilities | 97,617 | 61,351 | ||||||
| Total liabilities | 1,487,777 | 1,414,284 | ||||||
| Commitments and contingencies | ||||||||
| Redeemable noncontrolling interests | 8,362 | 3,359 | ||||||
| Equity: | ||||||||
| Common stock, (no par value, 40,000,000 shares authorized, 12,437,958 and 12,992,147 shares issued and outstanding, respectively) | — | — | ||||||
| Additional paid-in capital | 332,903 | 428,109 | ||||||
| Retained earnings | 826,963 | 611,509 | ||||||
| Accumulated other comprehensive (loss) income | (38,586 | ) | 1,459 | |||||
| Total stockholders' equity | 1,121,280 | 1,041,077 | ||||||
| Noncontrolling interests | 96,343 | 70,208 | ||||||
| Total equity | 1,217,623 | 1,111,285 | ||||||
| Total liabilities, redeemable noncontrolling interests and equity | $ | 2,713,762 | $ | 2,528,928 | ||||
| HCI GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) (In thousands, except per share amounts) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue | ||||||||||||||||
| Gross premiums earned | $ | 316,072 | $ | 301,079 | $ | 963,102 | $ | 904,090 | ||||||||
| Premiums ceded | (96,929 | ) | (106,088 | ) | (302,796 | ) | (308,245 | ) | ||||||||
| Net premiums earned | 219,143 | 194,991 | 660,306 | 595,845 | ||||||||||||
| Net investment income | 21,669 | 17,529 | 57,860 | 47,725 | ||||||||||||
| Net realized investment gains | 549 | 618 | 2,305 | 1,940 | ||||||||||||
| Net unrealized investment (losses) gains | (1,185 | ) | 1,214 | (2,140 | ) | 488 | ||||||||||
| Policy fee income | 1,754 | 1,569 | 4,981 | 5,265 | ||||||||||||
| Other | 2,979 | 429 | 11,132 | 3,440 | ||||||||||||
| Total revenue | 244,909 | 216,350 | 734,444 | 654,703 | ||||||||||||
| Expenses | ||||||||||||||||
| Losses and loss adjustment expenses | 65,359 | 66,153 | 202,035 | 189,901 | ||||||||||||
| Policy acquisition and other underwriting expenses | 31,689 | 31,652 | 95,805 | 89,490 | ||||||||||||
| General and administrative personnel expenses | 23,671 | 20,806 | 69,972 | 61,274 | ||||||||||||
| Interest expense | 1,460 | 1,019 | 3,467 | 8,147 | ||||||||||||
| Other operating expenses | 6,437 | 6,121 | 20,515 | 20,561 | ||||||||||||
| Total expenses | 128,616 | 125,751 | 391,794 | 369,373 | ||||||||||||
| Income before income taxes | 116,293 | 90,599 | 342,650 | 285,330 | ||||||||||||
| Income tax expense | 30,066 | 22,711 | 88,480 | 72,933 | ||||||||||||
| Net income | $ | 86,227 | $ | 67,888 | $ | 254,170 | $ | 212,397 | ||||||||
| Net income attributable to noncontrolling interests | (2,728 | ) | (2,381 | ) | (23,467 | ) | (11,046 | ) | ||||||||
| Net income after noncontrolling interests | $ | 83,499 | $ | 65,507 | $ | 230,703 | $ | 201,351 | ||||||||
| Basic earnings per share | $ | 6.67 | $ | 5.05 | $ | 18.04 | $ | 16.96 | ||||||||
| Diluted earnings per share | $ | 6.45 | $ | 4.90 | $ | 17.48 | $ | 15.47 | ||||||||
| Dividends per share | $ | 0.40 | $ | 0.40 | $ | 1.20 | $ | 1.20 | ||||||||
HCI GROUP, INC. AND SUBSIDIARIES
Earnings Per Share
(Unaudited)
(In thousands, except per share amounts)
The computations of basic and diluted earnings per share for the periods presented were as follows:
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| September 30, 2026 | September 30, 2026 | |||||||||||||||||||||||
| Income | Shares | Per Share | Income | Shares | Per Share | |||||||||||||||||||
| (Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | |||||||||||||||||||
| Net income | $ | 86,227 | $ | 254,170 | ||||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | (2,728 | ) | (23,467 | ) | ||||||||||||||||||||
| Net income after noncontrolling interests | 83,499 | 230,703 | ||||||||||||||||||||||
| Less: Income attributable to participating securities | (2,488 | ) | (8,759 | ) | ||||||||||||||||||||
| Basic Earnings Per Share: | ||||||||||||||||||||||||
| Income attributable to common stockholders | 81,011 | 12,148 | $ | 6.67 | 221,944 | 12,301 | $ | 18.04 | ||||||||||||||||
| Effect of Dilutive Securities: | ||||||||||||||||||||||||
| Stock options | — | 407 | — | 397 | ||||||||||||||||||||
| Warrants | — | 8 | — | 8 | ||||||||||||||||||||
| Net impact from reallocation of undistributed earnings to participating securities | 59 | — | 206 | — | ||||||||||||||||||||
| Diluted Earnings Per Share: | ||||||||||||||||||||||||
| Income attributable to common stockholders | $ | 81,070 | 12,563 | $ | 6.45 | $ | 222,150 | 12,706 | $ | 17.48 | ||||||||||||||
