HCI Group Announces Third Quarter 2025 Earnings Results

HCI Group, Inc. (HCI) today announced its financial results for the most recent quarter, revealing a diluted earnings per share of $4.90, significantly surpassing analysts’ expectations of $2.81. This impressive performance marks a notable earnings beat of over 74%. However, the company reported quarterly revenue of $216.35 million, falling short of the estimated $223.53 million, resulting in a revenue miss of approximately $7.18 million.

Key Highlights:

• HCI Group reported pre-tax income of $90.6 million and net income of $67.9 million for Q3 2025, a significant increase from $14.1 million and $9.4 million in Q3 2024.
• Diluted earnings per share rose to $4.90 in Q3 2025, compared to $0.52 in the same quarter of the previous year.
• Gross premiums earned increased by 13.4% to $301.1 million, driven by a higher volume of policies in force.
• The gross loss ratio improved to 22.0% in Q3 2025 from 39.8% in Q3 2024, reflecting lower catastrophic event activity.
• Management highlighted the successful establishment of Exzeo as an independent, publicly traded entity.

In the third quarter of 2025, HCI Group, Inc. demonstrated robust financial performance, with pre-tax income soaring to $90.6 million and net income reaching $67.9 million, marking a substantial improvement from the previous year. The company attributed this growth to a 13.4% increase in gross premiums earned, totaling $301.1 million, which was driven by a higher volume of policies in force. The gross loss ratio also saw a significant decline, indicating reduced catastrophic claims and lower claim frequency on non-catastrophic claims.

Chairman and CEO Paresh Patel commented on the quarter’s success, stating, “This was another strong quarter, marked by solid profitability, industry-leading net combined ratios, and meaningful growth in book value per share.” He also emphasized the company’s strategic move to unlock shareholder value through the establishment of Exzeo as an independent entity, which was achieved shortly before the earnings release. This initiative is expected to further enhance the company’s growth trajectory and shareholder returns.

HCI Group, Inc. (HCI) has experienced a notable rollercoaster in its stock price, with a recent one-week decline of 3.46%, which may raise eyebrows among investors. However, looking at the broader picture, the stock has surged impressively over the past year, boasting a staggering 68.66% increase. This remarkable growth can be attributed to the company’s robust revenue growth, reflected in a two-year compound annual growth rate (CAGR) of 24.18%. Additionally, HCI’s return on invested capital stands at a healthy 14.34%, indicating efficient use of capital to generate profits. The company’s net profit margin of 16.71% further underscores its ability to convert revenue into actual profit, a critical metric for long-term sustainability. Despite the recent dip, the overall upward trend over the past six months (33.18%) and three months (39.79%) suggests that investor confidence remains strong. With a price-to-earnings ratio of 17.75, HCI appears to be reasonably valued, making it an intriguing option for those looking to capitalize on its growth potential.

HCI Group, Inc., together with its subsidiaries, engages in the property and casualty insurance, reinsurance, real estate, and information technology businesses in Florida. It provides residential insurance products, such as homeowners, fire, flood, and wind-only insurance to homeowners, condominium owners, and tenants for properties, as well as offers reinsurance programs. The company also owns and operates waterfront properties and retail shopping centers, and an office building, as well as commercial properties for investment purposes. In addition, it designs and develops web-based applications and products for mobile devices, including SAMS, an online policy administration platform; Harmony, a policy administration platform; ClaimColony, an end-to-end claims management platform; and AtlasViewer, a mapping and data visualization platform. The company was formerly known as Homeowners Choice, Inc. and changed its name to HCI Group, Inc. in May 2013. HCI Group, Inc. was incorporated in 2006 and is headquartered in Tampa, Florida.