HCI Group (HCI) Q4 2025 earnings summary

Executive summary

• Pre-tax income reached $144 million in Q4 2025 and $429 million for the year, with net income of $108 million in Q4 and $320 million for the year; diluted EPS was $7.25 for Q4 and $22.72 for the year.

• Gross premiums earned rose 12% year-over-year in Q4 and 14% for the full year, reaching $1.236 billion in 2025.

• The company completed the IPO of Exzeo/Exio, retaining a controlling stake valued at nearly $1.2 billion.

• Announced an $80 million share repurchase program, with a focus on disciplined capital allocation and strong liquidity.

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

Financial highlights

• Gross premiums earned in Q4 2025 were $332 million; full year gross premiums earned were $1.236 billion.

• Net premiums earned in Q4 2025 were $225.8 million; full year net premiums earned were $821.7 million.

• Gross loss ratio improved to 15.6% in Q4 2025 and 19.6% for the year; book value per share at year-end 2025 was $80.13.

• Shareholder equity surpassed $1 billion, reaching $1,407 million by year-end 2025.

• Diluted EPS for 2025 was $22.72; debt to capital ratio at 6% as of 12/31/25.

Outlook and guidance

• Gross premiums earned in Q1 2026 expected to exceed Q4 2025, with continued organic and acquisition-driven growth.

• Legislative reforms in Florida and reinsurance market softening are expected to support improved loss trends and margins.

• Expense ratios expected to normalize as Q4 was impacted by bonus accounting.

• Focus on leveraging technology and disciplined underwriting to expand premiums and manage risk.