HCI Group (NYSE:HCI) Announces Earnings Results

Key Points

• HCI Group beat quarterly earnings expectations: EPS was $5.60 versus the $5.04 consensus, while revenue of $246.65 million was slightly below estimates. Pre-tax income rose 18% year over year, and the combined ratio remained within management’s target range.
• Lower reinsurance costs could support future profitability. HCI expects its 2026–2027 catastrophe programs to reduce ceded premiums by more than 10%, generating over $10 million in quarterly savings, while new CORE and GEICO distribution initiatives are supporting policy growth.
• The company retains a strong balance sheet and returned capital to shareholders: HCI reported more than $2 billion in cash and investments, completed an $80 million share buyback, and declared a $0.40 quarterly dividend. Shares rose 4.2% after the results, and analysts maintain a consensus “Moderate Buy” rating.

HCI Group (NYSE:HCI - Get Free Report) issued its quarterly earnings results on Thursday. The insurance provider reported $5.60 earnings per share for the quarter, topping analysts' consensus estimates of $5.04 by $0.56, Zacks reports. HCI Group had a return on equity of 29.68% and a net margin of 32.60%.The firm had revenue of $246.65 million during the quarter, compared to the consensus estimate of $247.43 million.

Here are the key takeaways from HCI Group's conference call:

• Strong quarterly results: Pre-tax income rose 18% year over year to more than $110 million, diluted EPS increased to $5.60, and the 61% combined ratio remained within management’s targeted 60%–65% range.
• Reinsurance costs are expected to decline materially. The 2026–2027 catastrophe programs provide more coverage while reducing ceded premiums by more than 10%, representing over $10 million in quarterly savings.
• HCI is developing new sources of policy growth in a softer market, including CORE’s pivot to residential HO-3 policies, which is generating approximately $6 million of monthly new business, and a new Geico distribution relationship that began contributing in the third quarter.
• The balance sheet remains strong, with more than $2 billion in cash and investments, over $1 billion in stockholders’ equity, debt-to-capital below 6%, and book value per share of $86.60. The company also completed an $80 million buyback, repurchasing approximately 4% of its outstanding shares.
• Management emphasized that market conditions are softening and competition is increasing, while potential expansion into California remains dependent on timing and the future rate environment; no new share-repurchase authorization is currently active.

HCI Group Stock Up 4.2%

Shares of HCI traded up $7.62 during trading hours on Friday, reaching $188.51. 277,176 shares of the stock traded hands, compared to its average volume of 156,931. The company has a market cap of $2.41 billion, a price-to-earnings ratio of 8.13 and a beta of 1.04. The company has a current ratio of 0.82, a quick ratio of 0.82 and a debt-to-equity ratio of 0.03. The stock has a fifty day simple moving average of $172.58 and a 200 day simple moving average of $163.32. HCI Group has a 52 week low of $137.81 and a 52 week high of $210.50.

HCI Group Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Friday, August 21st will be given a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Friday, August 21st. HCI Group's dividend payout ratio (DPR) is presently 6.90%.

Key Stories Impacting HCI Group

Here are the key news stories impacting HCI Group this week:

• Positive Sentiment: HCI reported second-quarter earnings of $5.60 per share, exceeding analyst estimates of $5.04 and rising from $5.18 a year earlier. The company also posted a 30.88% return on equity and a 32.64% net margin, highlighting strong profitability. HCI Group Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: The company outlined more than $10 million in expected quarterly reinsurance savings as GEICO begins selling a new product. If realized, the savings could lower HCI’s insurance costs and improve future earnings. HCI outlines over $10M per quarter reinsurance savings
• Positive Sentiment: Citizens JMP raised its HCI price target from $255 to $265 and maintained a “market outperform” rating, signaling continued analyst confidence in the company’s outlook. Benzinga analyst price target report
• Neutral Sentiment: Second-quarter revenue was $246.65 million. While earnings exceeded expectations, revenue was slightly below the $247.43 million consensus estimate, making the results stronger on profitability than on sales growth. HCI Group Q2 Earnings Snapshot

Wall Street Analyst Weigh In

A number of brokerages have weighed in on HCI. Citizens Jmp lifted their target price on HCI Group from $255.00 to $265.00 and gave the stock a "market outperform" rating in a report on Friday. Citigroup reiterated a "market outperform" rating on shares of HCI Group in a research report on Friday. Zacks Research lowered shares of HCI Group from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 31st. Wall Street Zen cut shares of HCI Group from a "strong-buy" rating to a "hold" rating in a report on Monday, May 11th. Finally, Weiss Ratings raised shares of HCI Group from a "buy (b-)" rating to a "buy (b)" rating in a research note on Tuesday, July 28th. Five investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, HCI Group presently has a consensus rating of "Moderate Buy" and a consensus target price of $241.67.

Institutional Trading of HCI Group

A number of large investors have recently added to or reduced their stakes in HCI. Captrust Financial Advisors raised its stake in HCI Group by 2.0% in the fourth quarter. Captrust Financial Advisors now owns 4,711 shares of the insurance provider's stock valued at $903,000 after purchasing an additional 91 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of HCI Group by 2.0% in the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,794 shares of the insurance provider's stock worth $920,000 after buying an additional 94 shares during the last quarter. Mercer Global Advisors Inc. ADV raised its position in shares of HCI Group by 0.9% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 11,253 shares of the insurance provider's stock valued at $2,157,000 after buying an additional 98 shares in the last quarter. Transamerica Financial Advisors LLC raised its position in shares of HCI Group by 519.2% during the 4th quarter. Transamerica Financial Advisors LLC now owns 161 shares of the insurance provider's stock valued at $31,000 after buying an additional 135 shares in the last quarter. Finally, NewEdge Advisors LLC raised its position in HCI Group by 5.8% during the second quarter. NewEdge Advisors LLC now owns 2,750 shares of the insurance provider's stock valued at $419,000 after purchasing an additional 150 shares in the last quarter. Hedge funds and other institutional investors own 86.99% of the company's stock.

HCI Group Company Profile

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.

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