HCI Group Reports Third Quarter 2026 Results

(MENAFN- GlobeNewsWire - Nasdaq) Third Quarter Pre-Tax Income of $116 million
Diluted EPS of $6.45
Gross Loss Ratio of 20.7%

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

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

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

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

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

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

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

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

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

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

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

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

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

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

General and administrative personnel expenses for the nine months ended September 30, 2026 were $70 million compared with $61 million for the nine months ended September 30, 2025. The increase was driven by additional personnel, annual merit increases, and stock-based compensation.
Share Repurchase
On March 3, 2026, HCI Group announced a share repurchase program to repurchase up to $80 million of shares of HCI common stock through February 27, 2027. In the third quarter of 2026, HCI Group repurchased 30,721 shares for $6 million. The share repurchase program was completed on July 17, 2026, with a total of 504,330 shares repurchased for $80 million.

Conference Call
HCI Group will hold a conference call later today, November 4, 2026, to discuss these financial results. Chairman and Chief Executive Officer Paresh Patel, Chief Operating Officer Karin Coleman, and Chief Financial Officer Mark Harmsworth will host the call starting at 4:45 p.m. Eastern Time.

Interested parties can listen to the live presentation by dialing the listen-only number below or by clicking the webcast link available on the Investor Information section of the company's website at .

Listen-only toll-free number: (888) 506-0062
Listen-only international number: (973) 528-0011
Entry Code: 794892

Please call the conference telephone number 10 minutes before the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at (949) 574-3860.

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

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

About HCI Group, Inc.
HCI Group, Inc. is a diversified holding company founded in 2006 which, through its subsidiaries, is engaged in homeowners insurance, reinsurance, real estate, insurance claims services, and insurance technology. The HCI Group portfolio of companies includes multiple property and casualty underwriters, exchanges, and captive reinsurers as well as a claims management business, a commercial real estate investment company, and a leading insurance technology company, Exzeo Group.

HCI Group's common shares trade on the New York Stock Exchange under the ticker symbol "HCI" and are included in the Russell 2000 and S&P SmallCap 600 Index. HCI Group, Inc. regularly publishes financial and other information in the Investor Information section of the company's website. For more information about HCI Group and its subsidiaries, visit. Exzeo's common shares trade on the New York Stock Exchange under the ticker symbol“XZO.” For more information about Exzeo, visit .

Forward-Looking Statements
This news release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "estimate," "expect," "intend," "plan," "confident," "prospects" and "project" and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions, but rather are subject to various risks and uncertainties. For example, the estimation of reserves for losses and loss adjustment expenses is an inherently imprecise process involving many assumptions and considerable management judgment. Further, future cash flow and earnings may limit HCI's ability or willingness to engage in share buybacks. Some of these risks and uncertainties are identified in the company's filings with the Securities and Exchange Commission. Should any risks or uncertainties develop into actual events, these developments could have material adverse effects on the company's business, financial condition and results of operations. HCI Group, Inc. disclaims all obligations to update any forward-looking statements.

Company Contact:
Nat Otis
Investor Relations
HCI Group, Inc.
Tel (813) 355-5341
...

Investor Relations Contact:
Matt Glover
Gateway Group, Inc.
Tel (949) 574-3860
...

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

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

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

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

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

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

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