HCI Group (HCI) Q2 2026 earnings summary

Executive summary

• Pre-tax income for Q2 2026 reached $111 million, up 18% year-over-year, with YTD pre-tax income at $226 million and net income at $83 million for the quarter.

• Diluted EPS for Q2 was $5.60, up from $5.18 last year; YTD diluted EPS reached $11.05.

• Gross premiums earned grew 6% year-over-year to $321 million for the quarter, driven by policy growth, with premiums in force at $1.29B as of June 30, 2026.

• Total revenue increased 11%, supported by premium growth and new services revenue from Exzeo.

• Retention rates remained above 90%, reflecting strong policyholder loyalty.

Financial highlights

• Combined ratio for Q2 was 61%, within the 60%-65% target range; gross loss ratio was 22.2% for the quarter and 21.1% for the six months.

• Book value per share reached $86.60 as of June 30, 2026; pro forma book value per share would exceed $150 if including unrealized gains from Exzeo and real estate.

• After-tax ROE averaged 35% over the past 36 months; trailing 12-month ROE was 32%.

• Cash and investments exceeded $2 billion; shareholders' equity increased to $1,407M and invested assets to $2,146M by Q2 2026.

• Debt-to-capital ratio was 6% as of June 30, 2026, down from 34% in 2024.

Outlook and guidance

• Management expects continued organic policy growth, supported by new products and the GEICO distribution partnership, with benefits expected in Q3.

• Focus on opportunistic growth, proactive risk management, and deploying excess capital into investments and growth initiatives.

• Legislative reforms and technology integration expected to sustain underwriting profitability and cost management.

• Expansion into California remains under consideration, with timing dependent on rate environment.

• CORE expected to be a strong source of new business in H2 2026.