HCI(US:HCI)2025-11-06 21:30Financial Performance - Pre-tax income for Q3 2025 was $90.6 million, significantly up from $14.1 million in Q3 2024, with diluted EPS increasing to $4.90 from $0.52[2] - Year-to-date pre-tax income for 2025 reached $285.3 million, up from $167.5 million for the same period in 2024, with diluted EPS increasing to $15.47 from $8.59[8] - Net income for Q3 2025 was $67,888,000, significantly higher than $9,392,000 in Q3 2024, representing a 620.5% increase[26] - Basic earnings per share for Q3 2025 were $5.05, compared to $0.54 in Q3 2024, reflecting an increase of 834.3%[26] - Income before income taxes for the nine months ended September 30, 2025, was $285,330,000, up 70.3% from $167,536,000 in the same period of 2024[26] Premiums and Revenue - Gross premiums earned in Q3 2025 rose by 13.4% to $301.1 million compared to $265.5 million in Q3 2024, driven by a higher volume of policies in force[3] - Total gross premiums earned for the nine months of 2025 increased by 15.1% to $904.1 million from $785.7 million in the same period of 2024[9] - Net premiums earned rose to $194,991,000 in Q3 2025, up 25.1% from $155,824,000 in Q3 2024[26] - Total revenue for the nine months ended September 30, 2025, reached $654,703,000, a 11.2% increase compared to $588,176,000 for the same period in 2024[26] Loss Ratios and Expenses - The gross loss ratio improved to 22.0% in Q3 2025 from 39.8% in Q3 2024, reflecting lower catastrophic event activity and reduced claim frequency[5] - Losses and loss adjustment expenses for the nine months of 2025 decreased to $189.9 million from $264.0 million in 2024, with a gross loss ratio of 21.0% compared to 33.6%[10] - Policy acquisition and underwriting expenses for the nine months of 2025 rose to $89.5 million from $71.7 million in 2024, attributed to a higher volume of premiums[11] - Total expenses decreased to $125,751,000 in Q3 2025 from $161,237,000 in Q3 2024, a reduction of 22.0%[26] Investment and Other Income - The company reported net investment income of $17,529,000 for Q3 2025, up 27.0% from $13,714,000 in Q3 2024[26] - Policy fee income increased to $1,569,000 in Q3 2025, compared to $1,229,000 in Q3 2024, marking a growth of 28.0%[26] Shareholder Returns - Book value per share increased to $63.41 at the end of Q3 2025, up from $43.45 at the end of Q3 2024[22] - The company declared dividends per share of $0.40 for both Q3 2025 and Q3 2024, maintaining consistent returns to shareholders[26] Corporate Developments - The company established Exzeo as an independent, publicly traded entity, enhancing shareholder value[3] - Interest expense decreased to $1.0 million in Q3 2025 from $3.4 million in Q3 2024 due to the conversion of convertible senior notes[7]