HCI Group, Inc.: HCI Group Reports Second Quarter 2026 Results

Second Quarter Pre-Tax Income of $111 million
Diluted EPS of $5.60
Gross Loss Ratio of 22%

TAMPA, Fla., Aug. 06, 2026 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE:HCI), reported pre-tax income of $111 million and net income of $83 million in the second quarter of 2026 compared with pre-tax income of $94 million and net income of $70 million in the second quarter of 2025. Net income after noncontrolling interests in the second quarter of 2026 was $74 million compared with $66 million in the second quarter of 2025. Diluted earnings per share were $5.60 in the second quarter of 2026 compared with $5.18 diluted earnings per share in the second quarter of 2025.

Management Commentary
"HCI Group capped a strong start to the year delivering record second quarter financial results for the first half of 2026," said HCI Group Chairman and Chief Executive Officer Paresh Patel. "Our focus continues to be on achieving exceptional performance in all types of operating environments."

Second Quarter 2026 Results
Gross premiums earned in the second quarter of 2026 were $321 million compared with $303 million in the second quarter of 2025. The increase of 6% 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 second quarter of 2026 were $102 million compared with $103 million in the second quarter of 2025. The decrease was a result of the lower costs associated with the company's new 2026-2027 catastrophe reinsurance programs, which began on June 1, 2026.

Net investment income in the second quarter of 2026 was $19 million compared with $16 million in the second quarter of 2025. The increase was driven by growth in invested assets.

Other revenue in the second quarter of 2026 was $5 million compared with $3 million in the second quarter of 2025. The increase was primarily driven by the addition of new insurance carrier customers to Exzeo's insurance technology platform.

Losses and loss adjustment expenses in the second quarter of 2026 were $71 million compared with $64 million in the second quarter of 2025. The increase was driven largely by a higher volume of policies in force. The gross loss and loss adjustment expense ratio for the second quarter of 2026 was 22.2%.

Policy acquisition and other underwriting expenses in the second quarter of 2026 were $32 million compared with $31 million in the second quarter of 2025. The increase was driven by a greater amount of premiums in force.

General and administrative personnel expenses in the second quarter of 2026 were $24 million compared with $20 million in the second quarter of 2025. The increase was driven by additional personnel, annual merit increases, and stock-based compensation.

Six Months Ended June 30, 2026 Results
For the six months ended June 30, 2026, HCI Group reported pre-tax income of $226 million and net income of $168 million compared with pre-tax income of $195 million and net income of $145 million for the six months ended June 30, 2025. Net income after noncontrolling interests was $147 million compared with $136 million for the six months ended June 30, 2025. Diluted earnings per share were $11.05 for the six months ended June 30, 2026, compared with $10.57 for the six months ended June 30, 2025.

Gross premiums earned for the six months ended June 30, 2026 were $647 million compared with $603 million for the six months ended June 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 six months ended June 30, 2026 were $206 million compared with $202 million for the six months ended June 30, 2025. The increase was a result of a higher number of policies in force and partially offset by the company's new 2026-2027 catastrophe reinsurance programs, which started on June 1, 2026.

Net investment income for the six months ended June 30, 2026 was $36 million compared with $30 million for the six months ended June 30, 2025. The increase was driven by growth in invested assets.

Other revenue for the six months ended June 30, 2026 was $8 million compared with $3 million for the six months ended June 30, 2025. The increase was primarily driven by the addition of new insurance carrier customers to Exzeo's insurance technology platform.

Losses and loss adjustment expenses for the six months ended June 30, 2026 were $137 million compared with $124 million for the six months ended June 30, 2025. The increase was largely driven by a higher volume of policies in force. The gross loss and loss adjustment expense ratio for the six months ended June 30, 2026 was 21.1%.

Policy acquisition and other underwriting expenses for the six months ended June 30, 2026 were $64 million compared with $58 million for the six months ended June 30, 2025. The increase was driven by a greater amount of premiums in force.

General and administrative personnel expenses for the six months ended June 30, 2026 were $46 million compared with $40 million for the six months ended June 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 second quarter of 2026, HCI Group repurchased 363,538 shares for $57.0 million. During the first six months of 2026, HCI Group repurchased 473,609 shares for $74.5 million. The share repurchase program was completed on July 17, 2026, with a total of 504,330 shares repurchased for $80.0 million.

Conference Call
HCI Group will hold a conference call later today, August 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.

Toll-free number: [phone]
International number: [phone]
Entry Code: 202996
Webcast

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 [phone].

A replay of the call will be available after 8:00 p.m. Eastern Time on the same day through August 20, 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 August 6, 2027.

Toll-free replay number: [phone]
International replay number: [phone]
Replay ID: 54257

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 and exchanges, two captive reinsurers, a claims management business, a commercial real estate investment company and a leading insurance technology company, Exzeo Group. HCI Group was founded in 2006 and operates in 13 states.

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 [phone]
[e-mail]

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

HCI GROUP, INC. AND SUBSIDIARIES Selected Financial Metrics (Unaudited) (In thousands, except share and per share amounts)
		Three Months Ended
		June 30,
		2026				2025
Gross Written Premiums:
Homeowners Choice		-	228,208			-	227,090
TypTap Insurance Company			110,477				110,412
Condo Owners Reciprocal Exchange			10,848				13,830
Tailrow Reciprocal Exchange			32,812				5,213
Total Gross Written Premiums		-	382,345			-	356,545
Gross Premiums Earned:
Homeowners Choice		-	161,927			-	156,552
TypTap Insurance Company			123,279				124,437
Condo Owners Reciprocal Exchange			5,925				12,811
Tailrow Insurance Exchange			29,693				8,828
Total Gross Premiums Earned		-	320,824			-	302,628
Gross loss and loss adjustment expense ratio			22.2	-			21.3	-
Per Share Metrics
Diluted earnings per share		-	5.60			-	5.18
Dividends per share		-	0.40			-	0.40
Book value per share at the end of period		-	86.60			-	58.55
Shares outstanding at the end of period			12,469,972				12,956,884

HCI GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (In thousands, except share amounts)
		June 30, 2026				December 31, 2025
		(Unaudited)
Assets
Fixed-maturity securities, available-for-sale, at fair value (amortized cost: $1,103,778 and $595,383, respectively and allowance for credit losses: $0 and $0, respectively)		-	1,091,041			-	597,329
Equity securities, at fair value (cost: $55,700 and $61,597, respectively)			59,038				65,890
Limited partnership investments			16,394				17,690
Real estate investments			102,669				103,746
Other investments			5,000				5,000
Total investments			1,274,142				789,655
Cash and cash equivalents			872,336				1,210,126
Restricted cash			4,378				3,748
Income taxes receivable			1,277				1,332
Deferred income tax assets, net			1,088				2,237
Premiums receivable, net (allowance: $5,363 and $4,469, respectively)			77,607				57,494
Prepaid reinsurance premiums			-				50,127
Reinsurance recoverable, net of allowance for credit losses:
Paid losses and loss adjustment expenses (allowance: $0 and $0, respectively)			26,613				27,855
Unpaid losses and loss adjustment expenses (allowance: $73 and $97, respectively)			229,131				262,041
Deferred policy acquisition costs			68,206				59,722
Property and equipment, net			27,503				28,939
Intangible assets, net			1,924				2,683
Funds withheld for assumed business			5,346				5,254
Other assets			58,908				27,715
Total assets		-	2,648,459			-	2,528,928
Liabilities, Redeemable Noncontrolling Interests and Equity
Losses and loss adjustment expenses		-	558,982			-	576,495
Unearned premiums			659,335				643,328
Advance premiums			44,440				19,302
Ceded reinsurance premiums payable			34,772				27,591
Assumed premiums payable			4,049				1,744
Income taxes payable			16,467				12,782
Deferred income tax liabilities, net			1,001				3,814
Revolving credit facility			36,000				36,000
Long-term debt			31,465				31,877
Accrued expenses and other liabilities			82,887				61,351
Total liabilities			1,469,398				1,414,284
Commitments and contingencies
Redeemable noncontrolling interests			5,929				3,359
Equity:
Common stock, (no par value, 40,000,000 shares authorized, 12,469,972 and 12,992,147 shares issued and outstanding, respectively)			-				-
Additional paid-in capital			340,854				428,109
Retained earnings			748,437				611,509
Accumulated other comprehensive (loss) income			(9,382	-			1,459
Total stockholders' equity			1,079,909				1,041,077
Noncontrolling interests			93,223				70,208
Total equity			1,173,132				1,111,285
Total liabilities, redeemable noncontrolling interests and equity		-	2,648,459			-	2,528,928

HCI GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) (In thousands, except per share amounts)
		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2026				2025				2026				2025
Revenue
Gross premiums earned		-	320,824			-	302,628			-	647,030			-	603,011
Premiums ceded			(101,812	-			(102,522	-			(205,867	-			(202,157	-
Net premiums earned			219,012				200,106				441,163				400,854
Net investment income			18,890				16,445				36,191				30,196
Net realized investment gains			1,222				155				1,756				1,322
Net unrealized investment gains (losses)			743				1,180				(955	-			(726	-
Policy fee income			1,651				1,467				3,227				3,696
Other			5,135				2,567				8,153				3,011
Total revenue			246,653				221,920				489,535				438,353
Expenses
Losses and loss adjustment expenses			71,076				64,457				136,676				123,748
Policy acquisition and other underwriting expenses			32,346				30,551				64,116				57,838
General and administrative personnel expenses			23,948				19,985				46,301				40,468
Interest expense			1,084				3,744				2,007				7,128
Other operating expenses			7,226				8,791				14,078				14,440
Total expenses			135,680				127,528				263,178				243,622
Income before income taxes			110,973				94,392				226,357				194,731
Income tax expense			28,073				24,113				58,414				50,222
Net income		-	82,900			-	70,279			-	167,943			-	144,509
Net income attributable to noncontrolling interests			(9,103	-			(4,119	-			(20,739	-			(8,665	-
Net income after noncontrolling interests		-	73,797			-	66,160			-	147,204			-	135,844
Basic earnings per share		-	5.78			-	5.57			-	11.39			-	12.00
Diluted earnings per share		-	5.60			-	5.18			-	11.05			-	10.57
Dividends per share		-	0.40			-	0.40			-	0.80			-	0.80

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												Six Months Ended
		June 30, 2026												June 30, 2026
		Income				Shares				Per Share				Income				Shares				Per Share
		(Numerator)				(Denominator)				Amount				(Numerator)				(Denominator)				Amount
Net income		-	82,900											-	167,943
Less: Net income attributable to noncontrolling interests			(9,103	-											(20,739	-
Net income after noncontrolling interests			73,797												147,204
Less: Income attributable to participating securities			(2,925	-											(6,186	-
Basic Earnings Per Share:
Income attributable to common stockholders			70,872				12,269			-	5.78				141,018				12,379			-	11.39
Effect of Dilutive Securities:
Stock options			-				382								-				390
Warrants			-				7								-				7
Net impact from reallocation of undistributed earnings to participating securities			65				-								143				-
Diluted Earnings Per Share:
Income attributable to common stockholders		-	70,937				12,658			-	5.60			-	141,161				12,776			-	11.05