HCI Group Reports Second Quarter 2025 Results

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

HCI Group Reports Second Quarter 2025 Results

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