HCI Group (HCI) Q1 2026 earnings summary

Executive summary

• Pre-tax income reached $115 million for Q1 2026, with diluted EPS at $5.45, marking record results and the best first quarter in company history.

• Total revenue and net income grew year-over-year, driven by higher policy volume, investment income, and contributions from Exzeo and Griston.

• Diversified operations span insurance, reinsurance, real estate, claims services, and insurance technology, emphasizing technology-driven growth and disciplined capital allocation.

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

• 62 consecutive quarters of dividends and $480 million capital returned to shareholders since inception.

Financial highlights

• Gross premiums earned rose to $326.2 million, up $25.8 million year-over-year; net premiums earned increased to $222.2 million.

• Combined ratio remained at 57% for Q1 2026, with a gross loss ratio of 20.1% and a net combined ratio of 56.9%, reflecting strong underwriting and operational efficiency.

• Book value per share reached $84.41 as of March 31, 2026; 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.

• Debt-to-capital ratio stands at 6%, with total assets at $2.61 billion and nearly $2 billion in cash and fixed-term securities.

Outlook and guidance

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

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

• Focus on leveraging technology and industry expertise to drive profitable growth and manage risk.

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

• Liquidity remains strong with $1.0 billion in cash and equivalents, sufficient to meet claims and operating needs.