HCI Group Reports Second Quarter 2025 Results

Core Insights - HCI Group, Inc. reported strong financial performance for Q2 2025, with pre-tax income of $94.4 million and net income of $70.3 million, reflecting a significant increase from the previous year [1][6] - The company achieved a 14.8% increase in consolidated gross premiums earned, totaling $302.6 million, driven by a higher volume of policies in force [2][7] - The gross loss ratio improved to 21.3% in Q2 2025, down from 29.7% in Q2 2024, indicating better claims management [3][8] Financial Performance - For Q2 2025, diluted earnings per share rose to $5.18, compared to $4.24 in Q2 2024 [1][25] - Year-to-date results for 2025 showed pre-tax income of $194.7 million and net income of $144.5 million, up from $101.7 million in the same period of 2024 [6][7] - The company’s book value per share increased to $58.55 at the end of Q2 2025, compared to $42.72 a year earlier [19] Expense Management - Losses and loss adjustment expenses decreased to $64.5 million in Q2 2025 from $78.3 million in Q2 2024, attributed to a decline in claims and litigation frequency [3][8] - Policy acquisition and underwriting expenses rose to $30.6 million in Q2 2025, up from $23.5 million in Q2 2024, driven by higher gross premiums [4][9] - General and administrative expenses increased to $20.0 million in Q2 2025 from $17.5 million in Q2 2024, primarily due to higher stock-based compensation and employee benefits [4][10] Reinsurance and Premiums - Premiums ceded for reinsurance in Q2 2025 were $102.5 million, slightly higher than $99.6 million in Q1 2025 [3] - For the six months ended June 30, 2025, consolidated gross premiums earned reached $603.0 million, up from $520.2 million in the same period of 2024 [7][8] - The company reported a decrease in reinsurance premiums ceded for the six months of 2025, totaling $202.2 million compared to $144.8 million in 2024 [7] Future Outlook - HCI Group is focused on initiatives to unlock shareholder value and plans to establish Exzeo as an independent, publicly traded entity [2] - The company will hold a conference call to discuss these financial results, indicating ongoing communication with investors [12]