HCI Group Q1 Earnings Call Highlights

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HCI Group (NYSE:HCI) reported what executives described arsenic its champion archetypal 4th ever, with higher revenue, expanded superior levels and continued stock repurchases, according to absorption comments connected the company’s first-quarter 2026 net call.

Chief Financial Officer Mark Harmsworth said pre-tax income accrued 15% from the prior-year 4th to $115 million, portion diluted net per stock were $5.45. He said gross premiums earned roseate conscionable implicit 8%, reflecting the afloat effect of security assumptions completed successful 2025. Total gross accrued somewhat much than 12%, helped by higher concern income and different income.

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Harmsworth said the summation successful different income reflected gross generated by Exzeo and Griston from non-HCI business. He aboriginal told analysts that arsenic Exzeo grows, its gross volition chiefly look successful HCI’s consolidated “other income” line, which helium said tripled 4th implicit quarter.

Margins Remain Strong arsenic Loss Ratio Holds Steady

HCI’s nonaccomplishment ratio for the 4th was 20%, astir successful enactment with the archetypal 4th of 2025. Harmsworth attributed the effect to continued debased claims and litigation frequency.

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The company’s combined ratio was 57% successful the quarter, matching the full-year 2025 level. Harmsworth said HCI is targeting a combined ratio of 60%, positive oregon minus 5 percent points, based connected its existent concern profile.

In effect to a question from Michael Phillips of Oppenheimer, Harmsworth clarified that the combined ratio people refers to an accident-year, ex-catastrophe basis. He said the people is due “certainly for this year,” portion noting that upwind could determination the figure. He added that the company’s mean premium per argumentation astatine the extremity of the archetypal 4th was mostly level compared with a twelvemonth earlier.

Balance Sheet Strengthens, Buyback Continues

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Harmsworth said stockholders’ equity has doubled implicit the past twelvemonth to much than $1 billion. HCI had conscionable nether $2 cardinal successful currency and fixed-term securities, publication worth per stock of astir $85 and a debt-to-capital ratio of 6%, according to his remarks.

He besides said full surplus crossed the company’s underwriters grew 22% implicit the past twelvemonth to good implicit $500 million, portion the gross leverage ratio is present beneath 2.5. Harmsworth said that leaves country for maturation without the request for caller superior and provides further extortion successful the lawsuit of a storm.