HCI Group (NYSE: HCI) earns $85M and boosts buybacks in Q1 2026

Rhea-AI Filing Summary

HCI Group, Inc. reported solid first-quarter 2026 results, earning net income of $85.0M on total revenue of $242.9M. Net premiums earned rose to $222.2M, supported by gross premiums earned of $326.2M and continued use of reinsurance to manage risk.

Investment income contributed $17.3M, and cash and cash equivalents plus restricted cash totaled $1.02B as of March 31, 2026. Total assets reached $2.61B, with stockholders’ equity of $1.09B. Basic earnings per share were $5.62, and diluted earnings per share were $5.45.

The company repurchased 110,071 shares for $17.5M and paid a quarterly dividend of $0.40 per share. Operating cash flow was strong at $148.8M. HCI also highlighted segment contributions from its insurance operations, technology subsidiary Exzeo, reciprocal exchanges, and real estate portfolio.

Insights

Equity research analyst

HCI delivered higher Q1 2026 earnings with strong cash generation and active capital returns.

HCI Group generated income before income taxes of $115.4M, up from $100.3M a year earlier, on revenue of $242.9M. Net premiums earned increased to $222.2M, and net investment income rose to $17.3M, reflecting a larger fixed‑maturity portfolio and higher cash yields.

Losses and loss adjustment expenses were $65.6M, modestly above the prior year, consistent with higher premiums and weather-related events noted in the northeast. The combined insurance and reciprocal segments remained the main profit drivers, while Exzeo contributed segment income before taxes of $27.6M, supported by technology and services revenue.

From a balance sheet and capital allocation standpoint, HCI held $1.02B in cash and restricted cash and total assets of $2.61B as of March 31, 2026. Stockholders’ equity increased to $1.09B. The company repurchased 110,071 shares for $17.5M under its $80M authorization and maintained a quarterly dividend of $0.40 per share, funded by operating cash flow of $148.8M.

Key Figures

Total revenue: $242.9M Net income: $85.0M Net premiums earned: $222.2M +5 more

8 metrics

Total revenue $242.9M Three months ended March 31, 2026

Net income $85.0M Three months ended March 31, 2026

Net premiums earned $222.2M Three months ended March 31, 2026

Operating cash flow $148.8M Net cash provided by operating activities, Q1 2026

Cash and restricted cash $1.02B Balance at March 31, 2026

Total assets $2.61B Consolidated balance sheet at March 31, 2026

Basic EPS $5.62 Three months ended March 31, 2026

Share repurchases $17.5M Purchase of 110,071 common shares in Q1 2026

Key Terms

variable interest entities, reciprocal insurance exchanges, subordinated surplus note, quota share reinsurance, +2 more

6 terms

variable interest entities financial

"the Company evaluates its relationships or investments for consolidation pursuant to authoritative accounting guidance related to the consolidation of variable interest entities"

A variable interest entity (VIE) is a business that a company controls through contracts or special arrangements instead of owning a majority of its shares, like steering a puppet without holding its ticket. Investors care because these arrangements can hide who really bears the financial risks and rewards, affect how assets and liabilities appear on financial statements, and create extra legal or enforcement uncertainty that can change the value and risk of an investment.

reciprocal insurance exchanges financial

"represent reciprocal insurance exchanges owned by their policyholders"

subordinated surplus note financial

"issued a $25,000 subordinated surplus note with an annual interest rate of 9%"

quota share reinsurance financial

"formerly provided quota share reinsurance to United Property & Casualty Insurance Company"

A quota share reinsurance agreement is a contract where an insurance company hands a fixed percentage of every policy it sells to another insurer, sharing both premiums and claims in that set proportion. Investors should care because it smooths an insurer’s profits and limits losses—like splitting every slice of a cake with a partner—affecting revenue stability, capital needs, and the company's risk exposure.

at-the-market facility financial

"implemented an “at-the-market” facility which gives the Company the ability to raise up to $75,000"

An at-the-market facility is a standing arrangement that lets a publicly traded company sell new shares directly into the open market at whatever the current market price is, typically through an investment bank acting as a sales agent. For investors it matters because it provides the company with a flexible way to raise cash without a large, one-time share offering; however, selling additional shares can dilute existing ownership and, by increasing supply, may pressure the stock price like adding more tickets to a limited-seat event.

two-class method financial

"The Company applies the two-class method for computing and presenting earnings per share"

10-Q Quarterly Reports: What Changes Quarter to Quarter →

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

Form 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number

001-34126

HCI Group, Inc.

(Exact name of registrant as specified in its charter)

Florida		20-5961396
(State of Incorporation)		(IRS Employer Identification No.)

3802 Coconut Palm Drive
Tampa, FL 33619
(Address, including zip code, of principal executive offices)

(813) 849-9500
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class		Trading Symbol(s)		Name of Each Exchange on Which Registered
Common Shares, no par value		HCI		New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☑	Accelerated filer ☐	Non-accelerated filer ☐	Smaller reporting company ☐
			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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

The aggregate number of shares of the registrant’s common stock, no par value, outstanding as of May 1, 2026 was 12,764,808.

HCI GROUP, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

				Page
PART I – FINANCIAL INFORMATION
Item 1		Financial Statements
		Consolidated Balance Sheets:
		March 31, 2026 (unaudited) and December 31, 2025		1-2
		Consolidated Statements of Income:
		Three months ended March 31, 2026 and 2025 (unaudited)		3
		Consolidated Statements of Comprehensive Income:
		Three months ended March 31, 2026 and 2025 (unaudited)		4
		Consolidated Statements of Equity:
		Three months ended March 31, 2026 and 2025 (unaudited)		5-6
		Consolidated Statements of Cash Flows:
		Three months ended March 31, 2026 and 2025 (unaudited)		7-9
		Notes to Consolidated Financial Statements (unaudited)		10-39
Item 2		Management’s Discussion and Analysis of Financial Condition and Results of Operations		40-51
Item 3		Quantitative and Qualitative Disclosures About Market Risk		52-53
Item 4		Controls and Procedures		54
PART II – OTHER INFORMATION
Item 1		Legal Proceedings		55
Item 1A		Risk Factors		55
Item 2		Unregistered Sales of Equity Securities and Use of Proceeds		55-56
Item 3		Defaults Upon Senior Securities		57
Item 4		Mine Safety Disclosures		57
Item 5		Other Information		57
Item 6		Exhibits		58-63
Signatures				64

PART I – FINANCIAL INFORMATION

Item 1 – Financial Statements

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(In thousands, except share amounts)

		March 31,				December 31,
		2026				2025
		(Unaudited)
Assets
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)		$	914,846			$	597,329
Equity securities, at fair value (cost: $62,461 and $61,597, respectively)			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 (a)			1,014,049				1,210,126
Restricted cash (a)			3,757				3,748
Income taxes receivable (a)			1,521				1,332
Deferred income tax assets, net (a)			21				2,237
Premiums receivable, net (allowance: $5,192 and $4,469, respectively) (a)			60,399				57,494
Prepaid reinsurance premiums (a)			20,948				50,127
Reinsurance recoverable, net of allowance for credit losses (a):
Paid losses and loss adjustment expenses (allowance: $0 and $0, respectively)			23,093				27,855
Unpaid losses and loss adjustment expenses (allowance: $88 and $97, respectively)			246,759				262,041
Deferred policy acquisition costs (a)			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 (a)			39,556				27,715
Total assets		$	2,611,081			$	2,528,928

(a)See Note 12 for details of balances associated with consolidated variable interest entities.

(continued)

1

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Balance Sheets – (Continued)

(In thousands, except share amounts)

		March 31,				December 31,
		2026				2025
		(Unaudited)
Liabilities, Redeemable Noncontrolling Interests and Equity
Losses and loss adjustment expenses (a)		$	566,839			$	576,495
Unearned premiums (a)			597,814				643,328
Advance premiums (a)			48,005				19,302
Ceded reinsurance premiums payable (a)			26,475				27,591
Assumed premiums payable (a)			3,056				1,744
Income taxes payable (a)			42,837				12,782
Deferred income tax liabilities, net (a)			—				3,814
Revolving credit facility			36,000				36,000
Long-term debt			31,672				31,877
Accrued expenses and other liabilities (a)			80,683				61,351
Total liabilities			1,433,381				1,414,284
Commitments and contingencies (Note 19)
Redeemable noncontrolling interests (Note 16)			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

(a)See Note 12 for details of balances associated with consolidated variable interest entities.

See accompanying Notes to Consolidated Financial Statements (unaudited).

2

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Income

(Unaudited)

(In thousands, except per share amounts)

		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

See accompanying Notes to Consolidated Financial Statements (unaudited).

3

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

(Unaudited)

(In thousands)

		Three Months Ended
		March 31,
		2026				2025
Net income		$	85,043			$	74,230
Other comprehensive (loss) income, net of income taxes:
Available-for-sale fixed-maturity securities			(6,052	)			2,091
Other comprehensive (loss) income, net of income taxes			(6,052	)			2,091
Comprehensive income			78,991				76,321
Comprehensive income attributable to noncontrolling interests			(11,581	)			(4,546	)
Comprehensive income after noncontrolling interests		$	67,410			$	71,775

See accompanying Notes to Consolidated Financial Statements (unaudited).

4

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Equity

For the Three Months Ended March 31, 2026

(Unaudited)

(In thousands, except per share amount)

		Common Stock								Additional Paid-In				Retained				Accumulated Other Comprehensive				Total Stockholders’				Noncontrolling				Total
		Shares				Amount				Capital				Earnings				Income (Loss)				Equity				Interests				Equity
Balance as of December 31, 2025			12,992,147			$	—			$	428,109			$	611,509			$	1,459			$	1,041,077			$	70,208			$	1,111,285
Net income			—				—				—				73,407				—				73,407				11,636				85,043
Other comprehensive   loss, net of income taxes			—				—				—				—				(5,997	)			(5,997	)			(55	)			(6,052	)
Exercise of stock options			20,000				—				800				—				—				800				—				800
Forfeiture of restricted stock			(693	)			—				—				—				—				—				—				—
Net share settlements on   vesting of restricted stock			(478	)			—				(81	)			—				—				(81	)			—				(81	)
Repurchases of common stock			(110,071	)			—				(17,501	)			—				—				(17,501	)			—				(17,501	)
Dilution from subsidiary   stock-based compensation			—				—				(112	)			—				—				(112	)			112				—
Common stock dividends			—				—				—				(5,195	)			—				(5,195	)			—				(5,195	)
Stock-based compensation			—				—				2,623				—				—				2,623				736				3,359
Reclassification of nonrefundable   subscriber surplus contributions			—				—				—				—				—				—				1,831				1,831
Balance as of March 31, 2026			12,900,905			$	—			$	413,838			$	679,721			$	(4,538	)		$	1,089,021			$	84,468			$	1,173,489

See accompanying Notes to Consolidated Financial Statements (unaudited).

5

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Equity – (Continued)

For the Three Months Ended March 31, 2025

(Unaudited)

(In thousands, except per share amount)

		Common Stock								Additional Paid-In				Retained				Accumulated Other Comprehensive				Total Stockholders’				Noncontrolling				Total
		Shares				Amount				Capital				Earnings				(Loss) Income				Equity				Interests				Equity
Balance as of December 31, 2024			10,767,184			$	—			$	122,289			$	331,793			$	(749	)		$	453,333			$	14,017			$	467,350
Net income			—				—				—				69,684				—				69,684				4,546				74,230
Other comprehensive   income, net of income taxes			—				—				—				—				2,091				2,091				—				2,091
Issuance of restricted stock			1,000				—				—				—				—				—				—				—
Forfeiture of restricted stock			(750	)			—				—				—				—				—				—				—
Net share settlements on   vesting of restricted stock			(5,267	)			—				(639	)			—				—				(639	)			—				(639	)
Conversion of senior notes   to common stock			3,169								250				—								250								250
Common stock dividends			—				—				—				(4,306	)			—				(4,306	)			—				(4,306	)
Stock-based compensation			—				—				2,270				—				—				2,270				702				2,972
Reclassification of nonrefundable   subscriber surplus contributions			—				—				—				—				—				—				884				884
Balance as of March 31, 2025			10,765,336			$	—			$	124,170			$	397,171			$	1,342			$	522,683			$	20,149			$	542,832

See accompanying Notes to Consolidated Financial Statements (unaudited).

6

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

		Three Months Ended
		March 31,
		2026				2025
Cash flows from operating activities:
Net income after noncontrolling interests		$	73,407			$	69,684
Net income attributable to noncontrolling interests			11,636				4,546
Net income			85,043				74,230
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense			3,359				2,972
Net accretion of discount on investments in available-for-sale fixed-maturity   securities			(98	)			(336	)
Depreciation and amortization			2,240				2,491
Deferred income tax expense (benefit)			423				(1,297	)
Net realized investment gains			(534	)			(1,167	)
Net unrealized investment losses			1,698				1,906
Credit loss expense - reinsurance recoverable			(9	)			(35	)
Net loss from limited partnership investments			324				626
Gain on sale of real estate investments			(354	)			(370	)
Foreign currency remeasurement loss (gain)			96				(3	)
Other non-cash items			(45	)			11
Changes in operating assets and liabilities:
Income taxes			29,866				28,390
Premiums receivable, net			(2,905	)			(4,122	)
Prepaid reinsurance premiums			29,179				54,051
Reinsurance recoverable			20,053				30,707
Deferred policy acquisition costs			22				(2,095	)
Funds withheld for assumed business			(45	)			3,239
Other assets			(11,814	)			(1,434	)
Losses and loss adjustment expenses			(9,656	)			(47,754	)
Unearned premiums			(45,514	)			(11,138	)
Advance premiums			28,703				18,940
Reinsurance payable on paid losses and loss adjustment expenses			—				(2,496	)
Ceded reinsurance premiums payable			(1,116	)			1,466
Assumed premiums payable			1,312				1,406
Accrued expenses and other liabilities			18,583				13,818
Net cash provided by operating activities			148,811				162,006

(continued)

7

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows – (Continued)

(Unaudited)

(In thousands)

		Three Months Ended
		March 31,
		2026				2025
Cash flows from investing activities:
Investments in limited partnerships			—				(95	)
Distributions of return of capital from limited partnership investments			195				95
Purchase of property and equipment			(335	)			(1,732	)
Purchase of real estate investments			(818	)			(1,857	)
Purchase of available-for-sale fixed-maturity securities			(328,863	)			(15,000	)
Purchase of equity securities			(15,156	)			(9,327	)
Proceeds from sales of real estate investments			760				824
Proceeds from sales of available-for-sale fixed maturity securities			1,878				2,610
Proceeds from calls, repayments and maturities of available-for-sale   fixed-maturity securities			2,042				81,211
Proceeds from sales of equity securities			15,074				9,542
Net cash (used in) provided by investing activities			(325,223	)			66,271
Cash flows from financing activities:
Common stock dividends			(5,195	)			(4,306	)
Proceeds from exercise of stock options			800				—
Payment of other noncontrolling interests issuance costs			(57	)			—
Repayment under revolving credit facility, net			—				(2,000	)
Subscriber surplus contributions, net			2,683				830
Repayment of long-term debt			(220	)			(133	)
Payment of net share settlements and other			(81	)			(639	)
Repurchases of common stock			(17,501	)			—
Net cash used in financing activities			(19,571	)			(6,248	)
Effect of exchange rate changes on cash			(85	)			(11	)
Net (decrease) increase in cash and cash equivalents and restricted cash			(196,068	)			222,018
Cash and cash equivalents and restricted cash at beginning of period			1,213,874				536,185
Cash and cash equivalents and restricted cash at end of period		$	1,017,806			$	758,203

(continued)

8

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows – (Continued)

(Unaudited)

(In thousands)

		Three Months Ended
		March 31,
		2026				2025
Supplemental disclosure of cash flow information:
Income taxes paid, net of refunds		$	52			$	65
Interest paid		$	975			$	214
Non-cash investing and financing activities:
Conversion of 4.75% Convertible Senior Notes		$	—			$	250
Payable on purchases of equity securities		$	484			$	—
Payable on purchases of available-for-sale fixed-maturity securities		$	500			$	—

See accompanying Notes to Consolidated Financial Statements (unaudited).

9

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Note 1 -- Nature of Operations

HCI Group, Inc., together with its subsidiaries (“HCI” or the “Company”), is primarily engaged in the property and casualty insurance business through two insurance companies, Homeowners Choice Property & Casualty Insurance Company, Inc. (“HCPCI”) and TypTap Insurance Company (“TTIC”). The Company provides various homeowners’ property and casualty insurance products for properties located in the State of Florida, which is the Company's primary market, as well as in other states in the northeast and southeast regions of the United States (“U.S.”). A third insurance subsidiary, perRisk Insurance Company (“perRisk”), is domiciled in Arizona and has not yet commenced its surplus lines insurance business.

The Company's insurance operations are supported by other insurance-related subsidiaries within the consolidated group. Exzeo Group, Inc. (“Exzeo”), a publicly traded majority-owned subsidiary, provides turn-key insurance technology and operations solutions based on a proprietary platform of purpose-built software and data analytics applications that are specifically designed for the property and casualty insurance ecosystem. The Company utilizes Exzeo's internally developed software technologies to identify profitable underwriting opportunities, drive efficiency in claim processing and settlements, and streamline operations across our insurance operations and other insurance-related businesses.

The Company also provides attorney-in-fact (“AIF”) services for Condo Owners Reciprocal Exchange (“CORE”) and Tailrow Insurance Exchange (“Tailrow”), both of which represent reciprocal insurance exchanges owned by their policyholders. Although the Company does not have any equity interest in CORE and Tailrow, the Company is required to consolidate them as their primary beneficiary. In addition, the Company's commercial real estate subsidiary is primarily engaged in the business of developing and operating commercial properties for investment purposes or for internal use.

HCI Group, Inc. was incorporated in the State of Florida in 2006 and its common stock is currently listed on the New York Stock Exchange (“NYSE”) under the symbol “HCI.” Exzeo completed its initial public offering in November of 2025 and is currently listed on the NYSE under the symbol “XZO.” As of March 31, 2026, HCI Group, Inc. owned approximately 82.5% of Exzeo’s outstanding shares of common stock, inclusive of its unvested restricted stock.

Note 2 -- Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information, and the Securities and Exchange Commission (“SEC”) rules for interim financial reporting. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. However, in the opinion of management, the accompanying consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the Company’s financial position as of March 31, 2026 and the results of operations and cash flows for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results of operations to be expected for any subsequent interim period or for the fiscal year ending December 31, 2026. The accompanying unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2025 included in the Company’s Form 10-K, which was filed with the SEC on February 26, 2026 (the “2025 Annual

10

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Report”). Unless otherwise noted, the Company’s accounting policies do not differ from those disclosed in the 2025 Annual Report.

The unaudited consolidated financial statements have been prepared in U.S. dollars and include the accounts of HCI Group, Inc. and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. In addition, the Company evaluates its relationships or investments for consolidation pursuant to authoritative accounting guidance related to the consolidation of variable interest entities (“VIE”) under the Variable Interest Model prescribed by the Financial Accounting Standards Board (“FASB”). A VIE is consolidated when the Company has the power to direct activities that most significantly impact the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. Refer to Note 12 “Variable Interest Entities” for additional information. Certain prior period amounts have been reclassified to conform with current period presentation.

Use of Estimates

The preparation of the interim unaudited consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. The Company's estimates are based on the relevant information available at the end of each period. Actual results could differ materially from these estimates under different assumptions or market conditions. The Company's estimates specific to losses and loss adjustment expenses, reinsurance recoverable, income taxes, stock-based compensation expense, and limited partnership investments involve the most significant judgments and estimates related to the consolidated financial statements.

Note 3 -- Recent Accounting Pronouncements

Adopted

Accounting Standards Update No. 2025-05. In July 2025, the FASB issued Accounting Standards Update No. 2025-05 (“ASU 2025-05”) Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This update simplifies the estimation of current expected credit losses on current accounts receivable and current contract assets related to revenue from contracts with customers by allowing all entities to assume that current conditions as of the balance sheet date will not change for the remaining life of the current accounts receivable and current contract assets. ASU 2025-05 is effective for all entities for fiscal years and interim periods beginning after December 15, 2025. The adoption of this update did not have a material impact on the Company’s financial position or results of operation.

Pending Adoption

Accounting Standards Update No. 2025-01 and 2024-03. In January 2025, the FASB issued Accounting Standards Update No. 2025-01 (“ASU 2025-01”) Income Statement–Reporting Comprehensive Income–Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. This update clarifies the effective date of Accounting Standards Update No. 2024-03 (“ASU 2024-03”) Income Statement–Reporting Comprehensive Income–Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which was issued by the FASB in November 2024. For public business entities, ASU 2024-03 enhances disclosures by requiring the disaggregation of certain expense captions presented within the income statement, such as employee compensation and intangible asset amortization. In addition, the total relevant expense caption on the income statement must be reconciled to the aggregate of the separately disclosed expense

11

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

categories with the difference represented by an “other items” amount which is qualitatively described. ASU 2024-03 is effective for all public business entities for annual reporting periods beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating its impact.

Accounting Standards Update No. 2025-06. In September 2025, the FASB issued Accounting Standards Update No. 2025-06 (“ASU 2025-06”) Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This update enhances guidance on the capitalization of software development costs by eliminating project phase based criteria and clarifying the conditions signifying significant development uncertainty used by entities to evaluate when the probable-to-complete recognition threshold is met. ASU 2025-06 is effective for all entities for fiscal years and interim periods beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating its impact.

Note 4 -- Cash and Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the Company’s consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows:

		March 31,				December 31,
		2026				2025
Cash and cash equivalents		$	1,014,049			$	1,210,126
Restricted cash			3,757				3,748
Cash and cash equivalents and restricted cash		$	1,017,806			$	1,213,874

The majority of the Company’s cash and cash equivalents are held at major financial institutions. Certain account balances exceed the Federal Deposit Insurance Corporation insurance limits of $250 per account. As a result, there is a concentration of credit risk related to amounts in excess of the insurance limits. The Company regularly monitors the financial stability of these financial institutions and believes that there is no exposure to any significant credit risk in cash and cash equivalents.

12

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Note 5 -- Investments

Available-for-Sale Fixed-Maturity Securities

The Company holds investments in fixed-maturity securities that are classified as available-for-sale. As of March 31, 2026 and December 31, 2025, the cost or amortized cost, allowance for credit loss, gross unrealized gains and losses, and estimated fair value of the Company’s available-for-sale fixed-maturity securities by security type were as follows:

		Cost or Amortized				Allowance for Credit				Gross Unrealized				Gross Unrealized				Estimated Fair
		Cost				Loss				Gains				Losses				Value
As of March 31, 2026
U.S. Treasury and U.S. government agencies		$	653,256			$	—			$	487			$	(5,455	)		$	648,288
Corporate bonds			242,120				—				192				(1,174	)			241,138
Commercial mortgage-backed securities			25,597				—				18				(195	)			25,420
Available-for-sale fixed-maturity securities		$	920,973			$	—			$	697			$	(6,824	)		$	914,846
As of December 31, 2025
U.S. Treasury and U.S. government agencies		$	332,284			$	—			$	1,785			$	(717	)		$	333,352
Corporate bonds			241,843				—				1,463				(384	)			242,922
Commercial mortgage-backed securities			21,256				—				74				(275	)			21,055
Available-for-sale fixed-maturity securities		$	595,383			$	—			$	3,322			$	(1,376	)		$	597,329

Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. As of March 31, 2026 and December 31, 2025, the scheduled contractual maturities of available-for-sale fixed-maturity securities, with securities not due at a single maturity date shown separately, were as follows:

		March 31, 2026								December 31, 2025
		Cost or				Estimated				Cost or				Estimated
		Amortized Cost				Fair Value				Amortized Cost				Fair Value
Due in one year or less		$	15,139			$	15,127			$	10,202			$	10,214
Due after one year through five years			377,942				375,912				353,454				354,648
Due after five years through ten years			501,794				497,957				209,970				210,963
Due after ten years			501				430				501				449
Commercial mortgage-backed securities			25,597				25,420				21,256				21,055
Available-for-sale   fixed-maturity securities		$	920,973			$	914,846			$	595,383			$	597,329

13

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Securities on Deposit

As of March 31, 2026 and December 31, 2025, the fair value of available-for-sale fixed-maturity securities on deposit with various regulatory authorities was $1,691 and $1,807, respectively.

Sales of Available-for-Sale Fixed-Maturity Securities

Proceeds received and the gross realized gains and losses from sales of available-for-sale fixed-maturity securities for the three months ended March 31, 2026 and 2025 were as follows:

						Gross Realized				Gross Realized
		Proceeds				Gains				Losses
Three months ended March 31, 2026		$	1,878			$	49			$	—
Three months ended March 31, 2025		$	2,610			$	24			$	(4	)

Gross Unrealized Losses for Available-for-Sale Fixed-Maturity Securities

As of March 31, 2026 and December 31, 2025, available-for-sale fixed-maturity securities with gross unrealized loss positions by investment category and length of time the individual securities have been in a continuous loss position were as follows:

		Less Than Twelve Months								Twelve Months or Longer								Total
		Gross				Estimated				Gross				Estimated				Gross				Estimated
		Unrealized				Fair				Unrealized				Fair				Unrealized				Fair
As of March 31, 2026		Losses				Value				Losses				Value				Losses				Value
U.S. Treasury and U.S.   government agencies		$	(5,289	)		$	529,963			$	(166	)		$	2,915			$	(5,455	)		$	532,878
Corporate bonds			(1,001	)			165,245				(173	)			1,410				(1,174	)			166,655
Commercial mortgage-backed   securities			(195	)			17,029				—				—				(195	)			17,029
Total		$	(6,485	)		$	712,237			$	(339	)		$	4,325			$	(6,824	)		$	716,562

		Less Than Twelve Months								Twelve Months or Longer								Total
		Gross				Estimated				Gross				Estimated				Gross				Estimated
		Unrealized				Fair				Unrealized				Fair				Unrealized				Fair
As of December 31, 2025		Losses				Value				Losses				Value				Losses				Value
U.S. Treasury and U.S.   government agencies		$	(553	)		$	208,273			$	(164	)		$	2,918			$	(717	)		$	211,191
Corporate bonds			(289	)			28,303				(95	)			1,187				(384	)			29,490
Commercial mortgage-backed   securities			(275	)			16,749				—				—				(275	)			16,749
Total		$	(1,117	)		$	253,325			$	(259	)		$	4,105			$	(1,376	)		$	257,430

As of March 31, 2026 and December 31, 2025, there were 111 and 47 available-for-sale fixed-maturity securities in an unrealized loss position, respectively.

14

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Allowance for Credit Losses of Available-for-Sale Fixed-Maturity Securities

The Company regularly reviews its individual available-for-sale fixed-maturity securities for credit impairment. The Company considers various factors in determining whether a credit loss exists for each individual security, including:

•the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or earnings;

•the extent to which the market value of the security has been below its cost or amortized cost;

•general market conditions and industry or sector specific factors and other qualitative factors;

•nonpayment by the issuer of its contractually obligated interest and principal payments; and

•the Company’s intent and ability to hold the investment for a period of time sufficient to allow for the recovery of costs.

There was no balance or activity in the allowance for credit losses of available-for-sale fixed-maturity securities during the three months ended March 31, 2026 and 2025.

Equity Securities

The Company holds investments in equity securities measured at fair values which are readily determinable. As of March 31, 2026 and December 31, 2025, the cost, gross unrealized gains and losses, and estimated fair value of the Company’s equity securities were as follows:

						Gross Unrealized				Gross Unrealized				Estimated Fair
		Cost				Gains				Losses				Value
March 31, 2026		$	62,461			$	5,153			$	(2,558	)		$	65,056
December 31, 2025		$	61,597			$	6,204			$	(1,911	)		$	65,890

The table below presents the portion of unrealized gains and losses in the Company’s consolidated statements of income related to equity securities still held:

		Three Months Ended
		March 31,
		2026				2025
Net losses recognized		$	(1,213	)		$	(759	)
Exclude: Net realized gains recognized for securities sold			485				1,147
Net unrealized investment losses		$	(1,698	)		$	(1,906	)

15

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Sales of Equity Securities

Proceeds received and the gross realized gains and losses from sales of equity securities for the three months ended March 31, 2026 and 2025 were as follows:

						Gross Realized				Gross Realized
		Proceeds				Gains				Losses
Three months ended March 31, 2026		$	15,074			$	756			$	(271	)
Three months ended March 31, 2025		$	9,542			$	1,331			$	(184	)

Limited Partnership Investments

The Company has interests in limited partnerships that are not registered or readily tradeable on a securities exchange. These partnerships are private equity funds managed by general partners who make decisions with regard to financial policies and operations. As such, the Company is not the primary beneficiary and does not consolidate these partnerships. The following table provides information related to the Company’s investments in limited partnerships:

		March 31, 2026												December 31, 2025
		Carrying				Unfunded								Carrying				Unfunded
Investment Strategy		Value				Balance				(%) (a)				Value				Balance				(%) (a)
Primarily in senior secured loans and, to a    limited extent, in other debt and equity    securities of private U.S. lower-middle-market    companies. (b)(c)(e)		$	1,701			$	—				12.24			$	1,877			$	—				12.31
Value creation through active distressed debt    investing primarily in bank loans, public and    private corporate bonds, asset-backed    securities, and equity securities received in    connection with debt restructuring. (b)(d)(e)			597				—				1.27				587				—				1.27
High returns and long-term capital appreciation    through investments in the power, utility and    energy industries, and in the infrastructure    sector. (b)(f)(g)			2,821				—				0.18				2,769				—				0.18
Value-oriented investments in less liquid and    mispriced senior and junior debts of private    equity-backed companies. (b)(h)(i)			1,276				—				0.52				1,333				—				0.53
Value-oriented investments in mature real    estate private equity funds and portfolios    globally. (b)(j)			5,948				1,956				1.32				6,182				2,042				1.32
Risk-adjusted returns on credit and equity    investments, primarily in private equity-owned    companies. (b)(k)			4,828				1,805				0.53				4,942				1,610				0.54
Limited partnership investments		$	17,171			$	3,761							$	17,690			$	3,652

(a)Represents the Company’s percentage investment in the fund as of each balance sheet date.

(b)Except under certain circumstances, withdrawals from the funds or any assignments are not permitted. Distributions, except income from late admission of a new limited partner, will be received when underlying investments of the funds are liquidated.

16

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

(c)The term is expected to be two years following the maturity of the fund’s outstanding leverage. Although the capital commitment period has expired, follow-on investments and pending commitments may require additional fundings.

(d)Effective July 1, 2023, this investment is in the process of winding down. Although the capital commitment period has ended, the general partner could still request an additional funding under certain circumstances.

(e)At the fund manager’s discretion, the term of the fund may be extended for up to two additional one-year periods.

(f)Expected to have a ten-year term. The capital commitment period has expired but the general partner may request additional funding for follow-on investment.

(g)With the consent of a supermajority of partners, the term of the fund may be extended for up to three additional one-year periods.

(h)Expected to have an eight-year term from the commencement date, which can be extended for up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners.

(i)The capital commitment period has ended but an additional funding may be requested.

(j)The term is expected to end November 27, 2027. The term may be extended for up to four additional one-year periods at the general partner’s discretion, and up to two additional one-year periods with the consent of the advisory committee.

(k)Expected to have an eight-year term after the final admission date. The term may be extended for an additional one-year period at the general partner’s discretion, and up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners.

As of March 31, 2026 and December 31, 2025, the Company’s net cumulative contributed capital to the limited partnership investments totaled $18,502 and $18,697, respectively, and the Company’s maximum exposure to loss aggregated $17,171 and $17,690, respectively.

Real Estate Investments

Real estate investments consist of the following:

		March 31,				December 31,
		2026				2025
Land		$	49,646			$	50,052
Land improvements			14,760				14,760
Buildings and building improvements			44,097				44,019
Tenant and leasehold improvements			2,265				2,265
Construction in progress			829				89
Other			2,001				2,001
Total, at cost			113,598				113,186
Less: accumulated depreciation			(10,169	)			(9,440	)
Real estate investments		$	103,429			$	103,746

Depreciation expense related to real estate investments was $729 and $339 for the three months ended March 31, 2026 and 2025, respectively.

17

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Net Investment Income

Net investment income, by source, is summarized as follows:

		Three Months Ended
		March 31,
		2026				2025
Available-for-sale fixed-maturity securities		$	7,870			$	7,514
Equity securities			653				487
Investment expense			(203	)			(185	)
Limited partnership investments			(324	)			(626	)
Real estate investments			455				318
Cash and cash equivalents			8,721				6,243
Other			129				—
Net investment income		$	17,301			$	13,751

Note 6 -- Fair Value Measurements

The Company records and discloses certain financial assets at their estimated fair values. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows:

Level 1	–	Unadjusted quoted prices in active markets for identical assets.
Level 2	–	Other inputs that are observable for the asset, either directly or indirectly such as quoted prices for identical assets that are not observable throughout the full term of the asset.
Level 3	–	Inputs that are unobservable.

Valuation Methodology

Cash and Cash Equivalents

Cash and cash equivalents primarily consist of cash as well as money-market funds and certificates of deposit maturing within three months from the time of purchase. Their carrying value approximates fair value due to the short maturity and high liquidity of these funds.

Restricted Cash

Restricted cash represents cash held by state authorities and the carrying value approximates fair value.

18

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Available-for-Sale Fixed-Maturity and Equity Securities

Estimated fair values of the Company’s available-for-sale fixed-maturity and equity securities are determined in accordance with U.S. GAAP, using valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Fair values are generally measured using quoted prices in active markets for identical securities or other inputs that are observable either directly or indirectly, such as quoted prices for similar securities. In those instances where observable inputs are not available, fair values are measured using unobservable inputs. Unobservable inputs reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the security and are developed based on the best information available in the circumstances. Fair value estimates derived from unobservable inputs are significantly affected by the assumptions used, including the discount rates and the estimated amounts and timing of future cash flows. The derived fair value estimates cannot be substantiated by comparison to independent markets and are not necessarily indicative of the amounts that would be realized in a current market exchange.

The estimated fair values for securities are determined by management, utilizing prices obtained from an independent pricing service and information provided by brokers, which are level 1 or level 2 inputs depending on the asset class. Management reviews the assumptions and methods utilized by the pricing service and then compares the relevant data and pricing to broker-provided data. The Company gains assurance of the overall reasonableness and consistent application of the assumptions and methodologies, and compliance with accounting standards for fair value determination through ongoing monitoring of the reported fair values.

Other Investments

The following table summarizes other investments held by the Company and the method used in estimating the fair value:

	Maturity Date		Valuation Methodology
10.50% Surplus Note	2030		Discounted cash flow method/Level 3 inputs

Revolving Credit Facility

From time to time, the Company has an amount outstanding under a revolving credit facility. The interest rate is variable and is periodically adjusted based on the Secured Overnight Financing Rate (“SOFR”) plus a ten basis points adjustment plus a margin based on the debt-to-capital ratio. As a result, carrying value, when outstanding, approximates fair value.

Long-Term Debt

The following table summarizes the Company’s long-term debt and methods used in estimating their fair values:

	Maturity Date		Valuation Methodology
4.55% Promissory Note	2036		Discounted cash flow method/Level 3 inputs
5.50% Promissory Note	2033		Discounted cash flow method/Level 3 inputs
5.65% Promissory Note	2035		Discounted cash flow method/Level 3 inputs

19

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Assets Measured at Estimated Fair Value on a Recurring Basis

The following tables present information about the Company’s financial assets measured at estimated fair value on a recurring basis. The tables indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of March 31, 2026 and December 31, 2025:

		Fair Value Measurements Using
		(Level 1)				(Level 2)				(Level 3)				Total
As of March 31, 2026
Cash and cash equivalents		$	1,014,049			$	—			$	—			$	1,014,049
Restricted cash		$	3,757			$	—			$	—			$	3,757
Available-for-sale fixed-maturity securities:
U.S. Treasury and U.S. government agencies		$	628,617			$	19,671			$	—			$	648,288
Corporate bonds			—				241,138				—				241,138
Commercial mortgage-backed securities			—				25,420				—				25,420
Available-for-sale fixed-maturity securities		$	628,617			$	286,229			$	—			$	914,846
Equity securities		$	63,735			$	1,321			$	—			$	65,056

		Fair Value Measurements Using
		(Level 1)				(Level 2)				(Level 3)				Total
As of December 31, 2025
Cash and cash equivalents		$	1,210,126			$	—			$	—			$	1,210,126
Restricted cash		$	3,748			$	—			$	—			$	3,748
Available-for-sale fixed-maturity securities:
U.S. Treasury and U.S. government agencies		$	313,420			$	19,932			$	—			$	333,352
Corporate bonds			—				242,922				—				242,922
Commercial mortgage-backed securities			—				21,055				—				21,055
Available-for-sale fixed-maturity securities		$	313,420			$	283,909			$	—			$	597,329
Equity securities		$	64,545			$	1,345			$	—			$	65,890

Assets and Liabilities Carried at Other Than Fair Value

The following tables present fair value information for assets and liabilities that are carried on the consolidated balance sheets at amounts other than fair value as of March 31, 2026 and December 31, 2025:

		Carrying				Fair Value Measurements Using												Estimated
		Value				(Level 1)				(Level 2)				(Level 3)				Fair Value
As of March 31, 2026
Other investments		$	5,000			$	—			$	—			$	5,210			$	5,210
Revolving credit facility		$	36,000			$	—			$	36,000			$	—			$	36,000
Long-term debt:
4.55% Promissory Note		$	4,006			$	—			$	—			$	3,832			$	3,832
5.50% Promissory Note			11,202				—				—				11,401				11,401
5.65% Promissory Note			16,464				—				—				16,750				16,750
Long-term debt		$	31,672			$	—			$	—			$	31,983			$	31,983

20

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

		Carrying				Fair Value Measurements Using												Estimated
		Value				(Level 1)				(Level 2)				(Level 3)				Fair Value
As of December 31, 2025
Other investments		$	5,000			$	—			$	—			$	5,223			$	5,223
Revolving credit facility		$	36,000			$	—			$	36,000			$	—			$	36,000
Long-term debt:
4.55% Promissory Note		$	4,080			$	—			$	—			$	3,863			$	3,863
5.50% Promissory Note			11,262				—				—				11,313				11,313
5.65% Promissory Note			16,535				—				—				16,615				16,615
Long-term debt		$	31,877			$	—			$	—			$	31,791			$	31,791

Note 7 -- Intangible Assets, Net

Intangible assets, net consist of the following:

		March 31,				December 31,
		2026				2025
In-place leases		$	2,221			$	2,221
Policy renewal rights - United			10,100				10,100
Non-compete agreements - United (a)			314				314
Total, at cost			12,635				12,635
Less: accumulated amortization			(10,401	)			(9,952	)
Intangible assets, net		$	2,234			$	2,683

(a)Fully amortized.

Amortization expense for intangible assets was $449 and $641 for the three months ended March 31, 2026 and 2025, respectively.

Note 8 -- Revolving Credit Facility

The Company had a $36,000 outstanding balance under a senior secured revolving credit facility with Fifth Third Bank (“Revolving Credit Facility”) as of March 31, 2026 and December 31, 2025. The Revolving Credit Facility, as amended on November 5, 2025, currently provides borrowing capacity of up to $150,000 and expires on November 5, 2030. Borrowings under the Revolving Credit Facility bear interest at an annual rate equal to the one or three month SOFR plus a ten basis points adjustment plus a margin based on the debt-to-capital ratio, with interest payments due in arrears on January 1, April 1, July 1, and October 1. In addition, the Company is subject to an unused commitment fee.

Interest expense for the Revolving Credit Facility was $467 and $669 for the three months ended March 31, 2026 and 2025, respectively.

As of March 31, 2026, the Company was in compliance with all required covenants and had an available borrowing capacity of $114,000.

21

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Note 9 -- Long-Term Debt

The following table summarizes the Company’s long-term debt:

						Interest		Payment		March 31,				December 31,
Debt Description		Issued		Maturity		Rate		Date		2026				2025
4.55% Promissory Note		7/6/2018		8/1/2036		4.55%		Monthly		$	4,050			$	4,125
5.50% Promissory Note		6/26/2023		7/1/2033		5.50%		Monthly			11,357				11,422
5.65% Promissory Note		7/24/2025		8/1/2035		5.65%		Monthly			16,816				16,896
Total principal amount											32,223				32,443
Less: unamortized issuance costs											(551	)			(566	)
Long-term debt										$	31,672			$	31,877

There were no significant changes in the Company’s long-term debt during the three months ended March 31, 2026. During the three months ended March 31, 2025, the Company converted $250 in aggregate principal of 4.75% Convertible Senior Notes for aggregate consideration of 3,169 shares of HCI’s common stock plus cash consideration in lieu of fractional shares.

Interest expense for long-term debt was $456 and $2,715 for the three months ended March 31, 2026 and 2025, respectively.

Note 10 -- Reinsurance

Reinsurance obtained from other insurance companies

In the normal course of business, the Company seeks to reduce the loss that may arise from catastrophes or other events by reinsuring certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers. The Company contracts with a number of reinsurers to secure its annual reinsurance coverage, which generally becomes effective June 1st of each year. The Company purchases reinsurance each year taking into consideration its overall insurance exposure, modeled probable maximum losses, risk tolerance and retention levels, mandatory reinsurance coverage provided by the Florida Hurricane Catastrophe Fund (a tax-exempt state trust fund), and overall reinsurance market conditions. Amounts recoverable from reinsurers are estimated in a manner consistent with the applicable reinsurance contract or contracts. Premiums ceded to other companies have been reported as a reduction of gross premiums earned to arrive at net premiums earned. Prepaid reinsurance premiums represent the unexpired portion of premiums ceded to reinsurers.

The Company remains liable for claims payments in the event that any reinsurer is unable to meet its obligations under the reinsurance agreements. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities or economic characteristics of the reinsurers to minimize its exposure to significant losses from reinsurer insolvencies.

22

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

The impact of the reinsurance contracts on premiums written and earned is as follows:

		Three Months Ended
		March 31,
		2026				2025
Premiums Written:
Direct		$	282,004			$	268,456
Assumed			(1,312	)			20,790
Gross written			280,692				289,246
Ceded			(104,055	)			(99,635	)
Net premiums written		$	176,637			$	189,611
Premiums Earned:
Direct		$	285,909			$	249,402
Assumed			40,297				50,981
Gross earned			326,206				300,383
Ceded			(104,055	)			(99,635	)
Net premiums earned		$	222,151			$	200,748

As of March 31, 2026 and December 31, 2025, total net amounts recoverable from reinsurers were $269,852 and $289,896, respectively. There were no ceded losses from catastrophic events or significant adjustment to ceded losses from prior periods during the three months ended March 31, 2026 and 2025.

As of March 31, 2026 and December 31, 2025, there were 48 reinsurers participating in the Company’s reinsurance program. As of March 31 2026, approximately 67.8% of the reinsurance recoverable balance was receivable from six reinsurers, one of which was the Florida Hurricane Catastrophe Fund. The allowance for credit losses related to reinsurance recoverable was not material to the consolidated balance sheets or consolidated statements of income for the periods presented.

Under contracts in effect prior to June 1, 2025, reinsurance costs could be adjusted by retrospective provisions under reinsurance contracts. There were no adjustments to premiums ceded related to retrospective provisions for the three months ended March 31, 2026 and 2025.

Reinsurance provided to other insurance companies

United Property & Casualty Insurance Company

The Company formerly provided quota share reinsurance to United Property & Casualty Insurance Company (“United”) on its policies in the northeast and southeast regions of the U.S. United was placed into receivership by the State of Florida due to its financial insolvency. As a result, the Company ceased providing quota share reinsurance on United policies, together with other administrative services in March 2023. The liabilities and obligations under this quota-share reinsurance agreement were not material as of March 31, 2026 and December 31, 2025. Additionally, the balance of funds withheld for assumed business, which represent net amounts owed

23

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

to the Company related to the Company’s quota share reinsurance agreements with United, were not material as of March 31, 2026 and December 31, 2025.

Citizens Property Insurance Corporation

From time to time, the Company may participate in a “take-out program” through which the Company assumes insurance policies held by Citizens Property Insurance Corporation (“Citizens”), a Florida state-supported insurer. The take-out program is a legislatively mandated program designed to reduce the state’s risk exposure by encouraging private companies to assume policies from Citizens.

The table below shows the number of policies and annualized gross premiums assumed from Citizens during the periods presented:

Three Months Ended March 31,		Policies Assumed				Annualized Gross Premiums
2026			—			$	—
2025			13,917				35,820
Total			13,917			$	35,820

Note 11 -- Losses and Loss Adjustment Expenses

The Company accrues for losses and loss adjustment expenses (“LAE”) in the period in which the underlying loss event occurred. LAE are costs associated with the investigation, evaluation, adjustment, and settlement of insurance claims and can be either allocated, costs directly attributable to a specific claim, or unallocated, costs that cannot be directly attributed to a specific claim. Reserves for losses and LAE are determined by establishing liabilities in amounts estimated to cover incurred losses and LAE. Such reserves are determined based on the assessment of claims reported and the development of pending claims. These reserves are based on individual case estimates for the reported losses and LAE and estimates of such amounts that are incurred but not reported.

The estimates of unpaid losses and LAE are subject to trends in claim severity and frequency and are continually reviewed. As part of the process, the Company reviews historical data and considers various factors, including known and anticipated regulatory and legal developments, changes in social attitudes, inflation and economic conditions. As experience develops and other data becomes available, these estimates are revised, as required, resulting in increases or decreases to the existing unpaid losses and LAE. Adjustments are reflected in the results of operations in the period in which they are made and the liabilities may deviate substantially from prior estimates. Losses and LAE ceded to or recovered from reinsurers are recorded as a reduction to losses and LAE on the consolidated statements of income. Accordingly, losses and LAE in the consolidated statements of income are net of reinsurance.

24

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Activity in the liability for losses and LAE is summarized as follows:

		Three Months Ended
		March 31,
		2026				2025
Net balance, beginning of period (a)		$	314,357			$	323,335
Incurred, net of reinsurance, related to:
Current period			65,600				59,291
Prior periods			—				—
Total incurred, net of reinsurance			65,600				59,291
Paid, net of reinsurance, related to:
Current period			(18,428	)			(13,095	)
Prior periods			(41,537	)			(52,970	)
Total paid, net of reinsurance			(59,965	)			(66,065	)
Net balance, end of period			319,992				316,561
Add: reinsurance recoverable before allowance for credit losses			246,847				481,585
Gross balance, end of period		$	566,839			$	798,146

(a) Net balance represents beginning-of-period liability for unpaid losses and LAE less beginning-of-period reinsurance recoverable for unpaid losses and LAE.

Losses and LAE increased from the three months ended March 31, 2025 to the three months ended March 31, 2026 primarily due to a higher volume of policies in force as well as weather-related events in the northeast during the three months ended March 31, 2026. There were no losses from catastrophic events during the three months ended March 31, 2026 and 2025.

25

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Note 12 -- Variable Interest Entities

The Company includes two consolidated VIEs related to reciprocal insurance exchanges, CORE and Tailrow. The reciprocal insurance exchanges are owned by their policyholders, referred to as subscribers, who gain ownership by buying an insurance policy and making a surplus contribution. Each subscriber has rights in their respective reciprocal insurance exchange to (i) receive dividends or premium credits if the reciprocal insurance exchange generates a surplus, and (ii) elect members to the subscribers’ advisory committee. The subscribers’ advisory committee oversees the financial affairs of its respective reciprocal insurance exchange and appoints the AIF. Each subscribers’ advisory committee requires at least two-thirds of its members to be subscribers who are independent of the AIF.

Both CORE and Tailrow each received initial funding through the issuance of a subordinated surplus note to wholly-owned subsidiaries of HCI Group, Inc. as neither had any subscribers or sufficient surplus to fund their insurance operations at the time of formation. In addition, CORE and Tailrow each entered into an AIF agreement with Core Risk Managers, LLC (“CRM”) and Tailrow Risk Managers, LLC (“TRM”), respectively. Both CRM and TRM are wholly-owned subsidiaries of HCI Group, Inc. The AIF agreements, which were approved by the Florida Office of Insurance Regulation (“FLOIR”), can be terminated at any time by mutual agreement of both parties or with cause, if the FLOIR or a court of competent jurisdiction determines that a material breach of the agreement has occurred. Under the AIF agreements, CRM and TRM have the power of attorney to directly or indirectly conduct the daily operations of CORE and Tailrow, respectively, by underwriting insurance policies, collecting premiums, investing funds, and processing claims. As such, subscribers do not possess the power to directly manage the operations of CORE and Tailrow. The AIF agreements also permit CRM and TRM to contract with service providers including other HCI Group, Inc. subsidiaries to perform certain functions.

The AIF agreements, together with the subordinated surplus notes, result in both CORE and Tailrow to be consolidated VIEs. As CORE and Tailrow are owned by their underlying policyholders, their net assets and results of operations are included in noncontrolling interests.

CORE

CORE was formed and issued a $25,000 subordinated surplus note with an annual interest rate of 9% during 2023. CORE commenced business operations during 2024.

As of March 31, 2026 and December 31, 2025, the Company’s maximum exposure to loss relating to CORE was $25,000. CORE’s assets are legally restricted for the purpose of fulfilling obligations specific to CORE and its creditors have no legal right to pursue additional sources of payment from the Company.

Tailrow

Tailrow was formed and issued a $25,000 subordinated surplus note with an annual interest rate of 9% during 2024. Tailrow commenced business operations during 2025.

As of March 31, 2026 and December 31, 2025, the Company’s maximum exposure to loss relating to Tailrow was $25,000. Tailrow’s assets are legally restricted for the purpose of fulfilling obligations specific to Tailrow and its creditors have no legal right to pursue additional sources of payment from the Company.

26

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

The following table summarizes the assets and liabilities related to the Company’s variable interests in consolidated VIEs which are included in the accompanying consolidated balance sheets:

		March 31,				December 31,
		2026				2025
Assets
Cash and cash equivalents		$	170,126			$	154,156
Restricted cash			643				636
Income taxes receivable			1,521				1,332
Deferred income tax assets, net			1,344				2,237
Premiums receivable, net (allowance: $1,035 and $1,406, respectively)			5,701				4,549
Prepaid reinsurance premium			1,808				2,499
Reinsurance recoverable, net of allowance for credit losses:
Paid losses and loss adjustment expenses (allowance: $0 and $0,     respectively)			325				26
Unpaid losses and loss adjustment expenses (allowance: $1 and $1,     respectively)			1,275				1,573
Deferred policy acquisition costs			5,343				4,464
Other assets			446				539
Total assets		$	188,532			$	172,011
Liabilities
Losses and loss adjustment expenses		$	27,875			$	24,810
Unearned premiums			63,956				73,086
Advance premiums			4,187				1,817
Ceded reinsurance premiums payable			742				933
Assumed premiums payable			1,436				837
Income taxes payable			5,209				2,857
Deferred income tax liabilities, net			—				127
Accrued expenses and other liabilities			3,048				2,162
Total liabilities		$	106,453			$	106,629

27

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Note 13 -- Segment Information

The Company has five reportable segments: Insurance Operations, Exzeo, Reciprocal Exchange Operations, Real Estate, and Corporate and Other. Due to their economic characteristics, the Company’s property and casualty insurance and reinsurance operations, excluding the insurance operations under Reciprocal Exchange Operations, are grouped together into one reportable segment under Insurance Operations. The Exzeo segment represents Exzeo’s operations related to insurance technology and operations solutions for property and casualty insurance carriers. The Reciprocal Exchange Operations segment represents the insurance operations of consolidated reciprocal insurance exchanges that are owned by their policyholders. The Real Estate segment represents the operations of the Company’s commercial real estate group that is primarily engaged in the business of developing and operating commercial properties for investment purposes or for internal use. The Corporate and Other segment represents the activities of the holding companies and any other operations that do not meet the quantitative and qualitative thresholds for a reportable segment.

The Company’s segments are based on the manner in which the Company’s Chief Executive Officer, who is the chief operating decision maker (the “CODM”), evaluates performance and makes decisions regarding the allocation of resources. The CODM evaluates performance and allocates resources using various measures primarily through reviews of various operational performance packages, investor presentations, and the Company’s SEC filings, as well as through the approval of the Company’s annual budget and forecast. The Company’s reported segment profit measure is income (loss) before income taxes as this measure is most consistent with the amounts included in the consolidated statements of income. Intersegment transactions are not eliminated from segment results while intrasegment transactions are eliminated from segment results. The accounting policies of the Company’s reportable segments are the same as those of the Company, except as otherwise noted. The determination of segments may change over time due to changes in operational emphasis, revenue, and results of operations.

28

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

The following tables present segment information reconciled to the Company’s consolidated statements of income for the periods presented:

For Three Months Ended March 31, 2026		Insurance Operations				Exzeo				Reciprocal Exchange Operations				Real Estate (a)				Corporate/ Other (b)				Reclassification/ Elimination				Consolidated
Revenue
Gross premiums earned (c)		$	291,151			$	—			$	36,457			$	—			$	—			$	(1,402	)		$	326,206
Premiums ceded			(96,520	)			—				(8,937	)			—				—				1,402				(104,055	)
Net premiums earned			194,631				—				27,520				—				—				—				222,151
Net income from investment portfolio			11,935				2,512				1,267				—				1,078				(655	)			16,137
Policy fee income			1,465				—				—				—				395				(284	)			1,576
Other			3,839				55,533				(268	)			4,196				5,184				(65,466	)			3,018
Total revenue			211,870				58,045				28,519				4,196				6,657				(66,405	)			242,882
Expenses
Losses and loss adjustment expenses			73,562				—				8,928				—				—				(16,890	)			65,600
Amortization of deferred policy   acquisition costs			27,839				—				2,050				—				—				—				29,889
Other policy acquisition expenses			18,924				12,173				4,644				—				2,846				(36,706	)			1,881
Stock-based compensation expense			680				739				—				—				1,940				—				3,359
Interest expense			—				—				1,110				456				467				(1,110	)			923
Depreciation and amortization			421				730				—				857				163				(722	)			1,449
Personnel and other operating expenses			10,805				16,816				312				2,515				4,940				(10,991	)			24,397
Total expenses			132,231				30,458				17,044				3,828				10,356				(66,419	)			127,498
Income (loss) before income taxes (d)		$	79,639			$	27,587			$	11,475			$	368			$	(3,699	)		$	14			$	115,384
Total revenue from non-affiliates (e)		$	207,420			$	4,724			$	29,921			$	3,331			$	532
Gross premiums written		$	253,364			$	—			$	27,328

(a)Other revenue under Real Estate primarily consisted of rental income from investment properties.

(b)Other revenue under Corporate and Other primarily consisted of management fees for attorney-in-fact services.

(c)Gross premiums earned under Insurance Operations includes $1,402 earned from Reciprocal Exchange Operations.

(d)The income (loss) before income taxes in the reclassification/elimination column is attributable to intercompany transactions among operating segments. The Insurance Operations and the Reciprocal Exchange Operations record service fee expenses based on earned premiums or other appropriate measures, while Exzeo and the AIF operations recognize service fee revenue according to revenue recognition standards. Although both service fee expenses and revenue are fully eliminated on consolidation, they do not completely offset each other in this presentation due to the different methods of recognition.

(e)Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation.

29

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

For Three Months Ended March 31, 2025		Insurance Operations				Exzeo				Reciprocal Exchange Operations				Real Estate (a)				Corporate/ Other (b)				Reclassification/ Elimination				Consolidated
Revenue
Gross premiums earned (c)		$	282,135			$	—			$	19,447			$	—			$	—			$	(1,199	)		$	300,383
Premiums ceded			(93,427	)			—				(7,407	)			—				—				1,199				(99,635	)
Net premiums earned			188,708				—				12,040				—				—				—				200,748
Net income from investment portfolio			10,859				398				780				—				1,765				(790	)			13,012
Policy fee income			2,229				—				—				—				—				—				2,229
Other			2,746				52,407				(9	)			2,840				3,655				(61,195	)			444
Total revenue			204,542				52,805				12,811				2,840				5,420				(61,985	)			216,433
Expenses
Losses and loss adjustment expenses			70,815				—				2,772				—				—				(14,296	)			59,291
Amortization of deferred policy    acquisition costs			25,244				—				1,067				—				—				—				26,311
Other policy acquisition expenses			18,333				12,667				2,521				—				2,128				(34,673	)			976
Stock-based compensation expense			473				723				—				—				1,776				—				2,972
Interest expense			—				—				1,108				216				3,168				(1,108	)			3,384
Depreciation and amortization			611				708				—				510				191				(374	)			1,646
Personnel and other operating expenses			11,244				14,512				255				1,733				4,155				(10,385	)			21,514
Total expenses			126,720				28,610				7,723				2,459				11,418				(60,836	)			116,094
Income (loss) before income taxes (d)		$	77,822			$	24,195			$	5,088			$	381			$	(5,998	)		$	(1,149	)		$	100,339
Total revenue from non-affiliates (e)		$	201,050			$	398			$	14,010			$	1,975			$	838
Gross premiums written		$	259,529			$	—			$	29,717

(a)Other revenue under Real Estate primarily consisted of rental income from investment properties.

(b)Other revenue under Corporate and Other primarily consisted of management fees for attorney-in-fact services.

(c)Gross premiums earned under Insurance Operations include $1,199 earned from the Reciprocal Exchange Operations.

(d)The income (loss) before income taxes in the reclassification/elimination column is attributable to intercompany transactions among operating segments. The Insurance Operations and the Reciprocal Exchange Operations record service fee expenses based on earned premiums or other appropriate measures, while Exzeo and the AIF operations recognize service fee revenue according to revenue recognition standards. Although both service fee expenses and revenue are fully eliminated on consolidation, they do not completely offset each other in this presentation due to the different methods of recognition.

(e)Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation.

30

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

The following table presents gross premium earned by geographic location:

		Three Months Ended
		March 31,
		2026				2025
Florida		$	297,099			$	270,805
Non-Florida			29,107				29,578
Gross premiums earned		$	326,206			$	300,383

The following table presents segment assets reconciled to the Company’s total assets on the consolidated balance sheets:

		March 31,				December 31,
		2026				2025
Segments
Insurance Operations		$	1,890,443			$	1,895,081
Exzeo			379,768				347,734
Reciprocal Exchange Operations			198,263				184,453
Real Estate			137,223				130,971
Corporate and Other			145,671				120,686
Consolidation and Elimination			(140,287	)			(149,997	)
Total assets		$	2,611,081			$	2,528,928

As of March 31, 2026 and December 31, 2025, substantially all of the Company’s assets were located in Florida.

31

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Note 14 -- Income Taxes

There were no significant changes in the Company’s valuation allowance on deferred income tax assets during the three months ended March 31, 2026 and 2025.

During the three months ended March 31, 2026 and 2025, the Company recorded income tax expense of $30,341 and $26,109, respectively, resulting in effective tax rates of 26.3% and 26.0%, respectively. Incorporated within each rate is the federal statutory tax rate of 21.0%, state taxes (net of federal benefits), and unfavorable non-deductible compensation expenses.

Note 15 -- Earnings Per Share

The Company applies the two-class method for computing and presenting earnings per share since the Company’s unvested restricted stock awards represent participating securities due to the right to share in dividends, if declared, equally with common stockholders. The two-class method allocates current period net income to common stock and participating securities based on (i) dividends declared and (ii) participation rights in the remaining undistributed income. For a majority-owned subsidiary, the Company’s proportionate share in that majority-owned subsidiary’s earnings per share is added to the computation of earnings per share on a consolidated basis.

Basic earnings per share is computed by dividing income attributable to common stockholders using the two-class method by the weighted-average number of shares of common stock outstanding during the period.

Diluted earnings per share gives effect to all securities having a dilutive effect on income attributable to common stockholders, weighted-average shares of common stock outstanding, or both. The effect from potential dilutive securities included, but was not limited to: (i) incremental shares of common stock calculated using the if-converted method for convertible debt instruments; (ii) incremental shares of common stock calculated using the treasury stock method for warrants and share-based compensation awards; (iii) adjustments to a majority-owned subsidiary's earnings per share due to its potential dilutive securities; and (iv) the corresponding impact to income attributable to common stockholders associated with the preceding considerations. Net losses are not allocated to participating securities as the participating securities do not have a contractual obligation to share in losses.

32

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

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 (a)				Per Share				Income				Shares (a)				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

(a)Shares in thousands.

For the periods presented, all potentially dilutive securities for Exzeo were excluded from Exzeo's diluted earnings per share computation because their (i) effect would be anti-dilutive, (ii) exercise prices were out-of-the-money, or (iii) contingent exercise conditions were unsatisfied.

Note 16 -- Redeemable Noncontrolling Interests

Subscriber Surplus Contributions

Subscriber surplus contributions in redeemable noncontrolling interests represent a refundable portion of the surplus contributions received from policyholders of CORE and Tailrow. The surplus contributions are reclassified to noncontrolling interests once they are no longer refundable.

The following table summarizes the activity of subscriber surplus contributions:

		Three Months Ended March 31,
		2026				2025
Beginning balance		$	3,359			$	1,691
Cash contributions			2,782				833
Return of contributions			(99	)			(3	)
Reclassification of nonrefundable   subscriber surplus contributions			(1,831	)			(884	)
Ending balance		$	4,211			$	1,637

33

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Note 17 -- Equity

Stockholders’ Equity

Common Stock

Each share of common stock entitles the stockholder to one vote.

Share Repurchase Program

In March 2026, the Company’s Board of Directors authorized a program to repurchase up to $80,000, excluding commissions and fees, of shares of the Company’s common stock through February 27, 2027 (the “Share Repurchase Program”). The Share Repurchase Program permits the Company to repurchase shares for cash periodically in open market purchases, block transactions, privately negotiated transactions in accordance with applicable federal securities laws, or by other means, including through the use of trading programs intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions, including Rule 10b-18 under that Act. The timing and total amount of any stock repurchases will be determined at management's discretion and depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices and other considerations. The Share Repurchase Program does not obligate the Company to repurchase a specific number of shares of common stock, and may be canceled or suspended at any time without notice.

During the three months ended March 31, 2026, the Company repurchased 110,071 shares common stock for $17,498, excluding commissions and fees, under the Share Repurchase Program. All of the shares repurchased were treated as retirements and reduced the number of shares issued and outstanding. In addition, the Company recorded the excess of the purchase price over the par value per share as a reduction to additional paid-in capital. Commissions and fees on repurchases of common stock were not material during the three months ended March 31, 2026.

As of March 31, 2026, the Company may repurchase up to $62,502, excluding commissions and fees, of shares of its common stock under the Share Repurchase Program.

Dividends

Stockholders are entitled to receive dividends when, as, and if declared by the Company’s Board of Directors out of funds legally available for that purpose. Unvested restricted stock awards have the right to share in dividends, if declared, equally with common stockholders on a nonforfeitable basis.

34

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

The following table represents the frequency and amount of all cash dividends declared on common stock for the periods presented:

Declaration Date		Date of Record		Payment Date		Per Share Amount
Three Months Ended March 31, 2026
1/14/2026		2/20/2026		3/20/2026		$	0.40
Three Months Ended March 31, 2025
1/14/2025		2/21/2025		3/21/2025		$	0.40

Preferred Stock

As of March 31, 2026 and December 31, 2025, the Company had 20,000,000 preferred shares authorized, with no shares issued and outstanding.

Warrants

As of March 31, 2026 and December 31, 2025, there were 11,250 warrants outstanding at an exercise price of $54.40 with an expiration date of December 31, 2028.

At-The-Market Facility

On January 22, 2024, the Company implemented an “at-the-market” facility (the “ATM Facility”) which gives the Company the ability to raise up to $75,000 through the issuance of new shares of common stock through a sales agent (the “Sales Agent”). The Company has no obligation to sell, and the Sales Agent has no obligation to buy or sell, any shares of common stock under the ATM Facility. As of March 31, 2026 the remaining availability under the ATM Facility was $75,000.

Noncontrolling Interests

Exzeo

As of March 31, 2026, HCI Group, Inc. owned 75,000,000 of the 90,918,430 shares of Exzeo’s outstanding common stock. Of the shares not owned by HCI Group, Inc., 2,533,303 represent unvested restricted stock awards granted to Exzeo's employees.

Dilution from subsidiary stock-based compensation in the consolidated statements of equity primarily relates to (i) the net settlement of Exzeo common shares surrendered by employees to satisfy payroll tax liabilities associated with the vesting of restricted stock awards issued under Exzeo’s stock-based compensation plan and (ii) the change in ownership of Exzeo as a result of the vesting of restricted stock awards issued under Exzeo’s stock-based compensation plan.

Subscriber Surplus Contributions

Subscriber surplus contributions in noncontrolling interests represent the non-refundable portion of the surplus contributions received from policyholders of CORE and Tailrow. The surplus contributions are reclassified from redeemable noncontrolling interest once they are no longer refundable. As CORE and Tailrow are owned by their underlying policyholders, their net assets are included in noncontrolling interests.

35

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) relates to the unrealized gains or losses of available-for-sale fixed-maturity securities carried at fair value, net of income taxes. Accumulated other comprehensive income (loss) is reclassified to either net investment income or net realized investment gains (losses) in the consolidated statements of income as payments or sales occur related to available-for-sale fixed-maturity securities, respectively. Other comprehensive income (loss) represents the net change in accumulated other comprehensive income (loss).

The following table summarizes the activity with respect to accumulated other comprehensive income (loss) during the three months ended March 31, 2026 and 2025:

		Before Tax				Income Tax Effect				Total				Noncontrolling Interests				Accumulated Other Comprehensive Income (Loss)
Balance as of December 31, 2025		$	1,946			$	487			$	1,459			$	—			$	1,459
Net unrealized losses			(8,198	)			(2,053	)			(6,145	)			(55	)			(6,090	)
Reclassification to net investment   income			174				44				130				—				130
Reclassification to net realized   investment gains			(49	)			(12	)			(37	)			—				(37	)
Balance as of March 31, 2026		$	(6,127	)		$	(1,534	)		$	(4,593	)		$	(55	)		$	(4,538	)

		Before Tax				Income Tax Effect				Total				Noncontrolling Interests				Accumulated Other Comprehensive (Loss) Income
Balance as of December 31, 2024		$	(999	)		$	(250	)		$	(749	)		$	—			$	(749	)
Net unrealized gains			2,809				703				2,106				—				2,106
Reclassification to net realized   investment gains			(20	)			(5	)			(15	)			—				(15	)
Balance as of March 31, 2025		$	1,790			$	448			$	1,342			$	—			$	1,342

Note 18 -- Stock-Based Compensation

The Company grants stock-based awards to participants under HCI Group, Inc.’s 2012 Omnibus Incentive Plan (“HCI Plan”) and Exzeo Group, Inc.’s 2025 Omnibus Incentive Plan (“Exzeo Plan”). Stock-based compensation expense is included in general and administrative personnel expense in the consolidated statements of income and consisted of the following for the periods presented:

		Three Months Ended March 31,
		2026				2025
Restricted stock awards		$	2,623			$	2,270
Exzeo stock options			—				342
Exzeo restricted stock awards			736				360
Stock-based compensation expense		$	3,359			$	2,972

36

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Stock-based compensation awards are classified as equity and awards related to the Exzeo Plan are included as a component of noncontrolling interests.

HCI Plan

As of March 31, 2026, there were 644,994 shares available for issuance under the HCI Plan.

Stock Options

The following table summarizes the activity related to stock options granted under the HCI Plan during the three months ended March 31, 2026:

										Weighted
						Weighted				Average
						Average				Remaining		Aggregate
		Number of				Exercise				Contractual		Intrinsic
		Options				Price				Term		Value
Outstanding as of December 31, 2025			590,000			$	51.54			3.9 years		$	82,687
Granted			—			$	—
Exercised			(20,000	)		$	40.00
Forfeited			—			$	—
Outstanding as of March 31, 2026			570,000			$	51.95			3.7 years		$	58,518
Exercisable as of March 31, 2026			570,000			$	51.95			3.7 years		$	58,518

As of March 31, 2026, there was no unrecognized compensation expense related to stock options under the HCI Plan.

Restricted Stock Awards

The following table summarizes the activity related to restricted stock awards granted under the HCI Plan during the three months ended March 31, 2026:

		Number of				Weighted
		Restricted				Average
		Stock				Grant Date
		Awards				Fair Value
Unvested as of December 31, 2025			494,635			$	73.31
Granted			—			$	—
Vested			(1,750	)		$	64.21
Forfeited			(693	)		$	131.96
Unvested as of March 31, 2026			492,192			$	73.26

As of March 31, 2026, there were 393,500 unvested restricted stock awards granted under the HCI Plan with market conditions, of which 193,500 met the requisite market condition in May 2025 and will vest twelve months from the date the market condition was achieved. The remaining 200,000 unvested restricted stock awards have not met the requisite market condition that the price per share reaches $200 for a period of 30 consecutive trading days.

37

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

As of March 31, 2026, there was $18,156 of total unrecognized compensation expense related to unvested restricted stock awards granted under the HCI Plan, which is expected to be recognized over a weighted-average period of 2.3 years.

Exzeo Plan

Exzeo maintained its 2021 Omnibus Plan under which shares of Exzeo common stock were authorized for issuance as stock-based compensation awards. On November 4, 2025, Exzeo terminated its 2021 Omnibus Plan and adopted the Exzeo Plan, which authorizes the issuance of up to 10,000,000 shares of Exzeo’s common stock. Awards outstanding under the Exzeo 2021 Omnibus Plan continue to be governed by the terms of that plan and are incremental to, and do not count against, the authorized share pool of the Exzeo Plan. As of March 31, 2026, there were 9,776,820 shares available for issuance under the Exzeo Plan.

Exzeo Stock Options

As of March 31, 2026, there were 6,350,000 Exzeo stock options outstanding with a weighted-average exercise price of $23.00. All of the Exzeo stock options were fully vested, however, 6,000,000 Exzeo stock options were non-exercisable without approval from HCI Group, Inc.'s Board of Directors.

Exzeo Restricted Stock Awards

As of March 31, 2026, there were 2,533,303 unvested Exzeo restricted stock awards outstanding with a weighted-average grant date fair value of $4.74. There was $11,111 of total unrecognized compensation expense related to unvested Exzeo restricted stock awards, which is expected to be recognized over a weighted-average period of 4.0 years.

Note 19 -- Commitments and Contingencies

Litigation and Other Legal Matters

The Company is party to litigation and other legal matters arising in the ordinary course of business. From time to time, the Company is also subject to regulatory and governmental examinations, information requests and subpoenas, inquiries, investigations, and threatened legal actions and proceedings.

The Company records accruals for losses that are probable and reasonably estimable. These accruals are based on a variety of factors such as judgment, probability of loss, and opinions of internal and external legal counsel. Legal costs in connection with litigation and other legal matters arising in the ordinary course of business are expensed as incurred.

Although the Company cannot predict with certainty the ultimate resolution of the litigation and other legal matters it is party to, the Company does not believe that any known or potential litigation and other legal matters will have a material effect on the Company’s consolidated financial position, results of operations, or cash flows.

38

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Rental Income

The Company as a lessor leases its commercial and retail properties, boat slips, and docks to non-affiliates at various terms. There were no significant changes in the Company’s minimum rental payments to be received under operating leases during the three months ended March 31, 2026.

Capital Commitments

As described in Note 5 “Investments” under Limited Partnership Investments, the Company is contractually committed to capital contributions for limited partnership investments. As of March 31, 2026, there was an aggregate unfunded balance of $3,761.

FIGA Assessments

The Company’s insurance subsidiaries, as member insurers, are required to collect and remit the pass-through assessments to Florida Insurance Guaranty Association (“FIGA”) on a quarterly basis. As of March 31, 2026 and December 31, 2025, the FIGA assessments payable by the Company were $2,352 and $2,034, respectively.

Note 20 -- Related Party Transactions

HCPCI, TTIC, CORE, and Tailrow have reinstatement premium protection reinsurance contracts (“RPP”) with various reinsurers for the 2025-2026 treaty year. The purpose of the RPP contracts is to indemnify HCPCI, TTIC, CORE, and Tailrow for the reinstatement premium which HCPCI, TTIC, CORE, and Tailrow pay or become liable to pay under the reinstatement provisions of the respective excess of loss reinsurance contracts. For one of the RPP contracts, Oxbridge Reinsurance Limited (“Oxbridge”) participates as a subscribing reinsurer with HCPCI and Tailrow as collective reinsureds. One of the Company’s non-employee directors, Jay Madhu, serves as Oxbridge’s Chairman of its Board of Directors and Chief Executive Officer and is an investor in that company. For its participation on the RPP contract, Oxbridge’s annual premium is $1,033 and is paid by HCPCI and Tailrow over four installments. Management believes the premium rate is competitive with market rates. A trust account has been established with HCPCI and Tailrow as collective beneficiaries and Oxbridge as grantor. Each of the four premium installments is deposited into the trust account in order to fully collateralize Oxbridge’s obligations under the RPP contract. Trust assets may be withdrawn by HCPCI and Tailrow to indemnify HCPCI and Tailrow for Oxbridge’s obligations under the provisions of the RPP contract. Total premiums to Oxbridge were $1,099 for the 2024-2025 treaty year.

Note 21 -- Subsequent Events

On April 22, 2026, the Company’s Board of Directors declared a quarterly dividend of $0.40 per common share. The dividends are payable on June 18, 2026 to stockholders of record on May 15, 2026.

As of May 6, 2026, the Company repurchased 265,416 shares of common stock for $41,495, excluding commissions and fees, and may repurchase up to $38,505, excluding commissions and fees, of shares of its common stock under the Share Repurchase Program.

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ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis should be read in conjunction with our consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q as well as our audited consolidated financial statements and the related notes included in our Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the United States (“U.S.”) Securities and Exchange Commission (the “SEC”) on February 26, 2026 (the “2025 Annual Report”). This section is intended to (i) provide material information relevant to the assessment of our results of operations and cash flows; (ii) enhance the understanding of our financial condition, changes in financial condition, and results of operations; and (iii) discuss material events and uncertainties known to management that are reasonably likely to cause reported financial information not to be necessarily indicative of future performance or of future financial condition.

The following discussion and analysis contains forward-looking statements about our business, operations, and financial performance based on current plans and estimates involving risks, uncertainties, and assumptions, which could differ materially from actual results. Factors that could cause such differences are discussed in the sections of this Quarterly Report on Form 10-Q titled Item 1A “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements.” Additionally, our historical results are not necessarily indicative of the results that may be expected for any period in the future.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

In addition to historical information, this Quarterly Report on Form 10-Q contains forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Such statements, including statements about our plans, objectives, expectations, assumptions or future events, involve risks and uncertainties. These statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from any future results, performances or achievements expressed or implied by the forward-looking statements. Typically, forward-looking statements can be identified by terminology such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” and similar expressions. The important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include but are not limited to the effects of governmental regulation; changes in insurance regulations; the frequency and extent of claims; uncertainties inherent in reserve estimates; catastrophic events; changes in the demand for, pricing of, availability of or collectability of reinsurance; restrictions on our ability to change premium rates; increased rate pressure on premiums; the severity and impact of cybersecurity incidents; and other risks and uncertainties and other factors listed under Item 1A – “Risk Factors” included elsewhere in this Quarterly Report on Form 10-Q as well as the 2025 Annual Report. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made and are not guarantees of future performance. Except as required by applicable securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

OVERVIEW

HCI Group, Inc., together with its subsidiaries (collectively, “we,” “our,” “us,” the “Company,” or “HCI”), is primarily engaged in the property and casualty insurance business. We provide various homeowners’ property and casualty insurance products for properties located in the State of Florida, which is our primary market, as well as in other states in the northeast and southeast regions of the U.S.

Our insurance operations are supported by other insurance-related subsidiaries within the consolidated group.

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Exzeo Group, Inc. (“Exzeo”), a publicly traded majority-owned subsidiary, provides turn-key insurance technology and operations solutions based on a proprietary platform of purpose-built software and data analytics applications that are specifically designed for the property and casualty insurance ecosystem. We utilize Exzeo's internally developed software technologies to identify profitable underwriting opportunities, drive efficiency in claim processing and settlements, and streamline operations across our insurance operations and other insurance-related businesses.

We also provide attorney-in-fact (“AIF”) services for reciprocal insurance exchanges owned by their policyholders. Although we do not have any equity interest in the reciprocal insurance exchanges, we are required to consolidate them as their primary beneficiary. In addition, we have a commercial real estate group that is primarily engaged in the business of developing and operating commercial properties for investment purposes or for our own use.

HCI Group, Inc.’s common stock is currently listed on the New York Stock Exchange (“NYSE”) under the symbol “HCI.” Exzeo completed its initial public offering in November of 2025 and is currently listed on the NYSE under the symbol “XZO.” As of March 31, 2026, HCI Group, Inc. owned approximately 82.5% of Exzeo’s outstanding shares of common stock, inclusive of unvested restricted stock.

We identify our segments based on the manner in which our Chief Executive Officer, who is the chief operating decision maker, evaluates performance and makes decisions regarding the allocation of resources. We have five reportable segments: Insurance Operations, Exzeo, Reciprocal Exchange Operations, Real Estate, and Corporate and Other. Due to their economic characteristics, our property and casualty insurance and reinsurance operations, excluding the insurance operations under Reciprocal Exchange Operations, are grouped together into one reportable segment under Insurance Operations. The Exzeo segment represents Exzeo’s operations related to insurance technology and operations solutions for property and casualty insurance carriers. The Reciprocal Exchange Operations segment represents the insurance operations of consolidated reciprocal insurance exchanges that are owned by their policyholders. The Real Estate segment represents the operations of our commercial real estate group that is primarily engaged in the business of developing and operating commercial properties for investment purposes or for our own use. The Corporate and Other segment represents the activities of the holding companies and any other operations that do not meet the quantitative and qualitative thresholds for a reportable segment. The determination of segments may change over time due to changes in operational emphasis, revenue, and results of operations. Refer to Note 13 “Segment Information” to our unaudited consolidated financial statements under Item 1 of this Quarterly Report on Form 10-Q.

All financial information presented in this section has been prepared in U.S. dollars in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and includes the accounts of HCI Group, Inc. and its subsidiaries and consolidated variable interest entities. All intercompany transactions have been eliminated.

FACTORS AFFECTING OPERATING RESULTS

Our general operating and growth strategies are to continually optimize our existing book of insurance business, organically expand our insurance business, manage our costs and expenses, diversify our business operations, develop and deploy new technologies to streamline operational processes, and maintain a strong balance sheet so we can quickly pursue accretive opportunities when they arise. Our growth strategies also include policy assumption from third-party insurance companies with the intention of renewing and/or replacing them with our policies.

Our insurance business has grown both organically and through strategic policy assumptions, which have been a key driver of our expansion. We have participated in legislatively mandated take-out programs, designed to reduce

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the state’s risk exposure by transitioning policies from Citizens Property Insurance Corporation (“Citizens”), a Florida state supported insurer, to private insurers. We selectively pursue additional assumption opportunities with Citizens when they align with our risk appetite and growth strategy. We also assume policies from other insurance companies in Florida and/or any other state in which we operate.

The nature of our business is to cover losses that may arise from, among other things, hurricanes and other catastrophic events such as tornadoes, floods and winter storms. The occurrence of any such catastrophes could have a significant adverse effect on our business, results of operations, and financial condition. To mitigate the risk associated with catastrophic events, we purchase reinsurance from other large insurance companies. Even without catastrophic events, we may incur losses and loss adjustment expenses that deviate substantially from our estimates and that may exceed our reserves, in which case our net income and capital would decrease. Our operating and growth strategies may also be impacted by regulation of our business by the State of Florida and other states in which we operate. For example, insurance regulators must approve our policy forms and premium rates as well as monitor our compliance with financial and regulatory requirements.

Seasonality of Our Business

Our insurance business is seasonal as hurricanes and tropical storms affecting Florida, our primary market, and other southeastern states typically occur during the period from June 1st through November 30th of each year. Winter storms in the northeast usually occur during the period between December 1st and March 31st of each year. Also, our reinsurance treaty year is typically effective on June 1st of each year and any variation in the cost of our reinsurance, whether due to changes in reinsurance rates, coverage levels or changes in the total insured value of our policy base, will occur and be reflected in our financial results beginning on June 1st of each year.

RECENT EVENTS

In March 2026, Fortex Reinsurance SPC, Ltd. (“Fortex”), our wholly-owned Cayman Islands domiciled captive reinsurance subsidiary, received its license to operate as a Class B insurer in the Cayman Islands. Fortex will allow us additional flexibility to selectively retain risk and reduce the cost of third party reinsurance. Fortex is regulated by the Cayman Islands Monetary Authority.

KEY PERFORMANCE INDICATORS

We make strategic decisions, measure our performance, evaluate our business, and identify trends in our business using certain key performance indicators, including the operating metrics gross loss ratio, gross expense ratio, and net combined ratio. Computations of our key performance indicators may not be comparable to other similarly titled measures reported by other companies. Additionally, we compute and disclose other ratios for informational purposes only.

Gross Loss Ratio

Gross loss ratio is defined as losses and loss adjustment expenses in relation to gross premiums earned. The gross loss ratio represents the percentage of our premiums used to cover our losses. We use the gross loss ratio as a metric to measure and monitor our underwriting and pricing practices.

Gross Expense Ratio

Gross expense ratio is defined as total expenses excluding losses and loss adjustment expenses and interest expense in relation to gross premiums earned. The gross expense ratio represents the percentage of our gross premiums used on operating expenses. We use the gross expense ratio as a metric to measure and monitor the efficiency of our operating and overhead costs.

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Net Combined Ratio

Net combined ratio is defined as total expenses excluding interest expense in relation to net premiums earned. The net combined ratio represents the combination of the net loss ratio and net expense ratio. We use the net combined ratio as a metric to measure and monitor our overall profitability.

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RESULTS OF OPERATIONS

The following table summarizes our results of operations for the three months ended March 31, 2026 and 2025 (in thousands, except per share amounts or as otherwise indicated):

		Three Months Ended
		March 31,
		2026				2025				Change
Revenue
Gross premiums earned		$	326,206			$	300,383			$	25,823
Premiums ceded			(104,055	)			(99,635	)			(4,420	)
Net premiums earned			222,151				200,748				21,403
Net investment income			17,301				13,751				3,550
Net realized investment gains			534				1,167				(633	)
Net unrealized investment losses			(1,698	)			(1,906	)			208
Policy fee income			1,576				2,229				(653	)
Other			3,018				444				2,574
Total revenue			242,882				216,433				26,449
Expenses
Losses and loss adjustment expenses			65,600				59,291				6,309
Policy acquisition and other underwriting expenses			31,770				27,287				4,483
General and administrative personnel expenses			22,353				20,483				1,870
Interest expense			923				3,384				(2,461	)
Other operating expenses			6,852				5,649				1,203
Total expenses			127,498				116,094				11,404
Income before income taxes			115,384				100,339				15,045
Income tax expense			30,341				26,109				4,232
Net income			85,043				74,230				10,813
Net income attributable to noncontrolling interests			(11,636	)			(4,546	)			(7,090	)
Net income after noncontrolling interests		$	73,407			$	69,684			$	3,723
Ratios to Net Premiums Earned:
Loss Ratio			29.5	%			29.5	%			—
Expense Ratio			27.4	%			26.6	%			0.8	%
Combined Ratio			56.9	%			56.1	%			0.8	%
Ratios to Gross Premiums Earned:
Loss Ratio			20.1	%			19.7	%			0.4	%
Expense Ratio			18.7	%			17.8	%			0.9	%
Combined Ratio			38.8	%			37.5	%			1.3	%
Earnings Per Share:
Basic		$	5.62			$	6.47			$	(0.85	)
Diluted		$	5.45			$	5.35			$	0.10

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Comparison of the Three Months Ended March 31, 2026 to the Three Months Ended March 31, 2025

Gross Premiums Earned increased primarily due to a higher volume of policies in force as a result of the addition of policies assumed from Citizens during the first and fourth quarters of 2025. For the three months ended March 31, 2026, gross premiums earned were $291.2 million from Insurance Operations and $36.5 million from Reciprocal Exchange Operations. For the three months ended March 31, 2025, gross premiums earned were $282.1 million from Insurance Operations and $19.4 million from Reciprocal Exchange Operations.

Premiums Ceded increased primarily due to the growth in the volume of policies in force. Premiums ceded represented 31.9% and 33.2% of gross premiums earned during the three months ended March 31, 2026 and 2025, respectively.

Our premiums ceded represent costs of reinsurance (i) to cover losses from catastrophes that exceed the retention levels defined by our catastrophe excess of loss reinsurance contracts, (ii) to provide additional loss coverage on a high-value individual risk basis through facultative reinsurance, or (iii) to assume a proportional share of losses as defined in a quota share agreement. The rates we pay for reinsurance are based primarily on policy exposures reflected in gross premiums earned. Under contracts in effect prior to June 1, 2025, reinsurance costs could be adjusted by retrospective provisions under reinsurance contracts. There were no adjustments to premiums ceded related to retrospective provisions for the three months ended March 31, 2026 and 2025.

Net Premiums Earned represent gross premiums earned less premiums ceded.

Net Premiums Written represent premiums charged on policies issued during the period less any applicable reinsurance costs.

The following is a reconciliation of our Net Premiums Written to Net Premiums Earned for the three months ended March 31, 2026 and 2025 (in thousands):

		Three Months Ended
		March 31,
		2026				2025
Net Premiums Written		$	176,637			$	189,611
Decrease in Unearned Premiums			45,514				11,137
Net Premiums Earned		$	222,151			$	200,748

Net premiums written decreased as the first quarter of 2025 included an assumption of $22.0 million of written premium from Citizens. We had approximately 297,800 policies in force as of March 31, 2026 compared to approximately 278,400 policies in force as of March 31, 2025.

Net investment income increased primarily as a result of an increase in our invested assets.

Losses and Loss Adjustment Expenses increased primarily due to a higher volume of policies in force as well as some weather-related events in the northeast during the three months ended March 31, 2026. The gross loss ratio for the three months ended March 31, 2026 was 20.1% compared to 19.7% for the three months ended March 31, 2025. See “Reserves for Losses and Loss Adjustment Expenses” under “Critical Accounting Policies and Estimates.”

Policy Acquisition and Other Underwriting Expenses primarily reflect the amortization of deferred acquisition costs such as commissions payable to agents for production and renewal of policies and premium taxes. The overall increase was primarily due to a higher volume of premiums in force in the comparative periods.

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Income Tax Expense increased primarily as a result of an increase in income before income taxes. The effective tax rate for the three months ended March 31, 2026 and 2025 was 26.3% and 26.0%, respectively. Incorporated within each rate is the federal statutory tax rate of 21.0%, state taxes (net of federal benefits), and unfavorable non-deductible compensation expenses.

Net income attributable to noncontrolling interests increased primarily as a result of an increase in net income generated by Reciprocal Insurance Exchange Operations as well as the dilution of HCI’s ownership of Exzeo as a result of Exzeo’s initial public offering in November 2025.

Ratios

The gross loss ratio, gross expense ratio, and net combined ratio each remained relatively consistent from the three months ended March 31, 2025 to the three months ended March 31, 2026.

LIQUIDITY AND CAPITAL RESOURCES

Throughout our history, our liquidity requirements have been met through issuances of our common and preferred stock, debt offerings, and funds from operations. We expect our future liquidity requirements will be met by funds from operations, primarily the cash received by our insurance subsidiaries from premiums written and investment income. We may consider raising additional capital through debt and/or equity offerings to support our growth and future investment opportunities.

Our insurance subsidiaries require liquidity and adequate capital to meet ongoing obligations to policyholders and claimants and to fund operating expenses. In addition, we attempt to maintain adequate levels of liquidity and surplus to manage any differences between the duration of our liabilities and invested assets. In the insurance industry, cash collected for premiums from policies written is invested, interest and dividends are earned thereon, and losses and loss adjustment expenses are paid out over a period of years. This period of time varies by the circumstances surrounding each claim. With the exception of litigated claims, substantially all of our losses and loss adjustment expenses are fully settled and paid within approximately 100 days of the claim receipt date. Additional cash outflow occurs through payments of underwriting costs such as commissions, taxes, payroll, and general overhead expenses.

As of March 31, 2026, we have $1.0 billion of cash and cash equivalents. We believe that we maintain sufficient liquidity to pay claims and expenses, as well as to satisfy commitments in the event of unforeseen events such as reinsurer insolvencies, inadequate premium rates, or reserve deficiencies. We maintain a comprehensive reinsurance program at levels management considers adequate to diversify risk and safeguard our financial position.

In the future, we anticipate our primary use of funds will be to pay claims, reinsurance premiums, interest and principal on our debt, dividends, and to fund operating expenses and real estate acquisitions. From time to time, our use of funds may also include repurchases of shares of our common stock or other strategic initiatives.

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Revolving Credit Facility

As of March 31, 2026, we are party to a senior secured revolving credit facility with Fifth Third Bank (“Revolving Credit Facility”). The Revolving Credit Facility currently provides borrowing capacity of up to $150.0 million and expires on November 5, 2030. Borrowings under the Revolving Credit Facility bear interest at an annual rate equal to the one or three month Secured Overnight Financing Rate plus a ten basis points adjustment plus a margin based on the debt-to-capital ratio, with interest payments due in arrears on January 1, April 1, July 1, and October 1.

As of March 31, 2026, we had an outstanding balance of $36.0 million and had an available borrowing capacity of $114.0 million under the Revolving Credit Facility. As of March 31, 2026, we were in compliance with all required covenants. Refer to Note 8 “Revolving Credit Facility” to our unaudited consolidated financial statements under Item 1 of this Quarterly Report on Form 10-Q.

Long-Term Debt

The following table summarizes the principal and interest payment obligations of our long-term debt as of March 31, 2026 (principal in thousands):

March 31,

Debt Description

Issued

Maturity

Interest Rate

Payment Date

2026

4.55% Promissory Note

7/6/2018

8/1/2036

4.55%

Monthly

$

4,050

5.50% Promissory Note

6/26/2023

7/1/2033

5.50%

Monthly

11,357

5.65% Promissory Note

7/24/2025

8/1/2035

5.65%

Monthly

16,816

Total principal amount

$

32,223

There were no significant changes in long-term debt during the three months ended March 31, 2026.

See Note 9 “Long-Term Debt” to our unaudited consolidated financial statements under Item 1 of this Quarterly Report on Form 10-Q.

At-The-Market Facility

On January 22, 2024, we implemented an “at-the-market” facility (the “ATM Facility”) which gives us the ability to raise up to $75.0 million through the issuance of new shares of common stock through a sales agent (the “Sales Agent”). We have no obligation to sell, and the Sales Agent has no obligation to buy or sell, any shares of common stock under the ATM Facility. As of March 31, 2026 the remaining availability under the ATM Facility was $75.0 million.

Share Repurchase Program

In March 2026, our Board of Directors authorized a program to repurchase up to $80.0 million, excluding commissions and fees, of shares of our common stock through February 27, 2027 (the “Share Repurchase Program”). The Share Repurchase Program permits us to repurchase shares for cash periodically in open market purchases, block transactions, privately negotiated transactions in accordance with applicable federal securities laws, or by other means, including through the use of trading programs intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions, including Rule 10b-18 under that Act. The timing and total amount of any stock repurchases will be determined at management's discretion and depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices and other considerations. The Share Repurchase Program

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does not obligate us to repurchase a specific number of shares of common stock, and may be canceled or suspended at any time without notice.

During the three months ended March 31, 2026, we repurchased 110,071 shares of common stock for $17.5 million, excluding commissions and fees, under the Share Repurchase Program. As of March 31, 2026, we may repurchase up to $62.5 million, excluding commissions and fees, of shares of its common stock under the Share Repurchase Program.

As of May 6, 2026, we repurchased 265,416 shares of common stock for $41.5 million, excluding commissions and fees, and may repurchase up to $38.5 million, excluding commissions and fees, of shares of our common stock under the Share Repurchase Program.

Investments

The main objective of our investment policy is to maximize our after-tax investment income with a reasonable level of risk given the current financial market. Our excess cash is invested primarily in money market accounts, certificates of deposit, and available-for-sale fixed-maturity and equity securities.

As of March 31, 2026, we had $979.9 million of available-for-sale fixed-maturity and equity investments, which are carried at fair value, and our available-for-sale fixed-maturity securities had a weighted-average duration of 5.1 years. Changes in the general interest rate environment affect the returns available on new available-for-sale fixed-maturity investments. While a rising interest rate environment enhances the returns available on new investments, it reduces the market value of existing available-for-sale fixed-maturity investments and thus the availability of gains on disposition. A decline in interest rates reduces the returns available on new available-for-sale fixed-maturity investments but increases the market value of existing available-for-sale fixed-maturity investments, creating the opportunity for realized investment gains on disposition.

In the future, we may alter our investment policy with regard to investments in federal, state and municipal obligations, preferred and common equity securities and real estate mortgages, as permitted by applicable law, including insurance regulations.

Limited Partnership Investments

Our limited partnership investments consist of six private equity funds managed by their general partners. Withdrawals from limited partnership investments are generally not permitted and distributions occur when the underlying investments of the limited partnership investments are liquidated. Additionally, two of these funds have unexpired capital commitments which are callable at the discretion of the fund’s general partner for funding new investments or expenses of the fund. Although capital commitments for the four remaining funds have expired, the general partners may request additional funds under certain circumstances. As of March 31, 2026, there were unexpired capital commitments of $3.8 million. Refer to Note 5 “Investments” of our unaudited consolidated financial statements under Item 1 of this Quarterly Report on Form 10-Q.

Real Estate Investments

Real estate investments have long been a significant component of our overall investment portfolio. It diversifies our portfolio and helps offset the volatility of other higher-risk assets. Thus, we may consider expanding our real estate investments portfolio should an opportunity arise.

Dividends

On April 22, 2026, our Board of Directors declared a quarterly dividend of $0.40 per common share. The dividends are payable on June 18, 2026 to stockholders of record on May 15, 2026.

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Sources and Uses of Cash

The following table is a summary of our cash flow activity for the periods presented (in thousands):

		Three Months Ended March 31,
		2026				2025				Change
Net cash provided by operating activities		$	148,811			$	162,006			$	(13,195	)
Net cash (used in) provided by investing activities			(325,223	)			66,271				(391,494	)
Net cash used in financing activities			(19,571	)			(6,248	)			(13,323	)
Effect of exchange rate changes on cash			(85	)			(11	)			(74	)
Net (decrease) increase in cash and cash equivalents and   restricted cash		$	(196,068	)		$	222,018			$	(418,086	)

Cash Flows for the Three Months Ended March 31, 2026

Net cash provided by operating activities consisted primarily of cash received from net premiums written, and reinsurance recoveries of approximately $20.1 million less cash disbursed for operating expenses, losses and loss adjustment expenses and interest payments.

Net cash used in investing activities consisted primarily of purchases of available-for-sale fixed-maturity and equity securities of $344.0 million and purchases of real estate investments of $0.8 million, partially offset by proceeds from sales of available-for-sale fixed-maturity and equity securities of $17.0 million, proceeds from calls, repayments and maturities of available-for-sale fixed-maturity securities of $2.0 million, and proceeds from sales of real estate investments of $0.8 million.

Net cash used in financing activities consisted primarily of $17.5 million of repurchases of common stock and $5.2 million of common stock dividends, partially offset by net subscriber surplus contributions of $2.7 million and proceeds from the exercise of stock options of $0.8 million.

Cash Flows for the Three Months Ended March 31, 2025

Net cash provided by operating activities consisted primarily of cash received from net premiums written, and reinsurance recoveries of approximately $30.7 million less cash disbursed for operating expenses, losses and loss adjustment expenses and interest payments.

Net cash provided by investing activities consisted primarily of proceeds from calls, repayments and maturities of available-for-sale fixed-maturity securities of $81.2 million, proceeds from sales of available-for-sale fixed-maturity and equity securities of $12.2 million, and proceeds from the sale of real estate property of $0.8 million, partially offset by purchases of available-for-sale fixed-maturity and equity securities of $24.3 million, purchases of real estate investments of $1.9 million, and purchases of property and equipment of $1.7 million.

Net cash used in financing activities consisted primarily of $4.3 million of common stock dividends, net repayment of our Revolving Credit Facility of $2.0 million, $0.6 million of net share settlements, and repayments of long-term debt of $0.1 million, partially offset by net subscriber surplus contributions of $0.8 million.

OFF-BALANCE SHEET ARRANGEMENTS

As of March 31, 2026, we had unexpired capital commitments for limited partnerships investments of $3.8 million as described above. We do not have any other arrangements giving rise to material obligations that are not reported in our consolidated balance sheets as described in Item 303 of SEC Regulation S-K.

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CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The accompanying consolidated financial statements are prepared in accordance with U.S. GAAP, which requires us to select accounting policies and make estimates that affect amounts reported in the consolidated financial statements and the accompanying notes. Management’s estimates are based on the relevant information available at the end of each period. Actual results could differ materially from these estimates under different assumptions or market conditions.

The following discussion includes estimates prepared in accordance with U.S. GAAP that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on the financial condition or results of operations, and are based on, among other things, estimates, assumptions, and judgments made by management that include inherent risks and uncertainties. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances.

We believe our accounting policies and estimates specific to losses and loss adjustment expenses, reinsurance recoverable, income taxes, stock-based compensation expense, and limited partnership investments involve our most significant judgments and estimates material to our consolidated financial statements.

Our accounting policies and estimates and their related risks that we consider to be critical are more fully described in our 2025 Annual Report. For the three months ended March 31, 2026, there have been no material changes with respect to any of our critical accounting policies.

Reserves for Losses and Loss Adjustment Expenses

Our liability for losses and loss adjustment expenses (“Reserves”) is specific to property insurance, which is our insurance subsidiaries’ only line of business. The Reserves include both case reserves on reported claims and our reserves for incurred but not reported (“IBNR”) losses. As of each period end date, the balance of our Reserves is based on our best estimate of the ultimate cost of reported claims and the IBNR losses based primarily on our historical experience. Changes in the Reserves are charged or credited to operations as the Reserves are adjusted.

The IBNR represents our estimate of the ultimate cost of all claims that have occurred but have not been reported to us, and in some cases may not yet be known to the insured, and future development of reported claims. Estimating the IBNR component of our Reserves involves considerable judgment on the part of management. As of March 31, 2026, $506.1 million of the total $566.8 million of Reserves is attributable to our estimate of IBNR. The remaining $60.7 million relates to known cases which have been reported but not yet fully settled and represents our best estimate of the cost to settle such claims. As of March 31, 2026, $52.7 million of the $60.7 million in reserves for known cases relates to claims incurred during prior years.

Our Reserves decreased from $576.5 million as of December 31, 2025 to $566.8 million as of March 31, 2026. The $9.7 million decrease is comprised of (i) reductions in our non-catastrophe Reserves of $34.7 million for 2025 and prior loss years; (ii) reductions in our catastrophe Reserves of $22.1 million primarily related to Hurricane Ian, Hurricane Helene, and Hurricane Milton; and (iii) partially offset by $47.1 million in reserves established for the 2026 loss year. The Reserves established for 2026 claims are primarily driven by IBNR as of March 31, 2026. The decrease of $56.8 million related to our 2025 and prior loss-years reserves is due to settlement of such claims.

Based on all information known to us, we consider our Reserves as of March 31, 2026 to be adequate to cover our claims for losses that have been incurred as of that date including losses yet to be reported to us. However, these estimates are continually reviewed by management as they are subject to significant variability and may be impacted by trends in claim severity and frequency or unusual exposures that have not yet been identified. As part of the process, we review historical data and consider various factors, including known and anticipated regulatory and legal developments, changes in social attitudes, inflation and economic conditions. As experience

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develops and other data becomes available, these estimates are revised, as required, resulting in increases or decreases to the Reserves. Adjustments are reflected in the results of operations in the period in which they are made, and the liabilities may deviate substantially from prior estimates.

RECENT ACCOUNTING PRONOUNCEMENTS

Refer to Note 3 “Recent Accounting Pronouncements” to the consolidated financial statements included in this Quarterly Report on Form 10-Q for further information about recent accounting pronouncements and adoptions.

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ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As of March 31, 2026, our investment portfolio included available-for-sale fixed-maturity and equity securities, the purposes of which are not for speculation. Our main objective is to maximize after-tax investment income and maintain sufficient liquidity to meet our obligations while minimizing market risk, which is the potential economic loss from adverse fluctuations in securities prices. We consider many factors including credit ratings, investment concentrations, regulatory requirements, anticipated fluctuation of interest rates, durations and market conditions in developing investment strategies. Our investment securities are managed primarily by an investment committee appointed by our Board of Directors. From time to time, our investment committee may decide to invest in low-risk assets such as U.S. government bonds.

Our investment portfolio is exposed to interest rate risk, credit risk and equity price risk. Fiscal and economic uncertainties caused by any government action or inaction may exacerbate these risks and potentially have adverse impacts on the value of our investment portfolio.

We classify our fixed-maturity securities as available-for-sale and report any unrealized gains or losses, net of deferred income taxes, as a component of accumulated other comprehensive income within our stockholders’ equity. As such, any material temporary changes in their fair value can adversely impact our stockholders’ equity. In addition, we recognize any unrealized gains or losses related to our equity securities in our statement of income. As a result, our results of operations can be materially affected by the volatility in the equity market.

Interest Rate Risk

Our available-for-sale fixed-maturity securities are sensitive to potential losses resulting from unfavorable changes in interest rates. We manage the risk by analyzing anticipated movement in interest rates and considering our future capital needs.

The following table illustrates the impact of hypothetical changes in interest rates to the fair value of our available-for-sale fixed-maturity securities as of March 31, 2026 (dollar amounts in thousands):

Hypothetical Change in Interest Rates		Estimated Fair Value				Change in Estimated Fair Value				Percentage Increase (Decrease) in Estimated Fair Value
300 basis point increase		$	786,519			$	(128,327	)			-14	%
200 basis point increase			826,543				(88,303	)			-10	%
100 basis point increase			869,318				(45,528	)			-5	%
100 basis point decrease			963,125				48,279				5	%
200 basis point decrease			1,014,156				99,310				11	%
300 basis point decrease			1,067,940				153,094				17	%

Credit Risk

Credit risk can expose us to potential losses arising principally from adverse changes in the financial condition of the issuers of our available-for-sale fixed-maturity securities. We mitigate the risk by investing in available-for-sale fixed-maturity securities that are generally investment grade, by diversifying our investment portfolio to avoid concentrations in any single issuer or business sector, and by continually monitoring each individual security for declines in credit quality. While we emphasize credit quality in our investment selection process, significant downturns in the markets or general economy may impact the credit quality of our portfolio.

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The following table presents the composition of our available-for-sale fixed-maturity securities, by rating, as of March 31, 2026 (dollar amounts in thousands):

		Cost or				% of Total								% of Total
		Amortized				Amortized				Estimated				Estimated
Comparable Rating		Cost				Cost				Fair Value				Fair Value
AAA		$	5,247				1	%		$	5,255				1	%
AA+, AA, AA-			658,107				72	%			653,143				72	%
A+, A, A-			67,040				7	%			66,724				7	%
BBB+, BBB, BBB-			177,224				19	%			176,547				19	%
BB+, BB, BB-			1,300				0	%			1,243				0	%
B+, B, B-			2,491				0	%			2,399				0	%
Not Rated			9,564				1	%			9,535				1	%
Available-for-sale fixed-maturity securities		$	920,973				100	%		$	914,846				100	%

Equity Price Risk

As of March 31, 2026, our equity investment portfolio included common stocks, perpetual preferred stocks, mutual funds and exchange-traded funds. We may incur potential losses due to adverse changes in equity security prices. We manage the risk primarily through industry and issuer diversification and asset mix.

The following table illustrates the composition of our equity securities as of March 31, 2026 (dollar amounts in thousands):

						% of Total
		Estimated				Estimated
		Fair Value				Fair Value
Stocks by sector:
Financial		$	5,142				8	%
Consumer			5,660				9	%
Communications			3,447				5	%
Other (1)			5,551				8	%
			19,800				30	%
Mutual funds and exchange-traded funds by type:
Debt			37,542				58	%
Equity			2,113				3	%
Alternative			5,601				9	%
			45,256				70	%
Equity securities		$	65,056				100	%

(1)Represents an aggregate of less than 5% sectors.

Foreign Currency Exchange Risk

As of March 31, 2026, we did not have any material exposure to foreign currency related risk.

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ITEM 4 – CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2026. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of March 31, 2026.

Changes in Internal Control Over Financial Reporting

During the three months ended March 31, 2026, there were no changes in our internal control over financial reporting that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

ITEM 1 – LEGAL PROCEEDINGS

Refer to Note 19 “Commitments and Contingencies” to the consolidated financial statements under the heading “Litigation and Other Legal Matters” included in this Quarterly Report on Form 10-Q for legal proceedings and related matters.

ITEM 1A – RISK FACTORS

There have been no material changes to the risk factors previously disclosed in Part I, Item 1A of the 2025 Annual Report.

ITEM 2 – UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Recent Sales of Unregistered Equity Securities

None.

Use of Proceeds from Registered Equity Securities

None.

Issuer Purchases of Equity Securities

Under our publicly announced Share Repurchase Program, we are permitted to repurchase shares for cash periodically in open market purchases, block transactions, privately negotiated transactions in accordance with applicable federal securities laws, or by other means, including through the use of trading programs intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions, including Rule 10b-18 under that Act. The timing and total amount of any stock repurchases will be determined at management's discretion and depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices and other considerations. The Share Repurchase Program does not obligate us to repurchase a specific number of shares of common stock, and may be canceled or suspended at any time without notice.

In addition, we withhold shares of our common stock to satisfy our employees’ payroll tax liabilities associated with the vesting of restricted stock awards issued under our share-based compensation plan.

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During the three months ended March 31, 2026, we repurchased shares of our common stock as follows (dollar amounts in thousands, except share and per share amounts):

		Total Number of Shares				Average Price Paid				Total Number of Shares Purchased as Part of Publicly Announced Plans				Maximum Dollar Value of Shares That May Yet Be Purchased Under The Plans
For the Month Ended		Purchased				Per Share				or Programs (a)				or Programs (a)
January 31, 2026			—			$	—				—			$	—
February 28, 2026			403			$	170.20				—			$	—
March 31, 2026			110,146			$	158.98				110,071			$	62,502
			110,549			$	159.02				110,071

(a)On March 3, 2026, we announced our Board of Directors authorized a program which permits us to repurchase up to $80,000 thousand, excluding commissions and fees, of shares of our common stock through February 27, 2027.

Working Capital Restrictions and Other Limitations on the Payment of Dividends

We are not subject to working capital restrictions or other limitations on the payment of dividends. However, our insurance subsidiaries are subject to restrictions on the dividends they may pay. Those restrictions could impact HCI’s ability to pay dividends in the future.

Under Florida law, a domestic insurer may not pay any dividend or distribute cash or other property to its stockholders except out of that part of its available and accumulated capital and surplus funds which is derived from realized net operating profits on its business and net realized capital gains. Additionally, a Florida domestic insurer may not make dividend payments or distributions to its stockholders without prior approval of the Florida Office of Insurance Regulation (“FLOIR”) if the dividend or distribution would exceed the larger of (1) the lesser of (a) 10.0% of its capital surplus or (b) net income, not including realized capital gains, plus a two year carry forward, (2) 10.0% of capital surplus with dividends payable constrained to unassigned funds minus 25% of unrealized capital gains or (3) the lesser of (a) 10.0% of capital surplus or (b) net investment income plus a three year carry forward with dividends payable constrained to unassigned funds minus 25% of unrealized capital gains.

Alternatively, a Florida domestic insurer may pay a dividend or distribution without the prior written approval of the FLOIR if (1) the dividend is equal to or less than the greater of (a) 10.0% of the insurer’s capital surplus as regards to policyholders derived from realized net operating profits on its business and net realized capital gains or (b) the insurer’s entire net operating profits and realized net capital gains derived during the immediately preceding calendar year, (2) the insurer will have policy holder capital surplus equal to or exceeding 115.0% of the minimum required statutory capital surplus after the dividend or distribution, (3) the insurer files a notice of the dividend or distribution with the FLOIR at least ten business days prior to the dividend payment or distribution and (4) the notice includes a certification by an officer of the insurer attesting that, after the payment of the dividend or distribution, the insurer will have at least 115% of required statutory capital surplus as to policyholders. Except as provided above, a Florida domiciled insurer may only pay a dividend or make a distribution (1) subject to prior approval by the FLOIR or (2) 30 days after the FLOIR has received notice of such dividend or distribution and has not disapproved it within such time.

During the three months ended March 31, 2026, our insurance subsidiaries paid dividends of $44.5 million to HCI.

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ITEM 3 – DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4 – MINE SAFETY DISCLOSURES

None.

ITEM 5 – OTHER INFORMATION

During the three months ended March 31, 2026, none of our directors or officers adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement” (in each case, as defined in Item 408 of Regulation S-K).

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ITEM 6 – EXHIBITS

The exhibits listed on the accompanying Index to Exhibits are filed, furnished or incorporated by reference as part of this Quarterly Report on form 10-Q.

Index to Exhibits

The information required by this Item is set forth on the index to exhibits below.

Exhibit Number	Exhibit Description	Form	Exhibit	Filing Date
3.1	Articles of Incorporation, with amendments.	10-Q	3.1	8/7/2013
3.1.1	Articles of Amendment to Articles of Incorporation designating the rights, preferences and limitations of Series B Junior Participating Preferred Stock.	8-K	3.1	10/18/2013
3.1.2	Articles of Amendment to Articles of Incorporation canceling the rights, preferences and limitations of Series B Junior Participating Preferred Stock.	8-K	3.1	5/15/2020
3.2	Bylaws, with amendments.	8-K	3.2	9/13/2019
4.1	Form of common stock certificate.	10-Q	4.1	11/7/2013
4.2	Common Stock Purchase Warrant, dated February 26, 2021, issued by HCI Group, Inc. to CB Snowbird Holdings, L.P.	8-K	4.1	3/1/2021
4.3	See Exhibits 3.1, 3.1.1, 3.1.2 and 3.2 of this report for provisions of the Articles of Incorporation, as amended, and our Bylaws, as amended, defining certain rights of security holders.
10.1^	HCI Group, Inc. 2012 Omnibus Incentive Plan as revised April 26, 2022.	10-Q	10.5	5/6/2022
10.2^	Executive Employment Agreement dated November 23, 2016 between Mark Harmsworth and HCI Group, Inc.	10-Q	10.7	8/3/2017
10.3	Reimbursement Contract effective June 1, 2024 between Homeowners Choice Property & Casualty Insurance Company, Inc. and the State Board of Administration of the State of Florida which administers the Florida Hurricane Catastrophe Fund.	10-Q	10.8	8/9/2024
10.4	Reimbursement Contract effective June 1, 2024 between TypTap Insurance Company and the State Board of Administration of the State of Florida which administers the Florida Hurricane Catastrophe Fund.	10-Q	10.9	8/9/2024
10.5	Underlying Second Layer Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2024 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.10	8/9/2024
10.6	Second Layer Reinstatement Premium Protection Reinsurance Contract effective June 1, 2024 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.11	8/9/2024
10.7	Third Layer Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2024 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.12	8/9/2024

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10.8	Third Layer Reinstatement Premium Protection Reinsurance Contract effective June 1, 2024 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.13	8/9/2024
10.9	Catastrophe County Weighted Industry Loss Reinsurance Contract effective July 9, 2024 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.14	8/9/2024
10.10	Panhandle Named Storm Property Catastrophe Excess of Loss Reinsurance Contract effective July 1, 2024 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.15	8/9/2024
10.11	Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2024 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.16	8/9/2024
10.12	Reinstatement Premium Protection Reinsurance Contract effective June 1, 2024 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.17	8/9/2024
10.13	Layer 3B Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2024 issued to TypTap Insurance Company and Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.18	8/9/2024
10.14	Layer 3B Reinstatement Premium Protection Reinsurance Contract effective June 1, 2024 issued to TypTap Insurance Company and Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.19	8/9/2024
10.15	Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2024 issued to TypTap Insurance Company and Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.20	8/9/2024
10.16	Reinstatement Premium Protection Reinsurance Contract effective June 1, 2024 issued to TypTap Insurance Company and Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.21	8/9/2024
10.17	First and Second Layer Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2024 issued to TypTap Insurance Company and Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.22	8/9/2024
10.18	Layer 3C Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2024 issued to TypTap Insurance Company and Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.23	8/9/2024
10.19	First Layer Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2025 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. and Tailrow Insurance Exchange by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.25	8/8/2025
10.20	Second Layer Reinstatement Premium Protection Reinsurance Contract effective June 1, 2025 issued to Homeowners Choice Property & Casualty Company, Inc. and Tailrow Insurance	10-Q	10.26	8/8/2025

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	Exchange by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).
10.21	Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2025 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. and Tailrow Insurance Exchange by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.27	8/8/2025
10.22	Second Layer Reinstatement Premium Protection Reinsurance Contract effective June 1, 2025 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. and Tailrow Insurance Exchange by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.28	8/8/2025
10.23	Second Layer Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2025 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. and Tailrow Insurance Exchange by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.29	8/8/2025
10.24	Reinstatement Premium Protection Reinsurance Contract effective June 1, 2025 issued to Homeowners Property & Casualty Insurance Company, Inc. and Tailrow Insurance Exchange by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.30	8/8/2025
10.25	First Layer Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2025 issued to TypTap Insurance Company and Homeowners Choice Property & Casualty Insurance Company, Inc. by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.31	8/8/2025
10.26	Second Layer Reinstatement Premium Protection Reinsurance Contract effective June 1, 2025 issued to TypTap Insurance Company and Homeowners Choice Property & Casualty Insurance Company, Inc. by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.32	8/8/2025
10.27	Second Layer Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2025 issued to TypTap Insurance Company and Homeowners Choice Property & Casualty Insurance Company, Inc. by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.33	8/8/2025
10.28	Second Layer Reinstatement Premium Protection Reinsurance Contract effective June 1, 2025 issued to TypTap Insurance Company and Homeowners Choice Property & Casualty Insurance Company, Inc. by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.34	8/8/2025
10.29	Sixth Layer Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2025 issued to TypTap Insurance Company and Homeowners Choice Property & Casualty Insurance Company, Inc. by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.35	8/8/2025
10.30	Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2025 issued to TypTap Insurance Company and Homeowners Choice Property & Casualty Insurance Company, Inc. by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.36	8/8/2025
10.31	Reinstatement Premium Protection Reinsurance Contract effective June 1, 2025 issued to TypTap Insurance Company and Homeowners Choice Property & Casualty Insurance Company, Inc. by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.37	8/8/2025

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10.32	Reinstatement Premium Protection Contract effective June 1, 2025 issued to Condo Owners Reciprocal Exchange by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.38	8/8/2025
10.33	Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2025 issued to Condo Owners Reciprocal Exchange by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.39	8/8/2025
10.34	Equity Distribution Agreement between HCI Group, Inc., Truist Securities, Inc. and Citizens JMP Securities, LLC.	S-3	1.2	1/22/2024
10.35	Amended and Restated Common Stock Purchase Warrant between HCI Group, Inc. and CB Snowbird Holdings, L.P.	S-3	4.17	1/22/2024
10.36	Registration Rights Agreement between HCI Group, Inc. and CB Snowbird Holdings, L.P.	S-3	4.18	1/22/2024
10.37	Stock Redemption Agreement between TypTap Insurance Group, Inc. and CB Snowbird Holdings, L.P.	S-3	4.19	1/22/2024
10.38	Assumption Agreement between Homeowners Choice Property & Casualty Insurance Company, Inc. and Citizens Property Insurance Corporation.	8-K	99.1	10/2/2023
10.39	Assumption Agreement between TypTap Insurance Company and Citizens Property Insurance Corporation.	8-K	99.1	11/6/2023
10.40	Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2025 issued to Condo Owners Reciprocal Exchange by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.46	8/8/2025
10.41	Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2025 issued to Condo Owners Reciprocal Exchange by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.47	8/8/2025
10.42^	Exzeo Group, Inc. 2021 Equity Incentive Plan	8-K	10.5	3/1/2021
10.43^	Form of Restricted Stock Award Agreement of TypTap Insurance Group, Inc.	8-K	10.6	3/1/2021
10.44^	Stock Option Agreement between Paresh Patel and TypTap Insurance Group, Inc. dated October 1, 2021.	8-K	99.1	10/7/2021
10.45^	Exzeo Group, Inc. 2021 Omnibus Incentive Plan.	8-K	99.2	10/7/2021
10.46^	Form of Stock Option Award under the Exzeo Group, Inc. under the 2021 Omnibus Plan	S-1	10.17	9/25/2025
10.47^	Form of Restricted Stock Award Agreement of Exzeo Group, Inc. under the 2021 Omnibus Plan	S-1	10.18	9/25/2025
10.48^	Stock Option Agreement between Paresh Patel and HCI Group, Inc. dated September 15, 2023.	10-Q	10.54	11/8/2023
10.49^	Form of executive restricted stock award contract.	10-Q	10.57	5/1/2014
10.50	Facultative Excess of Loss Reinsurance Contract effective June 1, 2025 issued to Condo Owners Reciprocal Exchange by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).	10-Q	10.59	8/8/2025
10.51	Amended and Restated Credit Agreement, dated June 2, 2023, between HCI Group, Inc. and Fifth Third Bank.	8-K	99.1	6/8/2023

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10.52	Security and Pledge Agreement dated June 2, 2023, between HCI Group, Inc. and Fifth Third Bank	8-K	99.2	6/8/2023
10.53	Revolving Credit Promissory Note, dated June 2, 2023, between HCI Group, Inc. and Fifth Third Bank	8-K	99.3	6/8/20223
10.54	Second Amended and Restated Credit Agreement, dated November 3, 2023, between HCI Group, Inc. and Fifth Third Bank	8-K	99.1	11/9/2023
10.55	Second Amended and Restated Security and Pledge Agreement, dated November 3, 2023, between HCI Group, Inc. and Fifth Third Bank.	8-K	99.2	11/9/2023
10.56	Renewed, Amended and Restated Revolving Credit Promissory Note, dated November 3, 2023 between HCI Group, Inc. and Fifth Third Bank	8-K	99.3	11/9/2023
10.57^	Executive Employment Agreement between Paresh Patel and HCI Group, Inc. dated April 17, 2024.	8-K	99.1	4/23/2024
10.58^	Restricted Stock Award Contract between Paresh Patel and HCI Group, Inc. dated April 17, 2024.	8-K	99.2	4/23/2024
10.59^	Restricted Stock Award Contract between Paresh Patel and HCI Group, Inc. dated January 16, 2020.	8-K	99.1	1/23/2020
10.60^	Nonqualified Stock Option Agreement between Paresh Patel and HCI Group, Inc. dated January 16, 2020.	8-K	99.2	1/23/2020
10.61	Reimbursement Contract effective June 1, 2025 between Condo Owners Reciprocal Exchange and the State Board of Administration of the State of Florida which administers the Florida Hurricane Catastrophe Fund.	10-Q	10.107	8/8/2025
10.62	Reimbursement Contract effective June 1, 2025 between Homeowners Choice Property & Casualty Insurance Company, Inc. and the State Board of Administration of the State of Florida which administers the Florida Hurricane Catastrophe Fund.	10-Q	10.108	8/8/2025
10.63	Reimbursement Contract effective June 1, 2025 between Tailrow Insurance Exchange and the State Board of Administration of the State of Florida which administers the Florida Hurricane Catastrophe Fund.	10-Q	10.109	8/8/2025
10.64	Reimbursement Contract effective June 1, 2025 between TypTap Insurance Company and the State Board of Administration of the State of Florida which administers the Florida Hurricane Catastrophe Fund.	10-Q	10.110	8/8/2025
10.65	Property Quota Share Reinsurance Contract effective December 31, 2020 issued to United Property and Casualty Insurance Company by Homeowners Choice Property & Casualty Insurance Company.	10-K	10.124	3/10/2022
10.66	Renewal Rights Agreement effective January 18, 2021 by and among United Property and Casualty Insurance Company, United Insurance Holdings Corp., United Insurance Management, L.C. and Homeowners Choice Property & Casualty Insurance Company.	10-K	10.125	3/10/2022
10.67	Property Quota Share Reinsurance Contract effective June 1, 2021 issued to United Property and Casualty Insurance Company by Homeowners Choice Property & Casualty Insurance Company and TypTap Insurance Company.	10-K	10.126	3/10/2022
10.68	Renewal Rights Agreement effective December 30, 2021 by and among United Property and Casualty Insurance Company, United Insurance Holdings Corp., United Insurance Management, L.C. and Homeowners Choice Property & Casualty Insurance Company.	10-K	10.127	3/10/2022

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10.69	Property Quota Share Reinsurance Contract effective December 31, 2021 issued to United Property and Casualty Insurance Company by Homeowners Choice Property & Casualty Insurance Company.	10-K	10.128	3/10/2022
10.70	Property Quota Share Reinsurance Contract effective June 1, 2022 issued to United Property and Casualty Insurance Company by TypTap Insurance Company.	10-Q	10.129	8/9/2022
10.71^	Exzeo Group Inc. 2025 Omnibus Incentive Plan.	S-1/A	10.19	10/16/2025
10.72^	Form of Stock Option Award under the 2025 Omnibus Plan.	S-1/A	10.20	10/16/2025
10.73^	Form of Restricted Stock Award Agreement under the 2025 Omnibus Plan.	S-1/A	10.21	10/16/2025
10.74^	Employment Agreement, dated December 9, 2025, by and between Exzeo Group, Inc. and Paresh S. Patel	8-K	99.1	12/23/2025
31.1*	Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**	Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2**	Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101*	XBRL Instant Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
104*	Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.
*	Filed herewith.
**	Furnished herewith.
^	Management contract or compensatory plan.

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SIGNATURES

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.

		HCI Group, Inc.
May 7, 2026		By:	/s/ Paresh Patel
			Paresh Patel
			Chief Executive Officer
			(Principal Executive Officer)
May 7, 2026		By:	/s/ James Mark Harmsworth
			James Mark Harmsworth
			Chief Financial Officer
			(Principal Financial and Accounting Officer)

64

FAQ

How did HCI Group (HCI) perform financially in Q1 2026?

HCI Group reported net income of $85.0 million on total revenue of $242.9 million in Q1 2026. Net premiums earned reached $222.2 million, while income before income taxes rose to $115.4 million, reflecting stronger underwriting and investment results versus the prior year.

What were HCI Group (HCI) earnings per share for Q1 2026?

For Q1 2026, HCI Group reported basic EPS of $5.62 and diluted EPS of $5.45. These figures are based on net income after noncontrolling interests of $73.4 million and reflect the impact of share-based awards and other potentially dilutive securities.

How strong was HCI Group’s cash flow and liquidity in Q1 2026?

HCI Group generated $148.8 million of net cash from operating activities in Q1 2026. Cash and cash equivalents plus restricted cash totaled $1.02 billion as of March 31, 2026, providing substantial liquidity to support underwriting operations, investments, and capital management actions.

Did HCI Group (HCI) repurchase shares or pay dividends in Q1 2026?

Yes. HCI Group repurchased 110,071 shares for about $17.5 million under its $80 million share repurchase program. The company also paid a quarterly cash dividend of $0.40 per share, continuing its pattern of returning capital to common shareholders.

What were HCI Group’s key insurance premium metrics in Q1 2026?

In Q1 2026, HCI Group reported gross premiums earned of $326.2 million and net premiums earned of $222.2 million. Direct gross written premiums were $282.0 million, and net premiums written were $176.6 million, demonstrating continued scale in its property and casualty insurance operations.

How significant was investment income to HCI Group’s Q1 2026 results?

Investment activity was meaningful, with net investment income of $17.3 million and modest net realized gains. The available-for-sale fixed-maturity portfolio had an estimated fair value of $914.8 million, and equity securities totaled $65.1 million, supporting ongoing income generation.