HCI Group, Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 4 November 2026: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Pre-tax and net income rose: Pre-tax income was $116 million against $91 million, and net income was $86 million against $68 million. Management attributed the higher profit to operating leverage with modest premium growth. Source
• Diluted EPS rose to $6.45: Diluted EPS was $6.45 against $4.90. Net income after noncontrolling interests was $83 million against $66 million. Source
• Gross loss ratio at 20.7%: The gross loss and loss adjustment expense ratio was 20.7%, against 22.0% a year earlier. Source
• Ceded premiums fell on new program: Premiums ceded were $97 million against $106 million. Management attributed the decrease to lower costs of the 2026-2027 catastrophe reinsurance programs, which began June 1, 2026. Source
• Losses slightly lower; favorable development: Losses and loss adjustment expenses were $65 million against $66 million. The quarter included a small amount of favorable prior year development, with no amount given. Source
• $80 million buyback completed in July: The program announced March 3, 2026 was completed July 17, 2026, with 504,330 shares repurchased for $80 million. Source
• Book value per share up to $90.15: Book value per share was $90.15 at September 30, 2026, against $63.41 a year earlier. Shares outstanding were 12,437,958, against 12,959,362. Source

“Earnings accelerated this quarter as greater operating leverage combined with modest premium growth to drive more profit to the bottom line,”

HCI Group Chairman and Chief Executive Officer Paresh Patel

Quarterly results and growth drivers

• Pre-tax and net income rose: Pre-tax income was $116 million against $91 million, and net income was $86 million against $68 million. Management attributed the higher profit to operating leverage with modest premium growth. Source
• Diluted EPS rose to $6.45: Diluted EPS was $6.45 against $4.90. Net income after noncontrolling interests was $83 million against $66 million. Source
• Premium growth from more policies: Gross premiums earned were $316 million against $301 million, up 5%, from higher policies in force. Average premium per policy was relatively consistent. Source
• Gross loss ratio at 20.7%: The gross loss and loss adjustment expense ratio was 20.7%, against 22.0% a year earlier. Source

Premiums by company and reinsurance

• Condo and Tailrow written premiums rose: Gross written premiums were $353,050 thousand against $315,171 thousand. Condo Owners Reciprocal Exchange was $24,879 thousand against $6,380 thousand; Tailrow Reciprocal Exchange was $35,415 thousand against $15,965 thousand. Source
• Homeowners Choice and TypTap written premiums: Homeowners Choice written premiums were $185,401 thousand against $182,863 thousand. TypTap Insurance Company was $107,355 thousand against $109,963 thousand. Source
• Earned premium lower at TypTap and Condo: Gross premiums earned were $120,789 thousand at TypTap against $124,613 thousand, and $8,321 thousand at Condo Owners against $10,499 thousand. Homeowners Choice and Tailrow Insurance Exchange were higher. Source
• Ceded premiums fell on new program: Premiums ceded were $97 million against $106 million. Management attributed the decrease to lower costs of the 2026-2027 catastrophe reinsurance programs, which began June 1, 2026. Source
• Nine-month premiums up 7%: Gross premiums earned were $963 million for the nine months against $904 million, up 7%, with a higher volume of policies in force. Source

“Our performance illustrates that internal operating decisions can be as important as external market conditions.”

HCI Group Chairman and Chief Executive Officer Paresh Patel

Losses, expenses and reserve development

• Losses slightly lower; favorable development: Losses and loss adjustment expenses were $65 million against $66 million. The quarter included a small amount of favorable prior year development, with no amount given. Source
• Acquisition costs flat at $32 million: Policy acquisition and other underwriting expenses were $32 million in both quarters. Source
• Personnel costs up on headcount and pay: General and administrative personnel expenses were $24 million against $21 million. Management cited additional personnel, annual merit increases, and stock-based compensation. Source
• Nine-month loss ratio steady at 21.0%: Nine-month losses and loss adjustment expenses were $202 million against $190 million. The gross loss ratio was 21.0% in both nine-month periods. Source

Investment income and balance sheet

• Nine-month investment income higher: Net investment income for the nine months was $58 million against $48 million, which the release attributes to growth in invested assets. Source
• Fixed-maturity holdings rose; cash fell: At September 30, 2026, fixed-maturity securities were $1,241,444 thousand against $597,329 thousand at December 31, 2025. Cash and equivalents were $743,527 thousand against $1,210,126 thousand. Source
• Other comprehensive result turned to loss: Accumulated other comprehensive loss was $38,586 thousand at September 30, 2026, against income of $1,459 thousand at December 31, 2025. Source

Capital, buybacks and returns to shareholders

• $80 million buyback completed in July: The program announced March 3, 2026 was completed July 17, 2026, with 504,330 shares repurchased for $80 million. Source
• Third-quarter buybacks of $6 million: The company repurchased 30,721 shares in the third quarter for $6 million. Source
• Book value per share up to $90.15: Book value per share was $90.15 at September 30, 2026, against $63.41 a year earlier. Shares outstanding were 12,437,958, against 12,959,362. Source
• Dividend unchanged at $0.40 per share: Dividends per share were $0.40 in both quarters and $1.20 for the nine months in both years. Source
• Noncontrolling interest income higher: Net income attributable to noncontrolling interests was $23,467 thousand for nine months against $11,046 thousand. For the quarter it was $2,728 thousand against $2,381 thousand. Source

Nine-month results and interest expense

• Nine-month diluted EPS $17.48: Diluted EPS was $17.48 for the nine months, against $15.47. Net income after noncontrolling interests was $231 million, against $201 million. Source
• Nine-month pre-tax income $343 million: Pre-tax income was $343 million and net income $254 million for the nine months, against $285 million and $212 million a year earlier. Source
• Interest expense lower for nine months: Interest expense was $3,467 thousand for nine months against $8,147 thousand. For the quarter it was $1,460 thousand against $1,019 thousand. Source

Business mix and other revenue

• Exzeo platform added carrier customers: The prior-quarter release said other revenue rose because new insurance carrier customers were added to Exzeo's insurance technology platform.
• Diversified holding company: The company describes itself as a diversified holding company covering homeowners insurance, reinsurance, real estate, claims services and insurance technology. Source
• Exzeo shares trade separately: Exzeo Group's common shares trade on the New York Stock Exchange under the ticker XZO. Source

Figures management reported

Earlier plans management reported on

• Met: The program announced March 3, 2026 was completed July 17, 2026, with 504,330 shares repurchased for $80 million. Source

Other quarters

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