HCI Group posts strong Q2’25 results with 15% premium growth

HCI Group, Inc., a Tampa-based holding company primarily engaged in property and casualty insurance through its subsidiaries, reported strong financial results for the second quarter of 2025, driven by disciplined underwriting and improved loss ratios.

The company posted net income after non controlling interests of $66.2 million, up from $54.1 million in the same quarter last year. Diluted earnings per share rose to $5.18 from $4.24.

Underwriting results remained a core strength. Losses and loss adjustment expenses dropped to $64.5 million from $78.3 million in Q2 2024, despite a 14.8% increase in gross premiums earned to $302.6 million.

The gross loss ratio improved significantly to 21.3% from 29.7% a year ago, largely due to fewer claims and reduced litigation activity.

Premiums continued to grow, supported by an increase in the number of policies in force. Gross premiums earned rose to $302.6 million from $263.6 million in Q2 2024, while reinsurance costs remained manageable at $102.5 million.

For the first half of 2025, gross premiums earned totalled $603.0 million, up from $520.2 million in the same period last year.

Investment performance remained stable. Net investment income for the quarter was $16.4 million, consistent with $16.9 million in the prior-year period. HCI also posted modest realized and unrealized investment gains, contributing to total pre-tax income of $94.4 million, up from $76.0 million.

“HCI Group delivered another strong quarter, marked by solid profitability, industry-leading net combined ratios, and meaningful growth in book value per share,” commented HCI Group Chairman and Chief Executive Officer Paresh Patel.

“We continue to make progress on initiatives to unlock shareholder value and establish Exzeo as an independent, publicly traded entity.”