HCI Group Announces Completion of its 2025 – 2026 Catastrophe Reinsurance Programs
HCI Group has completed its catastrophe reinsurance programs for 2025-2026, securing over $3.5 billion in excess of loss aggregate limit across three reinsurance towers.
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Rhea-AI Summary
Positive
- Secured substantial coverage with over $3.5 billion in excess of loss aggregate limit
- All participating reinsurers are highly rated (A- or better) or fully collateralized
- Strong support from global reinsurance partners indicating confidence in HCI's underwriting
- Comprehensive coverage across multiple subsidiaries with full reinstatement premium protection
Negative
- Significant reinsurance costs with expected premiums of $422 million
- Substantial retained loss exposure of $117 million for first events
Details
News Market Reaction – HCI
The recorded move for HCI in the trading session of this news was -3.64%.
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TAMPA, Fla., June 02, 2025 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE: HCI) has successfully completed its catastrophe reinsurance programs for the 2025-2026 treaty year, which runs from June 1, 2025 through May 31, 2026.
“We are grateful for the strong support from our global reinsurance partners, whose continued confidence in HCI underscores the quality of our underwriting and our disciplined approach to risk,” said Paresh Patel, HCI’s chairman and chief executive officer. “We believe our reinsurance programs are prudently structured to protect the long-term financial stability of our insurance companies. With the reinsurance placement now finalized, we are well-positioned to pursue strategic initiatives aimed at delivering sustained value to our shareholders.”
HCI secured three reinsurance towers for the 2025-2026 treaty year. Reinsurance Tower 1 is shared between HCI subsidiary, Homeowners Choice Property & Casualty Insurance Company, and HCI sponsored reciprocal insurance company, Tailrow Insurance Exchange, and covers all Homeowners Choice policies issued in Florida and all Tailrow policies issued in Florida. Reinsurance Tower 2 is shared between HCI subsidiary, TypTap Insurance Company, and Homeowners Choice and covers all TypTap policies (whether issued in Florida or outside of Florida) and all Homeowners Choice policies issued outside of Florida. Reinsurance Tower 3 covers all Condo Owners Reciprocal Exchange policies issued in Florida. Condo Owners Reciprocal Exchange, known as CORE, is a reciprocal insurance company sponsored by HCI.
Across the three reinsurance towers, HCI secured over
The statutory retentions for the first and second event are
For the three reinsurance towers, HCI expects to incur net consolidated reinsurance premiums ceded to third parties, excluding Claddaugh, of approximately
More information is available in the Company’s Form 8-K, filed today with the U.S. Securities and Exchange Commission.
About HCI Group, Inc.
HCI Group 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.
Company Contact:
Bill Broomall, CFA
Investor Relations
HCI Group, Inc.
Tel (813) 776-1012
wbroomall@exzeo.com
Investor Relations Contact:
Matt Glover
Gateway Group, Inc.
Tel 949-574-3860
HCI@gateway-grp.com
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