Record Q1 for HCI Group (NYSE: HCI) with $115M pre-tax income
Rhea-AI Filing Summary
HCI Group, Inc. reported stronger results for the first quarter of 2026. Pre-tax income rose to $115.4 million from $100.3 million, while net income increased to $85.0 million from $74.2 million. Net income after noncontrolling interests was $73.4 million versus $69.7 million a year earlier.
Diluted earnings per share were $5.45, up from $5.35, as gross premiums earned grew to $326.2 million from $300.4 million. The gross loss and loss adjustment expense ratio stayed low at 20.1%. HCI also continued returning capital, repurchasing 239,435 shares for $37.5 million under an up to $80 million buyback program, while book value per share reached $84.41 at March 31, 2026.
Positive
- Double-digit earnings growth: Pre-tax income rose to $115.4 million from $100.3 million and net income increased to $85.0 million from $74.2 million, while diluted EPS improved to $5.45 from $5.35.
- Strong underwriting performance: Gross loss and loss adjustment expenses were $65.6 million on $326.2 million of gross premiums earned, producing a low gross loss ratio of 20.1%.
- Capital return and book value growth: HCI repurchased 239,435 shares for $37.5 million under an $80 million program and still reported higher book value per share of $84.41 at March 31, 2026.
Negative
- None.
Insights
HCI posts record Q1 profitability, low loss ratio and active buybacks.
HCI Group delivered higher pre-tax income of $115.4M and net income of $85.0M for Q1 2026, both above the prior year. Growth in gross premiums earned to $326.2M supports the earnings expansion.
Underwriting quality appears solid, with a gross loss and loss adjustment expense ratio of 20.1%, close to last year’s already low level. Investment income also improved, aided by higher invested assets, while interest expense declined versus 2025.
The company is returning capital through an up to $80M share repurchase program and has bought back $37.5M of stock to date, alongside a quarterly dividend of $0.40 per share. Book value per share rose to $84.41 at March 31, 2026, highlighting balance sheet growth alongside earnings.
8-K Event Classification
Key Figures
Key Terms
gross loss and loss adjustment expense ratio financial
redeemable noncontrolling interests financial
Earnings Snapshot
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities and Exchange Act of 1934
Date of Report (or Date of Earliest Event Reported):
(Exact Name of Registrant as Specified in Its Charter)
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(State or Other Jurisdiction of Incorporation or Organization) |
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(Commission File Number) |
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(I.R.S. Employer Identification Number) |
(Address of Principal Executive Offices)
(
(Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On May 6, 2026, we released our earnings for the three months ended March 31, 2026. We plan to host an earnings conference call that same day at 4:45 p.m. Eastern time during which our Chief Executive Officer, Chief Operating Officer and Chief Financial Officer will discuss the results.
Interested parties may 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.
Date: Wednesday, May 6, 2026
Time: 4:45 p.m. Eastern time (1:45 p.m. Pacific time)
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 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
Our earnings release appears as Exhibit 99.1 to this form 8-K
Item 9.01 Financial Statements and Exhibits.
Exhibit 99.1 |
Press Release dated May 6, 2026 announcing HCI Group Inc.'s Financial Results for the three months ended March 31, 2026. |
Exhibit 104 |
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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HCI Group, Inc. |
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May 6, 2026 |
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By: |
/s/ James Mark Harmsworth |
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James Mark Harmsworth Chief Financial Officer |
Exhibit 99.1
Pre-Tax Income of $115 Million
Diluted EPS of $5.45
Gross Loss Ratio of 20.1%
Tampa, Fla. – May 6, 2026 – HCI Group, Inc. (NYSE:HCI), reported pre-tax income of $115 million and net income of $85 million in the first quarter of 2026 compared with pre-tax income of $100 million and net income of $74 million in the first quarter of 2025. Net income after noncontrolling interests in the first quarter of 2026 was $73 million compared with $70 million in the first quarter of 2025. Diluted earnings per share were $5.45 in the first quarter of 2026 compared with $5.35 diluted earnings per share in the first quarter of 2025.
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 $326 million compared with $300 million in the first quarter of 2025. The increase was driven by a higher volume of insurance policies in force.
Premiums ceded for reinsurance in the first quarter of 2026 were $104 million compared with $100 million in the first quarter of 2025. The increase was driven by a higher volume of insurance policies in force.
Net investment income in the first quarter of 2026 was $17 million compared with $14 million in the first quarter of 2025. The increase was driven by growth in invested assets.
Losses and loss adjustment expenses in the first quarter of 2026 were $66 million compared with $59 million in the first quarter of 2025. The increase was driven by a higher volume of policies in force as well as some weather in the Northeast. The gross loss and loss adjustment expense ratio for the first quarter of 2026 was 20.1%.
Policy acquisition and other underwriting expenses in the first quarter of 2026 were $32 million compared with $27 million in the first quarter of 2025. The increase was driven by a greater amount of premiums in force.
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 first quarter of 2026, HCI Group repurchased 110,071 shares for $17.5 million. As of April 30, 2026, HCI Group repurchased a total of 239,435 shares for $37.5 million under the new program.
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.
1
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 -
2
HCI GROUP, INC. AND SUBSIDIARIES
Selected Financial Metrics
(Unaudited)
(In thousands, except share and per share amounts)
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Three Months Ended |
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Year Ended |
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March 31, |
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December 31, |
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2026 |
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2025 |
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2025 |
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Gross Written Premiums: |
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Homeowners Choice |
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$ |
118,167 |
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$ |
117,133 |
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$ |
652,569 |
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TypTap Insurance Company |
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135,197 |
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142,396 |
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503,672 |
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Condo Owners Reciprocal Exchange |
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3,034 |
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7,731 |
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31,001 |
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Tailrow Reciprocal Exchange |
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24,293 |
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21,985 |
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107,528 |
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Total Gross Written Premiums |
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$ |
280,691 |
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$ |
289,245 |
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$ |
1,294,770 |
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Gross Premiums Earned: |
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Homeowners Choice |
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$ |
164,703 |
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$ |
156,489 |
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$ |
637,741 |
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TypTap Insurance Company |
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125,046 |
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124,447 |
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502,756 |
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Condo Owners Reciprocal Exchange |
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6,851 |
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15,325 |
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47,688 |
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Tailrow Insurance Exchange |
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29,606 |
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4,122 |
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47,960 |
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Total Gross Premiums Earned |
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$ |
326,206 |
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$ |
300,383 |
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$ |
1,236,145 |
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Gross loss and loss adjustment expense ratio |
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20.1 |
% |
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19.7 |
% |
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19.6 |
% |
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Per Share Metrics |
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Diluted earnings per share |
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$ |
5.45 |
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$ |
5.35 |
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$ |
22.72 |
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Dividends per share |
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$ |
0.40 |
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$ |
0.40 |
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$ |
1.60 |
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Book value per share at the end of period |
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$ |
84.41 |
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$ |
48.55 |
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$ |
80.13 |
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Shares outstanding at the end of period |
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12,900,905 |
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10,765,336 |
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12,992,147 |
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3
HCI GROUP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands, except share amounts)
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March 31, 2026 |
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December 31, 2025 |
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(Unaudited) |
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Assets |
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Fixed-maturity securities, available for sale, at fair value (amortized cost: $920,973 and $595,383, respectively and allowance for credit losses: $0 and $0, respectively) |
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$ |
914,846 |
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$ |
597,329 |
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Equity securities, at fair value (cost: $62,461 and $61,597, respectively) |
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65,056 |
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65,890 |
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Limited partnership investments |
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17,171 |
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17,690 |
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Real estate investments |
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103,429 |
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103,746 |
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Other investments |
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5,000 |
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5,000 |
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Total investments |
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1,105,502 |
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789,655 |
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Cash and cash equivalents |
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1,014,049 |
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1,210,126 |
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Restricted cash |
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3,757 |
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3,748 |
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Income taxes receivable |
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1,521 |
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1,332 |
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Deferred income tax assets, net |
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21 |
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2,237 |
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Premiums receivable, net (allowance: $5,192 and $4,469, respectively) |
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60,399 |
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57,494 |
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Prepaid reinsurance premiums |
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20,948 |
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50,127 |
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Reinsurance recoverable, net of allowance for credit losses: |
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Paid losses and loss adjustment expenses (allowance: $0 and $0, respectively) |
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23,093 |
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27,855 |
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Unpaid losses and loss adjustment expenses (allowance: $88 and $97, respectively) |
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246,759 |
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262,041 |
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Deferred policy acquisition costs |
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59,700 |
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59,722 |
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Property and equipment, net |
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28,243 |
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28,939 |
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Intangible assets, net |
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2,234 |
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2,683 |
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Funds withheld for assumed business |
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5,299 |
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5,254 |
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Other assets |
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39,556 |
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27,715 |
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Total assets |
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$ |
2,611,081 |
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$ |
2,528,928 |
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Liabilities, Redeemable Noncontrolling Interests and Equity |
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Losses and loss adjustment expenses |
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$ |
566,839 |
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$ |
576,495 |
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Unearned premiums |
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597,814 |
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643,328 |
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Advance premiums |
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48,005 |
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19,302 |
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Ceded reinsurance premiums payable |
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26,475 |
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27,591 |
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Assumed premiums payable |
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3,056 |
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1,744 |
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Income taxes payable |
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42,837 |
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12,782 |
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Deferred income tax liabilities, net |
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— |
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3,814 |
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Revolving credit facility |
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36,000 |
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36,000 |
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Long-term debt |
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31,672 |
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31,877 |
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Accrued expenses and other liabilities |
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80,683 |
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61,351 |
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Total liabilities |
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1,433,381 |
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1,414,284 |
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Commitments and contingencies |
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Redeemable noncontrolling interests |
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4,211 |
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3,359 |
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Equity: |
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Common stock, (no par value, 40,000,000 shares authorized, 12,900,905 and 12,992,147 |
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— |
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— |
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Additional paid-in capital |
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413,838 |
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428,109 |
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Retained earnings |
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679,721 |
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611,509 |
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Accumulated other comprehensive (loss) income |
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(4,538 |
) |
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1,459 |
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Total stockholders' equity |
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1,089,021 |
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1,041,077 |
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Noncontrolling interests |
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84,468 |
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70,208 |
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Total equity |
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1,173,489 |
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1,111,285 |
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Total liabilities, redeemable noncontrolling interests and equity |
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$ |
2,611,081 |
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$ |
2,528,928 |
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4
HCI GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share data)
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Three Months Ended |
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March 31, |
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2026 |
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2025 |
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Revenue |
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Gross premiums earned |
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$ |
326,206 |
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$ |
300,383 |
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Premiums ceded |
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(104,055 |
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(99,635 |
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Net premiums earned |
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222,151 |
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200,748 |
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Net investment income |
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17,301 |
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13,751 |
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Net realized investment gains |
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534 |
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1,167 |
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Net unrealized investment losses |
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(1,698 |
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(1,906 |
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Policy fee income |
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1,576 |
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2,229 |
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Other |
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3,018 |
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444 |
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Total revenue |
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242,882 |
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216,433 |
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Expenses |
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Losses and loss adjustment expenses |
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65,600 |
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59,291 |
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Policy acquisition and other underwriting expenses |
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31,770 |
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27,287 |
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General and administrative personnel expenses |
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22,353 |
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20,483 |
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Interest expense |
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923 |
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3,384 |
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Other operating expenses |
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6,852 |
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5,649 |
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Total expenses |
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127,498 |
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116,094 |
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Income before income taxes |
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115,384 |
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100,339 |
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Income tax expense |
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30,341 |
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26,109 |
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Net income |
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$ |
85,043 |
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$ |
74,230 |
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Net income attributable to noncontrolling interests |
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(11,636 |
) |
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(4,546 |
) |
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Net income after noncontrolling interests |
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$ |
73,407 |
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$ |
69,684 |
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Basic earnings per share |
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$ |
5.62 |
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$ |
6.47 |
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Diluted earnings per share |
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$ |
5.45 |
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$ |
5.35 |
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Dividends per share |
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$ |
0.40 |
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$ |
0.40 |
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5
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:
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Three Months Ended |
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Three Months Ended |
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March 31, 2026 |
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March 31, 2025 |
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Income |
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Shares |
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Per Share |
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Income |
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Shares |
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Per Share |
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(Numerator) |
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(Denominator) |
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Amount |
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(Numerator) |
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(Denominator) |
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Amount |
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Net income |
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$ |
85,043 |
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|
$ |
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|||||||||||||||||||||||
6