HCI Group Q1 Pre-Tax Income Rises 15% to $115M, EPS Hits $5.45
HCI Group delivered Q1 pre-tax income of $115 million and net income of $85 million, up from $100 million and $74 million respectively a year earlier, while diluted EPS rose to $5.45. Gross premiums earned climbed 8.7% to $326 million and net investment income increased 21% to $17 million.
1. First Quarter Financial Results
HCI Group reported first quarter pre-tax income of $115 million versus $100 million in Q1 2025 and net income of $85 million versus $74 million, with diluted earnings per share rising to $5.45 from $5.35 a year earlier.
2. Premiums and Investment Income
Gross premiums earned increased to $326 million from $300 million year-over-year, driven by higher policy volumes, while premiums ceded rose to $104 million. Net investment income grew to $17 million from $14 million as invested assets expanded.
3. Losses and Expense Metrics
Losses and loss adjustment expenses climbed to $66 million from $59 million, reflecting higher policy counts and regional weather impacts, resulting in a 20.1% gross loss ratio. Policy acquisition and underwriting expenses also rose to $32 million from $27 million.
4. Share Repurchase Program
HCI Group authorized up to $80 million in share buybacks through February 2027 and repurchased 110,071 shares for $17.5 million in Q1, bringing total repurchases to 239,435 shares for $37.5 million through April 30 as part of its capital allocation strategy.