HCI Group, Inc.: HCI Group Reports Second Quarter 2025 Results

Second Quarter Pre-Tax Income of $94.4 million and Diluted EPS of $5.18
Book Value Per Share Increased to $58.55
Gross Loss Ratio of 21.3%

TAMPA, Fla., Aug. 07, 2025 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE:HCI), reported pre-tax income of $94.4 million and net income of $70.3 million for the second quarter of 2025. Net income after noncontrolling interests was $66.2 million compared with $54.1 million in the second quarter of 2024. Diluted earnings per share were $5.18 in the second quarter of 2025, compared with $4.24 in the second quarter of 2024.

Management Commentary
"HCI Group delivered 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. "We continue to make progress on initiatives to unlock shareholder value and establish Exzeo as an independent, publicly traded entity."

Second Quarter 2025 Commentary
Consolidated gross premiums earned in the second quarter of 2025 increased by 14.8% to $302.6 million from $263.6 million in the second quarter of 2024 as a result of a higher volume of policies in force over the comparative period.

Premiums ceded for reinsurance in the second quarter of 2025 were $102.5 million compared with $99.6 million in the first quarter of 2025.

Losses and loss adjustment expenses in the second quarter of 2025 were $64.5 million compared with $78.3 million in the second quarter of 2024 despite the growth in gross premiums earned. The decrease was primarily driven by a decline in claims and litigation frequency. The gross loss ratio in the second quarter was 21.3% compared to 29.7% in the second quarter of 2024.

Policy acquisition and other underwriting expenses in the second quarter of 2025 were $30.6 million compared with $23.5 million in the second quarter of 2024. The increase was driven by higher gross premiums.

General and administrative personnel expenses in the second quarter of 2025 increased to $20.0 million from $17.5 million in the second quarter of 2024. The increase was primarily attributable to higher stock-based compensation, employee health benefits and merit increases.

Other operating expenses in the second quarter of 2025 increased to $8.8 million from $7.5 million in the second quarter of 2024. The increase was primarily attributable to 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.

Year-to-Date 2025 Results
For the six months ended June 30, 2025, the Company reported pre-tax income of $194.7 million and net income of $144.5 million. Net income after noncontrolling interests was $135.8 million compared with $101.7 million for the six months ended June 30, 2024. Diluted earnings per share were $10.57 for the six months ended June 30, 2025, compared with $8.04 for the six months ended June 30, 2024.

Consolidated gross premiums earned for the six months of 2025 increased to $603.0 million from $520.2 million in the same period of 2024 as a result of a higher volume of policies in force over the comparative period.

Premiums ceded for reinsurance for the six months of 2025 were $202.2 million compared with $144.8 million for the six months of 2024.

Losses and loss adjustment expenses for the six months of 2025 were $123.7 million compared with $158.2 million for the six months of 2024 despite the growth in gross premiums earned. The decrease was primarily driven by a decline in claims and litigation frequency. The gross loss ratio for the six months of 2025 was 20.5% compared to 30.4% for the six months of 2024.

Policy acquisition and other underwriting expenses for the six months of 2025 were $57.8 million compared with $45.6 million for the six months of 2024. The increase was driven by higher gross premiums.

General and administrative personnel expenses for the six months of 2025 increased to $40.5 million from $33.7 million for the six months of 2024. The increase was primarily attributable to higher stock-based compensation, employee health benefits and merit increases.

Other operating expenses for the six months of 2025 decreased to $14.4 million from $15.2 million for the six months of 2024. The decrease was partially offset by a $1.1 million debt conversion charge in connection with the conversion of our 4.75% Convertible Senior Notes during the six months of 2025.

Conference Call
HCI Group will hold a conference call later today, August 7, 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: [phone]
Listen-only international number: [phone]
Entry Code: 521671

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 [phone].

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 August 7, 2026.

Toll-free replay number: [phone]
International replay number: [phone]
Replay ID: 52723

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.

The company'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.

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:
Bill Broomall, CFA
Investor Relations
HCI Group, Inc.
Tel [phone]
[e-mail]

Investor Relations Contact:
Matt Glover
Gateway Group, Inc.
Tel [phone]
[e-mail]

- Tables to follow -

HCI GROUP, INC. AND SUBSIDIARIES Selected Financial Metrics (Unaudited) (In thousands, except share and per share amounts)
		Q2 2025					Q2 2024
Gross Written Premiums:
Homeowners Choice		$	227,090				$	191,775
TypTap Insurance Company			110,412					79,093
Condo Owners Reciprocal Exchange			13,830					36,034
Tailrow Reciprocal Exchange			5,213					-
Total Gross Written Premiums			356,545					306,902
Gross Premiums Earned:
Homeowners Choice			156,552					143,703
TypTap Insurance Company			124,437					107,055
Condo Owners Reciprocal Exchange			12,811					12,803
Tailrow Reciprocal Exchange			8,828					-
Total Gross Premiums Earned			302,628					263,561
Gross Premiums Earned Loss Ratio			21.3	%				29.7	%
Per Share Metrics
Diluted EPS		$	5.18				$	4.24
Dividends per share		$	0.40				$	0.40
Book value per share at the end of period		$	58.55				$	42.72
Shares outstanding at the end of period			12,956,884					10,472,741

HCI GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (In thousands, except share amounts)
		June 30, 2025				December 31, 2024
		(Unaudited)
Assets
Fixed-maturity securities, available for sale, at fair value (amortized cost: $590,666 and $719,536, respectively and allowance for credit losses: $0 and $0, respectively)		$	592,210			$	718,537
Equity securities, at fair value (cost: $55,174 and $52,030, respectively)			58,618				56,200
Limited partnership investments			19,770				20,802
Real estate investments			85,578				79,120
Total investments			756,176				874,659
Cash and cash equivalents			947,166				532,471
Restricted cash			3,730				3,714
Accrued interest and dividends receivable			6,308				6,008
Income taxes receivable			3,130				463
Deferred income tax assets, net			361				72
Premiums receivable, net (allowance: $8,180 and $5,891, respectively)			65,826				50,582
Prepaid reinsurance premiums			-				92,060
Reinsurance recoverable, net of allowance for credit losses:
Paid losses and loss adjustment expenses (allowance: $0 and $0, respectively)			62,727				36,062
Unpaid losses and loss adjustment expenses (allowance: $137 and $186, respectively)			375,198				522,379
Deferred policy acquisition costs			65,138				54,303
Property and equipment, net			29,695				29,544
Right-of-use-assets - operating leases			1,065				1,182
Intangible assets, net			3,927				5,206
Funds withheld for assumed business			8,538				11,690
Other assets			24,121				9,818
Total assets		$	2,353,106			$	2,230,213
Liabilities, Redeemable Noncontrolling Interests and Equity
Losses and loss adjustment expenses		$	696,892			$	845,900
Unearned premiums			627,484				584,703
Advance premiums			43,677				18,867
Reinsurance payable on paid losses and loss adjustment expenses			127				2,496
Ceded reinsurance premiums payable			38,121				18,313
Assumed premiums payable			375				2,176
Accrued expenses			42,033				17,677
Income taxes payable			24,294				5,451
Deferred income tax liabilities, net			2,402				2,830
Revolving credit facility			40,000				44,000
Long-term debt			15,602				185,254
Lease liabilities - operating leases			1,072				1,185
Other liabilities			33,938				32,320
Total liabilities			1,566,017				1,761,172
Commitments and contingencies
Redeemable noncontrolling interests			2,405				1,691
Equity:
Common stock, (no par value, 40,000,000 shares authorized, 12,956,884 and 10,767,184 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively)			-				-
Additional paid-in capital			298,706				122,289
Retained earnings			458,713				331,793
Accumulated other comprehensive income (loss)			1,158				(749	)
Total stockholders' equity			758,577				453,333
Noncontrolling interests			26,107				14,017
Total equity			784,684				467,350
Total liabilities, redeemable noncontrolling interest and equity		$	2,353,106			$	2,230,213

HCI GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) (In thousands, except per share data)
		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2025				2024				2025				2024
Revenue
Gross premiums earned		$	302,628			$	263,561			$	603,011			$	520,205
Premiums ceded			(102,522	)			(76,713	)			(202,157	)			(144,819	)
Net premiums earned			200,106				186,848				400,854				375,386
Net investment income			16,445				16,881				30,196				30,948
Net realized investment gains			155				212				1,322				212
Net unrealized investment gains (losses)			1,180				533				(726	)			3,168
Policy fee income			1,467				1,089				3,696				2,108
Other			2,567				682				3,011				1,037
Total revenue			221,920				206,245				438,353				412,859
Expenses
Losses and loss adjustment expenses			64,457				78,324				123,748				158,246
Policy acquisition and other underwriting expenses			30,551				23,452				57,838				45,591
General and administrative personnel expenses			19,985				17,471				40,468				33,745
Interest expense			3,744				3,452				7,128				6,601
Other operating expenses			8,791				7,520				14,440				15,220
Total expenses			127,528				130,219				243,622				259,403
Income before income taxes			94,392				76,026				194,731				153,456
Income tax expense			24,113				18,927				50,222				39,401
Net income		$	70,279			$	57,099			$	144,509			$	114,055
Net income attributable to redeemable noncontrolling interests			-				-				-				(10,149	)
Net income attributable to noncontrolling interests			(4,119	)			(3,023	)			(8,665	)			(2,219	)
Net income after noncontrolling interests		$	66,160			$	54,076			$	135,844			$	101,687
Basic earnings per share		$	5.57			$	5.18			$	12.00			$	9.95
Diluted earnings per share		$	5.18			$	4.24			$	10.57			$	8.04
Dividends per share		$	0.40			$	0.40			$	0.80			$	0.80

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												Six Months Ended
		June 30, 2025												June 30, 2025
		Income				Shares				Per Share				Income				Shares				Per Share
		(Numerator)				(Denominator)				Amount				(Numerator)				(Denominator)				Amount
Net income		$	70,279											$	144,509
Less: Net income attributable to noncontrolling interests			(4,119	)											(8,665	)
Net income attributable to HCI			66,160												135,844
Less: Income attributable to participating securities			(2,616	)											(5,691	)
Basic Earnings Per Share:
Income attributable to common stockholders			63,544				11,400			$	5.57				130,153				10,846			$	12.00
Effect of Dilutive Securities:
Stock options			-				392								-				373
Convertible senior notes			3,170				1,084								5,500				1,611
Warrants			-				7								-				7
Diluted Earnings Per Share:
Income attributable to common stockholders		$	66,714				12,883			$	5.18			$	135,653				12,837			$	10.57