HCI Group Q3 Pretax Income Hits $116 Million

HCI Group Inc. (NYSE: HCI) reported third-quarter 2026 pre-tax income of $116 million and diluted earnings per share of $6.45, while book value reached $90.15 per share at September 30. The property insurer and diversified holding company also reported a year-to-date gross loss ratio of 21.0%, indicating favorable underwriting results despite its exposure to catastrophe-prone residential insurance markets.

Shareholders’ equity, excluding preferred stock, increased to $1.12 billion from $1.04 billion at the end of 2025. Book value per share rose from $80.13, while invested assets increased to $2.17 billion from $2.00 billion. HCI’s debt-to-capital ratio remained at 6%.

The company reported a trailing 12-month return on equity of 32% and a trailing three-year ROE of 36%. The longer-term figure includes the effects of Hurricanes Milton, Debby and Helene.

Insurance premiums decline from year-end

Premiums in force totaled $1.26 billion as of September 30, down from $1.36 billion at the end of 2025. HCI did not provide a specific explanation for the decline, but identified opportunistic policy additions, active risk and loss-cost management, and the deployment of excess capital into investments and growth initiatives as central operating priorities.

Homeowners Choice, which writes homeowners and condominium coverage primarily in Florida, accounted for $629 million of premiums in force. TypTap, HCI’s technology-driven insurer operating in 13 states, contributed $477 million. Florida reciprocal exchanges Tailrow Insurance Exchange and Condo Owners Reciprocal Exchange, or CORE, had $111 million and $44 million, respectively.

HCI said its insurance operations use the Exzeo technology platform to evaluate rate adequacy, support underwriting and manage claims. The presentation also cited Florida legislative reforms and cost controls as elements of its homeowners insurance model.

Investments and other businesses

HCI’s approximately $2.2 billion investment portfolio was allocated 57% to fixed income and 34% to cash and cash equivalents. Real estate and other investments represented 5%, equities 3% and limited partnerships 1%. The fixed-income portfolio had a duration of about 4.1 years as of September 30.

The company owns 75 million shares of Exzeo Group Inc. (NYSE: XZO), representing an approximately 83.6% interest when unvested restricted stock is included. Exzeo provides underwriting, data analytics and insurance-management technology, although the presentation did not disclose separate third-quarter financial results for the business.

HCI also operates reinsurance, real estate and claims-services businesses. Its Claddaugh reinsurance operation has generated $197 million of cumulative pre-tax income since its formation in 2008, excluding the effect of an intercompany stop-loss agreement. Fortex Reinsurance SPC was licensed in the Cayman Islands during 2026.

Greenleaf Capital’s Florida real estate portfolio carried an appraised value of $189 million and a book value of $122 million at September 30, based on appraisals obtained by Fifth Third Bank. The portfolio includes office, anchored retail and waterfront specialty-use properties, as well as projects under development.

HCI said it has returned $553 million to shareholders since inception, comprising $349 million of share repurchases and $204 million of dividends. Its annual dividend is $1.60 per share.

The presentation highlighted catastrophe exposure as an important source of volatility, noting the historical effects of Hurricanes Ian, Milton, Debby and Helene on underwriting results. HCI’s forward-looking plans also remain subject to insurance, reinsurance, investment and other risks described in its regulatory filings.