HCI Diluted Earnings Rise to $6.45 a Share

The Tip Desk · November 10, 2026 · 3 min read

Diluted earnings were $6.45 a share as pre-tax income reached $116 million and the gross loss ratio fell to 20.7%.

HCI Group (HCI), a diversified holding company in homeowners insurance, reinsurance, real estate, claims services and insurance technology, reported pre-tax income of $116 million and net income of $86 million in the third quarter of 2026, up from $91 million and $68 million a year earlier. Diluted earnings were $6.45 a share, compared with $4.90 a year earlier.

The company said earnings accelerated as greater operating leverage combined with modest premium growth. Chairman and Chief Executive Officer Paresh Patel said internal operating decisions could be as important as external market conditions.

Gross premiums earned were $316 million, up 5% from $301 million a year earlier. The company said the increase was driven by a higher volume of insurance policies in force while average premium per policy remained relatively consistent. Sequentially, earned premiums were $316 million after $321 million in the second quarter.

Premiums ceded for reinsurance were $97 million, down from $106 million a year earlier. The company attributed the decrease to lower costs under its new 2026-2027 catastrophe reinsurance programs, which began June 1, 2026.

The gross loss and loss adjustment expense ratio was 20.7%, compared with 22.0% a year earlier. Losses and loss adjustment expenses were $65 million, versus $66 million a year earlier. The company said the quarter included a small amount of favorable prior-year development.

Net investment income was $22 million, up from $18 million a year earlier, which the company said was primarily driven by growth in invested assets. Policy acquisition and other underwriting expenses were $32 million, matching the year-ago quarter. General and administrative personnel expenses were $24 million, compared with $21 million a year earlier, which the company said was driven by additional personnel, annual merit increases and stock-based compensation.

Gross written premiums were $353.1 million. By underwriter, Homeowners Choice wrote $185.4 million, TypTap Insurance Company $107.4 million, Condo Owners Reciprocal Exchange $24.9 million and Tailrow Reciprocal Exchange $35.4 million. Earned premiums included $28.5 million at Tailrow Insurance Exchange.

The company completed an $80 million share-repurchase program on July 17, 2026, having bought 504,330 shares. In the third quarter it repurchased 30,721 shares for $6 million. Shares outstanding at period end were 12,437,958. Book value per share was $90.15, compared with $63.41 a year earlier. Dividends were $0.40 a share.

For the nine months ended September 30, 2026, pre-tax income was $343 million and net income $254 million, versus $285 million and $212 million a year earlier. Diluted earnings were $17.48 a share, compared with $15.47. Gross premiums earned for the nine months were $963 million, up 7% from $904 million, which the company said was driven by a higher volume of policies in force while average premium per policy remained relatively consistent. Premiums ceded were $303 million, versus $308 million a year earlier, again attributed to lower costs under the 2026-2027 catastrophe programs.

Net investment income for the nine months was $58 million, compared with $48 million a year earlier. Losses and loss adjustment expenses were $202 million, versus $190 million. The gross loss ratio was 21.0% for both nine-month periods. Policy acquisition and other underwriting expenses were $96 million, versus $89 million, which the company said was driven by a higher volume of premiums in force. General and administrative personnel expenses were $70 million, versus $61 million.