HCI Group, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 6 August 2026: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Pre-tax income and net income increased year-over-year: Pre-tax income of $111 million and net income of $83 million in Q2 2026, compared with $94 million and $70 million in Q2 2025. Diluted EPS of $5.60 versus $5.18. Source
• Book value per share increased sequentially: Book value per share increased to $86.60 at end of Q2 2026 from $84.41 at end of Q1 2026, reflecting retained earnings and share buybacks during the period. Source
• Gross premiums earned grew 6 percent: Gross premiums earned of $321 million in Q2 2026 versus $303 million in Q2 2025, with growth driven by higher volume of insurance policies in force and consistent average premium per policy. Source
• New reinsurance program reduced ceding costs: Premiums ceded for reinsurance in Q2 were $102 million versus $103 million in Q2 2025. The new 2026-2027 catastrophe reinsurance programs, which began June 1, 2026, resulted in lower costs. Source
• Gross loss ratio deteriorated year-over-year: Gross loss and loss adjustment expense ratio was 22.2 percent in Q2 2026 versus 21.3 percent in Q2 2025. The ratio increased despite higher policy volume, with six-month ratio at 21.1 percent. Source
• Share repurchase program completed at authorization limit: The share repurchase program authorized for $80 million on March 3, 2026, was completed on July 17, 2026. Total of 504,330 shares repurchased for $80.0 million, with 363,538 shares repurchased in Q2 for $57.0 million. Source

What changed from last quarter

• New: Catastrophe reinsurance program for 2026-2027 began June 1, 2026, reducing costs associated with reinsurance. Source
• Ended: Share repurchase program authorized for $80 million through February 2027 was completed on July 17, 2026, after reaching the full authorization amount. Source

Second Quarter Earnings Record

• Pre-tax income and net income increased year-over-year: Pre-tax income of $111 million and net income of $83 million in Q2 2026, compared with $94 million and $70 million in Q2 2025. Diluted EPS of $5.60 versus $5.18. Source
• Record first-half 2026 results delivered: For the six months ended June 30, 2026, HCI Group reported pre-tax income of $226 million and net income of $168 million compared with $195 million and $145 million for the six months ended June 30, 2025. Source
• Book value per share increased sequentially: Book value per share increased to $86.60 at end of Q2 2026 from $84.41 at end of Q1 2026, reflecting retained earnings and share buybacks during the period. Source

Premium Growth and Volume Expansion

• Gross premiums earned grew 6 percent: Gross premiums earned of $321 million in Q2 2026 versus $303 million in Q2 2025, with growth driven by higher volume of insurance policies in force and consistent average premium per policy. Source
• First-half premiums earned 7 percent higher: For six months ended June 30, 2026, gross premiums earned were $647 million versus $603 million in prior year period, representing 7 percent growth from policy volume expansion. Source

Reinsurance and Risk Management

• New reinsurance program reduced ceding costs: Premiums ceded for reinsurance in Q2 were $102 million versus $103 million in Q2 2025. The new 2026-2027 catastrophe reinsurance programs, which began June 1, 2026, resulted in lower costs. Source

Claims and Loss Ratios

• Gross loss ratio deteriorated year-over-year: Gross loss and loss adjustment expense ratio was 22.2 percent in Q2 2026 versus 21.3 percent in Q2 2025. The ratio increased despite higher policy volume, with six-month ratio at 21.1 percent. Source
• Losses and loss adjustment expenses increased: Losses and loss adjustment expenses were $71 million in Q2 2026 versus $64 million in Q2 2025. The $7 million increase was driven largely by the higher volume of policies in force. Source

Investment Income and Other Revenue

• Net investment income grew with larger asset base: Net investment income of $19 million in Q2 2026 versus $16 million in Q2 2025, with increase driven by growth in invested assets. Six-month investment income was $36 million versus $30 million. Source
• Other revenue from Exzeo platform expansion: Other revenue of $5 million in Q2 2026 versus $3 million in Q2 2025, primarily driven by addition of new insurance carrier customers to Exzeo's insurance technology platform. Source

Personnel and Operating Expenses

• General and administrative expenses increased notably: General and administrative personnel expenses of $24 million in Q2 2026 versus $20 million in Q2 2025, a 20 percent increase. The increase was driven by additional personnel, annual merit increases, and stock-based compensation. Source
• Policy acquisition expenses rose with premium growth: Policy acquisition and other underwriting expenses of $32 million in Q2 2026 versus $31 million in Q2 2025, with increase driven by greater amount of premiums in force. Source

Capital Allocation and Shareholder Returns

• Share repurchase program completed at authorization limit: The share repurchase program authorized for $80 million on March 3, 2026, was completed on July 17, 2026. Total of 504,330 shares repurchased for $80.0 million, with 363,538 shares repurchased in Q2 for $57.0 million. Source
• Dividend per share maintained at prior level: Dividend of $0.40 per share paid in Q2 2026, consistent with $0.40 per share paid in Q2 2025. For first six months of 2026, dividend was $0.80 per share. Source
• Shares outstanding reduced by buyback program: Shares outstanding at end of Q2 2026 were 12,469,972, down from 12,992,147 at year-end 2025, reflecting the impact of the $80 million share repurchase program. Source

Figures management reported

Earlier plans management reported on

• On track: Management stated in Q1 it would continue using earnings to buy back stock while strengthening balance sheet. In Q2, company completed $80 million share repurchase program and increased book value per share.

Other quarters

• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.