HCI Group, Inc.

First Quarter Diluted EPS of $5.35
First Quarter Pre-Tax Income of $100.3 million
Exzeo Ready to be Standalone Company

TAMPA, Fla., May 08, 2025 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE:HCI) reported pre-tax income of $100.3 million and net income of $74.2 million for the first quarter of 2025. Net income after noncontrolling interests was $69.7 million compared with $47.6 million in the first quarter of 2024. Diluted earnings per share were $5.35 in the first quarter of 2025, compared with $3.81 diluted earnings per share, in the first quarter of 2024.

Management Commentary
“HCI Group had a terrific first quarter,” said HCI Group Chairman and Chief Executive Officer Paresh Patel. “We are happy to announce that Exzeo is ready to be a standalone company. Consequently, our Board has determined to pursue a potential tax-free spin-off of Exzeo to existing HCI shareholders that, subject to customary conditions, is targeted for completion by the end of the year.”

First Quarter 2025 Commentary
Consolidated gross premiums earned in the first quarter of 2025 increased by 17.0% to $300.4 million from $256.6 million in the first quarter of 2024 driven primarily by assumptions of policies from Citizens Property Insurance Corporation.

Premiums ceded for reinsurance in the first quarter of 2025 were $99.6 million compared with $68.1 million in the first quarter of 2024. The increase was primarily attributable to higher reinsurance costs due to growth in the number of policies in force and total insured value.

Net investment income in the first quarter of 2025 was $13.8 million compared with $14.1 million in the first quarter of 2024. The decrease was primarily attributable to a decrease in income from limited partnership investments.

Losses and loss adjustment expenses in the first quarter of 2025 were $59.3 million compared with $79.9 million in the first quarter of 2024 despite the growth in gross premiums earned. The decrease is primarily driven by a decline in claims and litigation frequency. The gross loss ratio in the first quarter was 19.7% compared to 31.1% in the first quarter of 2024.

Policy acquisition and other underwriting expenses in the first quarter of 2025 were $27.3 million compared with $22.1 million in the first quarter of 2024 driven by higher gross premiums earned.

General and administrative personnel expenses in the first quarter of 2025 increased to $20.5 million from $16.3 million in the first quarter of 2024. The increase was primarily attributable to higher accrued discretionary bonus, stock-based compensation and employee health benefits.

Story Continues

Conference Call
HCI Group will hold a conference call later today, May 8, 2025, 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.

Listen-only toll-free number: (888) 506-0062
Listen-only international number: (973) 528-0011
Entry Code: 325047

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 Investor Relations at (949) 574-3860.

A replay of the call will be available by telephone after 8:00 p.m. Eastern time on the same day as the call and via the Investor Information section of the HCI Group website at www.hcigroup.com through May 8, 2026.

Toll-free replay number: (877) 481-4010
International replay number: (919) 882-2331 
Replay ID: 52364

About HCI Group, Inc.
HCI Group, Inc. is a holding company with two distinct operating units. The first unit includes four top-performing insurance companies, a captive reinsurance company, and operations in claims management and real estate. The second unit, called Exzeo Group, is a leading innovator of insurance technology that utilizes advanced underwriting algorithms and data analytics. Exzeo empowers property and casualty insurers to transform underwriting outcomes and achieve industry-leading results.

The company'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.

Forward-Looking Statements
This 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. In addition, there can be no assurance the Internal Revenue Service will determine the company’s proposed spinoff will be tax free to HCI shareholders. 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:
Bill Broomall, CFA
Investor Relations
HCI Group, Inc.
Tel (813) 776-1012
[email protected]

Investor Relations Contact:
Matt Glover
Gateway Group, Inc.
Tel (949) 574-3860
[email protected]

- Tables to follow -  HCI GROUP, INC. AND SUBSIDIARIES
Selected Financial Metrics
(Dollar amounts in thousands, except per share amounts)   Q1 2025  Q1 2024  FY 2024  (Unaudited)  (Unaudited)  Insurance Operations  Gross Written Premiums:  Homeowners Choice $ 117,133  $ 91,875  $ 593,943  TypTap Insurance Company  142,396   143,624   491,413  Condo Owners Reciprocal Exchange  7,731   19,487   81,411  Tailrow Reciprocal Exchange  21,985   -   -  Total Gross Written Premiums  289,245   254,986   1,166,767   Gross Premiums Earned:  Homeowners Choice  156,489   149,271   589,137  TypTap Insurance Company  124,447   103,748   442,876  Condo Owners Reciprocal Exchange  15,325   3,625   51,207  Tailrow Reciprocal Exchange  4,122   -   -  Total Gross Premiums Earned  300,383   256,644   1,083,220   Gross Premiums Earned Loss Ratio  19.7 %  31.1 %  34.6 %  Per Share Metrics  Diluted EPS $ 5.35  $ 3.81  $ 8.89   Dividends per share $ 0.40  $ 0.40  $ 1.60   Book value per share at the end of period $ 48.55  $ 38.50  $ 42.10   Shares outstanding at the end of period  10,765,336   10,276,463   10,767,184

HCI GROUP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Dollar amounts in thousands)   March 31, 2025   December 31, 2024  (Unaudited)  Assets  Fixed-maturity securities, available for sale, at fair value (amortized cost: $651,071 and $719,536, respectively and allowance for credit losses: $0 and $0, respectively) $ 652,861   $ 718,537  Equity securities, at fair value (cost: $52,962 and $52,030, respectively)  55,226    56,200  Limited partnership investments  20,176    20,802  Real estate investments  80,151    79,120  Total investments  808,414    874,659   Cash and cash equivalents  754,481    532,471  Restricted cash  3,722    3,714  Accrued interest and dividends receivable  7,650    6,008  Income taxes receivable  —    463  Deferred income taxes, net  1,502    72  Premiums receivable, net (allowance: $4,684 and $5,891, respectively)  54,704    50,582  Prepaid reinsurance premiums  38,009    92,060  Reinsurance recoverable, net of allowance for credit losses:  Paid losses and loss adjustment expenses (allowance: $0 and $0, respectively)  46,335    36,062  Unpaid losses and loss adjustment expenses (allowance: $151 and $186, respectively)  481,434    522,379  Deferred policy acquisition costs  56,398    54,303  Property and equipment, net  30,237    29,544  Right-of-use-assets - operating leases  1,124    1,182  Intangible assets, net  4,565    5,206  Funds withheld for assumed business  8,451    11,690  Other assets  9,642    9,818   Total assets $ 2,306,668   $ 2,230,213   Liabilities and Equity  Losses and loss adjustment expenses $ 798,146   $ 845,900  Unearned premiums  573,565    584,703  Advance premiums  37,807    18,867  Reinsurance payable on paid losses and loss adjustment expenses  —    2,496  Ceded reinsurance premiums payable  19,779    18,313  Assumed premiums payable  3,582    2,176  Accrued expenses  29,110    17,677  Income tax payable  33,378    5,451  Deferred income taxes, net  3,661    2,830  Revolving credit facility  42,000    44,000  Long-term debt  185,332    185,254  Lease liabilities - operating leases  1,131    1,185  Other liabilities  34,708    32,320   Total liabilities  1,762,199    1,761,172   Commitments and contingencies  Redeemable noncontrolling interest  1,637    1,691   Equity:  Common stock, (no par value, 40,000,000 shares authorized, 10,765,336 and 10,767,184 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively)  —    —  Additional paid-in capital  124,170    122,289  Retained income  397,171    331,793  Accumulated other comprehensive loss, net of taxes  1,342    (749 ) Total stockholders' equity  522,683    453,333  Noncontrolling interests  20,149    14,017  Total equity  542,832    467,350   Total liabilities, redeemable noncontrolling interest, and equity $ 2,306,668   $ 2,230,213

HCI GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
(Dollar amounts in thousands, except per share amounts)   Three Months Ended  March 31,  2025   2024  Revenue   Gross premiums earned $ 300,383   $ 256,644  Premiums ceded  (99,635 )   (68,106 )  Net premiums earned  200,748    188,538   Net investment income  13,751    14,067  Net realized investment gains  1,167    —  Net unrealized investment (losses) gains  (1,906 )   2,635  Policy fee income  2,229    1,019  Other  444    355   Total revenue  216,433    206,614   Expenses   Losses and loss adjustment expenses  59,291    79,922  Policy acquisition and other underwriting expenses  27,287    22,139  General and administrative personnel expenses  20,483    16,274  Interest expense  3,384    3,149  Other operating expenses  5,649    7,700   Total expenses  116,094    129,184   Income before income taxes  100,339    77,430   Income tax expense  26,109    20,474   Net income $ 74,230   $ 56,956  Net income attributable to redeemable noncontrolling interests  —    (10,149 ) Net (income) loss attributable to noncontrolling interests  (4,546 )   804   Net income after noncontrolling interests $ 69,684   $ 47,611   Basic earnings per share $ 6.47   $ 4.76   Diluted earnings per share $ 5.35   $ 3.81   Dividends per share $ 0.40   $ 0.40

HCI GROUP, INC. AND SUBSIDIARIES
(Amounts in thousands, except per share amounts)  A summary of the numerator and denominator of basic and diluted earnings per common share calculated in accordance with GAAP is presented below.  Three Months Ended   Three Months Ended  March 31, 2025   March 31, 2024  Income   Shares (a)   Per Share   Income   Shares (a)   Per Share  (Numerator)   (Denominator)   Amount   (Numerator)   (Denominator)   Amount  Net income $ 74,230         $ 56,956  Less: Net income attributable to redeemable noncontrolling interests  —          (10,149 )  Less: Net (income) loss attributable to noncontrolling interests  (4,546 )         804  Net income attributable to HCI  69,684          47,611  Less: Income attributable to participating securities  (3,103 )         (1,218 )  Basic Earnings Per Share:  Income allocated to common stockholders  66,581    10,286   $ 6.47    46,393    9,751   $ 4.76   Effect of Dilutive Securities:  Stock options  —    350       —    280  Convertible senior notes  1,873    2,142       1,640    2,282  Warrants  —    7       —    305   Diluted Earnings Per Share:  Income available to common stockholders and assumed conversions $ 68,454    12,785   $ 5.35   $ 48,033    12,618   $ 3.81   (a) Shares in thousands.

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