HCI Group (HCI) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $244.9M vs. $216.4M; pre-tax income was $116.3M vs. $90.6M, net income after noncontrolling interests was $83.5M vs. $65.5M, and diluted EPS was $6.45 vs. $4.90.

• Gross premiums earned rose 5% to $316.1M; higher policy volume, investment income, lower reinsurance costs and operating leverage supported results.

• Premiums in force reached $1.26B and book value per share was $90.15 at September 30, 2026.

Financial highlights

• Nine-month revenue was $734.4M vs. $654.7M; pre-tax income was $342.7M vs. $285.3M, net income after noncontrolling interests was $230.7M vs. $201.4M, and diluted EPS was $17.48 vs. $15.47.

• Q3 net premiums earned rose to $219.1M from $195.0M; net investment income increased to $21.7M from $17.5M. Nine-month figures were $660.3M vs. $595.8M and $57.9M vs. $47.7M, respectively.

• Nine-month gross premiums earned rose 7% to $963.1M; gross written premiums increased 12% YoY, supported by CORE residential growth.

• Operating cash flow for 9M was $348.8M vs. $333.7M; cash and cash equivalents were $743.5M at September 30, 2026.

• Invested assets totaled $2.2B; fixed-income duration was 4.1 years at September 30, 2026.

Outlook and guidance

• 2027 priorities included stable business levels, EPS leverage from a lower share count and continued investment income; organic policy growth was expected, with year-end timing uncertain.

• Expected loss ratio remained 20%-25%; the 9M 2026 gross loss ratio was 21%, matching 9M 2025 and at the low end of the range.

• Operating expenses were largely flat over six to eight quarters; management cited a 60%-65% combined-ratio expectation and a Q3 result in the high 50s.

• Residential insurance rates were expected to ease somewhat in 2027; tokenized reinsurance was being tested through a full cycle, with a potential event at the June 1 renewal.