Second Quarter Pre-Tax Income of $94.4 million and Diluted EPS of $5.18
Book Value Per Share Increased to $58.55
Gross Loss Ratio of 21.3%
TAMPA, Fla., Aug. 07, 2025 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE:HCI), reported pre-tax income of $94.4 million and net income of $70.3 million for the second quarter of 2025. Net income after noncontrolling interests was $66.2 million compared with $54.1 million in the second quarter of 2024. Diluted earnings per share were $5.18 in the second quarter of 2025, compared with $4.24 in the second quarter of 2024.
Management Commentary
"HCI Group delivered another strong quarter, marked by solid profitability, industry-leading net combined ratios, and meaningful growth in book value per share," said HCI Group Chairman and Chief Executive Officer Paresh Patel. "We continue to make progress on initiatives to unlock shareholder value and establish Exzeo as an independent, publicly traded entity."
Second Quarter 2025 Commentary
Consolidated gross premiums earned in the second quarter of 2025 increased by 14.8% to $302.6 million from $263.6 million in the second quarter of 2024 as a result of a higher volume of policies in force over the comparative period.
Premiums ceded for reinsurance in the second quarter of 2025 were $102.5 million compared with $99.6 million in the first quarter of 2025.
Losses and loss adjustment expenses in the second quarter of 2025 were $64.5 million compared with $78.3 million in the second quarter of 2024 despite the growth in gross premiums earned. The decrease was primarily driven by a decline in claims and litigation frequency. The gross loss ratio in the second quarter was 21.3% compared to 29.7% in the second quarter of 2024.
Policy acquisition and other underwriting expenses in the second quarter of 2025 were $30.6 million compared with $23.5 million in the second quarter of 2024. The increase was driven by higher gross premiums.
General and administrative personnel expenses in the second quarter of 2025 increased to $20.0 million from $17.5 million in the second quarter of 2024. The increase was primarily attributable to higher stock-based compensation, employee health benefits and merit increases.
Other operating expenses in the second quarter of 2025 increased to $8.8 million from $7.5 million in the second quarter of 2024. The increase was primarily attributable to a $1.1 million debt conversion charge in connection with the conversion of our 4.75% Convertible Senior Notes during the second quarter of 2025.
Year-to-Date 2025 Results
For the six months ended June 30, 2025, the Company reported pre-tax income of $194.7 million and net income of $144.5 million. Net income after noncontrolling interests was $135.8 million compared with $101.7 million for the six months ended June 30, 2024. Diluted earnings per share were $10.57 for the six months ended June 30, 2025, compared with $8.04 for the six months ended June 30, 2024.
Consolidated gross premiums earned for the six months of 2025 increased to $603.0 million from $520.2 million in the same period of 2024 as a result of a higher volume of policies in force over the comparative period.
Premiums ceded for reinsurance for the six months of 2025 were $202.2 million compared with $144.8 million for the six months of 2024.
Losses and loss adjustment expenses for the six months of 2025 were $123.7 million compared with $158.2 million for the six months of 2024 despite the growth in gross premiums earned. The decrease was primarily driven by a decline in claims and litigation frequency. The gross loss ratio for the six months of 2025 was 20.5% compared to 30.4% for the six months of 2024.
Policy acquisition and other underwriting expenses for the six months of 2025 were $57.8 million compared with $45.6 million for the six months of 2024. The increase was driven by higher gross premiums.
General and administrative personnel expenses for the six months of 2025 increased to $40.5 million from $33.7 million for the six months of 2024. The increase was primarily attributable to higher stock-based compensation, employee health benefits and merit increases.
Other operating expenses for the six months of 2025 decreased to $14.4 million from $15.2 million for the six months of 2024. The decrease was partially offset by a $1.1 million debt conversion charge in connection with the conversion of our 4.75% Convertible Senior Notes during the six months of 2025.
Conference Call
HCI Group will hold a conference call later today, August 7, 2025, to discuss these financial results. Chairman and Chief Executive Officer Paresh Patel, Chief Operating Officer Karin Coleman and Chief Financial Officer Mark Harmsworth will host the call starting at 4:45 p.m. Eastern time.
Interested parties can listen to the live presentation by dialing the listen-only number below or by clicking the webcast link available on the Investor Information section of the company's website at www.hcigroup.com.
Listen-only toll-free number: (888) 506-0062
Listen-only international number: (973) 528-0011
Entry Code: 521671
Please call the conference telephone number 10 minutes before the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at (949) 574-3860.
A replay of the call will be available by telephone after 8:00 p.m. Eastern time on the same day as the call and via the Investor Information section of the HCI Group website at www.hcigroup.com through August 7, 2026.
Toll-free replay number: (877) 481-4010
International replay number: (919) 882-2331
Replay ID: 52723
About HCI Group, Inc.
HCI Group, Inc. is a holding company with two distinct operating units. The first unit includes four top-performing insurance companies, a captive reinsurance company, and operations in claims management and real estate. The second unit, called Exzeo Group, is a leading innovator of insurance technology that utilizes advanced underwriting algorithms and data analytics. Exzeo empowers property and casualty insurers to transform underwriting outcomes and achieve industry-leading results.
The company's common shares trade on the New York Stock Exchange under the ticker symbol "HCI" and are included in the Russell 2000 and S&P SmallCap 600 Index. HCI Group, Inc. regularly publishes financial and other information in the Investor Information section of the company's website. For more information about HCI Group and its subsidiaries, visit www.hcigroup.com.
Forward-Looking Statements
This news release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "estimate," "expect," "intend," "plan," "confident," "prospects" and "project" and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions, but rather are subject to various risks and uncertainties. For example, the estimation of reserves for losses and loss adjustment expenses is an inherently imprecise process involving many assumptions and considerable management judgment. Some of these risks and uncertainties are identified in the company's filings with the Securities and Exchange Commission. Should any risks or uncertainties develop into actual events, these developments could have material adverse effects on the company's business, financial condition and results of operations. HCI Group, Inc. disclaims all obligations to update any forward-looking statements.
Company Contact:
Bill Broomall, CFA
Investor Relations
HCI Group, Inc.
Tel (813) 776-1012
[email protected]
Investor Relations Contact:
Matt Glover
Gateway Group, Inc.
Tel (949) 574-3860
[email protected]
- Tables to follow -
| HCI GROUP, INC. AND SUBSIDIARIES Selected Financial Metrics (Unaudited) (In thousands, except share and per share amounts) | |||||||||
| Q2 2025 | Q2 2024 | ||||||||
| Gross Written Premiums: | |||||||||
| Homeowners Choice | $ | 227,090 | $ | 191,775 | |||||
| TypTap Insurance Company | 110,412 | 79,093 | |||||||
| Condo Owners Reciprocal Exchange | 13,830 | 36,034 | |||||||
| Tailrow Reciprocal Exchange | 5,213 | - | |||||||
| Total Gross Written Premiums | 356,545 | 306,902 | |||||||
| Gross Premiums Earned: | |||||||||
| Homeowners Choice | 156,552 | 143,703 | |||||||
| TypTap Insurance Company | 124,437 | 107,055 | |||||||
| Condo Owners Reciprocal Exchange | 12,811 | 12,803 | |||||||
| Tailrow Reciprocal Exchange | 8,828 | - | |||||||
| Total Gross Premiums Earned | 302,628 | 263,561 | |||||||
| Gross Premiums Earned Loss Ratio | 21.3 | % | 29.7 | % | |||||
| Per Share Metrics | |||||||||
| Diluted EPS | $ | 5.18 | $ | 4.24 | |||||
| Dividends per share | $ | 0.40 | $ | 0.40 | |||||
| Book value per share at the end of period | $ | 58.55 | $ | 42.72 | |||||
| Shares outstanding at the end of period | 12,956,884 | 10,472,741 | |||||||
| HCI GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (In thousands, except share amounts) | ||||||||
| June 30, 2025 | December 31, 2024 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Fixed-maturity securities, available for sale, at fair value (amortized cost: $590,666 and $719,536, respectively and allowance for credit losses: $0 and $0, respectively) | $ | 592,210 | $ | 718,537 | ||||
| Equity securities, at fair value (cost: $55,174 and $52,030, respectively) | 58,618 | 56,200 | ||||||
| Limited partnership investments | 19,770 | 20,802 | ||||||
| Real estate investments | 85,578 | 79,120 | ||||||
| Total investments | 756,176 | 874,659 | ||||||
| Cash and cash equivalents | 947,166 | 532,471 | ||||||
| Restricted cash | 3,730 | 3,714 | ||||||
| Accrued interest and dividends receivable | 6,308 | 6,008 | ||||||
| Income taxes receivable | 3,130 | 463 | ||||||
| Deferred income tax assets, net | 361 | 72 | ||||||
| Premiums receivable, net (allowance: $8,180 and $5,891, respectively) | 65,826 | 50,582 | ||||||
| Prepaid reinsurance premiums | — | 92,060 | ||||||
| Reinsurance recoverable, net of allowance for credit losses: | ||||||||
| Paid losses and loss adjustment expenses (allowance: $0 and $0, respectively) | 62,727 | 36,062 | ||||||
| Unpaid losses and loss adjustment expenses (allowance: $137 and $186, respectively) | 375,198 | 522,379 | ||||||
| Deferred policy acquisition costs | 65,138 | 54,303 | ||||||
| Property and equipment, net | 29,695 | 29,544 | ||||||
| Right-of-use-assets - operating leases | 1,065 | 1,182 | ||||||
| Intangible assets, net | 3,927 | 5,206 | ||||||
| Funds withheld for assumed business | 8,538 | 11,690 | ||||||
| Other assets | 24,121 | 9,818 | ||||||
| Total assets | $ | 2,353,106 | $ | 2,230,213 | ||||
| Liabilities, Redeemable Noncontrolling Interests and Equity | ||||||||
| Losses and loss adjustment expenses | $ | 696,892 | $ | 845,900 | ||||
| Unearned premiums | 627,484 | 584,703 | ||||||
| Advance premiums | 43,677 | 18,867 | ||||||
| Reinsurance payable on paid losses and loss adjustment expenses | 127 | 2,496 | ||||||
| Ceded reinsurance premiums payable | 38,121 | 18,313 | ||||||
| Assumed premiums payable | 375 | 2,176 | ||||||
| Accrued expenses | 42,033 | 17,677 | ||||||
| Income taxes payable | 24,294 | 5,451 | ||||||
| Deferred income tax liabilities, net | 2,402 | 2,830 | ||||||
| Revolving credit facility | 40,000 | 44,000 | ||||||
| Long-term debt | 15,602 | 185,254 | ||||||
| Lease liabilities - operating leases | 1,072 | 1,185 | ||||||
| Other liabilities | 33,938 | 32,320 | ||||||
| Total liabilities | 1,566,017 | 1,761,172 | ||||||
| Commitments and contingencies | ||||||||
| Redeemable noncontrolling interests | 2,405 | 1,691 | ||||||
| Equity: | ||||||||
| Common stock, (no par value, 40,000,000 shares authorized, 12,956,884 and 10,767,184 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively) | — | — | ||||||
| Additional paid-in capital | 298,706 | 122,289 | ||||||
| Retained earnings | 458,713 | 331,793 | ||||||
| Accumulated other comprehensive income (loss) | 1,158 | (749 | ) | |||||
| Total stockholders' equity | 758,577 | 453,333 | ||||||
| Noncontrolling interests | 26,107 | 14,017 | ||||||
| Total equity | 784,684 | 467,350 | ||||||
| Total liabilities, redeemable noncontrolling interest and equity | $ | 2,353,106 | $ | 2,230,213 | ||||
| HCI GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) (In thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue | ||||||||||||||||
| Gross premiums earned | $ | 302,628 | $ | 263,561 | $ | 603,011 | $ | 520,205 | ||||||||
| Premiums ceded | (102,522 | ) | (76,713 | ) | (202,157 | ) | (144,819 | ) | ||||||||
| Net premiums earned | 200,106 | 186,848 | 400,854 | 375,386 | ||||||||||||
| Net investment income | 16,445 | 16,881 | 30,196 | 30,948 | ||||||||||||
| Net realized investment gains | 155 | 212 | 1,322 | 212 | ||||||||||||
| Net unrealized investment gains (losses) | 1,180 | 533 | (726 | ) | 3,168 | |||||||||||
| Policy fee income | 1,467 | 1,089 | 3,696 | 2,108 | ||||||||||||
| Other | 2,567 | 682 | 3,011 | 1,037 | ||||||||||||
| Total revenue | 221,920 | 206,245 | 438,353 | 412,859 | ||||||||||||
| Expenses | ||||||||||||||||
| Losses and loss adjustment expenses | 64,457 | 78,324 | 123,748 | 158,246 | ||||||||||||
| Policy acquisition and other underwriting expenses | 30,551 | 23,452 | 57,838 | 45,591 | ||||||||||||
| General and administrative personnel expenses | 19,985 | 17,471 | 40,468 | 33,745 | ||||||||||||
| Interest expense | 3,744 | 3,452 | 7,128 | 6,601 | ||||||||||||
| Other operating expenses | 8,791 | 7,520 | 14,440 | 15,220 | ||||||||||||
| Total expenses | 127,528 | 130,219 | 243,622 | 259,403 | ||||||||||||
| Income before income taxes | 94,392 | 76,026 | 194,731 | 153,456 | ||||||||||||
| Income tax expense | 24,113 | 18,927 | 50,222 | 39,401 | ||||||||||||
| Net income | $ | 70,279 | $ | 57,099 | $ | 144,509 | $ | 114,055 | ||||||||
| Net income attributable to redeemable noncontrolling interests | — | — | — | (10,149 | ) | |||||||||||
| Net income attributable to noncontrolling interests | (4,119 | ) | (3,023 | ) | (8,665 | ) | (2,219 | ) | ||||||||
| Net income after noncontrolling interests | $ | 66,160 | $ | 54,076 | $ | 135,844 | $ | 101,687 | ||||||||
| Basic earnings per share | $ | 5.57 | $ | 5.18 | $ | 12.00 | $ | 9.95 | ||||||||
| Diluted earnings per share | $ | 5.18 | $ | 4.24 | $ | 10.57 | $ | 8.04 | ||||||||
| Dividends per share | $ | 0.40 | $ | 0.40 | $ | 0.80 | $ | 0.80 | ||||||||
| HCI GROUP, INC. AND SUBSIDIARIES (Unaudited) (In thousands, except per share amount) | ||||||||||||||||||||||||
| A summary of the numerator and denominator of basic and diluted earnings per common share is presented below. | ||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||
| June 30, 2025 | June 30, 2025 | |||||||||||||||||||||||
| Income | Shares | Per Share | Income | Shares | Per Share | |||||||||||||||||||
| (Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | |||||||||||||||||||
| Net income | $ | 70,279 | $ | 144,509 | ||||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | (4,119 | ) | (8,665 | ) | ||||||||||||||||||||
| Net income attributable to HCI | 66,160 | 135,844 | ||||||||||||||||||||||
| Less: Income attributable to participating securities | (2,616 | ) | (5,691 | ) | ||||||||||||||||||||
| Basic Earnings Per Share: | ||||||||||||||||||||||||
| Income attributable to common stockholders | 63,544 | 11,400 | $ | 5.57 | 130,153 | 10,846 | $ | 12.00 | ||||||||||||||||
| Effect of Dilutive Securities: | ||||||||||||||||||||||||
| Stock options | — | 392 | — | 373 | ||||||||||||||||||||
| Convertible senior notes | 3,170 | 1,084 | 5,500 | 1,611 | ||||||||||||||||||||
| Warrants | — | 7 | — | 7 | ||||||||||||||||||||
| Diluted Earnings Per Share: | ||||||||||||||||||||||||
| Income attributable to common stockholders | $ | 66,714 | 12,883 | $ | 5.18 | $ | 135,653 | 12,837 | $ | 10.57 | ||||||||||||||
