HCI Group (HCI) Q1 2025 earnings summary

Executive summary

• Gross earned premiums grew 17% year-over-year in Q1 2025 to $300.4M, with pre-tax net income exceeding $100M and diluted EPS of $5.35, up from $3.81 last year.

• Net income for Q1 2025 was $74.2M, up from $57.0M in Q1 2024, and net income after noncontrolling interests rose to $69.7M from $47.6M.

• Net combined ratio improved to 56% from 67% in Q1 2024, reflecting strong underwriting and operational leverage.

• Hale-Roe Reciprocal Exchange began operations, assuming 14,000 policies and $35M in premium.

• Board declared a $0.40/share dividend payable June 20, 2025, unchanged year-over-year.

Financial highlights

• Net premiums earned grew to $200.7M from $188.5M year-over-year.

• Gross loss ratio dropped to 19.7% from 31.1% last year, due to low claim frequency and favorable weather.

• Book value per share rose to $48.55 at Q1 2025, up from $38.50 at Q1 2024.

• Holding company liquidity exceeded $250M at quarter-end; cash and cash equivalents increased to $754.5M.

• Total assets reached $2.31B at March 31, 2025, up from $2.23B at year-end 2024.

Outlook and guidance

• Exzeo spinoff planned for completion by year-end, pending regulatory and IRS approvals.

• Expectation to complete convertible note conversion in Q2, further strengthening the balance sheet.

• Projected shareholder equity near $750M and book value per share close to $60 by end of Q2.

• Management expects continued growth in premiums from Citizens policy assumptions and ongoing focus on underwriting profitability.

• Liquidity remains strong, with sufficient resources to meet claims, reinsurance, and investment needs.