HCI Group, Inc.

Q1 2026 pretax income increased 15% year over year to $115 million, and diluted EPS was $5.45. Gross premiums earned grew by just over 8%, total revenue grew by just over 12%, the loss ratio was 20%, and the combined ratio was 57%. Management said book value per share is now almost $85, stockholder equity is over $1 billion, cash and fixed-term securities are just under $2 billion, and debt-to-capital is 6%. For guidance, management reiterated a combined ratio target of 60%, plus or minus 5%, said that target is appropriate for this year, and noted premium stability across the enterprise going forward.

Paresh Patel emphasized that HCI is using its strong earnings and capital position to buy back stock while still strengthening the balance sheet. He framed the company as preparing for an eventual industry inflection point, saying management wants the flexibility to act quickly when opportunities arise, including through M&A after a storm rather than before one. He also highlighted Exzeo as a value-creation success and said the team is exploring 2 or 3 additional insurance-related or insurance value-chain opportunities.

Mark Harmsworth described the quarter as another standout period, with pretax income up 15% year over year to $115 million and diluted EPS at $5.45. He said gross premiums earned rose just over 8%, total revenue rose just over 12%, and the 20% loss ratio reflected low claims and litigation frequency, while the 57% combined ratio matched 2025 levels and sits within the 60% plus or minus 5% target. He also pointed to a stronger balance sheet, including over $1 billion of stockholder equity, just under $2 billion of cash and fixed-term securities, book value per share near $85, and $37.5 million of buybacks used as of the end of April from the $80 million authorization.

Analysts focused on Florida premium stability, the reinsurance market, combined ratio targets, M&A timing, Exzeo’s financial impact, and the E&S initiative. Management said premiums across the whole enterprise are stable and expected to remain so, reinsurance market conditions continue to soften, and the final June 1 placement will be announced later. On capital deployment, management said it prefers to pursue M&A after a storm rather than before one, and on Exzeo it said most growth will flow through other income while roughly 80% to 85% of that value still translates to EPS.