HCI Group (HCI) Q1 2026 earnings summary

Executive summary

• Achieved record first quarter results for pre-tax income ($115 million), net income ($85 million), and diluted EPS ($5.45), driven by higher policy volume, investment income, and contributions from Exzeo and Griston.

• Total revenue increased over 12% year-over-year, with insurance operations as the primary business and expansion in technology (Exzeo) and real estate.

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

• Continued focus on optimizing the insurance book, expanding through policy assumptions, and maintaining a strong balance sheet.

Financial highlights

• Gross premiums earned grew to $326.2 million, up $25.8 million year-over-year, with net premiums earned at $222.2 million.

• Net income after noncontrolling interests was $73.4 million, up from $69.7 million year-over-year.

• Combined ratio remained at 57% for Q1 2026, with a gross loss ratio of 20.1% and gross expense ratio of 18.7%.

• 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 assets reached $2.61 billion.

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, with management anticipating continued strong operating results and value creation.

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

• Liquidity remains strong with $1.0 billion in cash and equivalents, and the reinsurance program and capital position are considered adequate to support future growth.