Florida-domiciled insurtech HCI Group, Inc. has reported a 17% rise in consolidated gross premiums earned to $300.4 million for the first quarter of 2025, up from $256.6 million in Q1 2024, driven primarily by assumptions of policies from Citizens Property Insurance Corporation, the state’s insurer of last resort.
For Q1’25, HCI reported pre-tax income of $100.3 million and net income of $74.2 million, compared to $77.4 million and $56.9 million, respectively, in the comparative prior year quarter.
Diluted earnings per share for Q1’25 were $5.35, compared with $3.81 diluted earnings per share in Q1’24.
HCI’s total gross written premiums for the quarter were $289.2 million, compared to almost $255 million in Q1’24.
In the first quarter of 2025, $99.6 million premiums were ceded for reinsurance compared with $68.1 million in Q1’24, driven by higher reinsurance costs due to growth in the number of policies in force and total insured value.
Meanwhile, losses and loss adjustment expenses in Q1’25 went down to $59.3 million from $79.9 million in Q1’24, despite the growth in gross premiums earned. HCI explained that the decrease is due to a decline in claims and litigation frequency. The gross loss ratio in the first quarter was 19.7% compared to 31.1% in the first quarter of 2024.
Policy acquisition and other underwriting expenses for Q1’25 were $27.3 million compared with $22.1 million last year, driven by higher gross premiums earned.
Additionally, the general and administrative personnel expenses increased to $20.5 million from $16.3 million in Q1’24, driven by higher accrued discretionary bonus, stock-based compensation and employee health benefits.
However, due to a decrease in income from limited partnership investments, the net investment income in Q1’25 dipped slightly to $13.8 million compared with $14.1 million in Q1’24.
Paresh Patel, Group Chairman and Chief Executive Officer, HCI, commented, “HCI Group had a terrific first quarter. We are happy to announce that Exzeo is ready to be a standalone company.
“Consequently, our Board has determined to pursue a potential tax-free spin-off of Exzeo to existing HCI shareholders that, subject to customary conditions, is targeted for completion by the end of the year.”
