HCI Group Reports Third Quarter 2026 Results

Lower catastrophe reinsurance costs and a lower quarterly gross loss ratio accompanied premium growth.

Rhea-AI Summary

HCI Group (NYSE:HCI) reported third-quarter 2026 diluted earnings per share of $6.45, as profits rose from a year earlier. Diluted EPS was $4.90 in third-quarter 2025. Net income increased to $86.227 million from $67.888 million, while revenue rose to $244.909 million from $216.350 million. Gross premiums earned increased 5% to $316 million, driven by more policies, with average premiums relatively consistent.

The gross loss ratio improved to 20.7% from 22.0%. Reinsurance premiums ceded fell to $96.929 million from $106.088 million, reflecting lower catastrophe reinsurance costs, while personnel expenses increased. For the nine months ended September 30, diluted EPS rose to $17.48 from $15.47. HCI completed its $80 million buyback on July 17, 2026, repurchasing 504,330 shares. Quarter-end book value per share was $90.15 versus $63.41 a year earlier.

25 points · 0 major

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Positive

• Moderate pointThird-quarter diluted EPS increased to $6.45 from $4.90 a year earlier.
• Moderate pointThird-quarter revenue increased to $244.909 million from $216.350 million year over year.
• Moderate pointThird-quarter gross premiums earned grew 5% to $316 million, driven by more policies.
• Moderate pointThird-quarter reinsurance premiums ceded fell to $96.929 million from $106.088 million year over year.
• Moderate pointThird-quarter gross loss ratio improved to 20.7% from 22.0% a year earlier.
• Moderate pointThird-quarter net investment income increased to $21.669 million from $17.529 million year over year.
• Moderate pointNine-month diluted EPS increased to $17.48 from $15.47 year over year.
• Moderate pointNine-month revenue increased to $734.444 million from $654.703 million year over year.
• Moderate pointNine-month gross premiums earned grew 7% to $963 million, driven by more policies.
• Moderate pointNine-month net investment income increased to $57.860 million from $47.725 million year over year.
• Moderate pointCompleted buyback returned $80 million through 504,330 repurchased shares by July 17, 2026. 3.2% of market cap
• Moderate pointSeptember 30 book value per share increased to $90.15 from $63.41 a year earlier.

13 minor points

• Minor pointThird-quarter net income rose to $86.227 million from $67.888 million year over year.
• Minor pointThird-quarter pre-tax income increased to $116.293 million from $90.599 million year over year.
• Minor pointThird-quarter loss expenses decreased to $65.359 million from $66.153 million, including small favorable prior-year development.
• Minor pointHomeowners Choice third-quarter written premiums rose to $185.401 million from $182.863 million year over year.
• Minor pointCondo Owners Reciprocal Exchange third-quarter written premiums rose to $24.879 million from $6.380 million year over year.
• Minor pointTailrow Reciprocal Exchange third-quarter written premiums rose to $35.415 million from $15.965 million year over year.
• Minor pointHomeowners Choice third-quarter earned premiums rose to $158.496 million from $156.904 million year over year.
• Minor pointTailrow Insurance Exchange third-quarter earned premiums rose to $28.466 million from $9.063 million year over year.
• Minor pointNine-month net income increased to $254.170 million from $212.397 million year over year.
• Minor pointNine-month pre-tax income rose to $342.650 million from $285.330 million year over year.
• Minor pointNine-month reinsurance premiums ceded fell to $302.796 million from $308.245 million year over year.
• Minor pointNine-month interest expense fell to $3.467 million from $8.147 million year over year.
• Minor pointStockholders' equity rose to $1,121.280 million at September 30, 2026, from $1,041.077 million at year-end 2025.

Negative

• Moderate pointNine-month loss expenses rose to $202.035 million from $189.901 million; gross loss ratio remained 21.0%.
• Moderate pointAccumulated other comprehensive results shifted to a $38.586 million loss from $1.459 million income at year-end 2025.
• Minor pointThird-quarter personnel expenses rose to $23.671 million from $20.806 million year over year.
• Minor pointThird-quarter interest expense increased to $1.460 million from $1.019 million year over year.
• Minor pointThird-quarter other operating expenses rose to $6.437 million from $6.121 million year over year.

7 minor points

• Minor pointThird-quarter unrealized investment results shifted to a $1.185 million loss from a $1.214 million gain.
• Minor pointTypTap third-quarter written premiums fell to $107.355 million from $109.963 million year over year.
• Minor pointTypTap third-quarter earned premiums fell to $120.789 million from $124.613 million year over year.
• Minor pointCondo Owners Reciprocal Exchange third-quarter earned premiums fell to $8.321 million from $10.499 million year over year.
• Minor pointNine-month acquisition and underwriting expenses increased to $95.805 million from $89.490 million year over year.
• Minor pointNine-month personnel expenses increased to $69.972 million from $61.274 million year over year.
• Minor pointNine-month unrealized investment results shifted to a $2.140 million loss from a $0.488 million gain.

Key Figures

Pre-tax income: $116 million vs. $91 million Net income: $86 million vs. $68 million Diluted EPS: $6.45 vs. $4.90 +4 more

Pre-tax income

$116 million vs. $91 million

Third quarter 2026 vs. third quarter 2025

Net income

$86 million vs. $68 million

Third quarter 2026 vs. third quarter 2025

Diluted EPS

$6.45 vs. $4.90

Third quarter 2026 vs. third quarter 2025

Gross premiums earned

$316 million vs. $301 million

Third quarter 2026 vs. third quarter 2025

Gross loss ratio

20.7% vs. 22.0%

Third quarter 2026 vs. third quarter 2025

Net investment income

$22 million vs. $18 million

Third quarter 2026 vs. third quarter 2025

Share repurchase completed

504,330 shares for $80 million

Program completed July 17, 2026

Previous Earnings Reports

2 past events · Latest: Aug 06

Same Type 2 events

1. Aug 06

   earnings report

   24h Move

   +4.3%

   Reported higher quarterly income and diluted EPS year over year, alongside premium growth.

2. May 06

   earnings report

   24h Move

   -0.7%

   Reported first-quarter income, diluted EPS, premiums and share repurchases.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

diluted earnings per share, gross loss ratio, reinsurance, noncontrolling interests, +1 more

5 terms

diluted earnings per share financial

"Diluted earnings per share were $6.45 in the third quarter of 2026"

Diluted earnings per share is a measure of a company's profit allocated to each share of stock, taking into account all possible shares that could be created through stock options, convertible bonds, or other securities. It shows the lowest possible earnings per share if all these potential shares were issued, helping investors understand the worst-case scenario for their ownership. This figure matters because it provides a more conservative view of a company's profitability per share.

gross loss ratio technical

"The gross loss ratio was 21.0% for both the nine months ended September 30"

The gross loss ratio is the percentage of an insurer’s premium revenue that is paid out as claims before accounting for reinsurance or other recoveries. It shows, in simple percentage terms, how much of the money customers pay is going straight to cover losses; like measuring how much of a store’s sales are eaten by product returns. Investors use it to judge underwriting health and whether an insurer’s core business is profitable or exposed to rising claim costs.

reinsurance financial

"Premiums ceded for reinsurance in the third quarter of 2026 were $97 million"

Reinsurance is when insurance companies buy insurance for themselves to protect against very big losses. It’s like a car owner getting extra coverage from another company so that if there's a serious accident, the financial hit isn’t all on one company. This helps insurance companies stay stable and able to pay out when disasters happen.

noncontrolling interests financial

"Net income after noncontrolling interests in the third quarter of 2026 was $83 million"

The portion of a subsidiary’s equity and profits that belongs to outside owners rather than the parent company; when a parent reports consolidated results it includes the whole subsidiary but shows the noncontrolling slice separately. Think of a company’s subsidiary as a pie where the parent owns most slices but some are held by other investors — noncontrolling interests tell you how much of the pie and its future earnings don’t belong to the parent, which affects how much profit and net assets are truly attributable to the parent’s shareholders.

stock-based compensation financial

"The increase was driven by additional personnel, annual merit increases, and stock-based compensation."

Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.

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Third Quarter Pre-Tax Income of $116 million
Diluted EPS of $6.45
Gross Loss Ratio of 20.7%

TAMPA, Fla., Nov. 04, 2026 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE:HCI), reported pre-tax income of $116 million and net income of $86 million in the third quarter of 2026 compared with pre-tax income of $91 million and net income of $68 million in the third quarter of 2025. Net income after noncontrolling interests in the third quarter of 2026 was $83 million compared with $66 million in the third quarter of 2025. Diluted earnings per share were $6.45 in the third quarter of 2026 compared with $4.90 diluted earnings per share in the third quarter of 2025.

Management Commentary
"Earnings accelerated this quarter as greater operating leverage combined with modest premium growth to drive more profit to the bottom line," said HCI Group Chairman and Chief Executive Officer Paresh Patel. "Our performance illustrates that internal operating decisions can be as important as external market conditions."

Third Quarter 2026 Results
Gross premiums earned in the third quarter of 2026 were $316 million compared with $301 million in the third quarter of 2025. The increase of 5% was driven by a higher volume of insurance policies in force while average premium per policy remained relatively consistent.

Premiums ceded for reinsurance in the third quarter of 2026 were $97 million compared with $106 million in the third quarter of 2025. The decrease was a result of lower costs associated with the company’s new 2026-2027 catastrophe reinsurance programs, which began on June 1, 2026.

Net investment income in the third quarter of 2026 was $22 million compared with $18 million in the third quarter of 2025. The increase was primarily driven by growth in invested assets.

Losses and loss adjustment expenses in the third quarter of 2026 were $65 million compared with $66 million in the third quarter of 2025. Loss and loss adjustment expenses in the third quarter of 2026 included a small amount of favorable prior year development.

Policy acquisition and other underwriting expenses were $32 million for both the third quarter of 2026 and the third quarter of 2025.

General and administrative personnel expenses in the third quarter of 2026 were $24 million compared with $21 million in the third quarter of 2025. The increase was driven by additional personnel, annual merit increases, and stock-based compensation.

Nine Months Ended September 30, 2026 Results
For the nine months ended September 30, 2026, HCI Group reported pre-tax income of $343 million and net income of $254 million compared with pre-tax income of $285 million and net income of $212 million for the nine months ended September 30, 2025. Net income after noncontrolling interests was $231 million for the nine months ended September 30, 2026 compared with $201 million for the nine months ended September 30, 2025. Diluted earnings per share were $17.48 for the nine months ended September 30, 2026 compared with $15.47 for the nine months ended September 30, 2025.

Gross premiums earned for the nine months ended September 30, 2026 were $963 million compared with $904 million for the nine months ended September 30, 2025. The increase of 7% was driven by a higher volume of insurance policies in force while average premium per policy remained relatively consistent.

Premiums ceded for reinsurance for the nine months ended September 30, 2026 were $303 million compared with $308 million for the nine months ended September 30, 2025. The decrease was a result of lower costs associated with the company’s new 2026-2027 catastrophe reinsurance programs, which began on June 1, 2026.

Net investment income for the nine months ended September 30, 2026 was $58 million compared with $48 million for the nine months ended September 30, 2025. The increase was primarily driven by growth in invested assets.

Losses and loss adjustment expenses for the nine months ended September 30, 2026 were $202 million compared with $190 million for the nine months ended September 30, 2025. The gross loss ratio was 21.0% for both the nine months ended September 30, 2026 and 2025.

Policy acquisition and other underwriting expenses for the nine months ended September 30, 2026 were $96 million compared with $89 million for the nine months ended September 30, 2025. The increase was driven by a higher volume of premiums in force.

General and administrative personnel expenses for the nine months ended September 30, 2026 were $70 million compared with $61 million for the nine months ended September 30, 2025. The increase was driven by additional personnel, annual merit increases, and stock-based compensation.

Share Repurchase
On March 3, 2026, HCI Group announced a share repurchase program to repurchase up to $80 million of shares of HCI common stock through February 27, 2027. In the third quarter of 2026, HCI Group repurchased 30,721 shares for $6 million. The share repurchase program was completed on July 17, 2026, with a total of 504,330 shares repurchased for $80 million.

Conference Call
HCI Group will hold a conference call later today, November 4, 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: 794892

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 after 8:00 p.m. Eastern Time on the same day through November 19, 2026 and a replay of the webcast will be available on the Investor Relations section of the HCI Group website at www.hcigroup.com through November 4, 2027.

Toll-free replay number: (877) 481-4010
International replay number: (919) 882-2331
Replay ID: 54651

About HCI Group, Inc.
HCI Group, Inc. is a diversified holding company founded in 2006 which, through its subsidiaries, is engaged in homeowners insurance, reinsurance, real estate, insurance 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'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

HCI GROUP, INC. AND SUBSIDIARIES Selected Financial Metrics (Unaudited) (In thousands, except share and per share amounts)
		Three Months Ended
		September 30,
		2026				2025
Gross Written Premiums:
Homeowners Choice		$	185,401			$	182,863
TypTap Insurance Company			107,355				109,963
Condo Owners Reciprocal Exchange			24,879				6,380
Tailrow Reciprocal Exchange			35,415				15,965
Total Gross Written Premiums		$	353,050			$	315,171
Gross Premiums Earned:
Homeowners Choice		$	158,496			$	156,904
TypTap Insurance Company			120,789				124,613
Condo Owners Reciprocal Exchange			8,321				10,499
Tailrow Insurance Exchange			28,466				9,063
Total Gross Premiums Earned		$	316,072			$	301,079
Gross loss and loss adjustment expense ratio			20.7	%			22.0	%
Per Share Metrics
Diluted earnings per share		$	6.45			$	4.90
Dividends per share		$	0.40			$	0.40
Book value per share at the end of period		$	90.15			$	63.41
Shares outstanding at the end of period			12,437,958				12,959,362

    

HCI GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) (In thousands, except share amounts)
		September 30, 2026				December 31, 2025
Assets
Fixed-maturity securities, available-for-sale, at fair value (amortized cost: $1,295,000 and $595,383, respectively and allowance for credit losses: $0 and $0, respectively)		$	1,241,444			$	597,329
Equity securities, at fair value (cost: $57,091 and $61,597, respectively)			59,244				65,890
Limited partnership investments			16,076				17,690
Real estate investments			102,683				103,746
Other investments			5,000				5,000
Total investments			1,424,447				789,655
Cash and cash equivalents			743,527				1,210,126
Restricted cash			4,600				3,748
Income taxes receivable			2,612				1,332
Deferred income tax assets, net			9,817				2,237
Premiums receivable, net (allowance: $5,271 and $4,469, respectively)			81,265				57,494
Prepaid reinsurance premiums			49,860				50,127
Reinsurance recoverable, net of allowance for credit losses:
Paid losses and loss adjustment expenses (allowance: $0 and $0, respectively)			24,835				27,855
Unpaid losses and loss adjustment expenses (allowance: $62 and $97, respectively)			211,187				262,041
Deferred policy acquisition costs			72,892				59,722
Property and equipment, net			26,861				28,939
Intangible assets, net			1,864				2,683
Funds withheld for assumed business			4,512				5,254
Other assets			55,483				27,715
Total assets		$	2,713,762			$	2,528,928
Liabilities, Redeemable Noncontrolling Interests and Equity
Losses and loss adjustment expenses		$	549,607			$	576,495
Unearned premiums			696,313				643,328
Advance premiums			38,263				19,302
Ceded reinsurance premiums payable			10,467				27,591
Assumed premiums payable			941				1,744
Income taxes payable			27,067				12,782
Deferred income tax liabilities, net			247				3,814
Revolving credit facility			36,000				36,000
Long-term debt			31,255				31,877
Accrued expenses and other liabilities			97,617				61,351
Total liabilities			1,487,777				1,414,284
Commitments and contingencies
Redeemable noncontrolling interests			8,362				3,359
Equity:
Common stock, (no par value, 40,000,000 shares authorized, 12,437,958 and 12,992,147 shares issued and outstanding, respectively)			—				—
Additional paid-in capital			332,903				428,109
Retained earnings			826,963				611,509
Accumulated other comprehensive (loss) income			(38,586	)			1,459
Total stockholders' equity			1,121,280				1,041,077
Noncontrolling interests			96,343				70,208
Total equity			1,217,623				1,111,285
Total liabilities, redeemable noncontrolling interests and equity		$	2,713,762			$	2,528,928

HCI GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) (In thousands, except per share amounts)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2026				2025				2026				2025
Revenue
Gross premiums earned		$	316,072			$	301,079			$	963,102			$	904,090
Premiums ceded			(96,929	)			(106,088	)			(302,796	)			(308,245	)
Net premiums earned			219,143				194,991				660,306				595,845
Net investment income			21,669				17,529				57,860				47,725
Net realized investment gains			549				618				2,305				1,940
Net unrealized investment (losses) gains			(1,185	)			1,214				(2,140	)			488
Policy fee income			1,754				1,569				4,981				5,265
Other			2,979				429				11,132				3,440
Total revenue			244,909				216,350				734,444				654,703
Expenses
Losses and loss adjustment expenses			65,359				66,153				202,035				189,901
Policy acquisition and other underwriting expenses			31,689				31,652				95,805				89,490
General and administrative personnel expenses			23,671				20,806				69,972				61,274
Interest expense			1,460				1,019				3,467				8,147
Other operating expenses			6,437				6,121				20,515				20,561
Total expenses			128,616				125,751				391,794				369,373
Income before income taxes			116,293				90,599				342,650				285,330
Income tax expense			30,066				22,711				88,480				72,933
Net income		$	86,227			$	67,888			$	254,170			$	212,397
Net income attributable to noncontrolling interests			(2,728	)			(2,381	)			(23,467	)			(11,046	)
Net income after noncontrolling interests		$	83,499			$	65,507			$	230,703			$	201,351
Basic earnings per share		$	6.67			$	5.05			$	18.04			$	16.96
Diluted earnings per share		$	6.45			$	4.90			$	17.48			$	15.47
Dividends per share		$	0.40			$	0.40			$	1.20			$	1.20

HCI GROUP, INC. AND SUBSIDIARIES
Earnings Per Share
(Unaudited)
(In thousands, except per share amounts)

The computations of basic and diluted earnings per share for the periods presented were as follows:

		Three Months Ended												Nine Months Ended
		September 30, 2026												September 30, 2026
		Income				Shares				Per Share				Income				Shares				Per Share
		(Numerator)				(Denominator)				Amount				(Numerator)				(Denominator)				Amount
Net income		$	86,227											$	254,170
Less: Net income attributable to noncontrolling interests			(2,728	)											(23,467	)
Net income after noncontrolling interests			83,499												230,703
Less: Income attributable to participating securities			(2,488	)											(8,759	)
Basic Earnings Per Share:
Income attributable to common stockholders			81,011				12,148			$	6.67				221,944				12,301			$	18.04
Effect of Dilutive Securities:
Stock options			—				407								—				397
Warrants			—				8								—				8
Net impact from reallocation of undistributed earnings to participating securities			59				—								206				—
Diluted Earnings Per Share:
Income attributable to common stockholders		$	81,070				12,563			$	6.45			$	222,150				12,706			$	17.48

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were HCI Group's third-quarter 2026 earnings?

HCI Group reported $6.45 diluted earnings per share for third-quarter 2026, compared with $4.90 a year earlier. Net income was $86.227 million versus $67.888 million. After noncontrolling interests, net income was $83.499 million versus $65.507 million.

How much stock did HCI Group repurchase under its completed 2026 buyback?

HCI Group repurchased 504,330 shares for $80 million under the program completed July 17, 2026. Third-quarter purchases included 30,721 shares for $6 million.