HCI Group Reports Third Quarter 2025 Results
TAMPA, Fla., Nov. 06, 2025 (GLOBE NEWSWIRE) — 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.
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 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
| 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 | |||||
| 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 | |||
| 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 | |||||||
| 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 | 67 | — | 643 | — | |||||||||||||||||||
| Diluted Earnings Per Share: | |||||||||||||||||||||||
| Income attributable to common stockholders | $ | 63,189 | 12,892 | $ | 4.90 | $ | 198,843 | 12,857 | $ | 15.47 | |||||||||||||
