HCI HCI Group Inc

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities and Exchange Act of 1934

Date of Report (or Date of Earliest Event Reported): February 27, 2025

HCI Group, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Florida		001-34126		20-5961396
(State or Other Jurisdiction of Incorporation or Organization)		(Commission File Number)		(I.R.S. Employer Identification Number)

3802 Coconut Palm Drive

Tampa, Florida 33619

(Address of Principal Executive Offices)

(813) 405-3600

(Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	HCI	NYSE

 

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Item 2.02 Results of Operations and Financial Condition

 

On February 27, 2025, we released our earnings for the three months and year ended December 31, 2024. We plan to host an earnings conference call that same day at 4:45 p.m. Eastern time during which our chief executive officer, chief operating officer and chief financial officer will discuss the results.

 

Interested parties may listen to the live presentation by dialing the listen-only number below or by clicking the webcast link available on the Investor Information section of the company’s website at www.hcigroup.com.

 

Date: Thursday, February 27, 2025

Time: 4:45 p.m. Eastern time (1:45 p.m. Pacific time)

Listen-only toll-free number: (888) 506-0062

Listen-only international number: (973) 528-0011

Entry Code: 835158

 

Please call the conference telephone number 10 minutes before the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at (949) 574-3860.

 

A replay of the call will be available by telephone after 8:00 p.m. Eastern time on the same day as the call and via the Investor Information section of the HCI Group website at www.hcigroup.com.

 

Toll-free replay number: (877) 481-4010

International replay number: (919) 882-2331

Replay ID: 51955

Our earnings release appears as Exhibit 99.1 to this form 8-K

Item 9.01 Exhibits.

Exhibit 99.1 Earnings Release

Exhibit 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: February 27, 2025.

HCI GROUP, INC.
BY:		/s/ James Mark Harmsworth
		Name: James Mark Harmsworth Title: Chief Financial Officer

A signed original of this Form 8-K has been provided to HCI Group, Inc. and will be retained by HCI Group, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

 

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Exhibit 99.1

 

 

HCI Group Reports Fourth Quarter 2024 Results

 

Pre-Tax Income of $5.9 million and Diluted EPS of $0.23

Full Year 2024 Pre-Tax Income of $173.4 million and Diluted EPS of $8.89

Tampa, Fla. – February 27, 2025 – HCI Group, Inc. (NYSE:HCI), reported pre-tax income of $5.9 million and net income of $4.1 million in the fourth quarter of 2024. Net income after noncontrolling interests was $2.6 million compared with $38.1 million in the fourth quarter of 2023. Diluted earnings per share were $0.23 in the fourth quarter of 2024, compared with $3.40 diluted earnings per share, in the fourth quarter of 2023.

Adjusted net income (a non-GAAP measure which excludes net unrealized gains or losses on equity securities) for the fourth quarter of 2024 was $5.0 million, or $0.31 diluted earnings per share compared with adjusted net income of $38.8 million, or $3.22 diluted earnings per share, in the fourth quarter of 2023. This press release includes an explanation of adjusted net income as well as a reconciliation to net income and earnings per share calculated in accordance with generally accepted accounting principles (known as “GAAP”).

Management Commentary

“Even with the hurricanes in 2024, HCI Group is unwavering in its commitment to Florida and supporting our existing and new policyholders. As part of our ongoing efforts, we plan to keep rates flat for the foreseeable future,” said HCI Group Chairman and Chief Executive Officer Paresh Patel. “Given an increased level of catastrophe activity across the country, we are taking initial steps to make our best-in-class technology available to other carriers and in additional geographies.”

 

Fourth Quarter 2024 Commentary

Consolidated gross premiums earned in the fourth quarter increased by 38.0% to $297.5 million from $215.2 million in the fourth quarter of 2023 driven primarily by assumptions of policies from Citizens Property Insurance Corporation.

Premiums ceded for reinsurance in the fourth quarter were $151.1 million compared with $66.6 million in the fourth quarter of 2023. The fourth quarter included the reversal of $50.6 million of previously accrued benefits related to retrospective reinsurance provisions as a result of losses caused by Hurricane Milton.

Net investment income in the fourth quarter was $14.5 million compared with $10.3 million in the fourth quarter of 2023. The increase was primarily attributable to an increase in interest income from cash, cash equivalents and available-for-sale fixed maturity securities.

Losses and loss adjustment expenses in the fourth quarter were $110.7 million compared with $65.4 million in the fourth quarter of 2023. Loss expenses in the fourth quarter of 2024 include a net loss of $78.0 million from Hurricane Milton, partially offset by $24.5 million of favorable development mostly related to the 2024 accident year.

Policy acquisition and other underwriting expenses in the fourth quarter were $27.7 million compared with $22.7 million in the fourth quarter of 2023.

General and administrative personnel expenses in the fourth quarter decreased to $10.2 million from $12.2 million in the fourth quarter of 2023. The decrease was attributable to lower stock-based compensation as well as higher reinsurance recoveries related to claims processing for Hurricane Milton.

 

Full 2024 Results

For the year ended December 31, 2024, the company reported pre-tax income of $173.4 million and net income of $127.6 million. Net income after noncontrolling interests was $110.0 million compared with $79.0 million for the year ended December 31, 2023. Diluted earnings per share were $8.89 for the year ended December 31, 2024, compared with $7.62 diluted earnings per share for the year ended December 31, 2023.

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Adjusted net income (a non-GAAP measure which excludes net unrealized gains or losses on equity securities) for the twelve month period was $125.6 million, or $8.75 diluted earnings per share compared with adjusted net income of $86.8 million, or $7.41 diluted earnings per share in the same period of 2023. An explanation of this non-GAAP financial measure and reconciliations to the applicable GAAP numbers accompany this press release.

Consolidated gross premiums earned for the twelve months of 2024 increased by 41.5% to $1,083.2 million from $765.5 million in 2023 driven primarily by growth in Florida due to assumptions of policies from Citizens Property Insurance Corporation.

Premiums ceded for reinsurance for the twelve months of 2024 were $405.7 million compared with $269.6 million for the twelve months of 2023. The twelve months of 2024 included the reversal of $62.9 million of previously accrued benefits related to retrospective reinsurance provisions as a result of losses caused by Hurricanes Helene and Milton.

Net investment income for the twelve months of 2024 was $59.1 million compared with $46.2 million for the twelve months of 2023. The increase was primarily attributable to an increase in interest income from cash, cash equivalents, and available-for-sale fixed maturity securities, offset by a decrease in income from real estate investments.

Losses and loss adjustment expenses for the twelve months of 2024 were $374.7 million compared with $254.6 million for the twelve months of 2023. Loss expense included $78.0 million from Hurricane Milton, $43.0 million from Hurricane Helene and $6.5 million from Hurricane Debby.

Policy acquisition and other underwriting expenses for the twelve months of 2024 were $99.4 million compared with $90.8 million for the twelve months of 2023.

General and administrative personnel expenses for the twelve months of 2024 increased to $63.2 million from $53.9 million for the twelve months of 2023.

 

Conference Call

HCI Group will hold a conference call later today, February 27, 2025, to discuss these financial results. Chairman and Chief Executive Officer Paresh Patel, Chief Operating Officer Karin Coleman and Chief Financial Officer Mark Harmsworth will host the call starting at 4:45 p.m. Eastern time.

Interested parties can listen to the live presentation by dialing the listen-only number below or by clicking the webcast link available on the Investor Information section of the company's website at www.hcigroup.com.

Listen-only toll-free number: (888) 506-0062

Listen-only international number: (973) 528-0011

Entry Code: 835158

Please call the conference telephone number 10 minutes before the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at (949) 574-3860.

A replay of the call will be available by telephone after 8:00 p.m. Eastern time on the same day as the call and via the Investor Information section of the HCI Group website at www.hcigroup.com through February 27, 2026.

Toll-free replay number: (877) 481-4010

International replay number: (919) 882-2331

Replay ID: 51955

About HCI Group, Inc.

HCI Group, Inc. is a holding company with two distinct operating units. The first unit includes four top-performing insurance companies, a captive reinsurance company, and operations in claims management and real estate. The second unit, called Exzeo Group, is a leading innovator of insurance technology that utilizes advanced underwriting algorithms and data analytics. Exzeo empowers property and casualty insurers to transform underwriting outcomes and achieve industry-leading results.

The company's common shares trade on the New York Stock Exchange under the ticker symbol "HCI" and are included in the Russell 2000 and S&P SmallCap 600 Index. HCI Group, Inc. regularly publishes financial and other information in the Investor Information section of the company’s website. For more information about HCI Group and its subsidiaries, visit www.hcigroup.com.

Forward-Looking Statements

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This news release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "estimate," "expect," "intend," "plan," "confident," "prospects" and "project" and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions, but rather are subject to various risks and uncertainties. For example, the estimation of reserves for losses and loss adjustment expenses is an inherently imprecise process involving many assumptions and considerable management judgment. Some of these risks and uncertainties are identified in the company's filings with the Securities and Exchange Commission. Should any risks or uncertainties develop into actual events, these developments could have material adverse effects on the company's business, financial condition and results of operations. HCI Group, Inc. disclaims all obligations to update any forward-looking statements.

 

Company Contact:

Bill Broomall, CFA

Investor Relations

HCI Group, Inc.

Tel (813) 776-1012

wbroomall@typtap.com

Investor Relations Contact:

Matt Glover

Gateway Group, Inc.

Tel (949) 574-3860

HCI@gatewayir.com

 

- Tables to follow -

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HCI GROUP, INC. AND SUBSIDIARIES

Selected Financial Metrics

(Dollar amounts in thousands, except per share amounts)

 

		Q4 2024					Q4 2023				FY 2024				FY 2023
		(Unaudited)					(Unaudited)				(Unaudited)
Insurance Operations
Gross Written Premiums:
Homeowners Choice		$	145,085				$	182,038			$	593,943			$	535,070
TypTap Insurance Company			174,980					138,482				491,413				363,552
Condo Owners Reciprocal Exchange			14,435					-				81,411				-
Total Gross Written Premiums			334,500					320,520				1,166,767				898,622
Gross Premiums Earned:
Homeowners Choice			156,342					125,796				589,137				417,202
TypTap Insurance Company			123,807					89,394				442,876				348,310
Condo Owners Reciprocal Exchange			17,348					-				51,207				-
Total Gross Premiums Earned			297,497					215,190				1,083,220				765,512
Gross Premiums Earned Loss Ratio			37.2	%				30.4	%			34.6	%			33.3	%
Per Share Metrics
GAAP Diluted EPS		$	0.23				$	3.40			$	8.89			$	7.62
Non-GAAP Adjusted Diluted EPS		$	0.31				$	3.22			$	6.33			$	7.41
Dividends per share		$	0.40				$	0.40			$	1.60			$	1.60
Book value per share at the end of period		$	42.10				$	33.36			$	42.10			$	33.36
Shares outstanding at the end of period			10,767,184					9,738,183				10,767,184				9,738,183

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HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(Dollar amounts in thousands)

 

		December 31, 2024				December 31, 2023
		(Unaudited)
Assets
Fixed-maturity securities, available for sale, at fair value (amortized cost: $719,536 and $387,687, respectively and allowance for credit losses: $0 and $0, respectively)		$	718,537			$	383,238
Equity securities, at fair value (cost: $52,030 and $44,011, respectively)			56,200				45,537
Limited partnership investments			20,802				23,583
Real estate investments			79,120				67,893
Total investments			874,659				520,251
Cash and cash equivalents			532,471				536,478
Restricted cash			3,714				3,287
Receivable from maturities of fixed-maturity securities			—				91,085
Accrued interest and dividends receivable			6,008				3,507
Income taxes receivable			463				—
Deferred income taxes, net			72				512
Premiums receivable, net (allowance: $5,891 and $3,152, respectively)			50,582				38,037
Assumed premium receivable			—				19,954
Prepaid reinsurance premiums			92,060				86,232
Reinsurance recoverable, net of allowance for credit losses:
Paid losses and loss adjustment expenses (allowance: $0 and $0, respectively)			36,062				19,690
Unpaid losses and loss adjustment expenses (allowance: $186 and $118, respectively)			522,379				330,604
Deferred policy acquisition costs			54,303				42,910
Property and equipment, net			29,544				29,251
Right-of-use-assets - operating leases			1,182				1,407
Intangible assets, net			5,206				7,659
Funds withheld for assumed business			11,690				30,087
Other assets			9,818				50,365
Total assets		$	2,230,213			$	1,811,316
Liabilities and Equity
Losses and loss adjustment expenses		$	845,900			$	585,073
Unearned premiums			584,703				501,157
Advance premiums			18,867				15,895
Reinsurance payable on paid losses and loss adjustment expenses			2,496				3,145
Ceded reinsurance premiums payable			18,313				8,921
Assumed premiums payable			2,176				850
Accrued expenses			17,677				19,722
Income tax payable			5,451				7,702
Deferred income taxes, net			2,830				—
Revolving credit facility			44,000				—
Long-term debt			185,254				208,495
Lease liabilities - operating leases			1,185				1,408
Other liabilities			32,320				35,623
Total liabilities			1,761,172				1,387,991
Commitments and contingencies
Redeemable noncontrolling interest			1,691				96,160
Equity:
Common stock, (no par value, 40,000,000 shares authorized, 10,767,184 and 9,738,183 shares issued and outstanding in 2024 and 2023, respectively)			—				—
Additional paid-in capital			122,289				89,568
Retained income			331,793				238,438
Accumulated other comprehensive loss, net of taxes			(749	)			(3,163	)
Total stockholders' equity			453,333				324,843
Noncontrolling interests			14,017				2,322
Total equity			467,350				327,165
Total liabilities, redeemable noncontrolling interest, and equity		$	2,230,213			$	1,811,316

 

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HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Income

(Unaudited)

(Dollar amounts in thousands, except per share amounts)

 

		Three Months Ended								Years Ended
		December 31,								December 31,
		2024				2023				2024				2023
		(Unaudited)				(Unaudited)				(Unaudited)
Revenue
Gross premiums earned		$	297,497			$	215,190			$	1,083,220			$	765,512
Premiums ceded			(151,146	)			(66,576	)			(405,659	)			(269,627	)
Net premiums earned			146,351				148,614				677,561				495,885
Net investment income			14,486				10,341				59,148				46,234
Net realized investment gains (losses)			326				(410	)			3,384				(1,996	)
Net unrealized investment (losses) gains			(1,181	)			2,830				2,644				3,215
Policy fee income			1,302				1,053				4,639				4,704
Other			591				242				2,675				2,628
Total revenue			161,875				162,670				750,051				550,670
Expenses
Losses and loss adjustment expenses			110,727				65,398				374,708				254,579
Policy acquisition and other underwriting expenses			27,707				22,716				99,402				90,822
General and administrative personnel expenses			10,231				12,230				63,152				53,868
Interest expense			3,322				2,822				13,344				11,117
Other operating expenses			3,997				5,344				26,018				22,634
Total expenses			155,984				108,510				576,624				433,020
Income before income taxes			5,891				54,160				173,427				117,650
Income tax expense			1,757				13,248				45,846				28,393
Net income		$	4,134			$	40,912			$	127,581			$	89,257
Net income attributable to redeemable noncontrolling interests			—				(2,360	)			(10,149	)			(9,370	)
Net income attributable to noncontrolling interests			(1,550	)			(457	)			(7,479	)			(853	)
Net income after noncontrolling interests		$	2,584			$	38,095			$	109,953			$	79,034
Basic earnings per share		$	0.24			$	4.31			$	10.59			$	9.13
Diluted earnings per share		$	0.23			$	3.40			$	8.89			$	7.62
Dividends per share		$	0.40			$	0.40			$	1.60			$	1.60

 

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HCI GROUP, INC. AND SUBSIDIARIES

(Amounts in thousands, except per share amounts)

 

A summary of the numerator and denominator of basic and diluted earnings per common share calculated in accordance with GAAP is presented below.

 

		Three Months Ended												Year Ended
GAAP		December 31, 2024												December 31, 2024
		Income				Shares (a)				Per Share				Income				Shares (a)				Per Share
		(Numerator)				(Denominator)				Amount				(Numerator)				(Denominator)				Amount
Net income		$	4,134											$	127,581
Less: Net income attributable to redeemable noncontrolling interest			—												(10,149	)
Less: Net income attributable to noncontrolling interests			(1,550	)											(7,479	)
Net income attributable to HCI			2,584												109,953
Less: Income attributable to participating securities			(118	)											(4,110	)
Basic Earnings Per Share:
Income allocated to common stockholders			2,466				10,143			$	0.24				105,843				9,997			$	10.59
Effect of Dilutive Securities: *
Stock options			—				323								—				294
Convertible senior notes			—				—								6,908				2,177
Warrants			—				143								—				218
Diluted Earnings Per Share:
Income available to common stockholders and assumed conversions		$	2,466				10,609			$	0.23			$	112,751				12,686			$	8.89
(a) Shares in thousands.
*For the three months ended December 31, 2024, convertible senior notes were excluded due to anti-dilutive effect.

 

Non-GAAP Financial Measures

Adjusted net income is a Non-GAAP financial measure that removes from net income of HCI's portion of the effect of unrealized gains or losses on equity securities required to be included in results of operations in accordance with Accounting Standards Codification 321. HCI Group believes net income without the effect of volatility in equity prices more accurately depicts operating results. This financial measurement is not recognized in accordance with accounting principles generally accepted in the United States of America ("GAAP") and should not be viewed as an alternative to GAAP measures of performance. A reconciliation of GAAP Net income to Non-GAAP Adjusted net income and GAAP diluted earnings per share to Non-GAAP Adjusted diluted earnings per share is provided below.

 

Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income

 

		Three Months Ended										Year Ended
		December 31, 2024										December 31, 2024
GAAP Net income						$	4,134									$	127,581
Net unrealized investment losses (gains)		$	1,181									$	(2,644	)
Less: Tax effect at 25.041%		$	(296	)								$	662
Net adjustment to Net income						$	885									$	(1,982	)
Non-GAAP Adjusted Net income						$	5,019									$	125,599

 

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HCI GROUP, INC. AND SUBSIDIARIES

(Amounts in thousands, except per share amounts)

 

A summary of the numerator and denominator of the basic and diluted earnings per common share calculated with the Non-GAAP financial measure Adjusted net income is presented below.

 

		Three Months Ended												Year Ended
Non-GAAP		December 31, 2024												December 31, 2024
		Income				Shares (a)				Per Share				Income				Shares (a)				Per Share
		(Numerator)				(Denominator)				Amount				(Numerator)				(Denominator)				Amount
Adjusted net income (non-GAAP)		$	5,019											$	125,599
Less: Net income attributable to redeemable noncontrolling interest			-											$	(10,149	)
Less: Net loss (income) attributable to noncontrolling interests			(1,550	)											(7,281	)
Net income attributable to HCI			3,469												108,169
Less: Income attributable to participating securities			(158	)											(4,043	)
Basic Earnings Per Share before unrealized gains/losses on equity securities:
Income allocated to common stockholders			3,311				10,143			$	0.33				104,126				9,997			$	10.42
Effect of Dilutive Securities: *
Stock options			—				323								—				294
Convertible senior notes			—				—								6,908				2,177
Warrants			—				143								—				218
Diluted Earnings Per Share before unrealized gains/losses on equity securities:
Income available to common stockholders and assumed conversions		$	3,311				10,609			$	0.31			$	111,034				12,686			$	8.75
(a) Shares in thousands.
*For the three months ended December 31, 2024, convertible senior notes were excluded due to anti-dilutive effect.

 

Reconciliation of GAAP Diluted EPS to Non-GAAP Adjusted Diluted EPS

 

		Three Months Ended										Year Ended
		December 31, 2024										December 31, 2024
GAAP diluted Earnings Per Share						$	0.23									$	8.89
Net unrealized investment gains		$	0.10									$	(0.20	)
Less: Tax effect at 25.041%		$	(0.02	)								$	0.06
Net adjustment to GAAP diluted EPS						$	0.08									$	(0.14	)
Non-GAAP Adjusted diluted EPS						$	0.31									$	8.75

 

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v3.25.0.1

Cover	Feb. 27, 2025
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 27, 2025
Entity Registrant Name	HCI Group, Inc.
Entity Central Index Key	0001400810
Entity Emerging Growth Company	false
Entity File Number	001-34126
Entity Incorporation State Country Code	FL
Entity Tax Identification Number	20-5961396
Entity Address, Address Line One	3802 Coconut Palm Drive
Entity Address, City or Town	Tampa
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33619
City Area Code	813
Local Phone Number	405-3600
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of each class	Common Stock
Trading Symbol(s)	HCI
Name of each exchange on which registered	NYSE

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