Earnings release
Page 1
HCI HCI Group Reports Second Quarter 2026 Results Second Quarter Pre - Tax Income of $ 111 million Diluted EPS of $ 5.60 Gross Loss Ratio of 22 % Exhibit 99.1 - Tampa , Fla . - August 6 , 2026 – HCI Group , Inc. ( NYSE : HCI ) , reported pre - tax income of $ 111 million and net income of $ 83 million in the second quarter of 2026 compared with pre - tax income of $ 94 million and net income of $ 70 million in the second quarter of 2025 . Net income after noncontrolling interests in the second quarter of 2026 was $ 74 million compared with $ 66 million in the second quarter of 2025. Diluted earnings per share were $ 5.60 in the second quarter of 2026 compared with $ 5.18 diluted earnings per share in the second quarter of 2025 . Management Commentary " HCI Group capped a strong start to the year delivering record second quarter financial results for the first half of 2026 , ” said HCI Group Chairman and Chief Executive Officer Paresh Patel . “ Our focus continues to be on achieving exceptional performance in all types of operating environments . " Second Quarter 2026 Results Gross premiums earned in the second quarter of 2026 were $ 321 million compared with $ 303 million in the second quarter of 2025. The increase of 6 % was driven by a higher volume of insurance policies in force while average premium per policy remained relatively consistent . Premiums ceded for reinsurance in the second quarter of 2026 were $ 102 million compared with $ 103 million in the second quarter of 2025. The decrease was a result of the lower costs associated with the company's new 2026-2027 catastrophe reinsurance programs , which began on June 1 , 2026 . Net investment income in the second quarter of 2026 was $ 19 million compared with $ 16 million in the second quarter of 2025. The increase was driven by growth in invested assets . Other revenue in the second quarter of 2026 was $ 5 million compared with $ 3 million in the second quarter of 2025. The increase was primarily driven by the addition of new insurance carrier customers to Exzeo's insurance technology platform . Losses and loss adjustment expenses in the second quarter of 2026 were $ 71 million compared with $ 64 million in the second quarter of 2025. The increase was driven largely by a higher volume of policies in force . The gross loss and loss adjustment expense ratio for the second quarter of 2026 was 22.2 % . Policy acquisition and other underwriting expenses in the second quarter of 2026 were $ 32 million compared with $ 31 million in the second quarter of 2025. The increase was driven by a greater amount of premiums in force . General and administrative personnel expenses in the second quarter of 2026 were $ 24 million compared with $ 20 million in the second quarter of 2025. The increase was driven by additional personnel , annual merit increases , and stock - based compensation . Six Months Ended June 30 , 2026 Results 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 pre - tax income of $ 195 million and net income of $ 145 million for the six months ended June 30 , 2025. Net income after noncontrolling interests was $ 147 million compared with $ 136 million for the six months ended June 30 , 2025. Diluted earnings per share were $ 11.05 for the six months ended June 30 , 2026 , compared with $ 10.57 for the six months ended June 30 , 2025 . 1
Page 2
Gross premiums earned for the six months ended June 30, 2026 were $647 million compared with $603 million for the six months ended June 30, 2025. The increase of 7% was driven by a higher volume of insurance policies in force while average premium per policy remained relatively consistent. Premiums ceded for reinsurance for the six months ended June 30, 2026 were $206 million compared with $202 million for the six months ended June 30, 2025. The increase was a result of a higher number of policies in force and partially offset by the company’s new 2026- 2027 catastrophe reinsurance programs, which started on June 1, 2026. Net investment income for the six months ended June 30, 2026 was $36 million compared with $30 million for the six months ended June 30, 2025. The increase was driven by growth in invested assets. Other revenue for the six months ended June 30, 2026 was $8 million compared with $3 million for the six months ended June 30, 2025. The increase was primarily driven by the addition of new insurance carrier customers to Exzeo's insurance technology platform. Losses and loss adjustment expenses for the six months ended June 30, 2026 were $137 million compared with $124 million for the six months ended June 30, 2025. The increase was largely driven by a higher volume of policies in force. The gross loss and loss adjustment expense ratio for the six months ended June 30, 2026 was 21.1%. Policy acquisition and other underwriting expenses for the six months ended June 30, 2026 were $64 million compared with $58 million for the six months ended June 30, 2025. The increase was driven by a greater amount of premiums in force. General and administrative personnel expenses for the six months ended June 30, 2026 were $46 million compared with $40 million for the six months ended June 30, 2025. The increase was driven by additional personnel, annual merit increases, and stock-based compensation. Share Repurchase On March 3, 2026, HCI Group announced a share repurchase program to repurchase up to $80 million of shares of HCI common stock through February 27, 2027. In the second quarter of 2026, HCI Group repurchased 363,538 shares for $57.0 million. During the first six months of 2026, HCI Group repurchased 473,609 shares for $74.5 million. The share repurchase program was completed on July 17, 2026, with a total of 504,330 shares repurchased for $80.0 million. Conference Call HCI Group will hold a conference call later today, August 6, 2026, to discuss these financial results. Chairman and Chief Executive Officer Paresh Patel, Chief Operating Officer Karin Coleman and Chief Financial Officer Mark Harmsworth will host the call starting at 4:45 p.m. Eastern Time. Interested parties can listen to the live presentation by dialing the listen-only number below or by clicking the webcast link available on the Investor Information section of the company's website at www.hcigroup.com. Listen-only toll-free number: (888) 506-0062 Listen-only international number: (973) 528-0011 Entry Code: 202996 Please call the conference telephone number 10 minutes before the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at (949) 574-3860. A replay of the call will be available after 8:00 p.m. Eastern Time on the same day through August 20, 2026 and a replay of the webcast will be available on the Investor Relations section of the HCI Group website at www.hcigroup.com through August 6, 2027. Toll-free replay number: (877) 481-4010 International replay number: (919) 882-2331 Replay ID: 54257 About HCI Group, Inc. HCI Group, Inc. is a diversified holding company engaged in insurance, reinsurance, real estate, claims services, and insurance technology. The HCI Group portfolio of companies includes multiple property and casualty underwriters and exchanges, two captive reinsurers, a claims management business, a commercial real estate investment company and a leading insurance technology company, Exzeo Group. HCI Group was founded in 2006 and operates in 13 states.
Page 3
2
Page 4
3 HCI Group's common shares trade on the New York Stock Exchange under the ticker symbol "HCI" and are included in the Russell 2000 and S&P SmallCap 600 Index. HCI Group, Inc. regularly publishes financial and other information in the Investor Information section of the company’s website. For more information about HCI Group and its subsidiaries, visit www.hcigroup.com. Exzeo’s common shares trade on the New York Stock Exchange under the ticker symbol “XZO.” For more information about Exzeo, visit www.exzeo.com. Forward-Looking Statements This news release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "estimate," "expect," "intend," "plan," "confident," "prospects" and "project" and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions, but rather are subject to various risks and uncertainties. For example, the estimation of reserves for losses and loss adjustment expenses is an inherently imprecise process involving many assumptions and considerable management judgment. Further, future cash flow and earnings may limit HCI’s ability or willingness to engage in share buybacks. Some of these risks and uncertainties are identified in the company's filings with the Securities and Exchange Commission. Should any risks or uncertainties develop into actual events, these developments could have material adverse effects on the company's business, financial condition and results of operations. HCI Group, Inc. disclaims all obligations to update any forward-looking statements. Company Contact: Nat Otis Investor Relations HCI Group, Inc. Tel (813) 355-5341 notis@hcigroup.com Investor Relations Contact: Matt Glover Gateway Group, Inc. Tel (949) 574-3860 HCI@gateway-grp.com - Tables to follow -
Page 5
4 HCI GROUP, INC. AND SUBSIDIARIES Selected Financial Metrics (Unaudited) (In thousands, except share and per share amounts) Three Months Ended June 30, 2026 2025 Gross Written Premiums: Homeowners Choice $ 228,208 $ 227,090 TypTap Insurance Company 110,477 110,412 Condo Owners Reciprocal Exchange 10,848 13,830 Tailrow Reciprocal Exchange 32,812 5,213 Total Gross Written Premiums $ 382,345 $ 356,545 Gross Premiums Earned: Homeowners Choice $ 161,927 $ 156,552 TypTap Insurance Company 123,279 124,437 Condo Owners Reciprocal Exchange 5,925 12,811 Tailrow Insurance Exchange 29,693 8,828 Total Gross Premiums Earned $ 320,824 $ 302,628 Gross loss and loss adjustment expense ratio 22.2% 21.3% Per Share Metrics Diluted earnings per share $ 5.60 $ 5.18 Dividends per share $ 0.40 $ 0.40 Book value per share at the end of period $ 86.60 $ 58.55 Shares outstanding at the end of period 12,469,972 12,956,884
Page 6
5 HCI GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (In thousands, except share amounts) June 30, 2026 December 31, 2025 (Unaudited) Assets Fixed-maturity securities, available-for-sale, at fair value (amortized cost: $1,103,778 and $595,383, respectively and allowance for credit losses: $0 and $0, respectively) $ 1,091,041 $ 597,329 Equity securities, at fair value (cost: $55,700 and $61,597, respectively) 59,038 65,890 Limited partnership investments 16,394 17,690 Real estate investments 102,669 103,746 Other investments 5,000 5,000 Total investments 1,274,142 789,655 Cash and cash equivalents 872,336 1,210,126 Restricted cash 4,378 3,748 Income taxes receivable 1,277 1,332 Deferred income tax assets, net 1,088 2,237 Premiums receivable, net (allowance: $5,363 and $4,469, respectively) 77,607 57,494 Prepaid reinsurance premiums — 50,127 Reinsurance recoverable, net of allowance for credit losses: Paid losses and loss adjustment expenses (allowance: $0 and $0, respectively) 26,613 27,855 Unpaid losses and loss adjustment expenses (allowance: $73 and $97, respectively) 229,131 262,041 Deferred policy acquisition costs 68,206 59,722 Property and equipment, net 27,503 28,939 Intangible assets, net 1,924 2,683 Funds withheld for assumed business 5,346 5,254 Other assets 58,908 27,715 Total assets $ 2,648,459 $ 2,528,928 Liabilities, Redeemable Noncontrolling Interests and Equity Losses and loss adjustment expenses $ 558,982 $ 576,495 Unearned premiums 659,335 643,328 Advance premiums 44,440 19,302 Ceded reinsurance premiums payable 34,772 27,591 Assumed premiums payable 4,049 1,744 Income taxes payable 16,467 12,782 Deferred income tax liabilities, net 1,001 3,814 Revolving credit facility 36,000 36,000 Long-term debt 31,465 31,877 Accrued expenses and other liabilities 82,887 61,351 Total liabilities 1,469,398 1,414,284 Commitments and contingencies Redeemable noncontrolling interests 5,929 3,359 Equity: Common stock, (no par value, 40,000,000 shares authorized, 12,469,972 and 12,992,147 shares issued and outstanding, respectively) — — Additional paid-in capital 340,854 428,109 Retained earnings 748,437 611,509 Accumulated other comprehensive (loss) income (9,382) 1,459 Total stockholders' equity 1,079,909 1,041,077 Noncontrolling interests 93,223 70,208 Total equity 1,173,132 1,111,285 Total liabilities, redeemable noncontrolling interests and equity $ 2,648,459 $ 2,528,928
Page 7
6 HCI GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) (In thousands, except per share amounts) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Revenue Gross premiums earned $ 320,824 $ 302,628 $ 647,030 $ 603,011 Premiums ceded (101,812) (102,522) (205,867) (202,157) Net premiums earned 219,012 200,106 441,163 400,854 Net investment income 18,890 16,445 36,191 30,196 Net realized investment gains 1,222 155 1,756 1,322 Net unrealized investment gains (losses) 743 1,180 (955) (726) Policy fee income 1,651 1,467 3,227 3,696 Other 5,135 2,567 8,153 3,011 Total revenue 246,653 221,920 489,535 438,353 Expenses Losses and loss adjustment expenses 71,076 64,457 136,676 123,748 Policy acquisition and other underwriting expenses 32,346 30,551 64,116 57,838 General and administrative personnel expenses 23,948 19,985 46,301 40,468 Interest expense 1,084 3,744 2,007 7,128 Other operating expenses 7,226 8,791 14,078 14,440 Total expenses 135,680 127,528 263,178 243,622 Income before income taxes 110,973 94,392 226,357 194,731 Income tax expense 28,073 24,113 58,414 50,222 Net income $ 82,900 $ 70,279 $ 167,943 $ 144,509 Net income attributable to noncontrolling interests (9,103) (4,119) (20,739) (8,665) Net income after noncontrolling interests $ 73,797 $ 66,160 $ 147,204 $ 135,844 Basic earnings per share $ 5.78 $ 5.57 $ 11.39 $ 12.00 Diluted earnings per share $ 5.60 $ 5.18 $ 11.05 $ 10.57 Dividends per share $ 0.40 $ 0.40 $ 0.80 $ 0.80
Page 8
7 HCI GROUP, INC. AND SUBSIDIARIES Earnings Per Share (Unaudited) (In thousands, except per share amounts) The computations of basic and diluted earnings per share for the periods presented were as follows: Three Months Ended Six Months Ended June 30, 2026 June 30, 2026 Income Shares Per Share Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Net income $ 82,900 $ 167,943 Less: Net income attributable to noncontrolling interests (9,103) (20,739) Net income after noncontrolling interests 73,797 147,204 Less: Income attributable to participating securities (2,925) (6,186) Basic Earnings Per Share: Income attributable to common stockholders 70,872 12,269 $ 5.78 141,018 12,379 $ 11.39 Effect of Dilutive Securities: Stock options — 382 — 390 Warrants — 7 — 7 Net impact from reallocation of undistributed earnings to participating securities 65 — 143 — Diluted Earnings Per Share: Income attributable to common stockholders $ 70,937 12,658 $ 5.60 $ 141,161 12,776 $ 11.05