HCI

On August 6, HCI Group (NYSE:HCI) reported a second quarter that kept the momentum from earlier in the year rolling. Pre-tax income climbed to $111 million from $94 million a year earlier, and diluted earnings per share rose to $5.60 from $5.18. The Tampa-based insurer is proving that last year's strong run was not a one-off, even as some of the numbers underneath the headline tell a more complicated story. Gross premiums earned rose 6% to $321 million in the quarter, and the company said the increase came from writing more policies rather than raising the average premium per policy. That pattern held for the first half too, with premiums earned up 7% to $647 million. At the same time, the cost of laying off risk to reinsurers actually fell in the quarter, to $102 million from $103 million a year earlier, thanks to new catastrophe reinsurance programs that took effect June 1. Growing the business while paying less to protect it is the kind of combination that shows up directly in the bottom line, and it did: net income after noncontrolling interests reached $74 million in the quarter, up from $66 million. HCI Group also moved fast on its own stock. The company launched an $80 million repurchase program on March 3, with authorization to run through February 27, 2027, and had already used the entire amount by July 17, buying back 504,330 shares. Book value per share jumped to $86.60 at the end of June from $58.55 a year earlier, and shares outstanding fell to about 12.47 million from nearly 13 million. Debt costs eased too: interest expense for the first half dropped to $2.0 million from $7.1 million, while the Exzeo insurance technology platform kept adding new carrier customers, pushing other revenue up to $8 million for the six months from $3 million. Not every line moved in HCI Group's favor. The gross loss and loss adjustment expense ratio ticked up to 22.2% in the quarter from 21.3% a year earlier, and losses and loss adjustment expenses grew faster than premiums, reaching $71 million versus $64 million. G&A personnel expenses rose to $24 million from $20 million, which the company attributed to additional headcount, annual merit increases and stock-based compensation. Those are the kind of costs that tend to stick around even if premium growth cools. A less obvious wrinkle sits in how that profit gets divided up. Net income attributable to noncontrolling interests jumped to $20.7 million for the first half from $8.7 million a year earlier, growing far faster than net income itself. That shift was large enough that basic earnings per share for the six months actually fell, to $11.39 from $12.00, even though net income after noncontrolling interests rose. Cash on the balance sheet also thinned out, dropping to $872 million at the end of June from $1.21 billion at the start of the year, as the company shifted money into investments and stock buybacks. And with operations concentrated across 13 states, HCI Group's results still hinge heavily on how hurricane season plays out in the markets it serves. The number of hedge funds holding HCI Group fell to 27 in the most recent quarter from 31 in the prior one. That decline suggests some institutional money has been trimming its position. Shares carry a short interest of 4.71% of the float, which points to modest but real skepticism rather than a crowded bearish bet. The stock trades at a forward price-to-earnings ratio of 9.51 as of September 2, a multiple that assumes little in the way of continued growth. That gap is the tension investors are weighing. HCI Group closed the first half of 2026 with pre-tax income growing to $226 million from $195 million and a buyback completed months ahead of schedule, evidence that the underlying insurance business is throwing off real cash. But the widening gap between net income and noncontrolling interest allocations, plus a loss ratio that crept higher, shows the growth is not landing evenly for every shareholder. Continued policy growth under the cheaper reinsurance program that started in June would keep that cash flow building. While we acknowledge the potential of HCI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Future Stocks to Buy Under $10 and 12 Best Performing Semiconductor Stocks to Invest In. Disclosure: None. Follow Insider Monkey on Google News.

Universal Insurance Holdings, Inc. UVE is benefiting from stronger underwriting, premium growth and an improving Florida insurance environment. The company’s strategy is increasingly focused on growing profitably, while expansion outside Florida is helping diversify its risk profile. UVE’s top-line momentum remained healthy. In the second quarter of 2026, direct premiums written increased 4.1% year over year to $621.3 million, supported by higher policies in force, disciplined pricing and geographic diversification. Growth outside Florida was particularly strong, with premiums increasing 14.4%, compared with 0.8% growth in Florida in the second quarter. This expansion could help reduce catastrophe concentration while supporting longer-term premium growth. Florida’s legislative reforms remain an important driver of underwriting improvement. Lower litigation frequency and severity helped UVE’s net loss ratio improve 750 basis points to 64.8% in the second quarter. As a result, the net combined ratio improved 620 basis points to 91.6%, pointing to stronger underwriting profitability.Reinsurance is another important part of the strategy. UVE’s 2026-27 renewal benefited from more favorable rates and includes $352 million of multi-year coverage, providing greater protection against catastrophe losses and reducing renewal uncertainty. Catastrophe risk remains the biggest challenge, particularly given UVE’s Florida exposure. Verisk’s latest 2026 report estimates global economic losses from natural catastrophes at more than $450 billion annually, while global modeled insured property catastrophe losses are estimated at $171 billion. However, geographic diversification, stronger reinsurance protection, premium growth and underwriting discipline could help UVE manage catastrophe exposure while supporting profitable growth. Among UVE’s peers, Mercury General MCY is also seeing strong premium growth and improving underwriting. In the second quarter, net premiums earned increased 9.6%, while the combined ratio improved 260 basis points to 89.9%. Direct premiums written rose 9.3%, supported by growth in its core auto and homeowner businesses. Meanwhile, HCI Group HCI remains more focused on Florida homeowner insurance, making its premium growth and underwriting performance. HCI Group's expansion beyond Florida also supports diversification as insurers look to manage catastrophe exposure. Shares of Universal Insurance Holdings have rallied 76.2% in the past year, outperforming the industry’s growth of 1.6%. Image Source: Zacks Investment Research UVE’s shares are trading at a premium compared with the industry. Its trailing 12-month price-to-book value of 1.88X is higher than the industry average of 1.42X. However, it currently carries a Value Score of A. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Universal Insurance’s 2026 revenues are pegged at $1.60 billion, indicating a year-over-year decrease of 0.5%. The consensus estimate for UVE’s 2026 earnings per share (EPS) indicates a year-over-year decrease of 21.8%. The consensus estimates for 2027 revenues and EPS indicate an increase of 1.5% and 2.1%, respectively, from the corresponding 2026 estimates. Thus, the Zacks Consensus Estimate for 2026 and 2027 earnings have remained unchanged, respectively, over the past 30 days. Image Source: Zacks Investment Research UVE stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report UNIVERSAL INSURANCE HOLDINGS INC (UVE) : Free Stock Analysis Report HCI Group, Inc. (HCI) : Free Stock Analysis Report Mercury General Corporation (MCY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

HCI Group (HCI) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving. Analysts' growing optimism on the earnings prospects of this property and casualty insurance holding company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. Consensus earnings estimates for the next quarter and full year have moved considerably higher for HCI Group, as there has been strong agreement among the covering analysts in raising estimates. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: For the current quarter, the company is expected to earn $2.66 per share, which is a change of -45.7% from the year-ago reported number. Over the last 30 days, the Zacks Consensus Estimate for HCI Group has increased 19.06% because two estimates have moved higher compared to no negative revisions. The company is expected to earn $19.47 per share for the full year, which represents a change of -14.3% from the prior-year number. In terms of estimate revisions, the trend for the current year also appears quite encouraging for HCI Group. Over the past month, four estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 6.44%. The promising estimate revisions have helped HCI Group earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Investors have been betting on HCI Group because of its solid estimate revisions, as evident from the stock's 5.3% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report HCI Group, Inc. (HCI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. HCI Group (HCI) is back on investors’ radar after updating its buyback program in early August, alongside fresh second quarter 2026 results that included revenue, net income and earnings per share figures. See our latest analysis for HCI Group. HCI Group’s recent buyback activity and second quarter 2026 earnings sit against a share price that has eased over the past week, yet still shows a 30 day share price return of 3.58% and a 1 year total shareholder return of 18.92%, with multi year total shareholder returns that have been very large. Recent gains over 90 days suggest momentum has been building even as short term moves stay choppy around the latest results and capital management decisions. If you are comparing HCI Group with other insurers and financials, it can also be useful to broaden your watchlist with companies that rely on strong leadership teams and aligned incentives, including 21 top founder-led companies After that buyback spree, a firm second quarter and a share price near US$184, the question now is simple: Does HCI Group still offer an appealing balance of risk and reward at this level, once valuation is unpacked next? HCI Group’s fair value in the most widely followed narrative sits at $245 per share, compared with the latest close near $184. This sets up a meaningful gap between where the narrative says value lies and where the market is currently pricing the stock. Read the complete narrative. Want to see what sits behind that confidence in HCI Group’s Exzeo platform and margin profile? The key is how revenue, earnings and valuation multiples are wired together in this fair value framework. The narrative sets a clear path for premium growth and profitability, then layers on a higher future earnings multiple. Curious which assumptions really move the $245 figure and how much depends on buybacks versus core underwriting. Result: Fair Value of $245 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, HCI Group’s heavy Florida exposure and rising reinsurance costs could pressure margins and earnings, especially if Citizens depopulation and catastrophe trends move against the current narrative. Find out about the key risks to this HCI Group narrative. With HCI Group pulling strong opinions in both directions, it helps to look past the headlines and focus on the underlying data yourself. To see how risks and potential rewards compare side by side, start with the 4 key rewards and 1 important warning sign If you stop with HCI Group, you miss other opportunities that may suit your goals just as well. Broaden your search and let the data work for you. Target potential mispricings by scanning 52 high quality undervalued stocks that combine quality fundamentals with market skepticism. Strengthen your income focus by reviewing 10 dividend fortresses that pair higher yields with disciplined payout profiles. Dial down portfolio stress by assessing 80 resilient stocks with low risk scores that carry more resilient risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include HCI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

HCI Group, Inc. recently reported past second-quarter 2026 results showing revenue of US$246.65 million and net income of US$73.8 million, alongside completing a US$80.00 million buyback of 504,330 shares, or 3.91% of its share base, under a repurchase program announced in March 2026. The combination of higher quarterly earnings per share and meaningful share repurchases signals management’s confidence in the company’s financial position and its willingness to return capital to shareholders. We’ll now explore how HCI Group’s stronger second-quarter earnings and completed US$80.00 million buyback could influence its existing investment narrative. The future of work is here. Discover the 37 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. To own HCI Group, you need to believe its focus on tech-enabled underwriting can still create value even as Florida exposure and reinsurance costs remain key swing factors. The stronger second-quarter numbers and completion of the US$80.00 million buyback appear supportive of the near term earnings story, but they do not materially change the main short term catalyst, which remains progress on diversifying risk beyond Florida, or the biggest risk around catastrophe losses and reinsurance pricing. The latest quarterly earnings release is most relevant here, as it frames the buyback against a backdrop of higher revenue and net income year on year. Together, the earnings momentum and capital returns keep attention on whether HCI can sustain attractive profitability while gradually reducing its dependence on Florida homeowners risk and the Citizens depopulation channel over time. Yet investors should also be aware that rising reinsurance costs could eventually pressure margins and returns if catastrophe experience turns less favorable... Read the full narrative on HCI Group (it's free!) HCI Group's narrative projects $1.1 billion revenue and $197.3 million earnings by 2029. Uncover how HCI Group's forecasts yield a $245.00 fair value, a 33% upside to its current price. Three members of the Simply Wall St Community value HCI between US$241.67 and US$876.53 per share, highlighting very different expectations. As you weigh these views, remember that HCI’s heavy Florida concentration and exposure to severe weather could have broad implications for its long term earnings stability and capital needs. Explore 3 other fair value estimates on HCI Group - why the stock might be worth over 4x more than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your HCI Group research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision. Our free HCI Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate HCI Group's overall financial health at a glance. Every day counts. These free picks are already gaining attention. See them before the crowd does: Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 28 best rare earth metal stocks of the very few that mine this essential strategic resource. Find 52 companies with promising cash flow potential yet trading below their fair value. We've uncovered the 10 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include HCI. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in HCI Group, Inc.? Here are five stocks we like better. Strong second-quarter results: HCI Group’s pre-tax income rose 18% year over year to more than $110 million, while diluted EPS increased to $5.60. Revenue grew 11%, supported by policy growth and higher Exzeo services revenue. Solid underwriting and financial position: The company reported a 22% loss ratio and a 61% combined ratio, both within its target ranges. HCI ended the quarter with more than $2 billion in cash and investments, equity above $1 billion, and debt-to-capital below 6%. Growth initiatives are expanding: HCI completed an $80 million share repurchase, shifted CORE toward residential policies, and secured reinsurance savings of more than $10 million per quarter. A new GEICO distribution relationship is expected to contribute beginning in the third quarter. Interest rates propel insurers' earnings to new highs HCI Group (NYSE:HCI) reported higher second-quarter earnings and revenue as policy growth, service revenue and underwriting performance supported results despite what management described as a softening insurance market. Chief Financial Officer Mark Harmsworth said pre-tax income exceeded $110 million in the second quarter, up 18% from the prior-year period. Diluted earnings per share rose to $5.60 from $5.18 a year earlier. For the first six months of 2026, pre-tax income reached $226 million, a 16% increase from the first half of 2025, while year-to-date diluted EPS was $11.05. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling 5 Undervalued Stocks To Secure Your High Yield Portfolio Gross premiums earned increased 6% from the second quarter of 2025, driven by policy growth, while average premium per policy was flat, Harmsworth said. Total revenue rose 11%, reflecting premium growth and increased services revenue from new clients at Exzeo. HCI recorded a 22% loss ratio during the quarter, slightly above the first-quarter level but within the company’s stated 20% to 25% target range. Its combined ratio was 61%, within management’s 60% to 65% range absent catastrophe activity. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Harmsworth said the company ended the quarter with more than $2 billion in cash and investments, stockholders’ equity above $1 billion, and a debt-to-capital ratio below 6%. Book value per share was $86.60. Management also said that book value does not include unrealized gains associated with its Exzeo ownership or real estate portfolio. Adding the fair value of those assets would put pro forma book value per share above $150, according to Harmsworth. → No Hangover: Revisiting Microsoft One Week After Earnings Over the past 36 months, HCI generated an after-tax return on equity of 35%, a period that included Hurricanes Milton and Helene, Harmsworth said. The company completed the $80 million share repurchase plan it announced in March. HCI repurchased 504,000 shares, representing about 4% of its outstanding shares, management said. Harmsworth said approximately $75 million of the authorization had been used by the end of the second quarter, with the remainder completed during the first week of July. HCI does not currently have an active repurchase authorization, though Harmsworth said management continues to view the stock as an attractive investment. Holding-company liquidity stood at just over $160 million, excluding the company’s 75 million shares of publicly traded Exzeo, Harmsworth said. Chief Operating Officer Karin Coleman said HCI has maintained retention rates above 90% by prioritizing its existing policyholders and maintaining consistency in pricing and coverage. She said the company does not sharply raise rates during harder market conditions and then seek to reduce them during softer periods. Coleman also pointed to HCI’s continued broad water-damage coverage, contrasting the company’s approach with insurers that cap each water-damage event at $10,000. Management said such restrictions may support near-term profitability but could hinder long-term customer retention. During the second quarter, HCI shifted its Condo Owners Reciprocal Exchange, or CORE, from commercial business toward the residential market. Coleman said CORE’s new HO-3 residential product generated about $6 million in voluntary new business per month over the past several months. CEO and Chairman Paresh Patel said the commercial business at CORE had been shrinking as that market softened, and the company chose not to pursue market share by reducing rates. He described CORE’s move into residential business as a successful pivot, noting that the insurer had not written an HO-3 policy before March. Management said it remains focused on Florida and is also interested in California, although Patel said timing and the longer-term rate environment will be important to any decision to enter that market. HCI completed its catastrophe reinsurance programs for the 2026-2027 treaty year, purchasing more and better coverage while reducing ceded premiums by more than 10%, Coleman said. Management said the reduction equates to savings of more than $10 million per quarter. Harmsworth told analysts that ceded premiums are expected to be about $96 million in the third quarter. Patel said the company expects the impact of the new reinsurance program to be incorporated into a future rate filing, likely late this year, following actuarial review. The company also established Fortex Re, its second reinsurer, and used it in the new reinsurance programs. In June, HCI completed three digital token offerings designed to mirror portions of Fortex Re’s excess-of-loss programs. Patel said the tokenized reinsurance effort is currently immaterial to HCI’s financial results, but management sees potential for it to create another avenue for obtaining catastrophe reinsurance alongside traditional reinsurance markets and catastrophe bonds. Separately, Patel said GEICO began distributing HCI’s new product in July. The relationship was not reflected in second-quarter results and is expected to begin contributing in the third quarter. Management said the new distribution arrangement, CORE’s residential growth and internal technology capabilities could support organic policy growth by the end of 2026, without relying on Citizens assumptions, acquisitions or entry into new markets. HCI Group, Inc (NYSE: HCI) is a holding company whose principal business is the underwriting and issuance of property and casualty insurance through its insurance subsidiaries. Headquartered in Jacksonville, Florida, the company focuses primarily on personal-line insurance products, writing homeowners, condominium, renters and mobile home policies. HCI Group also offers wind-only and flood coverage in coastal regions across the state, providing tailored solutions to both coastal and non-coastal communities. The company distributes its insurance products through a network of independent agents and brokers, leveraging local market expertise to assess risk and deliver personalized service. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "HCI Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. HCI Group Inc (NYSE:HCI) delivered another strong quarter with pre-tax income of over $110 million, up 18% year-over-year, and diluted EPS of $5.60, up from $5.18 in the prior year quarter. The company's loss ratio of 22% and combined ratio of 61% remain well within the targeted ranges of 20-25% and 60-65%, respectively, despite a softening market. HCI Group Inc (NYSE:HCI) completed its $80 million share buyback program, repurchasing 504,000 shares (about 4% of outstanding shares), reflecting confidence in the stock's value. The company successfully reduced its reinsurance costs by over 10%, saving more than $10 million per quarter, while simultaneously purchasing more and better coverage for the 2026-2027 treaty year. HCI Group Inc (NYSE:HCI) signed a new distribution agreement with GEICO in July to sell its new product, which has already started generating policies and is expected to contribute to growth in the third quarter. The company's new residential product through its Core reciprocal exchange has seen significant month-over-month growth, averaging about $6 million per month in new business, and recently had one of its best weeks for new voluntary business. HCI Group Inc (NYSE:HCI) maintains a strong balance sheet with over $2 billion in cash and investments, book value per share of $86.60, and a debt-to-capital ratio of less than 6%. The company's after-tax return on equity over the last 36 months has been 35%, a compelling return that includes periods with major hurricanes, yet it trades at less than 1.2 times adjusted book value. The company noted that market conditions are far more challenging due to a softening cycle, with increased competition and pressure on rates. Average premium per policy remained flat in the quarter, indicating limited pricing power in the current environment. HCI Group Inc (NYSE:HCI) has no active share repurchase authorization in place after completing its $80 million program, leaving uncertainty about future buyback activity. The company's reinsurance savings will not immediately impact rates, as it will take time to incorporate the new reinsurance costs into future rate filings, likely late this year. The tokenized reinsurance pilot project is currently non-material to financial results, and its long-term success remains uncertain as it is still in early stages. The company's growth in gross premiums written was partly driven by renewals from a prior takeout, which may not represent sustainable organic growth momentum. HCI Group Inc (NYSE:HCI) remains cautious about expanding into new states like California, citing timing and rate environment challenges, which could limit future growth opportunities. Warning! GuruFocus has detected 2 Warning Sign with HCI. Is HCI fairly valued? Test your thesis with our free DCF calculator. Q: What were the key financial highlights for the second quarter of 2026? A: Mark Harmsworth, CFO, reported pre-tax income of over $110 million, up 18% year-over-year, with diluted EPS of $5.60, up from $5.18 in Q2 2025. Gross premiums earned grew 6%, and the combined ratio was 61%, within the 60-65% target range. Book value per share reached $86.60, and pro forma book value, including Exxio and real estate, would exceed $150 per share. Q: How is HCI navigating the softening insurance market, and what is the strategy for growth? A: Karen, a senior executive, emphasized two key rules: preserving the current book by maintaining retention rates above 90% through consistent pricing and comprehensive coverage, and being opportunistic. The company pivoted its Core reciprocal exchange from commercial to residential business, which has generated significant month-over-month growth, averaging $6 million per month in new HO3 policies. They also signed a distribution agreement with GEICO in July, which is expected to contribute to organic policy growth in the second half of 2026. Q: What is the status of the company's reinsurance programs for 2026-2027, and how does it impact expenses? A: Karen stated that HCI completed its catastrophe reinsurance programs for the 2026-2027 treaty year, purchasing more and better coverage while reducing ceded premiums by over 10%, translating to more than $10 million in savings per quarter. This was achieved partly through the creation of a second reinsurer, Vortex Re, which was used in the new programs. Q: Can you provide details on the digital tokenized reinsurance security pilot project? A: Parrish, CEO, explained that the pilot project, announced in mid-June, involves three token offerings mirroring parts of Vortex Re's excess-of-loss programs. The offerings were completed by June 30. While non-material in the short term, the long-term goal is to create a new asset class for catastrophe reinsurance, opening a third avenue for securing reinsurance beyond traditional markets and catastrophe bonds, potentially revolutionizing the industry. Q: What is the outlook for the company's share repurchase program? A: Mark Harmsworth, CFO, confirmed that the $80 million buyback authorization, announced in March, was fully utilized by early July, repurchasing 504,000 shares, about 4% of outstanding shares. While there is no active authorization currently, management still views the stock as a great investment given the 35% after-tax return on equity and the stock trading at less than 1.2 times adjusted book value. Q: How are HCI's rates trending in the current market, and what is the impact of the new reinsurance agreement on future pricing? A: Mark Harmsworth, CFO, noted that HCI's rates have remained stable, as the company did not chase rates up during the hard market. The new reinsurance agreement will be incorporated into the next rate filing, likely late this year, but no early estimates were provided. The company focuses on rate adequacy both now and in the future, rather than dramatic adjustments. Q: What drove the significant increase in gross premiums written in the second quarter? A: Mark Harmsworth, CFO, attributed the increase to new business and the renewal of policies from the takeout in Q4 2025, which came up for renewal and were written in Q2. This was the biggest piece of the growth, along with some new business. Q: How significant is the GEICO relationship, and what is the potential for bundling home and auto insurance? A: Parrish, CEO, stated it is early days, but the GEICO relationship accelerates the growth potential of the new product. He noted industry press about bundling home and auto, and HCI's Core home product combined with GEICO auto could find traction. The company will provide updates as the relationship develops. Q: What is the company's view on the Florida primary market and its focus on growth there? A: Karen clarified that HCI's rates are stable, not necessarily the industry's. While some competitors are reducing rates, HCI's consistency in pricing and policy language has been successful. The company remains focused on Florida, its core market, and is interested in California, but timing and the longer-term rate environment will be crucial for any entry decision. Q: How does management evaluate the current quarter's performance and the company's momentum over the next year? A: Parrish, CEO, characterized the quarter as the sixth consecutive with over $100 million in pre-tax income, with strong ROE. The strategy is to maintain the status quo, which is highly accumulative, while actively pivoting to new opportunities like the Core residential business. The company is also exploring tokenized reinsurance and California entry, but the focus remains on extending the current runway and positioning for long-term growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Second Quarter Pre-Tax Income of $111 millionDiluted EPS of $5.60Gross Loss Ratio of 22% TAMPA, Fla., Aug. 06, 2026 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE:HCI), reported pre-tax income of $111 million and net income of $83 million in the second quarter of 2026 compared with pre-tax income of $94 million and net income of $70 million in the second quarter of 2025. Net income after noncontrolling interests in the second quarter of 2026 was $74 million compared with $66 million in the second quarter of 2025. Diluted earnings per share were $5.60 in the second quarter of 2026 compared with $5.18 diluted earnings per share in the second quarter of 2025. Management Commentary“HCI Group capped a strong start to the year delivering record second quarter financial results for the first half of 2026,” said HCI Group Chairman and Chief Executive Officer Paresh Patel. “Our focus continues to be on achieving exceptional performance in all types of operating environments.” Second Quarter 2026 ResultsGross premiums earned in the second quarter of 2026 were $321 million compared with $303 million in the second quarter of 2025. The increase of 6% 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 second quarter of 2026 were $102 million compared with $103 million in the second quarter of 2025. The decrease was a result of the lower costs associated with the company’s new 2026-2027 catastrophe reinsurance programs, which began on June 1, 2026. Net investment income in the second quarter of 2026 was $19 million compared with $16 million in the second quarter of 2025. The increase was driven by growth in invested assets. Other revenue in the second quarter of 2026 was $5 million compared with $3 million in the second quarter of 2025. The increase was primarily driven by the addition of new insurance carrier customers to Exzeo's insurance technology platform. Losses and loss adjustment expenses in the second quarter of 2026 were $71 million compared with $64 million in the second quarter of 2025. The increase was driven largely by a higher volume of policies in force. The gross loss and loss adjustment expense ratio for the second quarter of 2026 was 22.2%. Policy acquisition and other underwriting expenses in the second quarter of 2026 were $32 million compared with $31 million in the second quarter of 2025. The increase was driven by a greater amount of premiums in force. General and administrative personnel expenses in the second quarter of 2026 were $24 million compared with $20 million in the second quarter of 2025. The increase was driven by additional personnel, annual merit increases, and stock-based compensation. Six Months Ended June 30, 2026 ResultsFor the six months ended June 30, 2026, HCI Group reported pre-tax income of $226 million and net income of $168 million compared with pre-tax income of $195 million and net income of $145 million for the six months ended June 30, 2025. Net income after noncontrolling interests was $147 million compared with $136 million for the six months ended June 30, 2025. Diluted earnings per share were $11.05 for the six months ended June 30, 2026, compared with $10.57 for the six months ended June 30, 2025. Gross premiums earned for the six months ended June 30, 2026 were $647 million compared with $603 million for the six months ended June 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. Premiums ceded for reinsurance for the six months ended June 30, 2026 were $206 million compared with $202 million for the six months ended June 30, 2025. The increase was a result of a higher number of policies in force and partially offset by the company’s new 2026-2027 catastrophe reinsurance programs, which started on June 1, 2026. Net investment income for the six months ended June 30, 2026 was $36 million compared with $30 million for the six months ended June 30, 2025. The increase was driven by growth in invested assets. Other revenue for the six months ended June 30, 2026 was $8 million compared with $3 million for the six months ended June 30, 2025. The increase was primarily driven by the addition of new insurance carrier customers to Exzeo's insurance technology platform. Losses and loss adjustment expenses for the six months ended June 30, 2026 were $137 million compared with $124 million for the six months ended June 30, 2025. The increase was largely driven by a higher volume of policies in force. The gross loss and loss adjustment expense ratio for the six months ended June 30, 2026 was 21.1%. Policy acquisition and other underwriting expenses for the six months ended June 30, 2026 were $64 million compared with $58 million for the six months ended June 30, 2025. The increase was driven by a greater amount of premiums in force. General and administrative personnel expenses for the six months ended June 30, 2026 were $46 million compared with $40 million for the six months ended June 30, 2025. The increase was driven by additional personnel, annual merit increases, and stock-based compensation.Share RepurchaseOn 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 second quarter of 2026, HCI Group repurchased 363,538 shares for $57.0 million. During the first six months of 2026, HCI Group repurchased 473,609 shares for $74.5 million. The share repurchase program was completed on July 17, 2026, with a total of 504,330 shares repurchased for $80.0 million. Conference CallHCI Group will hold a conference call later today, August 6, 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. Toll-free number: (888) 506-0062International number: (973) 528-0011Entry Code: 202996Webcast 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 August 20, 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 August 6, 2027. Toll-free replay number: (877) 481-4010International replay number: (919) 882-2331 Replay ID: 54257 About HCI Group, Inc.HCI Group, Inc. is a diversified holding company engaged in insurance, reinsurance, real estate, claims services, and insurance technology. The HCI Group portfolio of companies includes multiple property and casualty underwriters and exchanges, two captive reinsurers, a claims management business, a commercial real estate investment company and a leading insurance technology company, Exzeo Group. HCI Group was founded in 2006 and operates in 13 states. 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. Forward-Looking StatementsThis 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 OtisInvestor RelationsHCI Group, Inc.Tel (813) [email protected] Investor Relations Contact:Matt GloverGateway Group, Inc.Tel (949) [email protected] HCI GROUP, INC. AND SUBSIDIARIESEarnings 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:

HCI Group (HCI) came out with quarterly earnings of $5.6 per share, beating the Zacks Consensus Estimate of $4.97 per share. This compares to earnings of $5.18 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +12.68%. A quarter ago, it was expected that this property and casualty insurance holding company would post earnings of $5.13 per share when it actually produced earnings of $5.45, delivering a surprise of +6.24%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. HCI Group, which belongs to the Zacks Insurance - Property and Casualty industry, posted revenues of $246.65 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.49%. This compares to year-ago revenues of $221.92 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. HCI Group shares have lost about 6.9% since the beginning of the year versus the S&P 500's gain of 12.8%. While HCI Group has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for HCI Group was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.23 on $245.87 million in revenues for the coming quarter and $18.29 on $968.42 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Property and Casualty is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Berkshire Hathaway B (BRK.B), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $5.24 per share in its upcoming report, which represents a year-over-year change of +1.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Berkshire Hathaway B's revenues are expected to be $95.3 billion, up 3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report HCI Group, Inc. (HCI) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research