Exhibit 99.1

 

img19850711_0.jpg

 

HCI Group Reports Third Quarter 2026 Results

 

Third Quarter Pre-Tax Income of $116 million

Diluted EPS of $6.45

Gross Loss Ratio of 20.7%

 

Tampa, Fla. – November 4, 2026 – 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.

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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 www.hcigroup.com.

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 www.hcigroup.com 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 www.hcigroup.com. Exzeo’s common shares trade on the New York Stock Exchange under the ticker symbol “XZO.” For more information about Exzeo, visit www.exzeo.com.

 

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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

notis@hcigroup.com

 

Investor Relations Contact:

Matt Glover

Gateway Group, Inc.

Tel (949) 574-3860

HCI@gateway-grp.com

 

 

- Tables to follow -

3

 

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

 

4

 

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

 

 

5

 

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

 

 

6

 

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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