StockNews.AI
HCI
StockNews.AI
12 days

HCI Group Reports Second Quarter 2025 Results

1. HCI Group's Q2 2025 net income rose to $70.3 million. 2. Diluted EPS increased to $5.18, up from $4.24 YoY. 3. Gross premiums earned rose 14.8% to $302.6 million. 4. Gross loss ratio improved to 21.3% from 29.7% YoY. 5. Exzeo initiatives to enhance shareholder value are underway.

17m saved
Insight
Article

FAQ

Why Bullish?

HCI's strong financial results and improving metrics signal positive growth, similar to previous uptrends following quarterly earnings that exceeded expectations.

How important is it?

The report highlights significant growth and profitability, enhancing investor confidence and stock performance potential.

Why Short Term?

Positive results typically drive immediate interest and trading activity, but might stabilize as investors await further developments.

Related Companies

CNCAIGALLPGRTRV
August 07, 2025 16:15 ET  | Source: HCI Group, Inc. Second Quarter Pre-Tax Income of $94.4 million and Diluted EPS of $5.18Book Value Per Share Increased to $58.55Gross 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 CommentaryConsolidated 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 CallHCI 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: (888) 506-0062Listen-only international number: (973) 528-0011Entry 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 (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 August 7, 2026. Toll-free replay number: (877) 481-4010International replay number: (919) 882-2331 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 StatementsThis 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, CFAInvestor RelationsHCI Group, Inc.Tel (813) 776-1012wbroomall@exzeo.com Investor Relations Contact:Matt GloverGateway Group, Inc.Tel (949) 574-3860HCI@gateway-grp.com - Tables to follow -  HCI GROUP, INC. AND SUBSIDIARIESSelected 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 SUBSIDIARIESConsolidated 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 10,767,184shares 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 SUBSIDIARIESConsolidated 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                      

Related News