HCI Group Reports First Quarter 2026 Results
Rhea-AI Summary
HCI Group (NYSE:HCI) reported first quarter 2026 pre-tax income of $115 million and net income of $85 million. Diluted EPS was $5.45. Gross premiums earned were $326 million and gross loss ratio was 20.1%. The company repurchased 239,435 shares for $37.5 million under an $80 million buyback program through April 30, 2026.
Management said the results reflected higher policies in force, growth in invested assets, and continued share repurchases; a conference call was scheduled for May 6, 2026 at 4:45 p.m. ET.
AI-generated analysis. Not financial advice.
Positive
- Pre-tax income increased to $115M (+15% vs Q1 2025)
- Net income rose to $85M (+15% vs Q1 2025)
- Net investment income increased to $17M (+21% vs Q1 2025)
- Share repurchase program authorized for $80M; $37.5M repurchased through Apr 30, 2026
Negative
- Losses and LAE increased to $66M (+12% vs Q1 2025)
- Gross loss and LAE ratio at 20.1%
- Policy acquisition and underwriting expenses rose to $32M (+19% vs Q1 2025)
Key Figures
Market Reality Check
Peers on Argus
Peers show mixed moves: STC up 0.59%, MCY up 2.09%, LMND up 2.66%, while PLMR is down 3.68% and KMPR is down 2.22%. With HCI up 3.71% pre-news and only one peer in the momentum scanner, trading appears more company-specific than sector-driven.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 14 | Earnings call set | Neutral | +0.3% | Scheduled Q1 2026 earnings call and outlined webcast and replay details. |
| Feb 25 | Earnings results | Positive | +4.4% | Reported strong Q4 and full-year 2025 results with solid EPS and premium growth. |
| Feb 04 | Earnings call set | Neutral | +2.7% | Announced timing and access details for Q4 and full-year 2025 earnings call. |
| Nov 06 | Earnings results | Positive | -7.0% | Reported strong Q3 2025 income, EPS, and improved loss ratios versus prior year. |
| Oct 27 | Earnings call set | Neutral | -1.2% | Set date and access information for Q3 2025 earnings conference call. |
Earnings and earnings-call headlines have usually produced modest moves, with one notable selloff on strong Q3 2025 results, indicating that strong fundamentals have not always translated into sustained gains.
Over the past several quarters, HCI has highlighted strong profitability and premium growth. In Q3 2025, pre-tax income rose sharply, though shares fell 6.98%. The company then reported robust full-year 2025 results on Feb 25, 2026 with a positive 4.41% reaction and later announced an $80M buyback. Ahead of today’s Q1 2026 record results, HCI set its earnings call date on Apr 14, 2026, continuing a pattern of regular, detailed financial communication.
Historical Comparison
Earnings-related headlines for HCI over the past year produced an average move of about -0.13%, so any larger reaction to the Q1 2026 record results would stand out versus prior patterns.
Recent history shows a progression from strong Q3 2025 results to robust full-year 2025 performance and now record Q1 2026 premiums, net income and EPS, alongside capital returns via the authorized $80M buyback.
Market Pulse Summary
This announcement details a strong start to 2026, with pre-tax income of $115M, net income of $85M, diluted EPS of $5.45, and a gross loss ratio of 20.1%. Gross premiums earned increased to $326M, while management continued executing on its $80M repurchase program, having bought back 239,435 shares by April 30. Investors may watch future quarters for premium growth, loss ratios, and additional capital return under the buyback program.
Key Terms
loss adjustment expenses technical
gross loss ratio technical
reinsurance financial
policy acquisition technical
AI-generated analysis. Not financial advice.
Pre-Tax Income of
Diluted EPS of
Gross Loss Ratio of
TAMPA, Fla., May 06, 2026 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE:HCI), reported pre-tax income of
Management Commentary
“HCI Group had an excellent start to 2026, delivering record first quarter results for earned premiums, net income and earnings per share,” said HCI Group Chairman and Chief Executive Officer Paresh Patel. “Moving forward, we plan to continue using our earnings to buy back stock while strengthening our balance sheet as we prepare for the next transformational opportunity.”
First Quarter 2026 Results
Gross premiums earned in the first quarter of 2026 were
Premiums ceded for reinsurance in the first quarter of 2026 were
Net investment income in the first quarter of 2026 was
Losses and loss adjustment expenses in the first quarter of 2026 were
Policy acquisition and other underwriting expenses in the first quarter of 2026 were
Share Repurchase
On March 3, 2026, HCI Group announced a share repurchase program to repurchase up to
Conference Call
HCI Group will hold a conference call later today, May 6, 2026, 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) 506-0062
Listen-only international number: (973) 528-0011
Entry Code: 930676
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 Group 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 May 6, 2027.
Toll-free replay number: (877) 481-4010
International replay number: (919) 882-2331
Replay ID: 53888
About HCI Group, Inc.
HCI Group, Inc. 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, 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 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, the estimation of reserves for losses and loss adjustment expenses is an inherently imprecise process involving many assumptions and considerable management judgment. 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
- Tables to follow -
| HCI GROUP, INC. AND SUBSIDIARIES Selected Financial Metrics (Unaudited) (In thousands, except share and per share amounts) | ||||||||||||
| Three Months Ended | Year Ended | |||||||||||
| March 31, | December 31, | |||||||||||
| 2026 | 2025 | 2025 | ||||||||||
| Gross Written Premiums: | ||||||||||||
| Homeowners Choice | $ | 118,167 | $ | 117,133 | $ | 652,569 | ||||||
| TypTap Insurance Company | 135,197 | 142,396 | 503,672 | |||||||||
| Condo Owners Reciprocal Exchange | 3,034 | 7,731 | 31,001 | |||||||||
| Tailrow Reciprocal Exchange | 24,293 | 21,985 | 107,528 | |||||||||
| Total Gross Written Premiums | $ | 280,691 | $ | 289,245 | $ | 1,294,770 | ||||||
| Gross Premiums Earned: | ||||||||||||
| Homeowners Choice | $ | 164,703 | $ | 156,489 | $ | 637,741 | ||||||
| TypTap Insurance Company | 125,046 | 124,447 | 502,756 | |||||||||
| Condo Owners Reciprocal Exchange | 6,851 | 15,325 | 47,688 | |||||||||
| Tailrow Insurance Exchange | 29,606 | 4,122 | 47,960 | |||||||||
| Total Gross Premiums Earned | $ | 326,206 | $ | 300,383 | $ | 1,236,145 | ||||||
| Gross loss and loss adjustment expense ratio | 20.1 | % | 19.7 | % | 19.6 | % | ||||||
| Per Share Metrics | ||||||||||||
| Diluted earnings per share | $ | 5.45 | $ | 5.35 | $ | 22.72 | ||||||
| Dividends per share | $ | 0.40 | $ | 0.40 | $ | 1.60 | ||||||
| Book value per share at the end of period | $ | 84.41 | $ | 48.55 | $ | 80.13 | ||||||
| Shares outstanding at the end of period | 12,900,905 | 10,765,336 | 12,992,147 | |||||||||
| HCI GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (In thousands, except share amounts) | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Fixed-maturity securities, available for sale, at fair value (amortized cost: | $ | 914,846 | $ | 597,329 | ||||
| Equity securities, at fair value (cost: | 65,056 | 65,890 | ||||||
| Limited partnership investments | 17,171 | 17,690 | ||||||
| Real estate investments | 103,429 | 103,746 | ||||||
| Other investments | 5,000 | 5,000 | ||||||
| Total investments | 1,105,502 | 789,655 | ||||||
| Cash and cash equivalents | 1,014,049 | 1,210,126 | ||||||
| Restricted cash | 3,757 | 3,748 | ||||||
| Income taxes receivable | 1,521 | 1,332 | ||||||
| Deferred income tax assets, net | 21 | 2,237 | ||||||
| Premiums receivable, net (allowance: | 60,399 | 57,494 | ||||||
| Prepaid reinsurance premiums | 20,948 | 50,127 | ||||||
| Reinsurance recoverable, net of allowance for credit losses: | ||||||||
| Paid losses and loss adjustment expenses (allowance: | 23,093 | 27,855 | ||||||
| Unpaid losses and loss adjustment expenses (allowance: | 246,759 | 262,041 | ||||||
| Deferred policy acquisition costs | 59,700 | 59,722 | ||||||
| Property and equipment, net | 28,243 | 28,939 | ||||||
| Intangible assets, net | 2,234 | 2,683 | ||||||
| Funds withheld for assumed business | 5,299 | 5,254 | ||||||
| Other assets | 39,556 | 27,715 | ||||||
| Total assets | $ | 2,611,081 | $ | 2,528,928 | ||||
| Liabilities, Redeemable Noncontrolling Interests and Equity | ||||||||
| Losses and loss adjustment expenses | $ | 566,839 | $ | 576,495 | ||||
| Unearned premiums | 597,814 | 643,328 | ||||||
| Advance premiums | 48,005 | 19,302 | ||||||
| Ceded reinsurance premiums payable | 26,475 | 27,591 | ||||||
| Assumed premiums payable | 3,056 | 1,744 | ||||||
| Income taxes payable | 42,837 | 12,782 | ||||||
| Deferred income tax liabilities, net | — | 3,814 | ||||||
| Revolving credit facility | 36,000 | 36,000 | ||||||
| Long-term debt | 31,672 | 31,877 | ||||||
| Accrued expenses and other liabilities | 80,683 | 61,351 | ||||||
| Total liabilities | 1,433,381 | 1,414,284 | ||||||
| Commitments and contingencies | ||||||||
| Redeemable noncontrolling interests | 4,211 | 3,359 | ||||||
| Equity: | ||||||||
| Common stock, (no par value, 40,000,000 shares authorized, 12,900,905 and 12,992,147 shares issued and outstanding, respectively) | — | — | ||||||
| Additional paid-in capital | 413,838 | 428,109 | ||||||
| Retained earnings | 679,721 | 611,509 | ||||||
| Accumulated other comprehensive (loss) income | (4,538 | ) | 1,459 | |||||
| Total stockholders' equity | 1,089,021 | 1,041,077 | ||||||
| Noncontrolling interests | 84,468 | 70,208 | ||||||
| Total equity | 1,173,489 | 1,111,285 | ||||||
| Total liabilities, redeemable noncontrolling interests and equity | $ | 2,611,081 | $ | 2,528,928 | ||||
| HCI GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) (In thousands, except per share data) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
| Revenue | ||||||||
| Gross premiums earned | $ | 326,206 | $ | 300,383 | ||||
| Premiums ceded | (104,055 | ) | (99,635 | ) | ||||
| Net premiums earned | 222,151 | 200,748 | ||||||
| Net investment income | 17,301 | 13,751 | ||||||
| Net realized investment gains | 534 | 1,167 | ||||||
| Net unrealized investment losses | (1,698 | ) | (1,906 | ) | ||||
| Policy fee income | 1,576 | 2,229 | ||||||
| Other | 3,018 | 444 | ||||||
| Total revenue | 242,882 | 216,433 | ||||||
| Expenses | ||||||||
| Losses and loss adjustment expenses | 65,600 | 59,291 | ||||||
| Policy acquisition and other underwriting expenses | 31,770 | 27,287 | ||||||
| General and administrative personnel expenses | 22,353 | 20,483 | ||||||
| Interest expense | 923 | 3,384 | ||||||
| Other operating expenses | 6,852 | 5,649 | ||||||
| Total expenses | 127,498 | 116,094 | ||||||
| Income before income taxes | 115,384 | 100,339 | ||||||
| Income tax expense | 30,341 | 26,109 | ||||||
| Net income | $ | 85,043 | $ | 74,230 | ||||
| Net income attributable to noncontrolling interests | (11,636 | ) | (4,546 | ) | ||||
| Net income after noncontrolling interests | $ | 73,407 | $ | 69,684 | ||||
| Basic earnings per share | $ | 5.62 | $ | 6.47 | ||||
| Diluted earnings per share | $ | 5.45 | $ | 5.35 | ||||
| Dividends per share | $ | 0.40 | $ | 0.40 | ||||
HCI GROUP, INC. AND SUBSIDIARIES
(Unaudited)
(In thousands, except per share amount)
The computations of basic and diluted earnings per share for the periods presented were as follows:
| Three Months Ended | Three Months Ended | ||||||||||||||||||||||
| March 31, 2026 | March 31, 2025 | ||||||||||||||||||||||
| Income | Shares | Per Share | Income | Shares | Per Share | ||||||||||||||||||
| (Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | ||||||||||||||||||
| Net income | $ | 85,043 | $ | 74,230 | |||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | (11,636 | ) | (4,546 | ) | |||||||||||||||||||
| Net income after noncontrolling interests | 73,407 | 69,684 | |||||||||||||||||||||
| Less: Income attributable to participating securities | (3,255 | ) | (3,103 | ) | |||||||||||||||||||
| Basic Earnings Per Share: | |||||||||||||||||||||||
| Income attributable to common stockholders | 70,152 | 12,490 | $ | 5.62 | 66,581 | 10,286 | $ | 6.47 | |||||||||||||||
| Effect of Dilutive Securities: | |||||||||||||||||||||||
| Stock options | — | 398 | — | 350 | |||||||||||||||||||
| Convertible senior notes | — | — | 1,873 | 2,142 | |||||||||||||||||||
| Warrants | — | 8 | — | 7 | |||||||||||||||||||
| Net impact from reallocation of undistributed earnings to participating securities | 78 | — | — | — | |||||||||||||||||||
| Diluted Earnings Per Share: | |||||||||||||||||||||||
| Income attributable to common stockholders | $ | 70,230 | 12,896 | $ | 5.45 | $ | 68,454 | 12,785 | $ | 5.35 | |||||||||||||
