HCI Group, Inc. (HCI)

Price$187.64Cached quoteAs of 2026-09-05 02:29 UTC

AI: Fair-priced

Price checkThe earnings multiple looks low, but the book-value premium already reflects unusually strong recent underwriting.

HCI Group, NYSE:HCI, trades at roughly 8 times trailing earnings, a price-to-recent-profit measure, and about 2.1 times recent book value, the accounting net assets attributable to shareholders. That mix is not clearly cheap or expensive for a catastrophe-exposed property insurer: recent earnings benefited from no catastrophe losses in 2025 or the first half of 2026, while 2024 absorbed sizeable hurricane losses. The market appears to discount current profits as above-normal while still giving credit for strong underwriting and the publicly traded Exzeo stake.

Big pictureCash generation is strong, debt is modest, but much of insurer liquidity is regulated and purpose-bound.

First-half 2026 operating cash flow was $273.9 million. At June 30, consolidated cash and equivalents were $872.3 million and investments about $1.27 billion, while the revolver balance was $36.0 million and long-term debt about $31.5 million. That is a strong liquidity cushion. Still, insurance-company cash cannot all be treated like spare corporate cash because regulators require capital to support policyholder claims. The balance sheet looks durable, but storm losses can convert liquidity into claim payments quickly.

Business strengthPremium growth, low loss ratios, and cheaper reinsurance support earnings, while Florida concentration keeps volatility high.

Gross premiums earned rose in the first half, and the second-quarter gross loss ratio remained near 22%, meaning roughly that share of earned premiums went to insured losses and related claims costs. HCI also secured more catastrophe protection for the 2026-2027 treaty year while cutting estimated third-party reinsurance cost about 10%. Those are meaningful positives. The offset is concentration: substantially all reported assets are in Florida, and results can swing sharply when hurricanes drive retained losses, reinsurance recoveries, and later premium adjustments.

What could change the storyA quiet hurricane season and disciplined buybacks favor bulls; severe storms or dilution would strengthen the bear case.

Bull case: catastrophe losses stay modest, policy count and earned premiums keep growing, lower reinsurance expense persists, and management continues using excess earnings to retire shares. Bear case: one or more major storms consume the company’s retained layers, loss ratios normalize upward, or reinsurance pricing reverses. HCI completed an $80 million buyback in July, but still had a $75 million at-the-market equity facility available at June 30. That facility is optional; using it would issue new shares and dilute existing ownership.

AI: News

Record second quarterAugust results showed higher quarterly profit, premium growth, and continued low loss ratios despite more policies in force.

On August 6, HCI reported second-quarter 2026 net income of $83 million, with $74 million after noncontrolling interests, and diluted EPS of $5.60. Gross premiums earned increased to $320.8 million, while the gross loss ratio was 22.2%. Management described the first half as a record start. The quarter had no catastrophe losses, which helped profitability, so investors should not assume this level of earnings repeats through every hurricane season.

Buyback program completedOn July 17, HCI finished its planned share repurchase, reducing outstanding shares after earlier conversion-driven dilution.

The August 10-Q disclosed that HCI completed its $80 million common-share repurchase program on July 17 after buying 504,330 shares in total. During the first half, it had already spent $74.5 million on 473,609 shares. This is shareholder-friendly capital allocation because retiring shares increases each remaining holder’s ownership percentage. However, the company also retained an unused $75 million at-the-market facility, so future equity issuance remains possible if management wants additional growth capital.

Reinsurance reset improvedJune placements increased catastrophe protection while lowering estimated third-party reinsurance cost, strengthening protection ahead of hurricane season.

On June 1, HCI finalized its 2026-2027 catastrophe reinsurance programs. Aggregate excess-of-loss protection rose 16% to about $4.1 billion, while estimated net consolidated premiums ceded to third parties fell 10% to about $381 million. Maximum first-event consolidated retention increased 4% to about $163 million, so HCI is keeping slightly more initial risk. The program reduces earnings drag if pricing holds, but a severe event can still create substantial retained losses before reinsurance absorbs additional damage.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010
Revenue	$900.9M	$750.1M	$550.7M	$499.6M	$407.9M	$310.4M	$242.5M	$231.3M	$244.4M	$264.4M	$286.0M	$266.1M	$241.1M	$163.1M	$93.8M	$68.6M
Operating expenses	—	—	—	—	—	—	—	—	—	—	$179.8M	$165.1M	$134.6M	$113.5M	$77.4M	$60.0M
Net income	$299.0M	$110.0M	$79.0M	−$58.5M	$1.9M	$27.6M	$26.6M	$17.7M	−$6.9M	$29.0M	$65.9M	$62.7M	$65.6M	$30.2M	$10.0M	$5.4M
Net profit margin	33.19%	14.66%	14.35%	−11.71%	0.45%	8.88%	10.96%	7.66%	−2.82%	10.97%	23.03%	23.55%	27.19%	18.49%	10.62%	7.90%
Basic EPSper basic share	$24.58	$10.59	$9.13	-$6.24	$0.23	$3.55	$3.32	$2.34	-$0.75	$2.95	$6.51	$5.90	$5.82	$3.45	$1.49	$0.88
Diluted EPSper diluted share	$22.72	$8.89	$7.62	-$6.24	$0.21	$3.49	$3.31	$2.34	-$0.75	$2.92	$5.90	$5.36	$5.63	$3.02	$1.34	$0.81

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Owners

Reported shareholders

Reference date Jun 30, 2026

14.78%of listed shares

BlackRock, Inc.1.84M shares · Jun 30, 2026

View holders

Top 20 reported holders of HCI
Holder	% owned
BlackRock, Inc.	14.78%1.84M shares
Khrom Capital Management LLC	5.54%690.75K shares
VANGUARD CAPITAL MANAGEMENT LLC	3.83%477.7K shares
STATE STREET CORP	3.40%424.56K shares
AMERICAN CENTURY COMPANIES INC	3.33%415.74K shares
DIMENSIONAL FUND ADVISORS LP	3.29%409.72K shares
GEODE CAPITAL MANAGEMENT, LLC	2.39%298.37K shares
VANGUARD PORTFOLIO MANAGEMENT LLC	2.22%276.53K shares
Qube Research & Technologies Ltd	1.93%241.13K shares
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP	1.89%236.11K shares
GOLDMAN SACHS GROUP INC	1.45%181.01K shares
Freestone Grove Partners LP	1.41%175.56K shares
MORGAN STANLEY	1.41%175.24K shares
FMR LLC	1.21%150.28K shares
Allspring Global Investments Holdings, LLC	1.17%145.53K shares
UBS Group AG	1.12%139.6K shares
AMERIPRISE FINANCIAL INC	1.06%132.26K shares
AQR CAPITAL MANAGEMENT LLC	1.05%130.72K shares
NORTHERN TRUST CORP	1.00%124.26K shares
TWO SIGMA INVESTMENTS, LP	0.96%119.32K shares