HCI Group Reports Third Quarter 2025 Results

Rhea-AI Summary

HCI Group (NYSE:HCI) reported strong third quarter 2025 results with pre-tax income of $90.6M and net income of $67.9M, versus $14.1M and $9.4M in Q3 2024. Diluted EPS was $4.90 versus $0.52 a year earlier.

Gross premiums earned for Q3 rose 13.4% to $301.1M and for the nine months rose 15.1% to $904.1M, driven by more policies in force. The gross loss ratio improved to 22.0% for Q3 (39.8% prior year) and 21.0% YTD (33.6% prior year), reflecting lower catastrophe activity. Interest expense declined after conversion of the 4.75% convertible notes. Management noted the spin-off of Exzeo as an independent public company and scheduled a conference call for November 6, 2025.

Positive

• Q3 pre-tax income up to $90.6M from $14.1M
• Q3 diluted EPS $4.90 vs $0.52 year-ago
• Gross premiums Q3 +13.4% to $301.1M; YTD +15.1% to $904.1M
• Gross loss ratio Q3 improved to 22.0% from 39.8%

Negative

• Policy acquisition and underwriting expenses Q3 increased to $31.7M from $26.1M
• G&A personnel expenses Q3 increased to $20.8M from $19.2M
• Premiums ceded YTD rose to $308.2M from $254.5M

Insights

Insurance financial analyst

HCI delivered materially stronger profitability and higher premiums, driven by fewer catastrophe losses and higher policies in force.

For the third quarter, HCI Group reported pre-tax income of $90.6 million and net income of $67.9 million, versus $14.1 million and $9.4 million a year earlier, and diluted EPS rose to $4.90 from $0.52.

The company cites a lower catastrophic loss environment (third quarter gross loss ratio 22.0% versus 39.8% prior year) and higher policies in force that lifted gross premiums earned to $301.1 million (up 13.4%). Offsetting items included higher acquisition and personnel costs tied to volume and incentive compensation, and a noted $1.1 million debt conversion charge year-to-date.

Watch near term: details on sustainability of loss ratios and retention of premium growth, and the effects of the recent conversion of the 4.75% Convertible Senior Notes on interest expense and share count. Expect material signals over the next earnings cycle and on any disclosures tied to the newly separated Exzeo entity within the coming months (Q4 2025 relevance).

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 Commentary
Gross 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 Call
HCI 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) 545-0320
Listen-only international number: (973) 528-0002
Entry 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) 481-4010
International 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 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. 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) 405-5341
notis@hcigroup.com

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

HCI GROUP, INC. AND SUBSIDIARIES
Selected 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 SUBSIDIARIES
Consolidated 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 10,767,184 shares 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 SUBSIDIARIES
Consolidated 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

FAQ

What were HCI (NYSE:HCI) third quarter 2025 earnings per share and net income?

HCI reported diluted EPS of $4.90 and net income of $67.9M for Q3 2025.

How did HCI's insurance premiums perform in Q3 2025 and year-to-date 2025?

Gross premiums earned were $301.1M in Q3 2025 (+13.4%) and $904.1M for the nine months (+15.1%).

Why did HCI's loss ratio improve in Q3 2025 compared with Q3 2024?

The gross loss ratio improved to 22.0% in Q3 2025 from 39.8% due to lower catastrophic activity and lower non-cat claim frequency.

What effect did the convertible notes conversion have on HCI's interest expense in 2025?

Interest expense declined after conversion of the 4.75% convertible senior notes, lowering interest expense in Q3 and year-to-date 2025.

Did HCI announce any corporate actions related to Exzeo in November 2025?

Management said HCI progressed an initiative to unlock shareholder value and established Exzeo as an independent, publicly traded entity earlier the week of November 6, 2025.

When is HCI's earnings conference call for Q3 2025 and how can investors listen?

The conference call was scheduled for November 6, 2025 at 4:45 p.m. ET; investors could listen via the toll-free number or the webcast on the company's investor website.