HCI Group Reports $70.3 Million Net Income and $221.9 Million Revenue in Q2 2025

HCI Group, Inc. reported significant financial performance for the second quarter of 2025, with net income reaching $70.3 million, or $5.18 per diluted share, compared to $57.1 million, or $4.24 per diluted share, in the same period last year. The company’s total revenue for the quarter was approximately $221.9 million, an increase from $206.2 million in the prior year, driven primarily by a rise in net premiums earned, which totaled $200.1 million, up from $186.8 million. The increase in revenue was attributed to a higher volume of policies in force, particularly from the assumption of policies from Citizens Property Insurance Corporation.

In terms of expenses, HCI Group reported total expenses of $127.5 million for the quarter, a slight decrease from $130.2 million in the previous year. The decrease in losses and loss adjustment expenses, which fell to $64.5 million from $78.3 million, contributed to the improved profitability. However, the company experienced increases in policy acquisition and other underwriting expenses, which rose to $30.6 million from $23.5 million, and general and administrative personnel expenses, which increased to $20.0 million from $17.5 million.

Strategically, HCI Group has been active in expanding its operations. The company’s insurance subsidiaries, Homeowners Choice Property & Casualty Insurance Company and TypTap Insurance Company, continue to grow their market presence, particularly in Florida. As of June 30, 2025, the company reported approximately 270,100 policies in force, an increase from 242,500 policies a year earlier. This growth is supported by the company’s technology subsidiary, Exzeo Group, which provides advanced data analytics and operational solutions to enhance efficiency in underwriting and claims processing.

HCI Group's total assets increased to $2.35 billion as of June 30, 2025, up from $2.23 billion at the end of 2024. The company’s cash and cash equivalents also saw a significant rise, reaching $947.2 million compared to $532.5 million at the end of the previous year. This increase in liquidity positions the company well for future investments and operational needs. The company’s long-term debt decreased significantly to $15.6 million from $185.3 million, following the conversion of its 4.75% Convertible Senior Notes into common stock.

Looking ahead, HCI Group remains optimistic about its growth trajectory, particularly in light of its strategic initiatives and the favorable market conditions in the property and casualty insurance sector. The company plans to continue leveraging its technology capabilities to enhance operational efficiency and expand its market share. Additionally, HCI Group is committed to maintaining adequate liquidity to meet its obligations and support future growth opportunities.