HCI Group Reports $74.2 Million Net Income and $216.4 Million Revenue in Q1 2025

HCI Group, Inc. reported a net income of $74.2 million for the first quarter of 2025, translating to diluted earnings per share of $5.35, a significant increase from the $57.0 million net income and $3.81 per share recorded in the same period last year. The company's total revenue for the quarter reached $216.4 million, up from $206.6 million in the prior year, driven primarily by a 17% increase in gross premiums earned, which rose to $300.4 million from $256.6 million. This growth was largely attributed to the assumption of policies from Citizens Property Insurance Corporation, which contributed approximately $35.8 million in annualized gross written premiums.

In terms of expenses, HCI Group saw a decrease in losses and loss adjustment expenses, which fell to $59.3 million from $79.9 million year-over-year. This decline was attributed to a reduction in claims and litigation frequency, although it was partially offset by losses related to policies assumed from Citizens. Total expenses for the quarter decreased to $116.1 million from $129.2 million, reflecting improved operational efficiency. The company's loss ratio improved to 29.5% from 42.4%, while the combined ratio also showed significant improvement, decreasing to 56.1% from 66.9%.

Operationally, HCI Group's customer base expanded, with approximately 278,400 policies in force as of March 31, 2025, compared to 250,500 policies a year earlier. The company also reported a cash and cash equivalents balance of $754.5 million, up from $532.5 million at the end of 2024, indicating a strong liquidity position. The company’s total assets increased to $2.31 billion from $2.23 billion, bolstered by a rise in cash reserves and investments.

Strategically, HCI Group has been active in enhancing its operational capabilities through its subsidiary, Exzeo Group, which focuses on providing technology solutions for the insurance sector. The company also announced a quarterly dividend of $0.40 per share, payable on June 20, 2025, reflecting its commitment to returning value to shareholders. Looking ahead, HCI Group anticipates continued growth driven by its insurance operations and technology initiatives, while remaining vigilant to market conditions and potential risks associated with catastrophic events.