HCI Group (HCI) investor relations material

Executive summary

• Pre-tax income rose 15% year-over-year to $115 million, with diluted EPS at $5.45, marking the best first quarter in company history.

• Total revenue increased over 12% year-over-year, driven by higher investment and other income, including contributions from Exzeo and Griston.

• Gross premiums earned grew by just over 8% year-over-year to $326 million, reflecting the impact of 2025 assumptions.

• All four insurance carriers are now profitable since inception, with recent takeouts strengthening Tailrow's position.

• Achieved record first quarter results for earned premiums, net income, and EPS, with a focus on continued share repurchases and balance sheet strengthening.

Financial highlights

• Combined ratio remained at 57% for Q1 2026, consistent with full year 2025, indicating strong underwriting and operational efficiency.

• Loss ratio held steady at 20% year-over-year, reflecting low claims and litigation frequency.

• Book value per share reached nearly $85; pro forma book value per share would be almost $145 including unrealized gains from Exzeo and real estate.

• Stockholder equity doubled year-over-year to over $1 billion; total surplus grew 22% to over $500 million.

• Net investment income reached $17 million, up from $14 million year-over-year.

Outlook and guidance

• Combined ratio target set at 60% ±5%, expected to remain stable barring significant weather events.

• Premiums are expected to remain stable across all carriers in the near term.

• Management anticipates continued strong operating results and value creation, with readiness to deploy capital when market opportunities arise.

• Management plans to continue using earnings for share buybacks and to strengthen the balance sheet in preparation for future opportunities.