HCI Group, Inc. reported fourth‑quarter and full‑year 2025 results that surpassed analyst expectations, with a diluted earnings per share of $7.25 for the quarter and $22.72 for the year, compared with $0.23 and $0.23 for the same periods in 2024.
The company posted pre‑tax income of $144 million and net income of $108 million for the quarter, while full‑year 2025 pre‑tax income reached $429 million and net income $320 million. Revenue for the quarter was $246.24 million, beating the consensus estimate of $232.36 million and matching the top of the analyst range. The Q4 2024 revenue of $297 million and full‑year 2024 revenue of $1,083 million provide context for the year‑over‑year growth of 52.1% in revenue and a 58.5% beat in earnings.
The strong results were driven by a combination of disciplined underwriting, cost control, and a significant influx of policies from Citizens and Exzeo. The company assumed 47,000 policies in Q4 2025, adding more than $175 million in premiums, and 60,000 policies for the full year. Legislative reform in Florida helped lower the normalized loss ratio to 17.5% in Q4 and 20% for the year, while the gross loss ratio fell to 15.6% in the quarter. "2025 was a very successful year for HCI, delivering record earnings and shareholder returns," said Chairman and CEO Paresh Patel. "In addition to our operating performance, HCI successfully executed the IPO of Exzeo, a leading technology platform."
The company’s gross profit margin of 48.83% and a normalized loss ratio of 17.5% in Q4 indicate that pricing power and efficient cost management are sustaining profitability. Management also announced plans for an $80 million share buyback program and highlighted ongoing opportunities for organic growth and strategic acquisitions. The results reinforce HCI’s position as a leading insurer with a robust balance sheet and a clear path to continued earnings expansion.
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