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HCI Group Reports Third Quarter 2025 Results

1. HCI Group reported significant net income growth this quarter. 2. Earnings per share increased to $4.90, up from $0.52 last year. 3. The company established Exzeo as an independent publicly traded entity. 4. Loss ratio decreased dramatically, indicating improved claims performance. 5. Gross premiums rose 13.4% with a strong policy volume increase.

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FAQ

Why Very Bullish?

HCI's earnings growth and lower loss ratios typically lead to higher stock valuations, as seen historically in similar financial performances.

How important is it?

Strong earnings growth can significantly influence investor perception and confidence, impacting HCI's market performance.

Why Short Term?

Positive earnings results and Exzeo's establishment are likely to drive stock interest soon.

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November 06, 2025 16:15 ET  | Source: HCI Group, Inc. TAMPA, Fla., Nov. 06, 2025 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE:HCI), reported pre-tax income of $90.6 million and net income of $67.9 million for the third quarter of 2025 compared with pre-tax income of $14.1 million and net income of $9.4 million for the third quarter of 2024. Net income after noncontrolling interests was $65.5 million compared with $5.7 million in the third quarter of 2024. Diluted earnings per share were $4.90 in the third quarter of 2025, compared with $0.52 in the third quarter of 2024. Management Commentary“This was 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. “Most importantly, we progressed our initiative to unlock shareholder value and establish Exzeo as an independent, publicly traded entity which was achieved earlier this week.” Third Quarter 2025 CommentaryGross premiums earned in the third quarter of 2025 increased by 13.4% to $301.1 million from $265.5 million in the third quarter of 2024 as a result of a higher volume of policies in force. Premiums ceded for reinsurance in the third quarter of 2025 were $106.1 million compared with $109.7 million in the third quarter of 2024. Losses and loss adjustment expenses in the third quarter of 2025 were $66.2 million compared with $105.7 million in the third quarter of 2024. Losses and loss adjustment expenses in the third quarter of 2024 included net losses of $40.0 million from Hurricane Helene. The gross loss ratio was 22.0% in the third quarter of 2025 compared with 39.8% in the third quarter of 2024, reflecting the lower catastrophic event activity as well as lower claim frequency on other non-catastrophic claims. Policy acquisition and other underwriting expenses in the third quarter of 2025 were $31.7 million compared with $26.1 million in the third quarter of 2024. The increase was driven by a higher volume of premiums in force. General and administrative personnel expenses in the third quarter of 2025 increased to $20.8 million from $19.2 million in the third quarter of 2024. The increase was primarily attributable to an increase in incentive compensation. Interest expense in the third quarter of 2025 decreased to $1.0 million from $3.4 million for the third quarter of 2024 as a result of the conversion of the 4.75% Convertible Senior Notes during the second quarter of 2025. Other operating expenses in the third quarter of 2025 decreased to $6.1 million from $6.8 million in the third quarter of 2024. The decrease was primarily attributable to a decrease in bank service charges and other miscellaneous operating expenses. Year-to-Date 2025 Results For the nine months ended September 30, 2025, the Company reported pre-tax income of $285.3 million and net income of $212.4 million compared with pre-tax income of $167.5 million and net income of $123.4 million for the nine months ended September 30, 2024. Net income after noncontrolling interests was $201.4 million compared with $107.4 million for the nine months ended September 30, 2024. Diluted earnings per share were $15.47 for the nine months ended September 30, 2025, compared with $8.59 for the nine months ended September 30, 2024. Gross premiums earned for the nine months of 2025 increased by 15.1% to $904.1 million from $785.7 million in the same period of 2024 as a result of a higher volume of policies in force. Premiums ceded for reinsurance for the nine months of 2025 were $308.2 million compared with $254.5 million for the nine months of 2024. The increase was primarily attributable to growth in the number of policies in force and total insured value. Losses and loss adjustment expenses for the nine months of 2025 were $189.9 million compared with $264.0 million for the nine months of 2024. Losses and loss adjustment expenses in the nine months ended of 2024 included net losses of $40.0 million from Hurricane Helene. The gross loss ratio for the nine months of 2025 was 21.0% compared to 33.6% for the nine months of 2024, reflecting the lower catastrophic event activity as well as lower claim frequency on other non-catastrophic claims. Policy acquisition and other underwriting expenses for the nine months of 2025 were $89.5 million compared with $71.7 million for the nine months of 2024. The increase was driven by a higher volume of premiums in force. General and administrative personnel expenses for the nine months of 2025 increased to $61.3 million from $52.9 million for the nine months of 2024. The increase was primarily attributable to an increase in stock-based and other incentive compensation, and employee health benefits. Interest expense for the nine months of 2025 decreased to $8.1 million from $10.0 million for the nine months of 2024 as a result of the conversion of the 4.75% Convertible Senior Notes during the second quarter of 2025. Other operating expenses for the nine months of 2025 decreased to $20.6 million from $22.0 million for the nine months of 2024. The decrease was primarily due to a decrease in bank service charges and other miscellaneous operating expenses; partially offset by 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. Conference CallHCI Group will hold a conference call later today, November 6, 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: (877) 545-0320Listen-only international number: (973) 528-0002Entry Code: 310078 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 November 6, 2026. Toll-free replay number: (877) 481-4010International replay number: (919) 882-2331 Replay ID: 53155 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. HCI'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 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:Nat OtisInvestor RelationsHCI Group, Inc.Tel (813) 405-5341notis@hcigroup.com Investor Relations Contact:Matt GloverGateway Group, Inc.Tel (949) 574-3860HCI@gateway-grp.com  HCI GROUP, INC. AND SUBSIDIARIESSelected Financial Metrics(Unaudited)(In thousands, except share and per share amounts)  Q3 2025  Q3 2024       Gross Written Premiums:     Homeowners Choice$182,863  $165,208 TypTap Insurance Company 109,963   93,716 Condo Owners Reciprocal Exchange 6,380   11,455 Tailrow Reciprocal Exchange 15,965   - Total Gross Written Premiums 315,171   270,379       Gross Premiums Earned:     Homeowners Choice 156,904   139,822 TypTap Insurance Company 124,613   108,266 Condo Owners Reciprocal Exchange 10,499   17,430 Tailrow Reciprocal Exchange 9,063   - Total Gross Premiums Earned 301,079   265,518       Gross Premiums Earned Loss Ratio 22.0%  39.8%      Per Share Metrics     Diluted EPS$4.90  $0.52       Dividends per share$0.40  $0.40       Book value per share at the end of period$63.41  $43.45       Shares outstanding at the end of period 12,959,362   10,479,076  HCI GROUP, INC. AND SUBSIDIARIESConsolidated Balance Sheets(In thousands, except share amounts)  September 30, 2025  December 31, 2024  (Unaudited)    Assets     Fixed-maturity securities, available for sale, at fair value (amortized cost: $559,378 and $719,536, respectively and allowance for credit losses: $0 and $0, respectively)$562,094  $718,537 Equity securities, at fair value (cost: $59,821 and $52,030, respectively) 64,479   56,200 Limited partnership investments 18,936   20,802 Real estate investments 104,651   79,120 Other investments 5,000   - Total investments 755,160   874,659       Cash and cash equivalents 987,933   532,471 Restricted cash 3,739   3,714 Accrued interest and dividends receivable 7,572   6,008 Income taxes receivable 2,547   463 Deferred income tax assets, net 619   72 Premiums receivable, net (allowance: $5,052 and $5,891, respectively) 70,225   50,582 Prepaid reinsurance premiums 65,593   92,060 Reinsurance recoverable, net of allowance for credit losses:     Paid losses and loss adjustment expenses (allowance: $0 and $0, respectively) 34,442   36,062 Unpaid losses and loss adjustment expenses (allowance: $130 and $186, respectively) 295,200   522,379 Deferred policy acquisition costs 67,446   54,303 Property and equipment, net 29,400   29,544 Right-of-use-assets - operating leases 1,005   1,182 Intangible assets, net 3,290   5,206 Funds withheld for assumed business 7,496   11,690 Other assets 15,112   9,818       Total assets$2,346,779  $2,230,213       Liabilities, Redeemable Noncontrolling Interests and Equity     Losses and loss adjustment expenses$615,635  $845,900 Unearned premiums 641,576   584,703 Advance premiums 43,018   18,867 Reinsurance payable on paid losses and loss adjustment expenses 1,369   2,496 Ceded reinsurance premiums payable 3,760   18,313 Assumed premiums payable 613   2,176 Accrued expenses 46,811   17,677 Income taxes payable 19,061   5,451 Deferred income tax liabilities, net 6,576   2,830 Revolving credit facility 38,000   44,000 Long-term debt 32,078   185,254 Lease liabilities - operating leases 997   1,185 Other liabilities 41,716   32,320       Total liabilities 1,491,210   1,761,172       Commitments and contingencies     Redeemable noncontrolling interests 3,223   1,691       Equity:     Common stock, (no par value, 40,000,000 shares authorized, 12,959,362 and 10,767,184shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively) —   — Additional paid-in capital 300,703   122,289 Retained earnings 519,037   331,793 Accumulated other comprehensive income (loss) 2,036   (749)Total stockholders' equity 821,776   453,333 Noncontrolling interests 30,570   14,017 Total equity 852,346   467,350       Total liabilities, redeemable noncontrolling interest and equity$2,346,779  $2,230,213  HCI GROUP, INC. AND SUBSIDIARIESConsolidated Statements of Income(Unaudited)(In thousands, except per share data)  Three Months Ended  Nine Months Ended  September 30,  September 30,  2025  2024  2025  2024 Revenue           Gross premiums earned$301,079  $265,518  $904,090  $785,723 Premiums ceded (106,088)  (109,694)  (308,245)  (254,513)Net premiums earned 194,991   155,824   595,845   531,210             Net investment income 17,529   13,714   47,725   44,662 Net realized investment gains 618   2,846   1,940   3,058 Net unrealized investment gains 1,214   657   488   3,825 Policy fee income 1,569   1,229   5,265   3,337 Other 429   1,047   3,440   2,084 Total revenue 216,350   175,317   654,703   588,176             Expenses           Losses and loss adjustment expenses 66,153   105,736   189,901   263,982 Policy acquisition and other underwriting expenses 31,652   26,104   89,490   71,695 General and administrative personnel expenses 20,806   19,175   61,274   52,920 Interest expense 1,019   3,421   8,147   10,022 Other operating expenses 6,121   6,801   20,561   22,021 Total expenses 125,751   161,237   369,373   420,640             Income before income taxes 90,599   14,080   285,330   167,536             Income tax expense 22,711   4,688   72,933   44,089             Net income$67,888  $9,392  $212,397  $123,447 Net income attributable to redeemable noncontrolling interests —   —   —   (10,149)Net income attributable to noncontrolling interests (2,381)  (3,710)  (11,046)  (5,929)            Net income after noncontrolling interests$65,507  $5,682  $201,351  $107,369             Basic earnings per share$5.05  $0.54  $16.96  $10.42             Diluted earnings per share$4.90  $0.52  $15.47  $8.59             Dividends per share$0.40  $0.40  $1.20  $1.20  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  Nine Months Ended  September 30, 2025  September 30, 2025  Income  Shares  Per Share  Income  Shares  Per Share  (Numerator)  (Denominator)  Amount  (Numerator)  (Denominator)  Amount Net income$67,888        $212,397       Less: Net income attributable to noncontrolling interests (2,381)        (11,046)      Net income attributable to HCI 65,507         201,351       Less: Income attributable to participating securities (2,385)        (8,030)      Basic Earnings Per Share:                 Income attributable to common stockholders 63,122   12,487  $5.05   193,321   11,399  $16.96                   Effect of Dilutive Securities:                 Stock options —   398      —   383    Convertible senior notes —   —      4,879   1,068    Warrants —   7      —   7    Net impact from reallocation of undistributed earnings to participating securities 67   —      643   —                      Diluted Earnings Per Share:                 Income attributable to common stockholders$63,189   12,892  $4.90  $198,843   12,857  $15.47                   

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