Pre-Tax Income of $115 Million
Diluted EPS of $5.45
Gross Loss Ratio of 20.1%
TAMPA, Fla., May 06, 2026 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE:HCI), reported pre-tax income of $115 million and net income of $85 million in the first quarter of 2026 compared with pre-tax income of $100 million and net income of $74 million in the first quarter of 2025. Net income after noncontrolling interests in the first quarter of 2026 was $73 million compared with $70 million in the first quarter of 2025. Diluted earnings per share were $5.45 in the first quarter of 2026 compared with $5.35 diluted earnings per share in the first quarter of 2025.
Management Commentary
“HCI Group had an excellent start to 2026, delivering record first quarter results for earned premiums, net income and earnings per share,” said HCI Group Chairman and Chief Executive Officer Paresh Patel. “Moving forward, we plan to continue using our earnings to buy back stock while strengthening our balance sheet as we prepare for the next transformational opportunity.”
First Quarter 2026 Results
Gross premiums earned in the first quarter of 2026 were $326 million compared with $300 million in the first quarter of 2025. The increase was driven by a higher volume of insurance policies in force.
Premiums ceded for reinsurance in the first quarter of 2026 were $104 million compared with $100 million in the first quarter of 2025. The increase was driven by a higher volume of insurance policies in force.
Net investment income in the first quarter of 2026 was $17 million compared with $14 million in the first quarter of 2025. The increase was driven by growth in invested assets.
Losses and loss adjustment expenses in the first quarter of 2026 were $66 million compared with $59 million in the first quarter of 2025. The increase was driven by a higher volume of policies in force as well as some weather in the Northeast. The gross loss and loss adjustment expense ratio for the first quarter of 2026 was 20.1%.
Policy acquisition and other underwriting expenses in the first quarter of 2026 were $32 million compared with $27 million in the first quarter of 2025. The increase was driven by a greater amount of premiums in force.
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 first quarter of 2026, HCI Group repurchased 110,071 shares for $17.5 million. As of April 30, 2026, HCI Group repurchased a total of 239,435 shares for $37.5 million under the new program.
Conference Call
HCI Group will hold a conference call later today, May 6, 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: 930676
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 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 May 6, 2027.
Toll-free replay number: (877) 481-4010
International replay number: (919) 882-2331
Replay ID: 53888
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 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 was founded in 2006.
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
[email protected]
Investor Relations Contact:
Matt Glover
Gateway Group, Inc.
Tel (949) 574-3860
[email protected]
- Tables to follow -
HCI GROUP, INC. AND SUBSIDIARIESSelected Financial Metrics
(Unaudited)
(In thousands, except share and per share amounts)
Three Months Ended Year Ended March 31, December 31, 2026 2025 2025 Gross Written Premiums: Homeowners Choice $118,167 $117,133 $652,569 TypTap Insurance Company 135,197 142,396 503,672 Condo Owners Reciprocal Exchange 3,034 7,731 31,001 Tailrow Reciprocal Exchange 24,293 21,985 107,528 Total Gross Written Premiums $280,691 $289,245 $1,294,770 Gross Premiums Earned: Homeowners Choice $164,703 $156,489 $637,741 TypTap Insurance Company 125,046 124,447 502,756 Condo Owners Reciprocal Exchange 6,851 15,325 47,688 Tailrow Insurance Exchange 29,606 4,122 47,960 Total Gross Premiums Earned $326,206 $300,383 $1,236,145 Gross loss and loss adjustment expense ratio 20.1% 19.7% 19.6% Per Share Metrics Diluted earnings per share $5.45 $5.35 $22.72 Dividends per share $0.40 $0.40 $1.60 Book value per share at the end of period $84.41 $48.55 $80.13 Shares outstanding at the end of period 12,900,905 10,765,336 12,992,147
Consolidated Balance Sheets
(In thousands, except share amounts)
March 31, 2026 December 31, 2025 (Unaudited) Assets Fixed-maturity securities, available for sale, at fair value (amortized cost: $920,973 and $595,383, respectively and allowance for credit losses: $0 and $0, respectively) $914,846 $597,329 Equity securities, at fair value (cost: $62,461 and $61,597, respectively) 65,056 65,890 Limited partnership investments 17,171 17,690 Real estate investments 103,429 103,746 Other investments 5,000 5,000 Total investments 1,105,502 789,655 Cash and cash equivalents 1,014,049 1,210,126 Restricted cash 3,757 3,748 Income taxes receivable 1,521 1,332 Deferred income tax assets, net 21 2,237 Premiums receivable, net (allowance: $5,192 and $4,469, respectively) 60,399 57,494 Prepaid reinsurance premiums 20,948 50,127 Reinsurance recoverable, net of allowance for credit losses: Paid losses and loss adjustment expenses (allowance: $0 and $0, respectively) 23,093 27,855 Unpaid losses and loss adjustment expenses (allowance: $88 and $97, respectively) 246,759 262,041 Deferred policy acquisition costs 59,700 59,722 Property and equipment, net 28,243 28,939 Intangible assets, net 2,234 2,683 Funds withheld for assumed business 5,299 5,254 Other assets 39,556 27,715 Total assets $2,611,081 $2,528,928 Liabilities, Redeemable Noncontrolling Interests and Equity Losses and loss adjustment expenses $566,839 $576,495 Unearned premiums 597,814 643,328 Advance premiums 48,005 19,302 Ceded reinsurance premiums payable 26,475 27,591 Assumed premiums payable 3,056 1,744 Income taxes payable 42,837 12,782 Deferred income tax liabilities, net — 3,814 Revolving credit facility 36,000 36,000 Long-term debt 31,672 31,877 Accrued expenses and other liabilities 80,683 61,351 Total liabilities 1,433,381 1,414,284 Commitments and contingencies Redeemable noncontrolling interests 4,211 3,359 Equity: Common stock, (no par value, 40,000,000 shares authorized, 12,900,905 and 12,992,147
shares issued and outstanding, respectively) — — Additional paid-in capital 413,838 428,109 Retained earnings 679,721 611,509 Accumulated other comprehensive (loss) income (4,538) 1,459 Total stockholders' equity 1,089,021 1,041,077 Noncontrolling interests 84,468 70,208 Total equity 1,173,489 1,111,285 Total liabilities, redeemable noncontrolling interests and equity $2,611,081 $2,528,928
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share data)
Three Months Ended March 31, 2026 2025 Revenue Gross premiums earned $326,206 $300,383 Premiums ceded (104,055) (99,635)Net premiums earned 222,151 200,748 Net investment income 17,301 13,751 Net realized investment gains 534 1,167 Net unrealized investment losses (1,698) (1,906)Policy fee income 1,576 2,229 Other 3,018 444 Total revenue 242,882 216,433 Expenses Losses and loss adjustment expenses 65,600 59,291 Policy acquisition and other underwriting expenses 31,770 27,287 General and administrative personnel expenses 22,353 20,483 Interest expense 923 3,384 Other operating expenses 6,852 5,649 Total expenses 127,498 116,094 Income before income taxes 115,384 100,339 Income tax expense 30,341 26,109 Net income $85,043 $74,230 Net income attributable to noncontrolling interests (11,636) (4,546) Net income after noncontrolling interests $73,407 $69,684 Basic earnings per share $5.62 $6.47 Diluted earnings per share $5.45 $5.35 Dividends per share $0.40 $0.40
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 Three Months Ended March 31, 2026 March 31, 2025 Income Shares Per Share Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) AmountNet income $85,043 $74,230 Less: Net income attributable to noncontrolling interests (11,636) (4,546) Net income after noncontrolling interests 73,407 69,684 Less: Income attributable to participating securities (3,255) (3,103) Basic Earnings Per Share: Income attributable to common stockholders 70,152 12,490 $5.62 66,581 10,286 $6.47 Effect of Dilutive Securities: Stock options — 398 — 350 Convertible senior notes — — 1,873 2,142 Warrants — 8 — 7 Net impact from reallocation of undistributed earnings to participating securities 78 — — — Diluted Earnings Per Share: Income attributable to common stockholders $70,230 12,896 $5.45 $68,454 12,785 $5.35