HCI Reports Fourth Quarter and Full Year 2025 Results
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., Feb. 25, 2026 (GLOBE NEWSWIRE) — 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%.
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
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 | 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 | ||||||||
| 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 | |||
| 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 | |||||||
| 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 | 108 | — | 803 | — | |||||||||||||||||||
| Diluted Earnings Per Share: | |||||||||||||||||||||||
| Income attributable to common stockholders | $ | 93,801 | 12,932 | $ | 7.25 | $ | 292,646 | 12,878 | $ | 22.72 | |||||||||||||
