HCI Group Announces Completion of its 2026-2027 Catastrophe Reinsurance Programs

Rhea-AI Summary

HCI Group (NYSE:HCI) completed its 2026-2027 catastrophe reinsurance programs covering June 1, 2026 to May 31, 2027.

Key metrics include a maximum first-event consolidated retention of about $163 million, aggregate excess of loss limit of $4.06 billion, and estimated net consolidated reinsurance premiums of $381.2 million, about 10% lower than the prior year.

HCI structured three reinsurance towers across its Homeowners Choice, TypTap, Tailrow and CORE portfolios, with selective participation from subsidiaries Claddaugh and Fortex Re and capacity from AM Best A- (Excellent) or fully collateralized reinsurers.

AI-generated analysis. Not financial advice.

Positive

• Aggregate excess of loss limit increased 16% to approximately $4.06 billion
• Estimated net consolidated reinsurance premiums down 10% to about $381.2 million
• Full reinstatement premium protection secured for applicable excess of loss treaties
• Selective participation from Claddaugh and Fortex Re across the reinsurance towers
• All participating reinsurers rated AM Best A- or better, or fully collateralized

Negative

• Maximum first-event consolidated retention increased about 4% to roughly $163 million
• HCI expects approximately $381.2 million of ceded reinsurance premiums for 2026-2027

News Market Reaction – HCI

-1.87%

1 alert

-1.87% News Effect

On the day this news was published, HCI declined 1.87%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Max first-event retention: $163 million Aggregate excess of loss limit: $4.1 billion Net reinsurance premiums: $381 million +5 more

8 metrics

Max first-event retention $163 million Maximum first-event consolidated retention; 4% increase from 2025-2026

Aggregate excess of loss limit $4.1 billion Total aggregate excess of loss limit; 16% increase from 2025-2026

Net reinsurance premiums $381 million Total net consolidated reinsurance premiums; 10% decrease from 2025-2026

Consolidated retention below FHCF $155.0 million Consolidated retention below Florida Hurricane Catastrophe Fund layers; unchanged

First-event statutory retentions $22.8 million Combined statutory retentions for a first event

First-event Claddaugh/Fortex Re retention $139.8 million Combined maximum retention for Claddaugh and Fortex Re for a first event

Second-event Claddaugh/Fortex Re retention $52.3 million Combined maximum retention for Claddaugh and Fortex Re for a second event

Aggregate excess of loss limit (towers) $4.06 billion Aggregate excess of loss limit across three towers for 2026-2027 treaty year

Market Reality Check

Price: $152.16 Vol: Volume 181,122 is essenti...

normal vol

$152.16 Last Close

Volume Volume 181,122 is essentially in line with the 20-day average of 181,985. normal

Technical Shares at $154.07 are trading below the 200-day MA of $171.25 and about 26.81% under the 52-week high of $210.50.

Peers on Argus

Momentum scanner shows no sector-wide move. Peers are mixed, with STC, PLMR, and...

Momentum scanner shows no sector-wide move. Peers are mixed, with STC, PLMR, and KMPR down (to as much as -3.25%) while MCY and LMND are modestly positive, suggesting stock-specific focus on HCI’s reinsurance update.

Historical Context

5 past events · Latest: May 06 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
May 06	Q1 2026 earnings	Positive	-0.7%	Strong Q1 2026 earnings with high profitability and active share repurchases.
Apr 24	Dividend declaration	Positive	-1.0%	Regular quarterly cash dividend of $0.40 per common share announced.
Apr 21	Annual meeting notice	Neutral	-0.3%	Scheduled 2026 annual shareholders meeting and outlined voting matters.
Apr 14	Earnings call schedule	Neutral	+0.3%	Announced timing and access details for Q1 2026 earnings call.
Mar 03	Buyback authorization	Positive	+1.3%	Authorized $80 million stock repurchase program with flexible execution.

Pattern Detected

Recent positive corporate actions (buyback, strong earnings, dividend) have seen mixed price reactions, with both aligned and divergent moves.

Recent Company History

Over the last few months, HCI has reported strong financial performance and capital returns. Q1 2026 results on May 6, 2026 showed pre-tax income of $115 million and diluted EPS of $5.45, alongside active share repurchases. An $80 million buyback was authorized on March 3, 2026, and a quarterly dividend of $0.40 per share was declared in April. Against this backdrop, the new 2026-2027 catastrophe reinsurance programs continue the focus on risk transfer and capital management.

Market Pulse Summary

This announcement details HCI’s completed 2026-2027 catastrophe reinsurance programs, increasing agg...

Analysis

This announcement details HCI’s completed 2026-2027 catastrophe reinsurance programs, increasing aggregate excess of loss limits to about $4.06–$4.1 billion while targeting net ceded premiums near $381 million, a stated 10% reduction year over year. Combined with unchanged Florida Hurricane Catastrophe Fund retentions, it updates the company’s risk-transfer posture. Investors may contextualize this against HCI’s Florida catastrophe exposure and prior filings highlighting reliance on robust reinsurance markets.

Key Terms

catastrophe reinsurance, excess of loss, reciprocal insurance companies, statutory retentions, +1 more

5 terms

catastrophe reinsurance financial

"has successfully completed its catastrophe reinsurance programs for the 2026-2027 treaty year"

Catastrophe reinsurance is insurance bought by primary insurance companies to cover very large losses from rare events like hurricanes, earthquakes, or widespread fires. It works like a safety net or backup borrower that kicks in when claims exceed a high threshold, protecting the insurer’s finances and limiting the ripple effects on investors and policyholders. Investors care because the presence, terms, and cost of this protection affect an insurer’s risk of big unexpected losses and its capital stability.

excess of loss financial

"Total aggregate excess of loss limit of $4.1 billion, a 16% increase"

A form of reinsurance where a reinsurer pays the portion of an insured loss that exceeds the primary insurer’s retained amount, up to a set limit. Think of it as an umbrella that kicks in only when a claim is bigger than what the original insurer can comfortably cover. Investors care because it reduces an insurer’s exposure to large, unexpected payouts and affects capital needs, profit stability and underwriting risk.

reciprocal insurance companies financial

"shared between Homeowners Choice and HCI-sponsored reciprocal insurance companies Tailrow Insurance Exchange"

A reciprocal insurance company is a group arrangement where policyholders pool money to insure one another, managed by an appointed agent who handles claims and operations. Think of it like a neighborhood pot where everyone chips in to cover each other’s losses, rather than a traditional insurer owning the business. For investors, the model matters because capital, profits, and risk are tied directly to members’ claims and the manager’s decisions, affecting stability and returns.

statutory retentions financial

"For a first event, combined statutory retentions are $22.8 million"

Statutory retentions are amounts that the law requires a business to withhold or set aside from payments, revenues or profits—examples include tax withholdings, legally mandated reserves, or contract retention sums held until work is completed. They matter to investors because these funds reduce the cash a company can use for operations, dividends or growth, affecting liquidity and the timing of returns much like money put on hold until legal conditions are met.

AM Best financial

"All participating reinsurers are AM Best rated ‘A-’ (Excellent) or better"

A.M. Best is a long-established credit-rating agency that evaluates the financial strength and ability of insurance companies to pay claims. Investors use its ratings like a weather report for insurers — a stronger rating signals lower risk of unpaid claims and more predictable cashflow, which can affect an insurer’s stock, bond prices, borrowing costs and appeal as a business partner.

AI-generated analysis. Not financial advice.

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TAMPA, Fla., June 01, 2026 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE: HCI) has successfully completed its catastrophe reinsurance programs for the 2026-2027 treaty year, which runs from June 1, 2026 through May 31, 2027.

Key Highlights

• Maximum first-event consolidated retention of $163 million, a 4% increase from 2025-2026.
• Total aggregate excess of loss limit of $4.1 billion, a 16% increase from 2025-2026.
• Total net consolidated reinsurance premiums of $381 million, a 10% decrease from 2025-2026.
  
  

Management Commentary

“We are delighted to have successfully completed our reinsurance programs for the 2026-2027 treaty year and appreciate the continued support from our global reinsurance partners throughout the process,” said Paresh Patel, HCI’s Chairman and Chief Executive officer. “This year’s placements include meaningful structural improvements achieved at a materially lower cost, further strengthening our overall risk transfer strategy. In addition, our Cayman Islands-based reinsurer, Fortex Re, is now participating across two of our three towers, marking an important step in expanding its role within our broader reinsurance strategy and an initiative we look forward to scaling further over time.”

2026-2027 Catastrophe Reinsurance Programs

HCI has secured three reinsurance towers for the 2026-2027 treaty year. Reinsurance Tower 1 covers HCI subsidiary Homeowners Choice Property & Casualty Insurance Company, Inc. for policies issued throughout the company’s primary Florida operating footprint, largely concentrated across the central and southern regions of the state. Reinsurance Tower 2 is shared between Homeowners Choice and HCI subsidiary TypTap Insurance Company, and covers all TypTap policies, whether issued in Florida or outside of Florida, as well as Homeowners Choice policies issued outside of Florida. Reinsurance Tower 3 is shared between Homeowners Choice and HCI-sponsored reciprocal insurance companies Tailrow Insurance Exchange and Condo Owners Reciprocal Exchange (known as CORE,) and covers Homeowners Choice policies issued throughout the remaining northern Florida region not included within Tower 1, as well as all Tailrow and CORE policies.

The maximum first-event consolidated retention is $162.6 million, representing a 4% increase from the prior treaty year, while the consolidated retention below the Florida Hurricane Catastrophe Fund layers remains unchanged year over year at $155.0 million. For a first event, combined statutory retentions are $22.8 million, plus a combined maximum retention attributable to Claddaugh and Fortex Re of $139.8 million. For a second event, combined statutory retentions are $22.8 million, plus a combined maximum retention attributable to Claddaugh and Fortex Re of $52.3 million.

Across the three reinsurance towers, HCI secured $4.06 billion in aggregate excess of loss limit for the 2026-2027 treaty year, representing a 16% increase from the prior treaty year. HCI also secured full reinstatement premium protection for excess of loss treaties containing paid reinstatement provisions. Claddaugh Casualty Insurance Company Ltd, HCI’s Bermuda-based reinsurance subsidiary, selectively participates across all three reinsurance towers. In addition, Fortex Reinsurance SPC, Ltd., HCI’s newly formed Cayman Islands-based reinsurance subsidiary, selectively participates on Reinsurance Towers 1 and 3. All participating reinsurers are AM Best rated ‘A-’ (Excellent) or better, or have fully collateralized their obligations to HCI.

For the three reinsurance towers, HCI expects to incur approximately $381.2 million of net consolidated reinsurance premiums ceded to third parties, excluding Claddaugh and Fortex Re, for the period from June 1, 2026 through May 31, 2027, representing a 10% reduction from the preceding twelve-month period. The reinsurance premiums are an estimate based on exposure projections and subject to true up at September 30, 2026.

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

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 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 https://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 https://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, reinsurance premiums are estimates based on exposure projections and subject to true up. 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 (813) 355-5341
notis@hcigroup.com

Investor Relations Contact:
Matt Glover
Gateway Group, Inc.
Tel 949-574-3860
HCI@gateway-grp.com

FAQ

What catastrophe reinsurance programs did HCI (NYSE:HCI) complete for 2026-2027?

HCI completed three catastrophe reinsurance towers for the 2026-2027 treaty year. According to HCI, the towers cover Homeowners Choice, TypTap, Tailrow and CORE policies across Florida and non-Florida regions, providing layered protection against major catastrophe losses.

How much catastrophe reinsurance limit did HCI secure for the 2026-2027 treaty year?

HCI secured about $4.06 billion in aggregate excess of loss limit for 2026-2027. According to HCI, this represents a 16% increase from the prior treaty year across its three reinsurance towers, expanding protection against large catastrophe events.

What is HCI Group’s maximum first-event retention under its 2026-2027 reinsurance program?

HCI’s maximum first-event consolidated retention is approximately $162.6 million for 2026-2027. According to HCI, this is about a 4% increase from the prior treaty year, with $22.8 million statutory retentions plus maximum retentions from Claddaugh and Fortex Re.

How much reinsurance premium will HCI (HCI) cede under the 2026-2027 catastrophe program?

HCI expects to incur about $381.2 million of net consolidated reinsurance premiums ceded to third parties. According to HCI, this estimated cost for June 1, 2026 to May 31, 2027 is about 10% lower than the preceding twelve-month period.

What role do Claddaugh and Fortex Re play in HCI’s 2026-2027 reinsurance structure?

Claddaugh participates selectively across all three catastrophe reinsurance towers, while Fortex Re participates on Towers 1 and 3. According to HCI, Fortex Re’s involvement marks an expansion of its Cayman Islands reinsurer within HCI’s broader risk transfer strategy.

How strong are the reinsurers supporting HCI Group’s 2026-2027 catastrophe program?

All participating reinsurers are AM Best rated A- (Excellent) or better, or fully collateralized. According to HCI, this credit profile supports the reliability of catastrophe coverage across its three towers for the 2026-2027 treaty year.