HCI Group - 10-Q quarterly report FY2025 Q3

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

Form 10-Q


☑		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025


☐		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number

001-34126

HCI Group, Inc.

(Exact name of registrant as specified in its charter)


Florida		20-5961396
(State of Incorporation)		(IRS Employer Identification No.)

3802 Coconut Palm Drive
Tampa, FL 33619
(Address, including zip code, of principal executive offices)

(813) 849-9500
(Registrant’s telephone number, including area code)

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


Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Shares, no par value	HCI	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☑	Accelerated filer ☐	Non-accelerated filer ☐	Smaller reporting company ☐
			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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

The aggregate number of shares of the registrant’s common stock, no par value, outstanding as of November 3, 2025 was 12,960,037.

HCI GROUP, INC. AND SUBSIDIARIES

TABLE OF CONTENTS


		Page

PART I – FINANCIAL INFORMATION

Item 1	Financial Statements
	Consolidated Balance Sheets:
	September 30, 2025 (unaudited) and December 31, 2024	1-2
	Consolidated Statements of Income:
	Three and nine months ended September 30, 2025 and 2024 (unaudited)	3
	Consolidated Statements of Comprehensive Income:
	Three and nine months ended September 30, 2025 and 2024 (unaudited)	4
	Consolidated Statements of Equity:
	Three and nine months ended September 30, 2025 and 2024 (unaudited)	5-8
	Consolidated Statements of Cash Flows:
	Nine months ended September 30, 2025 and 2024 (unaudited)	9-11
	Notes to Consolidated Financial Statements (unaudited)	12-53

Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	54-63

Item 3	Quantitative and Qualitative Disclosures About Market Risk	64-65

Item 4	Controls and Procedures	66


PART II – OTHER INFORMATION

Item 1	Legal Proceedings	67

Item 1A	Risk Factors	67

Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	67-68

Item 3	Defaults Upon Senior Securities	68

Item 4	Mine Safety Disclosures	68

Item 5	Other Information	68

Item 6	Exhibits	69-76

Signatures		77

PART I – FINANCIAL INFORMATION

Item 1 – Financial Statements

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(In thousands, except share amounts)


	September 30,		December 31,
	2025		2024
	(Unaudited)
Assets
Fixed-maturity securities, available for sale, at fair value (amortized cost: $559,378 and $719,536, respectively and allowance for credit losses: $0 and $0, respectively)	$	562,094	$	718,537
Equity securities, at fair value (cost: $59,821 and $52,030 respectively)		64,479		56,200
Limited partnership investments		18,936		20,802
Real estate investments		104,651		79,120
Other investments		5,000		—
Total investments		755,160		874,659
Cash and cash equivalents (a)		987,933		532,471
Restricted cash (a)		3,739		3,714
Accrued interest and dividends receivable		7,572		6,008
Income taxes receivable (a)		2,547		463
Deferred income tax assets, net (a)		619		72
Premiums receivable, net (allowance: $5,052 and $5,891, respectively) (a)		70,225		50,582
Prepaid reinsurance premiums (a)		65,593		92,060
Reinsurance recoverable, net of allowance for credit losses (a):
Paid losses and loss adjustment expenses (allowance: $0 and $0, respectively)		34,442		36,062
Unpaid losses and loss adjustment expenses (allowance: $130 and $186, respectively)		295,200		522,379
Deferred policy acquisition costs (a)		67,446		54,303
Property and equipment, net		29,400		29,544
Right-of-use assets – operating leases		1,005		1,182
Intangible assets, net		3,290		5,206
Funds withheld for assumed business		7,496		11,690
Other assets (a)		15,112		9,818
Total assets	$	2,346,779	$	2,230,213

(a)

See Note 14 for details of balances associated with consolidated variable interest entities.

(continued)

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Balance Sheets – (Continued)

(In thousands, except share amounts)


	September 30,		December 31,
	2025		2024
	(Unaudited)
Liabilities, Redeemable Noncontrolling Interests and Equity
Losses and loss adjustment expenses (a)	$	615,635	$	845,900
Unearned premiums (a)		641,576		584,703
Advance premiums (a)		43,018		18,867
Reinsurance payable on paid losses and loss adjustment expenses		1,369		2,496
Ceded reinsurance premiums payable		3,760		18,313
Assumed premiums payable (a)		613		2,176
Accrued expenses (a)		46,811		17,677
Income taxes payable (a)		19,061		5,451
Deferred income tax liabilities, net (a)		6,576		2,830
Revolving credit facility		38,000		44,000
Long-term debt		32,078		185,254
Lease liabilities – operating leases		997		1,185
Other liabilities (a)		41,716		32,320
Total liabilities		1,491,210		1,761,172
Commitments and contingencies (Note 22)
Redeemable noncontrolling interests (Note 19)		3,223		1,691
Equity:
Common stock (no par value, 40,000,000 shares authorized, 12,959,362 and 10,767,184 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively)		—		—
Additional paid-in capital		300,703		122,289
Retained earnings		519,037		331,793
Accumulated other comprehensive income (loss)		2,036		(749	)
Total stockholders’ equity		821,776		453,333
Noncontrolling interests		30,570		14,017
Total equity		852,346		467,350
Total liabilities, redeemable noncontrolling interests and equity	$	2,346,779	$	2,230,213

(a)

See Note 14 for details of balances associated with consolidated variable interest entities.

See accompanying Notes to Consolidated Financial Statements (unaudited).

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Income

(Unaudited)

(In thousands, except per share amounts)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024
Revenue
Gross premiums earned	$	301,079		$	265,518		$	904,090		$	785,723
Premiums ceded		(106,088	)		(109,694	)		(308,245	)		(254,513	)
Net premiums earned		194,991			155,824			595,845			531,210
Net investment income		17,529			13,714			47,725			44,662
Net realized investment gains		618			2,846			1,940			3,058
Net unrealized investment gains		1,214			657			488			3,825
Policy fee income		1,569			1,229			5,265			3,337
Other		429			1,047			3,440			2,084
Total revenue		216,350			175,317			654,703			588,176
Expenses
Losses and loss adjustment expenses		66,153			105,736			189,901			263,982
Policy acquisition and other underwriting expenses		31,652			26,104			89,490			71,695
General and administrative personnel expenses		20,806			19,175			61,274			52,920
Interest expense		1,019			3,421			8,147			10,022
Other operating expenses		6,121			6,801			20,561			22,021
Total expenses		125,751			161,237			369,373			420,640
Income before income taxes		90,599			14,080			285,330			167,536
Income tax expense		22,711			4,688			72,933			44,089
Net income		67,888			9,392			212,397			123,447
Net income attributable to redeemable noncontrolling interests (Note 19)		—			—			—			(10,149	)
Net income attributable to noncontrolling interests		(2,381	)		(3,710	)		(11,046	)		(5,929	)
Net income after noncontrolling interests	$	65,507		$	5,682		$	201,351		$	107,369
Basic earnings per share	$	5.05		$	0.54		$	16.96		$	10.42
Diluted earnings per share	$	4.90		$	0.52		$	15.47		$	8.59

See accompanying Notes to Consolidated Financial Statements (unaudited).

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

(Unaudited)

(In thousands)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024
Net income	$	67,888		$	9,392		$	212,397		$	123,447
Other comprehensive income:
Change in net unrealized gains on investments:
Net unrealized gains arising during the period		1,205			8,042			3,782			8,799
Reclassification adjustment for net realized gains		(33	)		(1,830	)		(67	)		(1,788	)
Net change in unrealized gains		1,172			6,212			3,715			7,011
Deferred income taxes on above change		(294	)		(1,556	)		(930	)		(1,756	)
Other comprehensive income, net of income taxes		878			4,656			2,785			5,255
Comprehensive income		68,766			14,048			215,182			128,702
Comprehensive income attributable to noncontrolling interests		(2,381	)		(3,867	)		(11,046	)		(6,101	)
Comprehensive income after noncontrolling interests	$	66,385		$	10,181		$	204,136		$	122,601

See accompanying Notes to Consolidated Financial Statements (unaudited).

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Equity

For the Three Months Ended September 30, 2025

(Unaudited)

(In thousands, except share and per share amounts)


	Common Stock					Additional Paid-In			Retained			Accumulated Other Comprehensive		Total Stockholders’			Noncontrolling		Total
	Shares			Amount		Capital			Earnings			Income		Equity			Interests		Equity
Balance as of June 30, 2025		12,956,884		$	—	$	298,706		$	458,713		$	1,158	$	758,577		$	26,107	$	784,684
Net income		—			—		—			65,507			—		65,507			2,381		67,888
Other comprehensive income, net of income taxes		—			—		—			—			878		878			—		878
Issuance of restricted stock		3,750			—		—			—			—		—			—		—
Forfeiture of restricted stock		(1,040	)		—		—			—			—		—			—		—
Repurchase and retirement of common stock		(232	)		—		(37	)		—			—		(37	)		—		(37	)
Dilution from subsidiary stock-based compensation		—			—		—			—			—		—			727		727
Common stock dividends ($0.40 per share)		—			—		—			(5,183	)		—		(5,183	)		—		(5,183	)
Stock-based compensation		—			—		1,968			—			—		1,968			—		1,968
Subscriber surplus contribution		—			—		—			—			—		—			1,355		1,355
Other		—			—		66			—			—		66			—		66
Balance as of September 30, 2025		12,959,362		$	—	$	300,703		$	519,037		$	2,036	$	821,776		$	30,570	$	852,346

See accompanying Notes to Consolidated Financial Statements (unaudited).

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Equity – (Continued)

For the Three Months Ended September 30, 2024

(Unaudited)

(In thousands, except share and per share amounts)


	Common Stock					Additional Paid-In		Retained			Accumulated Other Comprehensive			Total Stockholders’			Noncontrolling		Total
	Shares			Amount		Capital		Earnings			(Loss) Income			Equity			Interests		Equity
Balance as of June 30, 2024		10,472,741		$	—	$	117,968	$	331,960		$	(2,579	)	$	447,349		$	5,894	$	453,243
Net income		—			—		—		5,682			—			5,682			3,710		9,392
Other comprehensive income, net of income taxes		—			—		—		—			4,499			4,499			157		4,656
Issuance of restricted stock		6,400			—		—		—			—			—			—		—
Forfeiture of restricted stock		(65	)		—		—		—			—			—			—		—
Dilution from subsidiary stock-based compensation		—			—		—		—			—			—			1,083		1,083
Common stock dividends ($0.40 per share)		—			—		—		(4,189	)		—			(4,189	)		—		(4,189	)
Stock-based compensation		—			—		2,003		—			—			2,003			—		2,003
Subscriber surplus contribution		—			—		—		—			—			—			481		481
Balance as of September 30, 2024		10,479,076		$	—	$	119,971	$	333,453		$	1,920		$	455,344		$	11,325	$	466,669

See accompanying Notes to Consolidated Financial Statements (unaudited).

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Equity – (Continued)

For the Nine Months Ended September 30, 2025

(Unaudited)

(In thousands, except share and per share amounts)


	Common Stock					Additional Paid-In			Retained			Accumulated Other Comprehensive			Total Stockholders’			Noncontrolling		Total
	Shares			Amount		Capital			Earnings			(Loss) Income			Equity			Interests		Equity
Balance as of December 31, 2024		10,767,184		$	—	$	122,289		$	331,793		$	(749	)	$	453,333		$	14,017	$	467,350
Net income		—			—		—			201,351			—			201,351			11,046		212,397
Other comprehensive income, net of income taxes		—			—		—			—			2,785			2,785			—		2,785
Issuance of restricted stock		13,770			—		—			—			—			—			—		—
Forfeiture of restricted stock		(2,890	)		—		—			—			—			—			—		—
Repurchase and retirement of common stock		(5,765	)		—		(716	)		—			—			(716	)		—		(716	)
Conversion of senior notes to common stock		2,187,063			—		172,832			—			—			172,832			—		172,832
Dilution from subsidiary stock-based compensation		—			—		—			—			—			—			2,130		2,130
Common stock dividends ($1.20 per share)		—			—		—			(14,107	)		—			(14,107	)		—		(14,107	)
Stock-based compensation		—			—		6,232			—			—			6,232			—		6,232
Subscriber surplus contribution		—			—		—			—			—			—			3,377		3,377
Other		—			—		66			—			—			66			—		66
Balance as of September 30, 2025		12,959,362		$	—	$	300,703		$	519,037		$	2,036		$	821,776		$	30,570	$	852,346

See accompanying Notes to Consolidated Financial Statements (unaudited).

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Equity – (Continued)

For the Nine Months Ended September 30, 2024

(Unaudited)

(In thousands, except share and per share amounts)


	Common Stock					Additional Paid-In			Retained			Accumulated Other Comprehensive			Total Stockholders’			Noncontrolling			Total
	Shares			Amount		Capital			Earnings			(Loss) Income			Equity			Interests			Equity
Balance as of December 31, 2023		9,738,183		$	—	$	89,568		$	238,438		$	(3,163	)	$	324,843		$	2,322		$	327,165
Net income		—			—		—			116,843			—			116,843			6,604			123,447
Net income attributable to redeemable noncontrolling interests		—			—		—			(9,474	)		—			(9,474	)		(675	)		(10,149	)
Total other comprehensive income, net of income taxes		—			—		—			—			5,083			5,083			172			5,255
Cashless exercise of common stock warrants		155,049			—		—			—			—			—			—			—
Issuance of restricted stock		210,900			—		—			—			—			—			—			—
Forfeiture of restricted stock		(3,765	)		—		—			—			—			—			—			—
Repurchase and retirement of common stock		(10,378	)		—		(1,036	)		—			—			(1,036	)		—			(1,036	)
Conversion of senior notes to common stock		389,087			—		23,449			—			—			23,449			—			23,449
Dilution from subsidiary stock-based compensation		—			—		—			—			—			—			2,348			2,348
Common stock dividends ($1.20 per share)		—			—		—			(12,354	)		—			(12,354	)		—			(12,354	)
Stock-based compensation		—			—		4,604			—			—			4,604			—			4,604
Deemed dividend on warrant modification		—			—		3,386			—			—			3,386			—			3,386
Subscriber surplus contribution		—			—		—			—			—			—			554			554
Balance as of September 30, 2024		10,479,076		$	—	$	119,971		$	333,453		$	1,920		$	455,344		$	11,325		$	466,669

See accompanying Notes to Consolidated Financial Statements (unaudited).

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)


	Nine Months Ended
	September 30,
	2025			2024
Cash flows from operating activities:
Net income after noncontrolling interests	$	201,351		$	107,369
Net income attributable to noncontrolling interests		11,046			16,078
Net income		212,397			123,447
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense		8,362			7,432
Net accretion of discount on investments in available-for-sale fixed-maturity securities		(1,920	)		(1,736	)
Depreciation and amortization		8,878			2,114
Deferred income tax expense		2,269			4,175
Net realized investment gains		(1,940	)		(3,055	)
Net unrealized investment gains		(488	)		(3,825	)
Credit loss expense - reinsurance recoverable		(56	)		(72	)
Net loss (income) from limited partnership investments		709			(164	)
Distributions received from limited partnership investments		1			694
Debt conversion expense		1,125			—
Gains on sales of real estate investments		(440	)		—
Foreign currency remeasurement loss		143			67
Other non-cash items		209			294
Changes in operating assets and liabilities:
Accrued interest and dividends receivable		(1,564	)		(2,875	)
Income taxes		11,526			(12,621	)
Premiums receivable, net		(19,643	)		(21,146	)
Assumed premiums receivable		—			19,954
Prepaid reinsurance premiums		26,467			(18,860	)
Reinsurance recoverable		228,855			49,795
Deferred policy acquisition costs		(13,143	)		(13,491	)
Funds withheld for assumed business		4,194			15,560
Other assets		(5,372	)		(7,837	)
Losses and loss adjustment expenses		(230,265	)		27,281
Unearned premiums		56,873			46,543
Advance premiums		24,151			21,872
Reinsurance payable on paid losses and loss adjustment expenses		(1,127	)		(3,145	)
Ceded reinsurance premiums payable		(14,553	)		(1,753	)
Assumed reinsurance balances payable		(1,563	)		(535	)
Accrued expenses and other liabilities		39,594			29,016
Net cash provided by operating activities		333,679			257,129

(continued)

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows – (Continued)

(Unaudited)

(In thousands)


	Nine Months Ended
	September 30,
	2025			2024
Cash flows from investing activities:
Investments in limited partnerships		(391	)		(1,204	)
Distributions received from limited partnership investments		1,547			2,760
Purchase of property and equipment		(3,048	)		(2,991	)
Purchase of real estate investments		(28,528	)		(14,181	)
Purchase of available-for-sale fixed-maturity securities		(284,013	)		(702,922	)
Purchase of equity securities		(33,654	)		(25,853	)
Purchase of other investments		(5,000	)		—
Proceeds from sales of property and equipment		—			10
Proceeds from sales of real estate investments		2,013			—
Proceeds from sales of available-for-sale fixed maturity securities		6,139			109,342
Proceeds from calls, repayments and maturities of available-for-sale fixed-maturity securities		440,019			410,207
Proceeds from sales of equity securities		27,736			19,770
Net cash provided by (used in) investing activities		122,820			(205,062	)
Cash flows from financing activities:
Cash dividends paid		(14,107	)		(12,354	)
Cash dividends paid to redeemable noncontrolling interests		—			(2,923	)
Net (repayment) borrowing under revolving credit facility		(6,000	)		46,000
Proceeds from issuance of long-term debt		17,000			—
Net surplus contribution from subscribers		4,909			2,045
Repayment of long-term debt		(430	)		(387	)
Redemption of long-term debt		—			(466	)
Debt conversion costs paid		(1,125	)		—
Repurchases of common stock		(724	)		(1,037	)
Redemption of redeemable noncontrolling interests		—			(100,000	)
Purchase of noncontrolling interests		—			(480	)
Debt issuance costs		(375	)		(99	)
Net cash used in financing activities		(852	)		(69,701	)
Effect of exchange rate changes on cash		(160	)		(35	)
Net increase (decrease) in cash and cash equivalents and restricted cash		455,487			(17,669	)
Cash and cash equivalents and restricted cash at beginning of period		536,185			539,765
Cash and cash equivalents and restricted cash at end of period	$	991,672		$	522,096

(continued)

HCI GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows – (Continued)

(Unaudited)

(In thousands)


	Nine Months Ended
	September 30,
	2025		2024
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$	61,690	$	54,064
Cash paid for interest	$	4,634	$	6,770
Non-cash investing and financing activities:
Unrealized gains on investments in available-for-sale fixed-maturity securities, net of income taxes	$	2,785	$	5,255
Conversion of 4.25% Convertible Senior Notes	$	—	$	23,450
Conversion of 4.75% Convertible Senior Notes	$	172,500	$	—

See accompanying Notes to Consolidated Financial Statements (unaudited).

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Note 1 -- Nature of Operations

HCI Group, Inc., together with its subsidiaries (“HCI” or the “Company”), is primarily engaged in the property and casualty insurance business through two Florida domiciled insurance companies, Homeowners Choice Property & Casualty Insurance Company, Inc. (“HCPCI”) and TypTap Insurance Company (“TTIC”). Both HCPCI and TTIC are authorized to underwrite various homeowners’ property and casualty insurance products and allied lines business in the state of Florida and in other states. A third insurance subsidiary, perRisk Insurance Company (“perRisk”), is domiciled in Arizona and has not yet commenced its surplus lines insurance business. The operations of insurance subsidiaries are supported by HCI Group, Inc. and certain entities within the consolidated group. Exzeo Group, Inc. (formerly known as TypTap Insurance Group, Inc.) (“Exzeo”), its majority-owned subsidiary, provides turn-key insurance technology and operations solutions based on a proprietary platform of purpose-built software and data analytics applications that are specifically designed for the property and casualty insurance ecosystem. Exzeo’s advanced data analytics algorithms and software tools maximize efficiency and optimize underwriting outcomes.

The Company also provides attorney-in-fact (“AIF”) services for reciprocal insurance exchanges owned by their policyholders. The Company's subsidiaries, Core Risk Managers, LLC (“CRM”) and Tailrow Risk Managers, LLC (“TRM”), serve as the AIF for Condo Owners Reciprocal Exchange (“CORE”) and Tailrow Insurance Exchange (“Tailrow”), respectively. Although the Company does not have any equity interest CORE and Tailrow, the Company is required to consolidate them as their primary beneficiary. Refer to Note 14 “Variable Interest Entities” for additional information. In addition, Greenleaf Capital, LLC, the Company’s real estate subsidiary, is primarily engaged in the business of owning, developing, and leasing real estate and operating marina facilities.

Assumed Business

Citizens Assumption

From time to time, the Company and its consolidated variable interest entities (“VIEs”) may participate in a “take-out program” through which the Company and its VIEs assume insurance policies held by Citizens Property Insurance Corporation (“Citizens”), a Florida state-supported insurer.

The Company did not assume any policies from Citizens during the three months ended September 30, 2025. During the nine months ended September 30, 2025, approximately 13,900 policies were assumed, representing approximately $35,800 in annualized gross written premiums. There were no policies assumed for the three months ended September 30, 2024. For the nine months ended September 30, 2024, approximately 10,100 policies were assumed, representing approximately $120,100 in annualized gross written premiums.

Note 2 -- Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information, and the Securities and Exchange Commission (“SEC”) rules for interim financial reporting. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. However, in the opinion

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

of management, the accompanying consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the Company’s financial position as of September 30, 2025 and the results of operations and cash flows for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results of operations to be expected for any subsequent interim period or for the fiscal year ending December 31, 2025. The accompanying unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2024 included in the Company’s Form 10-K, which was filed with the SEC on February 28, 2025.

In preparing the interim unaudited consolidated financial statements, management was required to make certain judgments, assumptions, and estimates that affect the reported amounts of assets, liabilities, revenue, expenses and related disclosures as of the financial reporting date and throughout the periods being reported upon. Certain of the estimates result from judgments that can be subjective and complex, and consequently actual results may differ from these estimates.

Material estimates that are particularly susceptible to significant change in the near term are related to the Company’s losses and loss adjustment expenses, which include amounts estimated for claims incurred but not yet reported. The Company uses various assumptions and actuarial data it believes to be reasonable under the circumstances to make these estimates. In addition, accounting policies specific to reinsurance recoverable, income taxes, stock-based compensation expense, and limited partnership investments involve significant judgments and estimates material to the Company’s consolidated financial statements.

In the case of assumed business, the Company relies entirely on the ceding insurance company to provide information about premiums, losses, and loss adjustment expenses. When the information is not available at the reporting date, the Company will make estimates based on all recent available data. Accordingly, the actual results could differ significantly from those estimates.

All intercompany balances and transactions have been eliminated.

Reclassification

Certain reclassifications of prior year amounts have been made to conform to the current year presentation.

Note 3 -- Recent Accounting Pronouncements

Adopted

Accounting Standards Update No. 2023-09. In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2023-09 (“ASU 2023-09”) Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This update enhances income tax disclosures by requiring public entities to report income tax expense disaggregated by federal, state, and foreign taxes, with further detail on specific jurisdictions over a quantitative threshold. In addition, public entities must also separately disclose reconciling items equal to or greater than five percent of pretax income from operations by the applicable federal statutory rate. This update has been adopted on a prospective basis for the fiscal year beginning on January 1, 2025 and will result in enhanced income tax disclosures beginning with the Company’s consolidated financial statements for the year ending December 31, 2025.

Accounting Standards Update No. 2024-04. In November 2024, the FASB issued Accounting Standards Update No. 2024-04 (“ASU 2024-04”) Debt–Debt with Conversion and Other Options (Subtopic 470-20):

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Induced Conversions of Convertible Debt Instruments. This update clarifies whether entities should apply extinguishment accounting or induced conversion accounting when recording the settlement of convertible debt instruments due to an induced conversion. ASU 2024-04 is effective for all entities for fiscal years beginning after December 15, 2025. Early adoption is permitted as of the beginning of a reporting period if the entity has also adopted ASU 2020-06 as of that period. The Company has elected to early adopt this update effective January 1, 2025. The adoption of this update had no impact on the Company’s financial position or results of operation upon adoption as the new guidance applies prospectively from January 1, 2025.

Pending Adoption

Accounting Standards Update No. 2025-01 and 2024-03. In January 2025, the FASB issued Accounting Standards Update No. 2025-01 (“ASU 2025-01”) Income Statement–Reporting Comprehensive Income–Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. This update clarifies the effective date of Accounting Standards Update No. 2024-03 (“ASU 2024-03”) Income Statement–Reporting Comprehensive Income–Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which was issued by the FASB in November 2024. For public business entities, ASU 2024-03 enhances disclosures by requiring the disaggregation of certain expense captions presented within the income statement, such as employee compensation and intangible asset amortization. In addition, the total relevant expense caption on the income statement must be reconciled to the aggregate of the separately disclosed expense categories with the difference represented by an “other items” amount which is qualitatively described. ASU 2024-03 is effective for all public business entities for annual reporting periods beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating its impact on certain disclosures but expects the adoption to result in additional disclosures of certain expenses.

Accounting Standards Update No. 2025-05. In July 2025, the FASB issued Accounting Standards Update No. 2025-05 (“ASU 2025-05”) Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This update simplifies the estimation of current expected credit losses on current accounts receivable and current contract assets related to revenue from contracts with customers by allowing all entities to assume that current conditions as of the balance sheet date will not change for the remaining life of the current accounts receivable and current contract assets. ASU 2025-05 is effective for all entities for fiscal years and interim periods beginning after December 15, 2025. Early adoption is permitted. The Company is evaluating its impact.

Accounting Standards Update No. 2025-06. In September 2025, the FASB issued Accounting Standards Update No. 2025-06 (“ASU 2025-06”) Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This update enhances guidance on the capitalization of software development costs by eliminating project phase based criteria and clarifying the conditions signifying significant development uncertainty used by entities to evaluate when the probable-to-complete recognition threshold is met. ASU 2025-06 is effective for all entities for fiscal years and interim periods beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating its impact.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Note 4 -- Cash and Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported on the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows:


	September 30,		December 31,
	2025		2024
Cash and cash equivalents	$	987,933	$	532,471
Restricted cash		3,739		3,714
Cash and cash equivalents and restricted cash	$	991,672	$	536,185

Restricted cash represents funds in the Company’s sole ownership primarily held by certain states in which the Company’s insurance subsidiaries conduct business to meet the states’ regulatory requirements, and is not available for immediate business use. Funds withheld in an account for which the Company is a co-owner but not the named beneficiary are not considered restricted cash and are included in funds withheld for assumed business on the consolidated balance sheets.

Note 5 -- Investments

Available-for-Sale Fixed-Maturity Securities

The Company holds investments in fixed-maturity securities that are classified as available-for-sale. As of September 30, 2025 and December 31, 2024, the cost or amortized cost, allowance for credit loss, gross unrealized gains and losses, and estimated fair value of the Company’s available-for-sale fixed-maturity securities by security type were as follows:


	Cost or Amortized		Allowance for Credit		Gross Unrealized		Gross Unrealized			Estimated Fair
	Cost		Loss		Gains		Losses			Value
As of September 30, 2025
U.S. Treasury and U.S. government agencies	$	292,580	$	—	$	1,990	$	(186	)	$	294,384
Corporate bonds		252,518		—		1,279		(247	)		253,550
Commercial mortgage-backed securities		14,280		—		—		(120	)		14,160
Available-for-sale fixed-maturity securities	$	559,378	$	—	$	3,269	$	(553	)	$	562,094

As of December 31, 2024
U.S. Treasury and U.S. government agencies	$	688,123	$	—	$	2,019	$	(2,726	)	$	687,416
Corporate bonds		31,413		—		79		(371	)		31,121
Available-for-sale fixed-maturity securities	$	719,536	$	—	$	2,098	$	(3,097	)	$	718,537

Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. The scheduled contractual maturities of available-for-sale

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

fixed-maturity securities as of September 30, 2025 and December 31, 2024 were as follows, with securities not due at a single maturity date shown separately:


	September 30, 2025				December 31, 2024
	Cost or		Estimated		Cost or		Estimated
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	182,595	$	182,767	$	520,005	$	521,301
Due after one year through five years		249,204		250,399		98,831		98,808
Due after five years through ten years		112,798		114,301		100,206		97,932
Due after ten years		501		467		494		496
Commercial mortgage-backed securities		14,280		14,160		—		—
Available-for-sale fixed-maturity securities	$	559,378	$	562,094	$	719,536	$	718,537

Securities on Deposit

The fair value of available-for-sale fixed-maturity securities on deposit with various regulatory authorities as of September 30, 2025 and December 31, 2024 was $1,806 and $1,794, respectively.

Sales of Available-for-Sale Fixed-Maturity Securities

Proceeds received, and the gross realized gains and losses from sales of available-for-sale fixed-maturity securities, for the three and nine months ended September 30, 2025 and 2024 were as follows:


			Gross Realized		Gross Realized
	Proceeds		Gains		Losses
Three months ended September 30, 2025	$	2,780	$	34	$	(1	)
Three months ended September 30, 2024	$	101,696	$	1,830	$	—
Nine months ended September 30, 2025	$	6,139	$	72	$	(5	)
Nine months ended September 30, 2024	$	109,342	$	1,843	$	(55	)

Gross Unrealized Losses for Available-for-Sale Fixed-Maturity Securities

Available-for-sale fixed-maturity securities with gross unrealized loss positions as of September 30, 2025 and December 31, 2024, aggregated by investment category and length of time the individual securities have been in a continuous loss position, were as follows:


	Less Than Twelve Months					Twelve Months or Longer					Total
	Gross			Estimated		Gross			Estimated		Gross			Estimated
	Unrealized			Fair		Unrealized			Fair		Unrealized			Fair
As of September 30, 2025	Losses			Value		Losses			Value		Losses			Value
U.S. Treasury and U.S. government agencies	$	—		$	497	$	(186	)	$	2,898	$	(186	)	$	3,395
Corporate bonds		(116	)		52,442		(131	)		4,252		(247	)		56,694
Commercial mortgage-backed securities		(120	)		13,410		—			—		(120	)		13,410
Total	$	(236	)	$	66,349	$	(317	)	$	7,150	$	(553	)	$	73,499

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)


	Less Than Twelve Months					Twelve Months or Longer					Total
	Gross			Estimated		Gross			Estimated		Gross			Estimated
	Unrealized			Fair		Unrealized			Fair		Unrealized			Fair
As of December 31, 2024	Losses			Value		Losses			Value		Losses			Value
U.S. Treasury and U.S. government agencies	$	(2,063	)	$	97,771	$	(663	)	$	104,872	$	(2,726	)	$	202,643
Corporate bonds		(53	)		6,296		(318	)		15,255		(371	)		21,551
Total	$	(2,116	)	$	104,067	$	(981	)	$	120,127	$	(3,097	)	$	224,194

As of September 30, 2025 and December 31, 2024, there were 42 and 56 available-for-sale fixed-maturity securities, respectively, in an unrealized loss position.

Allowance for Credit Losses of Available-for-Sale Fixed-Maturity Securities

The Company regularly reviews its individual available-for-sale fixed-maturity securities for credit impairment. The Company considers various factors in determining whether a credit loss exists for each individual security, including:

•

the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or earnings;

•

the extent to which the market value of the security has been below its cost or amortized cost;

•

general market conditions and industry or sector specific factors and other qualitative factors;

•

nonpayment by the issuer of its contractually obligated interest and principal payments; and

•

the Company’s intent and ability to hold the investment for a period of time sufficient to allow for the recovery of costs.

There was no balance or activity in the allowance for credit losses of available-for-sale fixed-maturity securities during the three and nine months ended September 30, 2025 and 2024.

Equity Securities

The Company holds investments in equity securities measured at fair values which are readily determinable. As of September 30, 2025 and December 31, 2024, the cost, gross unrealized gains and losses, and estimated fair value of the Company’s equity securities were as follows:


			Gross Unrealized		Gross Unrealized			Estimated Fair
	Cost		Gains		Losses			Value
September 30, 2025	$	59,821	$	6,590	$	(1,932	)	$	64,479
December 31, 2024	$	52,030	$	6,427	$	(2,257	)	$	56,200

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

The table below presents the portion of unrealized gains and losses in the Company’s consolidated statements of income related to equity securities still held:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
Net gains recognized	$	1,799	$	1,670	$	2,361	$	5,092
Exclude: Net realized gains recognized for securities sold		585		1,013		1,873		1,267
Net unrealized investment gains	$	1,214	$	657	$	488	$	3,825

Sales of Equity Securities

Proceeds received, and the gross realized gains and losses from sales of equity securities, for the three and nine months ended September 30, 2025 and 2024 were as follows:


			Gross Realized		Gross Realized
	Proceeds		Gains		Losses
Three months ended September 30, 2025	$	6,115	$	614	$	(29	)
Three months ended September 30, 2024	$	13,217	$	1,217	$	(204	)
Nine months ended September 30, 2025	$	27,736	$	2,453	$	(580	)
Nine months ended September 30, 2024	$	19,770	$	1,779	$	(512	)

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Limited Partnership Investments

The Company has interests in limited partnerships that are not registered or readily tradeable on a securities exchange. These partnerships are private equity funds managed by general partners who make decisions with regard to financial policies and operations. As such, the Company is not the primary beneficiary and does not consolidate these partnerships. The following table provides information related to the Company’s investments in limited partnerships:


	September 30, 2025						December 31, 2024
	Carrying		Unfunded				Carrying		Unfunded
Investment Strategy	Value		Balance		(%) (a)		Value		Balance		(%) (a)
Primarily in senior secured loans and, to a limited extent, in other debt and equity securities of private U.S. lower-middle-market companies. (b)(c)(e)	$	1,970	$	—		15.37	$	2,400	$	—		15.37
Value creation through active distressed debt investing primarily in bank loans, public and private corporate bonds, asset-backed securities, and equity securities received in connection with debt restructuring. (b)(d)(e)		553		—		1.20		1,082		—		1.13
High returns and long-term capital appreciation through investments in the power, utility and energy industries, and in the infrastructure sector. (b)(f)(g)		2,683		—		0.17		3,407		—		0.18
Value-oriented investments in less liquid and mispriced senior and junior debts of private equity-backed companies. (b)(h)(i)		1,970		—		0.52		2,053		—		0.52
Value-oriented investments in mature real estate private equity funds and portfolios globally. (b)(j)		6,194		2,175		1.32		6,781		2,445		1.31
Risk-adjusted returns on credit and equity investments, primarily in private equity-owned companies. (b)(k)		5,566		810		0.54		5,079		810		0.55
Limited partnership investments	$	18,936	$	2,985			$	20,802	$	3,255

(a)

Represents the Company’s percentage investment in the fund as of each balance sheet date.

(b)

Except under certain circumstances, withdrawals from the funds or any assignments are not permitted. Distributions, except income from late admission of a new limited partner, will be received when underlying investments of the funds are liquidated.

(c)

The term is expected to be two years following the maturity of the fund’s outstanding leverage. Although the capital commitment period has expired, follow-on investments and pending commitments may require additional fundings.

(d)

Effective July 1, 2023, this investment is in the process of winding down. Although the capital commitment period has ended, the general partner could still request an additional funding under certain circumstances.

(e)

At the fund manager’s discretion, the term of the fund may be extended for up to two additional one-year periods.

(f)

Expected to have a ten-year term. The capital commitment period has expired but the general partner may request additional funding for follow-on investment.

(g)

With the consent of a supermajority of partners, the term of the fund may be extended for up to three additional one-year periods.

(h)

Expected to have an eight-year term from the commencement date, which can be extended for up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

(i)

The capital commitment period has ended but an additional funding may be requested.

(j)

The term is expected to end November 27, 2027. The term may be extended for up to four additional one-year periods at the general partner’s discretion, and up to two additional one-year periods with the consent of the advisory committee.

(k)

Expected to have an eight-year term after the final admission date. The term may be extended for an additional one-year period at the general partner’s discretion, and up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners.

The following is the summary of aggregated unaudited financial information of limited partnerships included in the investment strategy table above, which in certain cases is presented on a three-month lag due to the unavailability of information at the Company’s respective balance sheet dates. The financial statements of these limited partnerships are audited annually.


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024
Operating results:
Total income*	$	140,089		$	117,157		$	104,789		$	136,396
Total expenses		(15,317	)		(16,679	)		(46,168	)		(59,955	)
Net income	$	124,772		$	100,478		$	58,621		$	76,441

*Includes net change in unrealized gains or losses on investments.


	September 30,		December 31,
	2025		2024
Balance sheet:
Total assets	$	4,108,242	$	4,118,765
Total liabilities	$	211,858	$	157,420

For the three and nine months ended September 30, 2025, the Company recognized net investment loss of $51 and $709, respectively. During the three and nine months ended September 30, 2025, the Company received total cash distributions of $904 and $1,548, respectively, including returns on investment of $1 and $1, respectively.

For the three and nine months ended September 30, 2024, the Company recognized net investment income of $79 and $164, respectively. During the three and nine months ended September 30, 2024, the Company received total cash distributions of $536 and $3,454, respectively, including returns on investment of $68 and $694, respectively.

As of September 30, 2025 and December 31, 2024, the Company’s net cumulative contributed capital to the partnerships at each respective balance sheet date totaled $22,190 and $20,987, respectively, and the Company’s maximum exposure to loss aggregated $18,936 and $20,801, respectively.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Real Estate Investments

Real estate investments consisted of the following as of September 30, 2025 and December 31, 2024:


	September 30,			December 31,
	2025			2024
Land	$	50,090		$	42,272
Land improvements		13,419			4,843
Buildings and building improvements		45,783			18,772
Tenant and leasehold improvements		2,265			2,265
Construction in progress - Haines City*		—			17,373
Other		1,983			1,106
Total, at cost		113,540			86,631
Less: accumulated depreciation and amortization		(8,889	)		(7,511	)
Real estate investments	$	104,651		$	79,120

*Placed in service in September 2025.

Depreciation and amortization expense related to real estate investments was $566 and $280 for the three months ended September 30, 2025 and 2024, respectively, and $1,378 and $828 for the nine months ended September 30, 2025 and 2024, respectively.

There were no sales of real estate investments for the three months ended September 30, 2025. For the nine months ended September 30, 2025, proceeds from the sales of real estate investments were $2,013 and resulted in gains of $440.

On September 17, 2025, the Company closed on its agreement to purchase a 540,144 square-foot commercial property located in St. Petersburg, Florida for a price of $19,000. The transaction was funded using available cash on hand.

Net Investment Income

Net investment income, by source, is summarized as follows:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024
Available-for-sale fixed-maturity securities	$	7,139		$	7,804		$	21,494		$	18,652
Equity securities		675			600			1,822			1,552
Investment expense		(164	)		(146	)		(503	)		(366	)
Limited partnership investments		(51	)		79			(709	)		164
Real estate investments		547			17			1,320			5,293
Cash and cash equivalents		9,362			5,360			24,280			19,367
Other		21			—			21			—
Net investment income	$	17,529		$	13,714		$	47,725		$	44,662

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Note 6 -- Other Comprehensive Income (Loss)

Comprehensive income includes net income and other comprehensive income (loss), which relates to changes in unrealized gains or losses of available-for-sale fixed-maturity securities carried at fair value and changes to any credit losses related to these investments. Reclassification adjustments related to the gains or losses recognized on sales of available-for-sale fixed-maturity securities are reflected in net realized investment gains (losses) on the consolidated statements of income. The components of other comprehensive income (loss), inclusive of the related tax effects, were as follows:


	Three Months Ended									Three Months Ended
	September 30, 2025									September 30, 2024
	Before			Income			Net of			Before			Income			Net of
	Tax			Tax Effect			Tax			Tax			Tax Effect			Tax
Net unrealized gains	$	1,205		$	302		$	903		$	8,042		$	2,014		$	6,028
Reclassification adjustment for net realized gains		(33	)		(8	)		(25	)		(1,830	)		(458	)		(1,372	)
Other comprehensive income	$	1,172		$	294		$	878		$	6,212		$	1,556		$	4,656


	Nine Months Ended									Nine Months Ended
	September 30, 2025									September 30, 2024
	Before			Income			Net of			Before			Income			Net of
	Tax			Tax Effect			Tax			Tax			Tax Effect			Tax
Net unrealized gains	$	3,782		$	947		$	2,835		$	8,799		$	2,204		$	6,595
Reclassification adjustment for net realized gains		(67	)		(17	)		(50	)		(1,788	)		(448	)		(1,340	)
Other comprehensive income	$	3,715		$	930		$	2,785		$	7,011		$	1,756		$	5,255

Note 7 -- Fair Value Measurements

The Company records and discloses certain financial assets at their estimated fair values. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows:


Level 1	–	Unadjusted quoted prices in active markets for identical assets.
Level 2	–	Other inputs that are observable for the asset, either directly or indirectly such as quoted prices for identical assets that are not observable throughout the full term of the asset.
Level 3	–	Inputs that are unobservable.

Valuation Methodology

Cash and Cash Equivalents

Cash and cash equivalents primarily consist of money-market funds and certificates of deposit maturing within 90 days from the time of purchase. Their carrying value approximates fair value due to the short maturity and high liquidity of these funds.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Restricted Cash

Restricted cash represents cash held by state authorities and the carrying value approximates fair value.

Available-for-Sale Fixed-Maturity and Equity Securities

Estimated fair values of the Company’s available-for-sale fixed-maturity and equity securities are determined in accordance with U.S. GAAP, using valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Fair values are generally measured using quoted prices in active markets for identical securities or other inputs that are observable either directly or indirectly, such as quoted prices for similar securities. In those instances where observable inputs are not available, fair values are measured using unobservable inputs. Unobservable inputs reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the security and are developed based on the best information available in the circumstances. Fair value estimates derived from unobservable inputs are significantly affected by the assumptions used, including the discount rates and the estimated amounts and timing of future cash flows. The derived fair value estimates cannot be substantiated by comparison to independent markets and are not necessarily indicative of the amounts that would be realized in a current market exchange.

The estimated fair values for securities are determined by management, utilizing prices obtained from an independent pricing service and information provided by brokers, which are level 1 or level 2 inputs depending on the asset class. Management reviews the assumptions and methods utilized by the pricing service and then compares the relevant data and pricing to broker-provided data. The Company gains assurance of the overall reasonableness and consistent application of the assumptions and methodologies, and compliance with accounting standards for fair value determination through ongoing monitoring of the reported fair values.

Revolving Credit Facility

From time to time, the Company has an amount outstanding under a revolving credit facility. The interest rate is variable and is periodically adjusted based on the Secured Overnight Financing Rate (“SOFR”) plus a ten basis points adjustment plus a margin based on the debt-to-capital ratio. As a result, carrying value, when outstanding, approximates fair value.

Long-Term Debt

The following table summarizes the Company’s long-term debt and methods used in estimating their fair values:


	Maturity Date	Valuation Methodology
4.75% Convertible Senior Notes	*	Quoted price
4.55% Promissory Note	2036	Discounted cash flow method/Level 3 inputs
5.50% Promissory Note	2033	Discounted cash flow method/Level 3 inputs
5.65% Promissory Note	2035	Discounted cash flow method/Level 3 inputs


*	Converted during the nine months ended September 30, 2025. Refer to Note 11 “Long-Term Debt” for additional information.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Assets Measured at Estimated Fair Value on a Recurring Basis

The following tables present information about the Company’s financial assets measured at estimated fair value on a recurring basis. The tables indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of September 30, 2025 and December 31, 2024:


	Fair Value Measurements Using
	(Level 1)		(Level 2)		(Level 3)		Total
As of September 30, 2025
Cash and cash equivalents	$	987,933	$	—	$	—	$	987,933
Restricted cash	$	3,739	$	—	$	—	$	3,739
Available-for-sale fixed-maturity securities:
U.S. Treasury and U.S. government agencies	$	294,384	$	—	$	—	$	294,384
Corporate bonds		—		253,550		—		253,550
Commercial mortgage-backed securities		—		14,160		—		14,160
Available-for-sale fixed-maturity securities	$	294,384	$	267,710	$	—	$	562,094
Equity securities	$	63,114	$	1,365	$	—	$	64,479


	Fair Value Measurements Using
	(Level 1)		(Level 2)		(Level 3)		Total
As of December 31, 2024
Cash and cash equivalents	$	532,471	$	—	$	—	$	532,471
Restricted cash	$	3,714	$	—	$	—	$	3,714
Available-for-sale fixed-maturity securities:
U.S. Treasury and U.S. government agencies	$	686,929	$	487	$	—	$	687,416
Corporate bonds		21,854		9,267		—		31,121
Available-for-sale fixed-maturity securities	$	708,783	$	9,754	$	—	$	718,537
Equity securities	$	56,200	$	—	$	—	$	56,200

Liabilities Carried at Other Than Fair Value

The following tables present fair value information for financial liabilities that are carried on the consolidated balance sheets at amounts other than fair value as of September 30, 2025 and December 31, 2024:


	Carrying		Fair Value Measurements Using						Estimated
	Value		(Level 1)		(Level 2)		(Level 3)		Fair Value
As of September 30, 2025
Revolving credit facility	$	38,000	$	—	$	38,000	$	—	$	38,000
Long-term debt:
5.50% Promissory Note	$	11,320	$	—	$	—	$	12,169	$	12,169
4.55% Promissory Note		4,153		—		—		4,075		4,075
5.65% Promissory Note		16,605		—		—		17,880		17,880
Long-term debt	$	32,078	$	—	$	—	$	34,124	$	34,124

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)


	Carrying		Fair Value Measurements Using						Estimated
	Value		(Level 1)		(Level 2)		(Level 3)		Fair Value
As of December 31, 2024
Revolving credit facility	$	44,000	$	—	$	44,000	$	—	$	44,000
Long-term debt:
4.75% Convertible Senior Notes	$	169,397	$	—	$	266,989	$	—	$	266,989
5.50% Promissory Note		11,491		—		—		11,307		11,307
4.55% Promissory Note		4,366		—		—		4,043		4,043
Long-term debt	$	185,254	$	—	$	266,989	$	15,350	$	282,339

Note 8 -- Intangible Assets, Net

The Company’s intangible assets, net consist of the following:


	September 30,			December 31,
	2025			2024
In-place leases	$	2,221		$	2,221
Policy renewal rights - United		10,100			10,100
Non-compete agreements - United (a)		314			314
Total, at cost		12,635			12,635
Less: accumulated amortization		(9,345	)		(7,429	)
Intangible assets, net	$	3,290		$	5,206

(a)

Fully amortized.

The remaining weighted-average amortization periods for the intangible assets as of September 30, 2025 are summarized in the table below:


In-place leases		17.5 years
Policy renewal rights - United		0.7 years

As of September 30, 2025 and December 31, 2024, contingent liabilities related to renewal rights intangible assets were $371 and are included in other liabilities on the consolidated balance sheets.

Note 9 -- Other Assets

The following table summarizes the Company’s other assets:


	September 30,		December 31,
	2025		2024
Prepaid premium taxes	$	3,449	$	1,045
Other prepaid expenses		5,584		4,623
Deposits		1,168		583
Lease acquisition costs, net		4,737		822
Other		174		2,745
Other assets	$	15,112	$	9,818

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Note 10 -- Revolving Credit Facility

As of September 30, 2025, the Company had $38,000 outstanding under a revolving credit facility. For the three months ended September 30, 2025 and 2024, interest expense was $619 and $859, respectively, including $14 and $15 of amortization of issuance costs, respectively. For the nine months ended September 30, 2025 and 2024, interest expense was $1,932 and $2,489, respectively, including $44 and $44 of amortization of issuance costs, respectively. As of September 30, 2025, the Company was in compliance with all required covenants and had additional available borrowing capacity of $37,000.

Note 11 -- Long-Term Debt

The following table summarizes the Company’s long-term debt:


	September 30,			December 31,
	2025			2024
4.75% Convertible Senior Notes (a)	$	—		$	172,500
4.55% Promissory Note, due through August 1, 2036		4,200			4,419
5.50% Promissory Note, due through July 1, 2033		11,485			11,670
5.65% Promissory Note, due through August 1, 2035		16,974			—
Total principal amount		32,659			188,589
Less: unamortized issuance costs		(581	)		(3,335	)
Long-term debt	$	32,078		$	185,254

(a)

Converted during the nine months ended September 30, 2025.

The following table summarizes future maturities of long-term debt as of September 30, 2025:


Due in 12 months following September 30,	Amount
2025	$	883
2026		931
2027		980
2028		1,033
2029		1,089
Thereafter		27,743
Total	$	32,659

Information with respect to interest expense related to long-term debt is as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
Interest Expense:
Contractual interest	$	387	$	2,261	$	3,866	$	6,644
Non-cash expense (b)		13		301		2,349		889
Total	$	400	$	2,562	$	6,215	$	7,533

(b)

Includes amortization of debt issuance costs.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

5.65% Promissory Note

On July 24, 2025, the Company entered into a $17,000 loan agreement which bears interest at 5.65% with a maturity date of August 1, 2035. The loan is secured by commercial real estate in Haines City, Florida. Approximately $106 of principal and interest is payable in 119 monthly installments. The promissory note may be repaid in full as long as the Company provides at least 30 days’ written notice and pays a prepayment consideration as specified in the loan agreement.

Conversion of Debt

4.75% Convertible Senior Notes

During the first quarter of 2025, the Company notified the holders of its outstanding 4.75% Convertible Senior Notes due 2042 (the “Notes”) that the Company had elected to redeem the remaining $172,500 principal balance of the Notes. As a result, the Notes became immediately convertible into the Company’s common shares, with a redemption date of June 5, 2025. The conversion rate of the Notes was 12.6789 shares of common stock per $1 of principal. During the six months ended June 30, 2025, the Company converted $172,500 in aggregate principal into consideration of 2,187,063 shares of HCI’s common stock and $1,133 in cash. The cash consideration included an inducement payment of $1,125 and $8 paid in lieu of fractional shares. The Company recognized an expense related to the inducement payment of $1,125 in other operating expenses on the consolidated statements of income and as financing cash flows on the consolidated statements of cash flows.

4.25% Convertible Senior Notes

During the first quarter of 2024, the Company converted $23,450 principal amount of its 4.25% Convertible Senior Notes for 389,087 shares of common stock plus $1 cash consideration in lieu of fractional shares and redeemed the remaining $466 principal amount of its 4.25% Convertible Senior Notes in cash.

Note 12 -- Reinsurance

Reinsurance obtained from other insurance companies

The Company cedes a portion of its homeowners insurance exposure to other entities under catastrophe excess of loss reinsurance contracts and a portion of its flood insurance exposure under one quota share reinsurance agreement. To mitigate exposure in its commercial residential insurance business, the Company utilizes both facultative reinsurance and catastrophe excess of loss reinsurance contracts. Ceded premiums under most catastrophe excess of loss reinsurance contracts are subject to revision resulting from subsequent adjustments in total insured value. Under the terms of the quota share reinsurance agreement, the Company is entitled to a 30% ceding commission on net ceded premiums written and a profit commission equal to 10% of net profit.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

The Company remains liable for claims payments in the event that any reinsurer is unable to meet its obligations under the reinsurance agreements. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company evaluates the financial condition of its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. The Company contracts with a number of reinsurers to secure its annual reinsurance coverage, which generally becomes effective June 1st of each year. The Company purchases reinsurance each year taking into consideration its overall insurance exposure, modeled probable maximum losses, risk tolerance and retention levels, mandatory reinsurance coverage provided by the Florida Hurricane Catastrophe Fund, and overall reinsurance market conditions.

The impact of the reinsurance contracts on premiums written and earned is as follows:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024
Premiums Written:
Direct	$	315,428		$	270,979		$	941,220		$	767,163
Assumed		(257	)		(600	)		19,742			65,104
Gross written		315,171			270,379			960,962			832,267
Ceded		(106,088	)		(109,694	)		(308,245	)		(254,513	)
Net premiums written	$	209,083		$	160,685		$	652,717		$	577,754
Premiums Earned:
Direct	$	289,287		$	229,876		$	808,921		$	621,342
Assumed		11,792			35,642			95,169			164,381
Gross earned		301,079			265,518			904,090			785,723
Ceded		(106,088	)		(109,694	)		(308,245	)		(254,513	)
Net premiums earned	$	194,991		$	155,824		$	595,845		$	531,210

As of September 30, 2025 and December 31, 2024, total net amounts recoverable and receivable from reinsurers were $329,642 and $558,441, respectively. During the three and nine months ended September 30, 2025, the Company derecognized ceded losses of $51,500 and $112,706, respectively, primarily attributable to a favorable change in estimated losses from Hurricane Milton. This resulted in a significant decrease in reinsurance recoverable for unpaid losses and loss adjustment expenses.

During the three and nine months ended September 30, 2024, the Company recognized ceded losses of $21,981 and $24,653, respectively, as reductions in losses and loss adjustment expenses.

As of September 30, 2025 and December 31, 2024, there were 48 and 44 reinsurers participating in the Company’s reinsurance program, respectively. Approximately 55.7% of the reinsurance recoverable balance as of September 30, 2025 was receivable from three reinsurers. Based on all available information considered in the rating-based method, allowances for credit losses related to the reinsurance recoverable balance were $130 and $186 as of September 30, 2025 and December 31, 2024, respectively. The Company recognized decreases in credit loss expense of $7 and $56 for the three and nine months ended September 30, 2025, respectively. For the three and nine months ended September 30, 2024, the Company recognized decreases in credit loss expense of $20 and $72, respectively.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Prior to June 1, 2025, the Company had one multi-year reinsurance contract containing retrospective provisions, which adjusted premiums in the event of minimal or no losses. Due to the losses from Hurricane Helene and Hurricane Milton during the third and fourth quarters of 2024, these retrospective provisions were fully exhausted and as such, no benefits were accrued during the three and nine months ended September 30, 2025. For the three months ended September 30, 2024, the Company derecognized reductions in premiums ceded of $7,707 related to these adjustments in the consolidated statement of income. For the nine months ended September 30, 2024, the Company recognized reductions in premiums ceded of $6,279.

There were no benefits accrued under the multi-year reinsurance contract with retrospective provisions as of September 30, 2025 and December 31, 2024.

Reinsurance provided to other insurance companies

United

The Company formerly provided quota share reinsurance to United Property & Casualty Insurance Company (“United”) on its policies in the northeast and southeast regions of the United States. United was placed into receivership by the State of Florida due to its financial insolvency and, as a result, the Company ceased providing quota share reinsurance on United policies. As of September 30, 2025, the Company had a net balance of $1,974 due to United related to the northeast region, consisting of assumed losses payable of $1,039 and ceding commission payable of $935. See Note 24 “Subsequent Events” for additional information. As of December 31, 2024, the Company had a net balance of $831 due to United related to the northeast region, representing ceding commission payable.

As of September 30, 2025, the Company had a net balance of $1,768 due to United related to the southeast region, consisting of premiums payable of $1,712 and assumed losses payable of $330, offset by ceding commission receivable of $274. As of December 31, 2024, the Company had a net balance of $1,438 due to United related to the southeast region, consisting of premiums payable of $1,712, offset by ceding commission receivable of $274.

As of September 30, 2025, the Company had a net amount due to United of $3,742 and funds withheld for assumed business in trust accounts totaling $7,496 for the benefit of policies assumed from United. The Company cannot predict the actions a receiver might take, which may include restrictions on, or use of, funds held in trust. Any such actions could have a material adverse effect on the Company’s financial position and results of operations.

As of September 30, 2025 and December 31, 2024, the balance of funds withheld for assumed business related to the Company’s quota share reinsurance agreements with United was $7,496 and $11,690, respectively.

Citizens Assumption

For the three months ended September 30, 2025, $257 of assumed premiums written related to Citizens policies were derecognized due to policy cancellations, whereas for the nine months ended September 30, 2025, assumed premiums related to Citizens policies were $19,742. For the three months ended September 30, 2024, $600 of assumed premiums related to Citizens policies were derecognized due to policy cancellations, whereas for the nine months ended September 30, 2024, assumed premiums related to Citizens policies were $65,104.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Note 13 -- Losses and Loss Adjustment Expenses

The liability for losses and loss adjustment expenses (“LAE”) is determined on an individual case basis for all claims reported. The liability also includes amounts for unallocated expenses, anticipated future claims development and losses incurred but not reported.

The Company primarily writes insurance in states which could be exposed to hurricanes or other natural catastrophes. The occurrence of a major catastrophe could have a significant effect on the Company’s quarterly results and cause a temporary disruption of the normal operations of the Company. However, the Company is unable to predict the frequency or severity of any such events that may occur in the near term or thereafter.

Activity in the liability for losses and LAE is summarized as follows:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024
Net balance, beginning of period*	$	321,557		$	291,785		$	323,335		$	254,351
Incurred, net of reinsurance, related to:
Current period		67,486			110,510			191,234			263,938
Prior periods		(1,333	)		(4,774	)		(1,333	)		44
Total incurred, net of reinsurance		66,153			105,736			189,901			263,982
Paid, net of reinsurance, related to:
Current period		(42,674	)		(36,942	)		(78,826	)		(86,502	)
Prior periods		(24,731	)		(21,324	)		(114,105	)		(92,576	)
Total paid, net of reinsurance		(67,405	)		(58,266	)		(192,931	)		(179,078	)
Net balance, end of period		320,305			339,255			320,305			339,255
Add: reinsurance recoverable before allowance for credit losses		295,330			273,099			295,330			273,099
Gross balance, end of period	$	615,635		$	612,354		$	615,635		$	612,354

* Net balance represents beginning-of-period liability for unpaid losses and LAE less beginning-of-period reinsurance recoverable for unpaid losses and LAE.

The establishment of loss and LAE reserves is an inherently uncertain process and changes in loss and LAE reserve estimates are expected as these estimates are subject to the outcome of future events. Changes in estimates, or differences between estimates and amounts ultimately paid, are reflected in the operating results of the period during which such estimates are adjusted. Losses and LAE for the three and nine months ended September 30, 2025 did not have any losses from catastrophic events while losses and LAE for the three and nine months ended September 30, 2024 included net losses of $40,000 due to Hurricane Helene and $6,500 due to Hurricane Debby. In addition, the Company has experienced an improvement in claim and litigation frequency during 2025 as compared to 2024.

Note 14 -- Variable Interest Entities

The Company holds variable interests in two reciprocal insurance exchanges, CORE and Tailrow. The reciprocal insurance exchanges are owned by their policyholders, referred to as subscribers, who gain ownership by buying an insurance policy and making a surplus contribution. The Company is required to assess whether it has a controlling financial interest in its variable interest entities. A controlling financial interest exists if an entity has both: 1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and 2) the obligation to absorb losses from or the right to receive benefits of the VIE that could

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

potentially be significant to the VIE. Under U.S. GAAP, an entity meeting these requirements is considered to be the primary beneficiary of a VIE and is required to consolidate the VIE.

CORE was organized to offer commercial residential multiple peril and wind insurance products and Tailrow was organized to provide homeowners multiple peril insurance. Based on management’s current evaluation, CORE and Tailrow are considered VIEs, and the Company has determined that it is the primary beneficiary of both entities.

CORE’s and Tailrow’s assets are legally restricted for the purpose of fulfilling their obligations. The creditors of the VIEs have no legal right to pursue additional sources of payment from the Company.

The following table summarizes the assets and liabilities related to the Company’s variable interests in consolidated VIEs which are included in the accompanying consolidated balance sheets:


	September 30,		December 31,
	2025		2024
Assets
Cash and cash equivalents	$	114,090	$	74,886
Restricted cash		629		611
Income taxes receivable		2,547		463
Deferred income tax assets, net		619		72
Premiums receivable, net (allowance: $865 and $1,085, respectively)		5,141		4,230
Prepaid reinsurance premium		2,274		13,886
Reinsurance recoverable, net of allowance for credit losses:
Unpaid losses and loss adjustment expenses (allowance: $1 and $4, respectively)		2,399		3,596
Deferred policy acquisition costs		4,675		2,709
Other assets		585		891
Total assets	$	132,959	$	101,344
Liabilities
Losses and loss adjustment expenses	$	21,838	$	17,415
Unearned premiums		40,662		30,204
Advance premiums		1,819		—
Assumed premiums payable		247		656
Accrued expenses		1,231		915
Income taxes payable		—		19
Deferred income tax liabilities, net		—		261
Other liabilities		2,365		1,131
Total liabilities	$	68,162	$	50,601

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Note 15 -- Segment Information

The Company identifies its operating divisions based on managerial emphasis, organizational structure and revenue source. The Company has five reportable segments: Insurance Operations, Exzeo Group, Reciprocal Exchange Operations, Real Estate, and Corporate and Other. Due to their economic characteristics, the Company’s property and casualty insurance division and reinsurance operations, excluding the insurance operations under Reciprocal Exchange Operations, are grouped together into one reportable segment under Insurance Operations. The Exzeo Group segment includes insurance solutions, information technology operations, and its management company’s activities. The Reciprocal Exchange Operations segment represents the insurance operations of CORE and Tailrow. The Real Estate segment includes companies engaged in operating commercial properties the Company owns for investment purposes or for use in its own operations. The Corporate and Other segment represents the activities of the holding companies and any other companies, such as CRM and TRM, that do not meet the quantitative and qualitative thresholds for a reportable segment. The determination of segments may change over time due to changes in operational emphasis, revenue, and results of operations. The Company’s chief executive officer, who serves as the Company’s chief operating decision maker, evaluates each division’s financial and operating performance based on revenue and operating income.

For the three months ended September 30, 2025 and 2024, revenue from the Insurance Operations segment before intracompany elimination represented 77.1% and 82.7%, respectively, and revenue from the Exzeo Group segment represented 17.0% and 11.0%, respectively, of total revenue of all operating segments. For the nine months ended September 30, 2025 and 2024, revenue from the Insurance Operations segment before intracompany elimination represented 77.3% and 84.5%, respectively, and revenue from the Exzeo Group segment represented 16.6% and 10.8%, respectively, of total revenue of all operating segments. As of September 30, 2025 and December 31, 2024, Insurance Operations’ total assets represented 78.6% and 83.6%, respectively, and Exzeo Group’s total assets represented 7.0% and 3.7%, respectively, of the combined assets of all operating segments.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

The following tables present segment information reconciled to the Company’s consolidated statements of income. Intersegment transactions are not eliminated from segment results. However, intracompany transactions are eliminated in segment results below.


For Three Months Ended September 30, 2025	Insurance Operations			Exzeo Group		Reciprocal Exchange Operations			Real Estate (a)		Corporate/ Other (b)			Reclassification/ Elimination			Consolidated
Revenue
Gross premiums earned (c)	$	282,950		$	—	$	19,562		$	—	$	—		$	(1,433	)	$	301,079
Premiums ceded		(98,819	)		—		(8,702	)		—		—			1,433			(106,088	)
Net premiums earned		184,131			—		10,860			—		—			—			194,991
Net income from investment portfolio		15,528			1,101		1,002			—		2,317			(587	)		19,361
Policy fee income		2,693			—		—			—		36			(1,160	)		1,569
Other		3,510			55,167		8			4,157		3,108			(65,521	)		429
Total revenue		205,862			56,268		11,870			4,157		5,461			(67,268	)		216,350
Expenses
Losses and loss adjustment expenses		84,535			—		6,008			—		—			(24,390	)		66,153
Amortization of deferred policy acquisition costs		28,569			—		1,171			—		—			—			29,740
Other policy acquisition expenses		16,755			10,071		2,786			—		1,664			(29,364	)		1,912
Stock-based compensation expense		307			730		—			—		1,658			—			2,695
Interest expense		—			—		1,134			400		619			(1,134	)		1,019
Depreciation and amortization		611			758		—			733		189			(596	)		1,695
Personnel and other operating expenses		10,547			16,354		236			2,460		4,639			(11,699	)		22,537
Total expenses		141,324			27,913		11,335			3,593		8,769			(67,183	)		125,751
Income (loss) before income taxes (d)	$	64,538		$	28,355	$	535		$	564	$	(3,308	)	$	(85	)	$	90,599
Total revenue from non-affiliates (e)	$	201,340		$	1,101	$	13,303		$	3,292	$	1,536
Gross premiums written	$	292,826		$	—	$	22,345

(a)

Other revenue under real estate primarily consisted of rental income from investment properties.

(b)

Other revenue under corporate and other primarily consisted of management fees for attorney-in-fact services.

(c)

Gross premiums earned under insurance operations includes $1,433 earned from reciprocal exchange operations.

(d)

The income (loss) before income taxes in the reclassification/elimination column is attributable to intercompany transactions among operating segments. The insurance operations and the reciprocal exchange operations record service fee expenses based on earned premiums or other appropriate measures, while Exzeo Group and the AIF operations recognize service fee revenue according to revenue recognition standards. Although both service fee expenses and revenue are fully eliminated on consolidation, they do not completely offset each other in this presentation due to the different methods of recognition.

(e)

Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)


For Three Months Ended September 30, 2024	Insurance Operations			Exzeo Group			Reciprocal Exchange Operations			Real Estate (a)		Corporate/ Other (b)			Reclassification/ Elimination			Consolidated
Revenue
Gross premiums earned (c)	$	249,314		$	—		$	17,430		$	—	$	—		$	(1,226	)	$	265,518
Premiums ceded		(104,264	)		—			(6,656	)		—		—			1,226			(109,694	)
Net premiums earned		145,050			—			10,774			—		—			—			155,824
Net income from investment portfolio		13,438			197			319			—		3,826			(563	)		17,217
Policy fee income		682			—			—			—		—			547			1,229
Other		3,637			28,593			—			2,680		2,715			(36,578	)		1,047
Total revenue		162,807			28,790			11,093			2,680		6,541			(36,594	)		175,317
Expenses
Losses and loss adjustment expenses		104,683			—			4,200			—		—			(3,147	)		105,736
Amortization of deferred policy acquisition costs		22,528			—			1,570			—		—			—			24,098
Other policy acquisition expenses		14,047			9,090			1,347			—		—			(22,478	)		2,006
Stock-based compensation expense		266			1,471			—			—		1,737			—			3,474
Interest expense		—			15			566			219		3,202			(581	)		3,421
Depreciation and amortization		612			655			—			419		160			(287	)		1,559
Personnel and other operating expenses		12,905			11,733			69			1,945		3,798			(9,507	)		20,943
Total expenses		155,041			22,964			7,752			2,583		8,897			(36,000	)		161,237
Income (loss) before income taxes (d)	$	7,766		$	5,826		$	3,341		$	97	$	(2,356	)	$	(594	)	$	14,080
Total revenue from non-affiliates (e)	$	158,489		$	(336	)	$	12,319		$	1,815	$	3,579
Gross premiums written	$	258,925		$	—		$	11,454

(a)

Other revenue under real estate primarily consisted of rental income from investment properties.

(b)

Other revenue under corporate and other primarily consisted of management fees for attorney-in-fact services.

(c)

Gross premiums earned under insurance operations include $1,226 earned from the reciprocal exchange operations.

(d)

(e)

Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)


For Nine Months Ended September 30, 2025	Insurance Operations			Exzeo Group		Reciprocal Exchange Operations			Real Estate (a)		Corporate/ Other (b)			Reclassification/ Elimination			Consolidated
Revenue
Gross premiums earned (c)	$	847,354		$	—	$	60,648		$	—	$	—		$	(3,912	)	$	904,090
Premiums ceded		(287,263	)		—		(24,894	)		—		—			3,912			(308,245	)
Net premiums earned		560,091			—		35,754			—		—			—			595,845
Net income from investment portfolio		40,970			2,262		2,756			—		6,211			(2,046	)		50,153
Policy fee income		5,224			—		—			—		41			—			5,265
Other		9,858			163,665		3			10,490		9,311			(189,887	)		3,440
Total revenue		616,143			165,927		38,513			10,490		15,563			(191,933	)		654,703
Expenses
Losses and loss adjustment expenses		237,715			—		13,622			—		—			(61,436	)		189,901
Amortization of deferred policy acquisition costs		80,840			—		3,653			—		—			—			84,493
Other policy acquisition expenses		50,356			32,812		8,143			—		5,131			(91,445	)		4,997
Stock-based compensation expense		1,105			2,159		—			—		5,098			—			8,362
Interest expense		—			—		3,366			831		7,316			(3,366	)		8,147
Depreciation and amortization		1,833			2,197		—			1,883		574			(1,475	)		5,012
Personnel and other operating expenses		33,862			47,320		1,299			6,257		14,237			(34,514	)		68,461
Total expenses		405,711			84,488		30,083			8,971		32,356			(192,236	)		369,373
Income (loss) before income taxes (d)	$	210,432		$	81,439	$	8,430		$	1,519	$	(16,793	)	$	303		$	285,330
Total revenue from non-affiliates (e)	$	604,060		$	4,012	$	42,425		$	7,896	$	3,701
Gross premiums written	$	889,857		$	—	$	71,105

(a)

Other revenue under real estate primarily consisted of rental income from investment properties.

(b)

Other revenue under corporate and other primarily consisted of management fees for attorney-in-fact services.

(c)

Gross premiums earned under insurance operations include $3,912 earned from the reciprocal exchange operations.

(d)

(e)

Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)


For Nine Months Ended September 30, 2024	Insurance Operations			Exzeo Group		Reciprocal Exchange Operations			Real Estate (a)		Corporate/ Other (b)			Reclassification/ Elimination			Consolidated
Revenue
Gross premiums earned (c)	$	754,755		$	—	$	33,859		$	—	$	—		$	(2,891	)	$	785,723
Premiums ceded		(242,261	)		—		(15,143	)		—		—			2,891			(254,513	)
Net premiums earned		512,494			—		18,716			—		—			—			531,210
Net income from investment portfolio		38,162			339		514			—		12,495			35			51,545
Policy fee income		1,757			—		—			—		—			1,580			3,337
Other		10,997			89,415		9			11,961		7,356			(117,654	)		2,084
Total revenue		563,410			89,754		19,239			11,961		19,851			(116,039	)		588,176
Expenses
Losses and loss adjustment expenses		268,771			—		7,073			—		—			(11,862	)		263,982
Amortization of deferred policy acquisition costs		65,322			—		1,658			—		—			—			66,980
Other policy acquisition expenses		39,952			27,800		3,698			—		—			(66,735	)		4,715
Stock-based compensation expense		954			2,828		—			—		3,650			—			7,432
Interest expense		—			3,321		1,937			663		9,359			(5,258	)		10,022
Depreciation and amortization		1,836			1,926		—			1,217		482			(848	)		4,613
Personnel and other operating expenses		41,202			34,423		175			5,008		11,671			(29,583	)		62,896
Total expenses		418,037			70,298		14,541			6,888		25,162			(114,286	)		420,640
Income (loss) before income taxes (d)	$	145,373		$	19,456	$	4,698		$	5,073	$	(5,311	)	$	(1,753	)	$	167,536
Total revenue from non-affiliates (e)	$	551,090		$	839	$	22,130		$	9,413	$	8,558
Gross premiums written	$	765,291		$	—	$	66,976

(a)

Other revenue under real estate primarily consisted of rental income from investment properties.

(b)

Other revenue under corporate and other primarily consisted of management fees for attorney-in-fact services.

(c)

Gross premiums earned under insurance operations include $2,891 earned from the reciprocal exchange operations.

(d)

(e)

Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

The following table presents gross premium earned by geographic location:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
Florida	$	270,689	$	235,772	$	813,967	$	697,286
Non-Florida		30,390		29,746		90,123		88,437
Gross premiums earned	$	301,079	$	265,518	$	904,090	$	785,723

The following table presents segment assets reconciled to the Company’s total assets on the consolidated balance sheets:


	September 30,			December 31,
	2025			2024
Segments
Insurance Operations	$	1,941,290		$	1,905,878
Exzeo Group		182,254			89,441
Reciprocal Exchange Operations		138,559			105,556
Real Estate		124,953			96,795
Corporate and Other		156,526			175,282
Consolidation and Elimination		(196,803	)		(142,739	)
Total assets	$	2,346,779		$	2,230,213

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Note 16 -- Leases

Company as Lessee

The table below summarizes the Company’s right-of-use (“ROU”) assets and corresponding liabilities for operating leases:


	September 30,		December 31,
	2025		2024
Operating leases
ROU assets	$	1,005	$	1,182
Liabilities	$	997	$	1,185

The following table summarizes the Company’s operating leases in which the Company is a lessee:


		Renewal	Other Terms and
Class of Assets	Initial Term	Option	Conditions
Operating lease:
Office equipment	36 to 63 months	Yes	(a)
Office space	5 to 9 years	Yes	(a), (b)

(a)

There are no variable lease payments.

(b)

Rent escalation provisions exist.

As of September 30, 2025, maturities of operating lease liabilities were as follows:


Due in 12 months following September 30,
2025	$	295
2026		304
2027		254
2028		109
2029		113
Thereafter		38
Total lease payments		1,113
Less: interest		116
Operating lease liabilities	$	997

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

The following table provides quantitative information with regards to the Company’s operating and finance leases:


	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2025			2024		2025		2024
Lease costs:
Operating lease costs*	$	77		$	76	$	229	$	222
Short-term lease costs*		67			64		208		238
Total lease costs	$	144		$	140	$	437	$	460
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows – operating leases						$	218	$	213
Financing cash flows – finance leases						$	—	$	2

	September 30,
	2025
Weighted-average remaining lease term:
Operating leases (in years)		4.0
Weighted-average discount rate:
Operating leases (%)		6.0	%

* Included in other operating expenses on the consolidated statements of income.

Company as Lessor

The following table summarizes the Company’s operating leases in which the Company is a lessor:


		Renewal	Other Terms
Class of Assets	Initial Term	Option	and Conditions
Operating lease:
Office space	1 to 11 years	Yes	(c)
Retail space	3 to 20 years	Yes	(c)
Boat docks/wet slips	1 to 12 months	Yes	(c)

(c)

There are no purchase options

In March 2025, the Company entered into an operating lease agreement for its 189,147-square-foot commercial property in Tampa, Florida. The lease commenced in June 2025 and has an initial term of 130 months, with options to renew for two additional 60-month periods. Total net lease payments over the initial term will be $56,866. The underlying asset is presented as part of real estate investments in the consolidated balance sheets.

Note 17 -- Income Taxes

A valuation allowance must be established for deferred income tax assets when it is more likely than not that the deferred income tax assets will not be realized based on available evidence both positive and negative, including recent operating results, available tax planning strategies, and projected future taxable income. The Company evaluates the realizability of its deferred income tax assets each quarter, and as of September 30, 2025, based on all of the available evidence, management concluded that it is more likely than not that the deferred income tax assets will be realized other than a valuation allowance on the sale of TypTap Insurance Company

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

(“TTIC”) by Exzeo to HCI in the amount of $1,208 related to the deferred intercompany taxable loss that arose during the third quarter of 2024.

During the three months ended September 30, 2025 and 2024, the Company recorded income tax expense of $22,711 and $4,688, respectively, resulting in effective tax rates of 25.1% and 33.3%, respectively. The decrease in the effective tax rate as compared with the corresponding period in the prior year was primarily attributable to a decrease in certain non-deductible compensation expenses.

During the nine months ended September 30, 2025 and 2024, the Company recorded income tax expense of $72,933 and $44,089, respectively, resulting in effective tax rates of 25.6% and 26.3%, respectively. The decrease in the effective tax rate as compared with the corresponding period in the prior year was primarily attributable to a decrease in certain non-deductible compensation expenses. The Company’s estimated annual effective tax rate differs from the statutory federal tax rate due to state and foreign income taxes as well as certain non-deductible and tax-exempt items.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law. The OBBBA includes various provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The OBBBA has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The OBBBA did not have a material effect on the financial statements.

Note 18 -- Earnings Per Share

U.S. GAAP requires the Company to use the two-class method in computing basic earnings (loss) per share since holders of the Company’s restricted stock have the right to share in dividends, if declared, equally with common stockholders. These participating securities affect the computation of both basic and diluted earnings (loss) per share during periods of net income or loss. For a majority-owned subsidiary, its basic and diluted earnings (loss) per share are first computed separately. Then, the Company’s proportionate share in that majority-owned subsidiary’s earnings is added to the computation of both basic and diluted earnings (loss) per share at a consolidated level.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

A summary of the numerator and denominator of the basic and diluted earnings per common share is presented below:


	Three Months Ended							Three Months Ended
	September 30, 2025							September 30, 2024
	Income			Shares (a)		Per Share		Income			Shares (a)		Per Share
	(Numerator)			(Denominator)		Amount		(Numerator)			(Denominator)		Amount
Net income	$	67,888						$	9,392
Less: Net income attributable to noncontrolling interests		(2,381	)						(3,710	)
Net income attributable to HCI		65,507							5,682
Less: Income attributable to participating securities		(2,385	)						(230	)
Basic Earnings Per Share:
Income attributable to common stockholders		63,122			12,487	$	5.05		5,452			10,050	$	0.54
Effect of Dilutive Securities:*
Stock options		—			398				—			269
Warrants		—			7				—			192
Net impact from reallocation of undistributed earnings to participating securities		67			—				—			—
Diluted Earnings Per Share:
Income attributable to common stockholders	$	63,189			12,892	$	4.90	$	5,452			10,511	$	0.52

(a)

Shares in thousands.

* For the three months ended September 30, 2024, convertible senior notes were excluded due to anti-dilutive effect.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)


	Nine Months Ended							Nine Months Ended
	September 30, 2025							September 30, 2024
	Income			Shares (a)		Per Share		Income			Shares (a)		Per Share
	(Numerator)			(Denominator)		Amount		(Numerator)			(Denominator)		Amount
Net income	$	212,397						$	123,447
Less: Net income attributable to redeemable noncontrolling interests		—							(10,149	)
Less: Net income attributable to noncontrolling interests		(11,046	)						(5,929	)
Net income attributable to HCI		201,351							107,369
Less: Income attributable to participating securities		(8,030	)						(3,744	)
Basic Earnings Per Share:
Income attributable to common stockholders		193,321			11,399	$	16.96		103,625			9,948	$	10.42
Effect of Dilutive Securities:
Stock options		—			383				—			283
Convertible senior notes		4,879			1,068				5,149			2,188
Warrants		—			7				—			238
Net impact from reallocation of undistributed earnings to participating securities		643			—				—			—
Diluted Earnings Per Share:
Income attributable to common stockholders	$	198,843			12,857	$	15.47	$	108,774			12,657	$	8.59

(a)

Shares in thousands.

Note 19 -- Redeemable Noncontrolling Interests

Exzeo - Series A Preferred Stock

Exzeo previously issued shares of its Series A Preferred Stock to a private investment management fund. These shares were presented as redeemable noncontrolling interest on the consolidated balance sheet until the redemption was completed during the first quarter of 2024. For the nine months ended September 30, 2024, net income attributable to redeemable noncontrolling interest was $10,149, consisting of accrued cash dividends of $424, accretion related to increasing dividend rates of $111, an adjustment to maximum redemption value of $6,228, and a deemed dividend resulting from warrant modifications of $3,386.

VIE - Subscriber Surplus Contribution

Subscriber surplus contributions in redeemable noncontrolling interests represent a refundable portion of the surplus contributions received from policyholders of the VIEs.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

The following table summarizes the activity of the refundable portion of subscriber surplus contributions during the three and nine months ended September 30, 2025 and 2024:


	2025			2024
Balance as of January 1	$	1,691		$	—
Cash contribution		833			—
Return of contribution		(3	)		—
Reclassification to noncontrolling interests		(884	)		—
Balance as of March 31		1,637			—
Cash contribution		1,937			864
Return of contribution		(31	)		—
Reclassification to noncontrolling interests		(1,138	)		(73	)
Balance as of June 30		2,405			791
Cash contribution		2,206			1,181
Return of contribution		(33	)		—
Reclassification to noncontrolling interests		(1,355	)		(481	)
Balance as of September 30	$	3,223		$	1,491

Note 20 -- Equity

Stockholders’ Equity

Common Stock

On July 1, 2025, the Company’s Board of Directors declared a quarterly dividend of $0.40 per common share. The dividends were paid on September 19, 2025 to stockholders of record on August 15, 2025.

Preferred Stock

As of September 30, 2025, the Company had 20,000,000 preferred shares authorized, with no shares issued and outstanding.

Warrants

As of September 30, 2025, there were 11,250 warrants outstanding at an exercise price of $54.40 with an expiration date of December 31, 2028.

At-The-Market Facility

On January 22, 2024, the Company implemented an “at-the-market” facility (the “ATM Facility”) which gives the Company the ability to raise up to $75,000 through the issuance of new shares of common stock through a sales agent (the “Sales Agent”). The Company has no obligation to sell, and the Sales Agent has no obligation to buy or sell, any shares of common stock under the ATM Facility. As of September 30, 2025 the remaining availability under the ATM Facility was $75,000.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Noncontrolling Interests

Exzeo

During the three and nine months ended September 30, 2025, Exzeo did not repurchase and retire any shares of common stock from current or former employees. During the three and nine months ended September 30, 2024, Exzeo repurchased and retired a total of 276,198 and 322,056 shares, respectively, of its common stock. The total cost of purchasing noncontrolling interests during the three and nine months ended September 30, 2024 was $388 and $470, respectively. Exzeo repurchased common shares from its current employees to satisfy payroll tax liabilities in connection with the vesting of restricted stock awards.

In addition, Exzeo repurchased and retired a total of 447 and 7,277 shares, respectively, of its common stock from former Exzeo employees for a total cost of $1 and $13, respectively, for the three and nine months ended September 30, 2024. The total cost included the fair value of Exzeo common stock and a $2 inducement cost for the purpose of curtailing the spread of share ownership.

As of September 30, 2025, there were 82,775,789 shares of Exzeo’s common stock outstanding, of which 7,775,789 shares were not owned by HCI. Of the shares not owned by HCI, 4,034,320 represent unvested restricted stock awards granted to Exzeo's employees.

Consolidated Variable Interest Entities

As described in Note 14 “Variable Interest Entities,” the Company has no equity interest at risk in consolidated VIEs. An insurance exchange receives surplus contributions from its subscribers in addition to policy premiums. The surplus contribution is payable to an insurance exchange on or prior to the initial effective date of coverage, in installments for certain payment plans, and on or prior to the effective date of all endorsements generating an additional premium.

Note 21 -- Stock-Based Compensation

2012 Omnibus Incentive Plan

The Company currently has outstanding stock-based awards granted under the 2012 Omnibus Incentive Plan (“the Plan”) which is currently active and available for future grants. As of September 30, 2025, there were 680,966 shares available for grant.

Stock Options

Stock options granted and outstanding under the Plan vest over a period of four years and are exercisable over the contractual term of ten years.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

A summary of the stock option activity for the three and nine months ended September 30, 2025 and 2024 is as follows (option amounts not in thousands):


					Weighted
			Weighted		Average
			Average		Remaining	Aggregate
	Number of		Exercise		Contractual	Intrinsic
	Options		Price		Term	Value
Outstanding as of January 1, 2025		590,000	$	51.54	4.9 years	$	37,523
Outstanding as of March 31, 2025		590,000	$	51.54	4.6 years	$	58,367
Outstanding as of June 30, 2025		590,000	$	51.54	4.4 years	$	58,733
Outstanding as of September 30, 2025		590,000	$	51.54	4.1 years	$	82,829
Exercisable as of September 30, 2025		590,000	$	51.54	4.1 years	$	82,829

Outstanding as of January 1, 2024		590,000	$	51.54	5.9 years	$	21,156
Outstanding as of March 31, 2024		590,000	$	51.54	5.6 years	$	38,077
Outstanding as of June 30, 2024		590,000	$	51.54	5.4 years	$	23,970
Outstanding as of September 30, 2024		590,000	$	51.54	5.1 years	$	33,109
Exercisable as of September 30, 2024		590,000	$	51.54	5.1 years	$	33,109

Restricted Stock Awards

From time to time, the Company has granted and may grant restricted stock awards to certain executive officers, other employees, and non-employee directors in connection with their service to the Company. The terms of the Company’s outstanding restricted stock grants may include service, performance, and market-based conditions. The determination of fair value with respect to the awards containing only service-based conditions is based on the market value of the Company’s common stock on the grant date. For awards with market-based conditions, the fair value is determined using a Monte Carlo simulation method, which calculates many potential outcomes for an award and then establishes fair value based on the most likely outcome.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

A summary of the restricted stock awards activity for the three and nine months ended September 30, 2025 and 2024 is as follows:


	Number of			Weighted
	Restricted			Average
	Stock			Grant Date
	Awards			Fair Value
Nonvested as of January 1, 2025		486,115		$	63.00
Granted		1,000		$	138.94
Vested		(18,405	)	$	61.38
Forfeited		(750	)	$	109.72
Nonvested as of March 31, 2025		467,960		$	63.15
Granted		9,020		$	165.18
Vested		(5,500	)	$	89.50
Forfeited		(1,100	)	$	113.40
Nonvested as of June 30, 2025		470,380		$	64.68
Granted		3,750		$	142.63
Vested		(1,600	)	$	94.16
Forfeited		(1,040	)	$	113.40
Nonvested as of September 30, 2025		471,490		$	65.10

Nonvested as of January 1, 2024		271,417		$	37.12
Vested		(29,690	)	$	56.05
Forfeited		(200	)	$	51.87
Nonvested as of March 31, 2024		241,527		$	34.78
Granted		204,500		$	79.33
Vested		(19,637	)	$	48.17
Forfeited		(3,500	)	$	34.58
Nonvested as of June 30, 2024		422,890		$	55.70
Granted		6,400		$	94.16
Forfeited		(65	)	$	58.20
Nonvested as of September 30, 2024		429,225		$	56.28

The Company recognized compensation expense related to restricted stock awards, which is included in general and administrative personnel expenses, of $1,968 and $2,003 for the three months ended September 30, 2025 and 2024, respectively, and $6,232 and $4,590 for the nine months ended September 30, 2025 and 2024, respectively. As of September 30, 2025 and December 31, 2024, there was approximately $15,904, and $20,296, respectively, of total unrecognized compensation expense related to nonvested restricted stock awards. The Company expects to recognize the remaining compensation expense over a weighted-average period of 2.4 years.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

The following table summarizes information about deferred tax benefits recognized and tax benefits realized related to restricted stock awards and paid dividends, and the fair value of vested restricted stock for the three and nine months ended September 30, 2025 and 2024.


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
Deferred tax benefits recognized	$	170	$	74	$	522	$	234
Tax benefits realized for restricted stock and paid dividends	$	60	$	42	$	936	$	1,096
Fair value of vested restricted stock	$	151	$	—	$	1,773	$	2,610

Subsidiary Equity Plan

Exzeo issues stock-based compensation awards to its employees under a separate stock-based compensation plan. The Company records activity related to Exzeo’s stock-based compensation as an adjustment to noncontrolling interest. For the three months ended September 30, 2025 and 2024, the Company recognized compensation expense related to Exzeo’s stock-based awards of $727 and $1,471, respectively. For the nine months ended September 30, 2025 and 2024, the Company recognized compensation expense related to Exzeo’s stock-based awards of $2,130 and $2,828, respectively. As of September 30, 2025 and December 31, 2024, there was $7,771 and $9,495, respectively, of unrecognized compensation expense related to Exzeo’s nonvested restricted stock and stock options.

Note 22 -- Commitments and Contingencies

Litigation and Other Legal Matters

The Company is party to litigation and other legal matters arising in the ordinary course of business. From time to time, the Company is also subject to regulatory and governmental examinations, information requests and subpoenas, inquiries, investigations, and threatened legal actions and proceedings.

The Company records accruals for losses that are probable and reasonably estimable. These accruals are based on a variety of factors such as judgment, probability of loss, and opinions of internal and external legal counsel. Legal costs in connection with litigation and other legal matters arising in the ordinary course of business are expensed as incurred.

Although the Company cannot predict with certainty the ultimate resolution of the litigation and other legal matters it is party to, the Company does not believe that any known or potential litigation and other legal matters will have a material effect on the Company’s consolidated financial position, results of operations, or cash flows.

Capital Commitments

As described in Note 5 “Investments” under Limited Partnership Investments, the Company is contractually committed to capital contributions for limited partnership investments. As of September 30, 2025, there was an aggregate unfunded balance of $2,985.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

FIGA Assessments

The Company’s insurance subsidiaries, as member insurers, are required to collect and remit the pass-through assessments to Florida Insurance Guaranty Association (“FIGA”) on a quarterly basis. As of September 30, 2025, the FIGA assessments payable by the Company were $2,734 and are included in other liabilities on the consolidated balance sheet.

Note 23 -- Related Party Transactions

HCPCI, TTIC, CORE, and Tailrow have reinstatement premium protection reinsurance contracts (“RPP”) with various reinsurers for the 2025-2026 treaty year. The purpose of the RPP contracts is to indemnify HCPCI, TTIC, CORE, and Tailrow for the reinstatement premium which HCPCI, TTIC, CORE, and Tailrow pay or become liable to pay under the reinstatement provisions of the respective excess of loss reinsurance contracts. For one of the RPP contracts, Oxbridge Reinsurance Limited (“Oxbridge”) participates as a subscribing reinsurer with HCPCI and Tailrow as collective reinsureds. One of the Company’s non-employee directors, Jay Madhu, serves as Oxbridge’s chairman of its board of directors and chief executive officer and is an investor in that company. For its participation on the RPP contract, Oxbridge’s annual premium is $1,033 and is paid by HCPCI and Tailrow over four installments. Management believes the premium rate is competitive with market rates. A trust account has been established with HCPCI and Tailrow as collective beneficiaries and Oxbridge as grantor. Each of the four premium installments is deposited into the trust account in order to fully collateralize Oxbridge’s obligations under the RPP contract. Trust assets may be withdrawn by HCPCI and Tailrow to indemnify HCPCI and Tailrow for Oxbridge’s obligations under the provisions of the RPP contract.

Note 24 -- Subsequent Events

On October 2, 2025, HCPCI entered into a commutation and release agreement with the Florida Department of Financial Services, acting as the receiver for United. Under the terms of the agreement, all liabilities and obligations under the quota-share reinsurance agreement for policies in the northeast region, originally effective December 31, 2020, were fully settled. As part of the commutation, HCPCI will make a payment of $1,200 to the receiver. The funds will be drawn from the trust account for assumed business.

On October 21, 2025, the Company’s insurance subsidiaries assumed approximately 47,000 policies from Citizens, representing approximately $181,000 in annualized premiums

On October 21, 2025, the Company’s Board of Directors declared a quarterly dividend of $0.40 per common share. The dividends are payable on December 19, 2025 to stockholders of record on November 21, 2025.

On November 4, 2025, Exzeo announced the pricing of its initial public offering, issuing 8,000,000 shares of common stock at a price of $21 per share, which after closing of the transaction, will result in gross proceeds of $168,000 before underwriting and offering expenses. In addition, Exzeo has granted the underwriters a 30-day option to purchase up to an additional 1,200,000 shares at $21 per share, less underwriting and offering expenses. As a result of the transaction, the net proceeds will be allocated to additional paid-in capital and noncontrolling interest on the consolidated balance sheet with no recognition of a gain or loss on the consolidated statements of income.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

On November 5, 2025, the Company amended and restated its revolving credit facility with Fifth Third Bank. The amendments increased the line of credit from $75,000 to $150,000 and released the real estate, previously held as collateral.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

You should read the following discussion under this Item 2 in conjunction with our consolidated financial statements and related notes and information included elsewhere in this quarterly report on Form 10-Q and in our Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 28, 2025 (the “2024 Annual Report”). Unless the context requires otherwise, as used in this Form 10-Q, the terms “HCI,” “we,” “us,” “our,” “the Company,” “our company,” and similar references refer to HCI Group, Inc., a Florida corporation incorporated in 2006, and its subsidiaries. All dollar amounts in this Management’s Discussion and Analysis of Financial Condition and Results of Operations are in whole dollars unless specified otherwise.

Forward-Looking Statements

In addition to historical information, this quarterly report contains forward-looking statements as defined under federal securities laws. Such statements involve risks and uncertainties, such as statements about our plans, objectives, expectations, assumptions or future events. These statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from any future results, performances or achievements expressed or implied by the forward-looking statements. Typically, forward-looking statements can be identified by terminology such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” and similar expressions. The important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include but are not limited to the effects of governmental regulation; changes in insurance regulations; the frequency and extent of claims; uncertainties inherent in reserve estimates; catastrophic events; changes in the demand for, pricing of, availability of or collectability of reinsurance; restrictions on our ability to change premium rates; increased rate pressure on premiums; the severity and impact of a pandemic; and other risks and uncertainties detailed herein and from time to time in our SEC reports.

OVERVIEW

HCI Group, Inc. is a Florida-based company with operations in property and casualty insurance, information technology services, insurance management, real estate and reinsurance. We utilize innovative technology to promote efficiency, refine risk assessment and enhance experiences for clients throughout the insurance process. We manage our operations in the following organizational segments, based on managerial emphasis and evaluation of financial and operating performances:

Insurance Operations

▪

Property and casualty insurance

▪

Reinsurance and other auxiliary operations

Exzeo Group

▪

Insurance solutions

▪

Information technology

▪

Reinsurance brokerage services

Reciprocal Exchange Operations

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Real Estate

Corporate and Other

▪

Attorney-in-fact services

▪

Holding company operations

For the three months ended September 30, 2025 and 2024, revenue from Insurance Operations before intracompany elimination represented 77.1% and 82.7%, respectively, and revenue from Exzeo Group represented 17.0% and 11.0%, respectively, of total revenue of all operating segments. For the nine months ended September 30, 2025 and 2024, revenue from Insurance Operations before intracompany elimination represented 77.3% and 84.5%, respectively, and revenue from Exzeo Group represented 16.6% and 10.8%, respectively, of total revenue of all operating segments. As of September 30, 2025 and December 31, 2024, Insurance Operations’ total assets represented 78.6% and 83.6%, respectively, and Exzeo Group’s total assets represented 7.0% and 3.7%, respectively, of the combined assets of all operating segments. Refer to Note 15 “Segment Information” to the consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information.

Insurance Operations

Property and Casualty Insurance

We currently have two operating insurance subsidiaries: Homeowners Choice Property & Casualty Insurance Company, Inc. (“HCPCI”) and TypTap Insurance Company (“TTIC”). A third insurance subsidiary, perRisk Insurance Company, has not yet commenced its surplus lines insurance business. We provide various forms of residential insurance products such as homeowners insurance, fire insurance, and wind-only insurance to homeowners, condominium owners and tenants for properties primarily located in Florida and in various states outside of Florida. Although we conduct insurance business in many states, Florida remains our primary market. We utilize internally developed software technologies to drive efficiency in claim processing and claims settlements, identify profitable underwriting opportunities, generate savings and streamline operations across our insurance operations.

Reinsurance and other auxiliary operations

We have a Bermuda domiciled wholly-owned reinsurance subsidiary, Claddaugh Casualty Insurance Company Ltd (“Claddaugh”). We selectively retain risk in Claddaugh, reducing the cost of third-party reinsurance. Claddaugh fully collateralizes its exposure to our insurance operations and reciprocal exchange operations by depositing funds into a trust account. Claddaugh may mitigate a portion of its risk through retrocession contracts, however Claddaugh did not enter into any retrocession contracts for the 2025-2026 treaty year. Currently, Claddaugh does not provide reinsurance to non-affiliates. Other auxiliary operations also include claim adjusting and processing services.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Exzeo Group

Exzeo Group, Inc. (“Exzeo”), our majority-owned subsidiary, currently has four subsidiaries: Exzeo Insurance Services, Inc. (“EIS”) which was formerly known as TypTap Management Company, Exzeo USA, Inc. (“Exzeo USA”), Dark Horse Re, LLC (“Dark Horse”), and Cypress Tech Development Company, Inc. which also owns Exzeo Software Private Limited (“Exzeo India”), a subsidiary domiciled in India. Exzeo provides turn-key insurance technology and operations solutions primarily to our insurance operations and reciprocal exchange operations based on a proprietary platform of purpose-built software and data analytics applications that are specifically designed for the property and casualty insurance ecosystem. Exzeo's platform of products and services is highly scalable and poised to continue to optimize the performance of insurance markets, to the benefit of policyholders, capital providers, as well as the overall insurance value chain. The advanced data analytics algorithms and software tools enable insurance carriers to maximize efficiency of their systems, optimize underwriting outcomes and ultimately serve their customers more effectively.

Insurance Solutions

Exzeo provides operational services through EIS, which performs end-to-end services including underwriting support, insurance application processing, policyholder service, premium collection activities and claims administration. Additionally, EIS leverages data analytics to monitor claims and market trends to improve pricing models, insurance policy designs, and compliance with regulatory requirements.

Information Technology

Exzeo’s information technology operations are anchored by its software development and data analytics capabilities, primarily supported by Exzeo USA and Exzeo India. Exzeo's proprietary platform includes configurable applications designed to support the full insurance value chain including quoting and underwriting, policy management, claims management, geolocation visualization tools, and financial reporting. Exzeo’s key products include AtlasViewer®, an online data visualization and geographic tool, SAMSTM, a policy administration platform, HarmonyTM, a next generation policy administration platform, and ClaimColonyTM, an application that provides intelligent automation of insurance claims and other business processes.

Reinsurance Brokerage Services

Through our subsidiary Dark Horse, we provide expert reinsurance brokerage services to help insurance companies manage risk by acting as an intermediary between the insurer client and reinsurers. We design tailored reinsurance solutions by assessing our insurer client’s risk portfolio.

Reciprocal Exchange Operations

Our reciprocal exchange operations relate to the activities of consolidated variable interest entities, Condo Owners Reciprocal Exchange (“CORE”) and Tailrow Insurance Exchange (“Tailrow”). CORE provides commercial residential multiple peril insurance, while Tailrow specializes in fire and homeowners multiple peril insurance.

A reciprocal insurance exchange is a policyholder-owned entity where members, known as subscribers, gain ownership by purchasing an insurance policy. These subscribers collectively assume one another’s risks by exchanging insurance contracts, effectively acting as both insurers and insureds. The exchange’s operations are

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

managed by an attorney-in-fact (“AIF”) company, which oversees general administration, marketing, underwriting, accounting, policy administration, claims adjusting, and information technology.

Real Estate

Our real estate operations consist of multiple properties we own and operate for investment purposes and also properties we own and use for our own operations. Properties used in operations consist of two office buildings in Tampa, Florida and an insurance operations site in Ocala, Florida. Our investment properties include retail shopping centers, marinas, office campuses, and undeveloped land in Tampa, Florida.

Corporate and Other

Attorney-in-fact services

We currently provide AIF services to our reciprocal exchange operations. Our AIF services include underwriting insurance policies, managing claims, handling financial operations, regulatory compliance and reporting, and managing investments and operational expenses.

Holding company operations

Activities of our holding company, HCI Group, Inc., plus other companies that do not meet the quantitative and qualitative thresholds for a reportable segment comprise the operations of this segment.

RECENT EVENTS

On October 21, 2025, our insurance subsidiaries assumed approximately 47,000 policies from Citizens, representing approximately $181,000,000 in annualized premiums.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

RESULTS OF OPERATIONS

The following table summarizes our results of operations for the three and nine months ended September 30, 2025 and 2024 (in thousands, except per share amounts or as otherwise indicated):


	Three Months Ended						Nine Months Ended
	September 30,						September 30,						QTD			YTD
	2025			2024			2025			2024			Change*			Change*
Revenue
Gross premiums earned	$	301,079		$	265,518		$	904,090		$	785,723		$	35,561		$	118,367
Premiums ceded		(106,088	)		(109,694	)		(308,245	)		(254,513	)		3,606			(53,732	)
Net premiums earned		194,991			155,824			595,845			531,210			39,167			64,635
Net investment income		17,529			13,714			47,725			44,662			3,815			3,063
Net realized investment gains		618			2,846			1,940			3,058			(2,228	)		(1,118	)
Net unrealized investment gains		1,214			657			488			3,825			557			(3,337	)
Policy fee income		1,569			1,229			5,265			3,337			340			1,928
Other income		429			1,047			3,440			2,084			(618	)		1,356
Total revenue		216,350			175,317			654,703			588,176			41,033			66,527
Expenses
Losses and loss adjustment expenses		66,153			105,736			189,901			263,982			(39,583	)		(74,081	)
Policy acquisition and other underwriting expenses		31,652			26,104			89,490			71,695			5,548			17,795
General and administrative personnel expenses		20,806			19,175			61,274			52,920			1,631			8,354
Interest expense		1,019			3,421			8,147			10,022			(2,402	)		(1,875	)
Other operating expenses		6,121			6,801			20,561			22,021			(680	)		(1,460	)
Total expenses		125,751			161,237			369,373			420,640			(35,486	)		(51,267	)
Income before income taxes		90,599			14,080			285,330			167,536			76,519			117,794
Income tax expense		22,711			4,688			72,933			44,089			18,023			28,844
Net income		67,888			9,392			212,397			123,447			58,496			88,950
Net income attributable to noncontrolling interests		(2,381	)		(3,710	)		(11,046	)		(16,078	)		1,329			5,032
Net income after noncontrolling interests	$	65,507		$	5,682		$	201,351		$	107,369		$	59,825		$	93,982
Ratios to Net Premiums Earned:
Loss Ratio		33.9	%		67.9	%		31.9	%		49.7	%		(34.0	)%		(17.8	)%
Expense Ratio (excluding interest expense)		30.0	%		33.4	%		28.8	%		27.6	%		(3.4	)%		1.2	%
Combined Ratio (excluding interest expense)		63.9	%		101.3	%		60.7	%		77.3	%		(37.4	)%		(16.6	)%
Ratios to Gross Premiums Earned:
Loss Ratio		22.0	%		39.8	%		21.0	%		33.6	%		(17.8	)%		(12.6	)%
Expense Ratio (excluding interest expense)		19.5	%		19.6	%		18.9	%		18.7	%		(0.1	)%		0.2	%
Combined Ratio (excluding interest expense)		41.5	%		59.4	%		39.9	%		52.3	%		(17.9	)%		(12.4	)%
Earnings Per Share:
Basic	$	5.05		$	0.54		$	16.96		$	10.42		$	4.51		$	6.54
Diluted	$	4.90		$	0.52		$	15.47		$	8.59		$	4.38		$	6.88
* QTD - Quarter-to-Date; YTD - Year-to-Date

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Comparison of the Three Months Ended September 30, 2025 to the Three Months Ended September 30, 2024

Our results of operations for the three months ended September 30, 2025 reflect net income of approximately $67,888,000 or $4.90 diluted earnings per share, compared with net income of approximately $9,392,000 or $0.52 diluted earnings per share for the three months ended September 30, 2024. The quarter-over-quarter increase was primarily due to an increase in net premiums earned, offset by a decrease in losses and loss adjustment expenses.

Revenue

Gross Premiums Earned increased primarily due to a higher volume of policies in force as a result of the addition of policies assumed from Citizens during the fourth quarter of 2024 and first quarter of 2025. For the three months ended September 30, 2025, gross premiums earned were $282,950,000 from Insurance Operations and $19,562,000 from Reciprocal Exchange Operations. For the three months ended September 30, 2024, gross premiums earned were $249,314,000 from Insurance Operations and $17,430,000 from Reciprocal Exchange Operations.

Premiums Ceded for the three months ended September 30, 2025 and 2024 represented 35.2% and 41.3%, respectively, of gross premiums earned. The decrease in this ratio was primarily due to the reversal of the $12,369,000 of previously accrued benefits related to retrospective provisions due to the effect of Hurricane Helene during the three months ended September 30, 2024. This decrease was partially offset by higher reinsurance costs due to growth in the number of policies in force and total insured value.

Our premiums ceded represent costs of reinsurance (i) to cover losses from catastrophes that exceed the retention levels defined by our catastrophe excess of loss reinsurance contracts, (ii) to provide additional loss coverage on a high-value individual risk basis through facultative reinsurance, or (iii) to assume a proportional share of losses as defined in a quota share agreement. The rates we pay for reinsurance are based primarily on policy exposures reflected in gross premiums earned. Under contracts in effect prior to June 1, 2025, reinsurance costs could be decreased by a reduction in premiums ceded attributable to retrospective provisions under reinsurance contracts. For the three months ended September 30, 2025, there was no adjustment to premiums ceded related to retrospective provisions as opposed to an increase of $7,707,000 for the three months ended September 30, 2024.

Net Premiums Written represent the premiums charged on policies issued during a fiscal period less any applicable reinsurance costs. The increase in 2025 primarily resulted from an increase in the volume of policies in force. We had approximately 264,000 policies in force as of September 30, 2025 as compared with approximately 235,000 policies in force at September 30, 2024.

Net Premiums Earned reflect the gross premiums earned less reinsurance costs as described above.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

The following is a reconciliation of our total Net Premiums Written to Net Premiums Earned for the three months ended September 30, 2025 and 2024 (in thousands):


	Three Months Ended
	September 30,
	2025			2024
Net Premiums Written	$	209,083		$	160,685
Increase in Unearned Premiums		(14,092	)		(4,861	)
Net Premiums Earned	$	194,991		$	155,824

Expenses

Losses and Loss Adjustment Expenses decreased as the three months ended September 30, 2025 did not have any losses from catastrophic events while the three months ended September 30, 2024 included net losses of $40,000,000 from Hurricane Helene and net losses of $6,500,000 from Hurricane Debby, partially offset by some favorable developments from prior-period losses. In addition, while we have a higher volume of policies in force, we have experienced a reduction in claim and litigation frequency over the comparative periods. See “Reserves for Losses and Loss Adjustment Expenses” under “Critical Accounting Policies and Estimates.”

Policy Acquisition and Other Underwriting Expenses primarily reflect the amortization of deferred acquisition costs such as commissions payable to agents for production and renewal of policies and premium taxes. The increase in amortized costs was primarily due to higher premiums in force in the comparative periods.

General and Administrative Personnel Expenses include salaries, wages, payroll taxes, stock-based and other incentive compensation expenses, and employee benefit costs. Factors such as merit increases, changes in headcount, and periodic restricted stock grants, among others, cause fluctuations in this expense. In addition, our personnel expenses are decreased by the capitalization of payroll costs related to projects to develop software for internal use and the payroll costs associated with the processing and settlement of certain catastrophe claims which are recoverable from reinsurers under reinsurance contracts. The quarter-over-quarter increase was primarily attributable to an increase in incentive compensation.

Interest Expense decreased primarily as a result of the conversion of the 4.75% Convertible Senior Notes during 2025.

Other Operating Expenses decreased due to a decrease in bank service charges and other miscellaneous operating expenses, partially offset by an increase in charitable contributions.

Income Tax Expense for the three months ended September 30, 2025 and 2024 resulted in effective tax rates of 25.1% and 33.3%, respectively. The decrease in the effective tax rate period-over-period was primarily attributable to a decrease in certain non-deductible compensation expenses.

Ratios:

The net loss ratio (losses and loss adjustment expenses in relation to net premiums earned) decreased due to the decrease in losses and loss adjustment expenses and the increase in net premiums earned.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

The net expense ratio (total expenses excluding losses and loss adjustment expenses and interest expense in relation to net premiums earned) decreased primarily due to the increase in net premiums earned, partially offset by the increase in policy acquisition and other underwriting expenses and the increase in general and administrative personnel expenses.

The net combined ratio (total expenses excluding interest expense in relation to net premiums earned) is the measure of overall underwriting profitability before other income. Our combined ratio decreased due to the factors described above.

Comparison of the Nine Months Ended September 30, 2025 to the Nine Months Ended September 30, 2024

Our results of operations for the nine months ended September 30, 2025 reflect net income of approximately $212,397,000 or $15.47 diluted earnings per share, compared with net income of approximately $123,447,000 or $8.59 diluted earnings per share for the nine months ended September 30, 2024. The period-over-period increase was primarily due to an increase in net premiums earned, offset by a decrease in losses and loss adjustment expenses.

Revenue

Gross Premiums Earned increased due to a higher volume of policies in force as a result of the addition of policies assumed from Citizens during the fourth quarter of 2024 and first quarter of 2025. For the nine months ended September 30, 2025, gross premiums earned were $847,354,000 from Insurance Operations and $60,648,000 from Reciprocal Exchange Operations. For the nine months ended September 30, 2024, gross premiums earned were $754,755,000 from Insurance Operations and $33,859,000 from Reciprocal Exchange Operations.

Premiums Ceded for the nine months ended September 30, 2025 and 2024 represented 34.1% and 32.4%, respectively, of gross premiums earned. The increase in this ratio was primarily attributable to higher reinsurance costs due to growth in the number of policies in force and total insured value. This increase was partially offset by the impact from the reversal of previously accrued benefits was included in the corresponding prior period as described earlier.

For the nine months ended September 30, 2025, there was no adjustment to premiums ceded related to retrospective provisions as opposed to a decrease of $6,279,000 for the nine months ended September 30, 2024.

Net Premiums Written increased primarily due to an increase in the volume of policies in force as well as an increase in average policy rates, partially offset by an increase in premiums ceded.

Net Premiums Earned reflect the gross premiums earned less reinsurance costs as described above.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

The following is a reconciliation of our total Net Premiums Written to Net Premiums Earned for the nine months ended September 30, 2025 and 2024 (in thousands):


	Nine Months Ended
	September 30,
	2025			2024
Net Premiums Written	$	652,717		$	577,754
Increase in Unearned Premiums		(56,872	)		(46,544	)
Net Premiums Earned	$	595,845		$	531,210

Expenses

Losses and Loss Adjustment Expenses decreased as the nine months ended September 30, 2025 did not have any losses from catastrophic events while the nine months ended September 30, 2024 included net losses of $40,000,000 from Hurricane Helene and net losses of $6,500,000 from Hurricane Debby, partially offset by some favorable developments from prior-period losses. In addition, while we have a higher volume of policies in force, we have experienced a reduction in claim and litigation frequency over the comparative periods. See “Reserves for Losses and Loss Adjustment Expenses” under “Critical Accounting Policies and Estimates.”

Policy Acquisition and Other Underwriting Expenses increased primarily due to a higher volume of policies in force in the comparative periods.

General and Administrative Personnel Expenses increased primarily due to an increase in stock-based and other incentive compensation and employee health benefits.

Interest Expense decreased primarily as a result of the conversion of the 4.75% Convertible Senior Notes during 2025.

Other Operating Expenses decreased primarily due to a decrease in bank service charges and other miscellaneous operating expenses, partially offset by a debt conversion expense of $1,125,000 incurred in connection with the conversion of the 4.75% Convertible Senior Notes in the second quarter of 2025.

Income Tax Expense for the nine months ended September 30, 2025 and 2024 resulted in effective tax rates of 25.6% and 26.3%, respectively. The decrease in the effective tax rate period-over-period was primarily attributable to a decrease in certain non-deductible compensation expenses.

Ratios:

The net loss ratio decreased due to the decrease in losses and loss adjustment expenses and the increase in net premiums earned.

The net expense ratio increased primarily due to the increase in policy acquisition and other underwriting expenses and the increase in general and administrative personnel expenses, partially offset by the increase in net premiums earned.

Our net combined ratio decreased due to the factors described above.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Seasonality of Our Business

Our insurance business is seasonal as hurricanes and tropical storms affecting Florida, our primary market, and other southeastern states typically occur during the period from June 1st through November 30th of each year. Winter storms in the northeast usually occur during the period between December 1st and March 31st of each year. Also, our reinsurance treaty year is typically effective on June 1st of each year and any variation in the cost of our reinsurance, whether due to changes in reinsurance rates, coverage levels or changes in the total insured value of our policy base, will occur and be reflected in our financial results beginning on June 1st of each year.

LIQUIDITY AND CAPITAL RESOURCES

Throughout our history, our liquidity requirements have been met through issuances of our common and preferred stock, debt offerings and funds from operations. We expect our future liquidity requirements will be met by funds from operations, primarily the cash received by our insurance subsidiaries from premiums written and investment income. We may consider raising additional capital through debt and/or equity offerings to support our growth and future investment opportunities.

Our insurance subsidiaries require liquidity and adequate capital to meet ongoing obligations to policyholders and claimants and to fund operating expenses. In addition, we attempt to maintain adequate levels of liquidity and surplus to manage any differences between the duration of our liabilities and invested assets. In the insurance industry, cash collected for premiums from policies written is invested, interest and dividends are earned thereon, and losses and loss adjustment expenses are paid out over a period of years. This period of time varies by the circumstances surrounding each claim. With the exception of litigated claims, substantially all of our losses and loss adjustment expenses are fully settled and paid within approximately 100 days of the claim receipt date. Additional cash outflow occurs through payments of underwriting costs such as commissions, taxes, payroll, and general overhead expenses.

We believe that we maintain sufficient liquidity to pay claims and expenses, as well as to satisfy commitments in the event of unforeseen events such as reinsurer insolvencies, inadequate premium rates, or reserve deficiencies. We maintain a comprehensive reinsurance program at levels management considers adequate to diversify risk and safeguard our financial position.

In the future, we anticipate our primary use of funds will be to pay claims, reinsurance premiums, interest, dividends and to fund operating expenses and real estate acquisitions.

Revolving Credit Facility and Long-Term Debt

The following table summarizes the principal and interest payment obligations of our indebtedness as of September 30, 2025:


	Maturity Date	Payment Due Date	Principal Balance ($)
Revolving credit facility	Through November 2028	January 1, April 1, July 1, October 1	38,000,000
4.55% Promissory Note	Through August 2036	1st day of each month	4,200,000
5.50% Promissory Note	Through July 2033	1st day of each month	11,485,000
5.65% Promissory Note	Through August 2035	1st day of each month	16,974,000

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

During the nine months ended September 30, 2025, we converted $172,500,000 in aggregate principal of 4.75% Convertible Senior Notes due 2042 into consideration of 2,187,063 shares of HCI’s common stock and $1,133,000 in cash. The cash consideration included an inducement payment of $1,125,000 and $8,000 paid in lieu of fractional shares.

During the nine months ended September 30, 2025, we entered into a $17,000,000 loan agreement which bears interest at 5.65% with a maturity date of August 1, 2035. The loan is secured by commercial real estate in Haines City, Florida.

As of September 30, 2025, the revolving credit facility had additional available borrowing capacity of $37,000,000. We remain in compliance with all covenants set forth in our debt agreements as of the reporting date. Refer to Note 10 “Revolving Credit Facility” and Note 11 “Long-Term Debt” to the consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information.

On November 5, 2025, we amended and restated our revolving credit facility with Fifth Third Bank. The amendment increased the available borrowing capacity from $75,000,000 to $150,000,000 and released the real estate previously securing the facility.

At-The-Market Facility

On January 22, 2024, we implemented an “at-the-market” facility (the “ATM Facility”) which gives us the ability to raise up to $75,000,000 through the issuance of new shares of common stock through a sales agent (the “Sales Agent”). We have no obligation to sell, and the Sales Agent has no obligation to buy or sell, any shares of common stock under the ATM Facility. As of September 30, 2025 the remaining availability under the ATM Facility was $75,000,000.

Limited Partnership Investments

Our limited partnership investments consist of six private equity funds managed by their general partners. Withdrawals from limited partnership investments are generally not permitted and distributions occur when the underlying investments of the limited partnership investments are liquidated. Additionally, two of these funds have unexpired capital commitments which are callable at the discretion of the fund’s general partner for funding new investments or expenses of the fund. Although capital commitments for the four remaining funds have expired, the general partners may request additional funds under certain circumstances. As of September 30, 2025, there were unexpired capital commitments of $2,985,000. Refer to Note 5 “Investments” to the consolidated financial statements under “Limited Partnership Investments” included in this Quarterly Report on Form 10-Q for additional information.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Real Estate Investment

Real estate has long been a significant component of our overall investment portfolio. It diversifies our portfolio and helps offset the volatility of other higher-risk assets. Thus, we may consider expanding our real estate investment portfolio should an opportunity arise.

Dividends

On October 21, 2025, our Board of Directors declared a quarterly dividend of $0.40 per common share. The dividends will be paid on December 19, 2025 to stockholders of record on November 21, 2025.

Sources and Uses of Cash

Cash Flows for the Nine Months Ended September 30, 2025

Net cash provided by operating activities for the nine months ended September 30, 2025 was approximately $333,679,000, which consisted primarily of cash received from net premiums written, and reinsurance recoveries of approximately $116,149,000 less cash disbursed for operating expenses, losses and loss adjustment expenses and interest payments. Net cash provided by investing activities of $122,820,000 was primarily due to the proceeds from calls, repayments and maturities of available-for-sale fixed-maturity securities of $440,019,000, the proceeds from sales of available-for-sale fixed-maturity and equity securities of $33,875,000, partially offset by the purchases of available-for-sale fixed-maturity and equity securities of $317,667,000, and purchases of real estate investments of $28,528,000. Net cash used in financing activities totaled $852,000, which was primarily due to $14,107,000 of cash dividend payments, net repayment of our revolving credit facility of $6,000,000, an induced debt conversion payment of $1,125,000, $724,000 of share repurchases, and repayments of long-term debt of $430,000, partially offset by the proceeds from issuing promissory notes of $17,000,000 and net contributions from noncontrolling interests of $4,909,000.

Cash Flows for the Nine Months Ended September 30, 2024

Net cash provided by operating activities for the nine months ended September 30, 2024 was approximately $257,129,000, which consisted primarily of cash received from net premiums written, and reinsurance recoveries of approximately $73,927,000 less cash disbursed for operating expenses, losses and loss adjustment expenses and interest payments. Net cash used in investing activities of $205,062,000 was primarily due to the purchases of fixed-maturity and equity securities of $728,775,000, the purchases of real estate investments of $14,181,000, the purchases of property and equipment of $2,991,000, and additional investments in limited partnership interests of $1,204,000, offset by the proceeds from calls, repayments and maturities of fixed-maturity securities of $410,207,000, the proceeds from sales of fixed-maturity and equity securities of $129,112,000, and distributions received from limited partnership investments of $2,760,000. Net cash used in financing activities totaled $69,701,000, which was primarily due to the redemption of redeemable noncontrolling interests of $100,000,000, $12,354,000 of cash dividend payments, cash dividends paid to redeemable noncontrolling interests of $2,923,000, $1,037,000 of share repurchases, purchases of noncontrolling interests of $480,000, redemption of promissory notes of $466,000, and repayments of long-term debt of $387,000, offset by net borrowing under the line of credit agreement of $46,000,000 and net contribution from noncontrolling interests of $2,045,000.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Investments

The main objective of our investment policy is to maximize our after-tax investment income with a reasonable level of risk given the current financial market. Our excess cash is invested primarily in money market accounts, certificates of deposit, and available-for-sale fixed-maturity and equity securities.

As of September 30, 2025, we had $626,573,000 of available-for-sale fixed-maturity and equity investments, which are carried at fair value. Changes in the general interest rate environment affect the returns available on new available-for-sale fixed-maturity investments. While a rising interest rate environment enhances the returns available on new investments, it reduces the market value of existing available-for-sale fixed-maturity investments and thus the availability of gains on disposition. A decline in interest rates reduces the returns available on new available-for-sale fixed-maturity investments but increases the market value of existing available-for-sale fixed-maturity investments, creating the opportunity for realized investment gains on disposition.

In the future, we may alter our investment policy with regard to investments in federal, state and municipal obligations, preferred and common equity securities and real estate mortgages, as permitted by applicable law, including insurance regulations.

OFF-BALANCE SHEET ARRANGEMENTS

As of September 30, 2025, we had unexpired capital commitments for limited partnerships investments of $2,985,000 as described above. We do not have any other arrangements giving rise to material obligations that are not reported in our consolidated balance sheets as described in Item 303 of SEC Regulation S-K.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

We have prepared our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of these consolidated financial statements requires us to make estimates and judgments to develop amounts reflected and disclosed in our consolidated financial statements. Material estimates that are particularly susceptible to significant change in the near term are related to our losses and loss adjustment expenses, which include amounts estimated for claims incurred but not yet reported. We base our estimates on various assumptions and actuarial data we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates.

We believe our accounting policies and estimates specific to losses and loss adjustment expenses, reinsurance recoverable, income taxes, stock-based compensation expense, and limited partnership investments involve our most significant judgments and estimates material to our consolidated financial statements.

Our accounting policies and estimates and their related risks that we consider to be critical are more fully described in our 2024 Annual Report. During the nine months ended September 30, 2025, there were no other material changes with respect to any of our critical accounting policies and estimates.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Reserves for Losses and Loss Adjustment Expenses

Our liability for losses and loss adjustment expenses (“Reserves”) is specific to property insurance, which is our insurance subsidiaries’ only line of business. The Reserves include both case reserves on reported claims and our reserves for incurred but not reported (“IBNR”) losses. As of each period end date, the balance of our Reserves is based on our best estimate of the ultimate cost of reported claims and the IBNR losses based primarily on our historical experience. Changes in the Reserves are charged or credited to operations as the Reserves are adjusted.

The IBNR represents our estimate of the ultimate cost of all claims that have occurred but have not been reported to us, and in some cases may not yet be known to the insured, and future development of reported claims. Estimating the IBNR component of our Reserves involves considerable judgment on the part of management. As of September 30, 2025, $542,552,000 of the total $615,635,000 of Reserves is attributable to our estimate of IBNR. The remaining $73,083,000 relates to known cases which have been reported but not yet fully settled and represents our best estimate of the cost to settle such claims. As of September 30, 2025, $62,586,000 of the $73,083,000 in reserves for known cases relates to claims incurred during prior years.

Our Reserves decreased from $845,900,000 as of December 31, 2024 to $615,635,000 as of September 30, 2025. The $230,265,000 decrease is comprised of (i) reductions in our catastrophe Reserves of $240,572,000 primarily related to Hurricane Ian, Hurricane Helene, and Hurricane Milton; (ii) reductions in our non-catastrophe Reserves of $64,637,000 for 2024 and $37,465,000 for 2023 and prior loss years; and (iii) partially offset by $112,409,000 in reserves established for the 2025 loss year. The Reserves established for 2025 claims are primarily driven by IBNR as of September 30, 2025. The decrease of $342,674,000 related to our 2024 and prior loss-years reserves is due to settlement of such claims as well as a favorable change in estimated losses from Hurricane Milton and other non-catastrophe losses.

Based on all information known to us, we consider our Reserves as of September 30, 2025 to be adequate to cover our claims for losses that have been incurred as of that date including losses yet to be reported to us. However, these estimates are continually reviewed by management as they are subject to significant variability and may be impacted by trends in claim severity and frequency or unusual exposures that have not yet been identified. As part of the process, we review historical data and consider various factors, including known and anticipated regulatory and legal developments, changes in social attitudes, inflation and economic conditions. As experience develops and other data becomes available, these estimates are revised, as required, resulting in increases or decreases to the Reserves. Adjustments are reflected in the results of operations in the period in which they are made, and the liabilities may deviate substantially from prior estimates.

RECENT ACCOUNTING PRONOUNCEMENTS

Refer to Note 3 “Recent Accounting Pronouncements” to the consolidated financial statements included in this Quarterly Report on Form 10-Q for further information about recent accounting pronouncements and adoptions.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our investment portfolio as of September 30, 2025 included available-for-sale fixed-maturity and equity securities, the purposes of which are not for speculation. Our main objective is to maximize after-tax investment income and maintain sufficient liquidity to meet our obligations while minimizing market risk, which is the potential economic loss from adverse fluctuations in securities prices. We consider many factors including credit ratings, investment concentrations, regulatory requirements, anticipated fluctuation of interest rates, durations and market conditions in developing investment strategies. Our investment securities are managed primarily by an investment committee appointed by our Board of Directors. From time to time, our investment committee may decide to invest in low-risk assets such as U.S. government bonds.

Our investment portfolio is exposed to interest rate risk, credit risk and equity price risk. Fiscal and economic uncertainties caused by any government action or inaction may exacerbate these risks and potentially have adverse impacts on the value of our investment portfolio.

We classify our fixed-maturity securities as available-for-sale and report any unrealized gains or losses, net of deferred income taxes, as a component of other comprehensive income within our stockholders’ equity. As such, any material temporary changes in their fair value can adversely impact our stockholders’ equity. In addition, we recognize any unrealized gains or losses related to our equity securities in our statement of income. As a result, our results of operations can be materially affected by the volatility in the equity market.

Interest Rate Risk

Our available-for-sale fixed-maturity securities are sensitive to potential losses resulting from unfavorable changes in interest rates. We manage the risk by analyzing anticipated movement in interest rates and considering our future capital needs.

The following table illustrates the impact of hypothetical changes in interest rates to the fair value of our available-for-sale fixed-maturity securities as of September 30, 2025 (dollar amounts in thousands):


Hypothetical Change in Interest Rates	Estimated Fair Value		Change in Estimated Fair Value			Percentage Increase (Decrease) in Estimated Fair Value
300 basis point increase	$	518,856	$	(43,238	)		-8	%
200 basis point increase		532,407		(29,687	)		-5	%
100 basis point increase		546,819		(15,275	)		-3	%
100 basis point decrease		578,231		16,137			3	%
200 basis point decrease		595,230		33,136			6	%
300 basis point decrease		613,091		50,997			9	%

Credit Risk

Credit risk can expose us to potential losses arising principally from adverse changes in the financial condition of the issuers of our available-for-sale fixed-maturity securities. We mitigate the risk by investing in available-for-sale fixed-maturity securities that are generally investment grade, by diversifying our investment portfolio to avoid concentrations in any single issuer or business sector, and by continually monitoring each

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

individual security for declines in credit quality. While we emphasize credit quality in our investment selection process, significant downturns in the markets or general economy may impact the credit quality of our portfolio.

The following table presents the composition of our available-for-sale fixed-maturity securities, by rating, as of September 30, 2025 (dollar amounts in thousands):


	Cost or		% of Total					% of Total
Comparable Rating	Amortized		Amortized			Estimated		Estimated
	Cost		Cost			Fair Value		Fair Value
AAA	$	4,643		1	%	$	4,637		1	%
AA+, AA, AA-		294,122		53	%		295,942		53	%
A+, A, A-		75,336		13	%		75,528		13	%
BBB+, BBB, BBB-		178,726		32	%		179,458		32	%
B+, B, B-		2,136		0	%		2,123		0	%
Not Rated		4,415		1	%		4,406		1	%
Available-for-sale fixed-maturity securities	$	559,378		100	%	$	562,094		100	%

Equity Price Risk

Our equity investment portfolio as of September 30, 2025 included common stocks, perpetual preferred stocks, mutual funds and exchange-traded funds. We may incur potential losses due to adverse changes in equity security prices. We manage the risk primarily through industry and issuer diversification and asset mix.

The following table illustrates the composition of our equity securities as of September 30, 2025 (dollar amounts in thousands):


			% of Total
	Estimated		Estimated
	Fair Value		Fair Value
Stocks by sector:
Financial	$	6,185		10	%
Consumer		5,199		8	%
Technology		3,579		5	%
Communications		4,494		7	%
Other (1)		2,410		4	%
		21,867		34	%
Mutual funds and exchange-traded funds by type:
Debt		33,396		52	%
Equity		9,198		14	%
Alternative		18		0	%
		42,612		66	%
Equity securities	$	64,479		100	%

(1)

Represents an aggregate of less than 5% sectors.

Foreign Currency Exchange Risk

As of September 30, 2025, we did not have any material exposure to foreign currency related risk.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

ITEM 4 – CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of September 30, 2025. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of September 30, 2025.

Changes in Internal Control Over Financial Reporting

During the three months ended September 30, 2025, there were no changes in our internal control over financial reporting that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

PART II – OTHER INFORMATION

ITEM 1 – LEGAL PROCEEDINGS

Refer to Note 22 “Commitments and Contingencies” to the consolidated financial statements under the heading “Litigation and Other Legal Matters” included in this Quarterly Report on Form 10-Q for legal proceedings and related matters.

ITEM 1A – RISK FACTORS

There have been no material changes to the risk factors previously disclosed in Part I, Item 1A of the 2024 Annual Report.

ITEM 2 – UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(a)

Recent Sales of Unregistered Equity Securities

None.

(b)

Use of Proceeds from Registered Equity Securities

None.

(c)

Issuer Purchases of Equity Securities

The table below summarizes the number of common shares surrendered by employees to satisfy payroll tax liabilities associated with the vesting of restricted stock awards issued under our stock-based compensation plan (dollar amounts in thousands, except share and per share amounts):


	Total Number of Shares		Average Price Paid		Total Number of Shares Purchased as Part of Publicly Announced Plans		Maximum Dollar Value of Shares That May Yet Be Purchased Under The Plans
For the Month Ended	Purchased		Per Share		or Programs		or Programs
July 31, 2025		—	$	—		—	$	—
August 31, 2025		232	$	158.04		—	$	—
September 30, 2025		—	$	—		—	$	—
		232	$	158.04		—

(d)

Working Capital Restrictions and Other Limitations on the Payment of Dividends

We are not subject to working capital restrictions or other limitations on the payment of dividends. However, our insurance subsidiaries are subject to restrictions on the dividends they may pay. Those restrictions could impact HCI’s ability to pay dividends in the future.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

Under Florida law, a domestic insurer may not pay any dividend or distribute cash or other property to its stockholders except out of that part of its available and accumulated capital and surplus funds which is derived from realized net operating profits on its business and net realized capital gains. Additionally, a Florida domestic insurer may not make dividend payments or distributions to its stockholders without prior approval of the Florida Office of Insurance Regulation (“FLOIR”) if the dividend or distribution would exceed the larger of (1) the lesser of (a) 10.0% of its capital surplus or (b) net income, not including realized capital gains, plus a two year carry forward, (2) 10.0% of capital surplus with dividends payable constrained to unassigned funds minus 25% of unrealized capital gains or (3) the lesser of (a) 10.0% of capital surplus or (b) net investment income plus a three year carry forward with dividends payable constrained to unassigned funds minus 25% of unrealized capital gains.

Alternatively, a Florida domestic insurer may pay a dividend or distribution without the prior written approval of the FLOIR if (1) the dividend is equal to or less than the greater of (a) 10.0% of the insurer’s capital surplus as regards to policyholders derived from realized net operating profits on its business and net realized capital gains or (b) the insurer’s entire net operating profits and realized net capital gains derived during the immediately preceding calendar year, (2) the insurer will have policy holder capital surplus equal to or exceeding 115.0% of the minimum required statutory capital surplus after the dividend or distribution, (3) the insurer files a notice of the dividend or distribution with the FLOIR at least ten business days prior to the dividend payment or distribution and (4) the notice includes a certification by an officer of the insurer attesting that, after the payment of the dividend or distribution, the insurer will have at least 115% of required statutory capital surplus as to policyholders. Except as provided above, a Florida domiciled insurer may only pay a dividend or make a distribution (1) subject to prior approval by the FLOIR or (2) 30 days after the FLOIR has received notice of such dividend or distribution and has not disapproved it within such time.

During the nine months ended September 30, 2025, our insurance subsidiaries paid dividends of $14,000,000 to HCI.

ITEM 3 – DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4 – MINE SAFETY DISCLOSURES

None.

ITEM 5 – OTHER INFORMATION

During the three months ended September 30, 2025, none of our directors or officers adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement” (in each case, as defined in Item 408 of Regulation S-K).

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

ITEM 6 – EXHIBITS

The exhibits listed on the accompanying Exhibit Index are filed / furnished or incorporated by reference as part of this report.

Exhibits Index

The information required by this Item is set forth on the exhibit index below.


EXHIBIT
NUMBER		DESCRIPTION

3.1		Articles of Incorporation, with amendments. Incorporated by reference to the correspondingly numbered exhibit to our Form 10-Q filed August 7, 2013.

3.1.1		Articles of Amendment to Articles of Incorporation designating the rights, preferences and limitations of Series B Junior Participating Preferred Stock. Incorporated by reference to Exhibit 3.1 to our Form 8-K filed October 18, 2013.

3.1.2		Articles of Amendment to Articles of Incorporation cancelling the rights, preferences and limitations of Series B Junior Participating Preferred Stock. Incorporated by reference to Exhibit 3.1 to our Form 8-K filed May 15, 2020.

3.2		Bylaws, with amendments. Incorporated by reference to the correspondingly numbered exhibit to our Form 8-K filed September 13, 2019.

4.1		Form of common stock certificate. Incorporated by reference to the correspondingly numbered exhibit to our Form 10-Q filed November 7, 2013.

4.2		Common Stock Purchase Warrant, dated February 26, 2021, issued by HCI Group, Inc. to CB Snowbird Holdings, L.P. Incorporated by reference to Exhibit 4.1 of our Form 8-K filed March 1, 2021.

4.3		Indenture, dated May 23, 2022, by and between HCI Group, Inc. and The Bank of New York Mellon Trust Company, N.A. Incorporated by reference to the corresponding numbered exhibit to our Form 10-Q filed August 9, 2022.

4.6		Description of Securities Registered Under Section 12 of the Securities Exchange Act of 1934, as amended. Incorporated by reference to the corresponding numbered exhibit to our Form 10-K filed March 12, 2021.

4.9		See Exhibits 3.1, 3.1.1, 3.1.2 and 3.2 of this report for provisions of the Articles of Incorporation, as amended, and our Bylaws, as amended, defining certain rights of security holders.

4.10		Indenture, dated March 3, 2017, between HCI Group, Inc. and The Bank of New York Mellon Trust Company, N.A. Incorporated by reference to Exhibit 4.1 of our Form 8-K filed March 3, 2017.

4.11		Form of Global 4.25% Convertible Senior Note due 2037 (included in Exhibit 4.1). Incorporated by reference to Exhibit 4.1 of our Form 8-K filed March 3, 2017.

10.1		Preferred Stock Purchase Agreement, dated February 26, 2021, among TypTap Insurance Group, Inc., HCI Group, Inc., and CB Snowbird Holdings, L.P. Incorporated by reference to the corresponding numbered exhibit to our Form 8-K filed March 1, 2021.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)



10.2		Amended and Restated Articles of Incorporation of TypTap Insurance Group, Inc. filed February 26, 2021. Incorporated by reference to the corresponding numbered exhibit to our Form 8-K filed March 1, 2021.

10.3		Shareholders Agreement, dated February 26, 2021, among TypTap Insurance Group, Inc., CB Snowbird Holdings, L.P., HCI Group, Inc., and the other shareholders party thereto. Incorporated by reference to the corresponding numbered exhibit to our Form 8-K filed March 1, 2021.

10.4		Parent Guaranty Agreement, dated February 26, 2021, between HCI Group, Inc. and CB Snowbird Holdings, L.P. Incorporated by reference to the corresponding numbered exhibit to our Form 8-K filed March 1, 2021.

10.5^		HCI Group, Inc. 2012 Omnibus Incentive Plan as revised April 26, 2022. Incorporated by reference to the corresponding numbered exhibit to our Form 10-Q filed May 6, 2022.

10.7^		Executive Employment Agreement dated November 23, 2016 between Mark Harmsworth and HCI Group, Inc. Incorporated by reference to the corresponding numbered exhibit to our Form 10-Q filed August 3, 2017.

10.8		Reimbursement Contract effective June 1, 2024 between Homeowners Choice Property & Casualty Insurance Company, Inc. and the State Board of Administration of the State of Florida which administers the Florida Hurricane Catastrophe Fund.

10.9		Reimbursement Contract effective June 1, 2024 between TypTap Insurance Company and the State Board of Administration of the State of Florida which administers the Florida Hurricane Catastrophe Fund.

10.10		Underlying Second Layer Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2024 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).

10.11		Second Layer Reinstatement Premium Protection Reinsurance Contract effective June 1, 2024 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).

10.12		Third Layer Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2024 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).

10.13		Third Layer Reinstatement Premium Protection Reinsurance Contract effective June 1, 2024 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).

10.14		County Weighted Industry Loss Reinsurance Contract effective July 9, 2024 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)


10.15		Panhandle Named Storm Property Catastrophe Excess of Loss Reinsurance Contract effective July 1, 2024 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).

10.16		Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2024 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).

10.17		Reinstatement Premium Protection Reinsurance Contract effective June 1, 2024 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).

10.18		Layer 3B Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2024 issued to TypTap Insurance Company and Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).

10.19		Layer 3B Reinstatement Premium Protection Reinsurance Contract effective June 1, 2024 issued to TypTap Insurance Company and Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).

10.20		Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2024 issued to TypTap Insurance Company and Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).

10.21		Reinstatement Premium Protection Reinsurance Contract effective June 1, 2024 issued to TypTap Insurance Company and Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).

10.22		First and Second Layer Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2024 issued to TypTap Insurance Company and Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).

10.23		Layer 3C Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2024 issued to TypTap Insurance Company and Homeowners Choice Property & Casualty Insurance Company, Inc. by subscribing reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv).

10.25		First Layer Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2025 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. and Tailrow Insurance Exchange by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to the corresponding number exhibit to our Form 10-Q filed August 8, 2025.

10.26		Second Layer Reinstatement Premium Protection Reinsurance Contract effective June 1, 2025 issued to Homeowners Choice Property & Casualty Company, Inc. and Tailrow Insurance Exchange

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)


		by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to the corresponding number exhibit to our Form 10-Q filed August 8, 2025.


10.27		Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2025 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. and Tailrow Insurance Exchange by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to the corresponding number exhibit to our Form 10-Q filed August 8, 2025.

10.28		Second Layer Reinstatement Premium Protection Reinsurance Contract effective June 1, 2025 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. and Tailrow Insurance Exchange by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to the corresponding number exhibit to our Form 10-Q filed August 8, 2025.

10.29		Second Layer Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2025 issued to Homeowners Choice Property & Casualty Insurance Company, Inc. and Tailrow Insurance Exchange by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to the corresponding number exhibit to our Form 10-Q filed August 8, 2025.

10.30		Reinstatement Premium Protection Reinsurance Contract effective June 1, 2025 issued to Homeowners Property & Casualty Insurance Company, Inc. and Tailrow Insurance Exchange by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to the corresponding number exhibit to our Form 10-Q filed August 8, 2025.

10.31		First Layer Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2025 issued to TypTap Insurance Company and Homeowners Choice Property & Casualty Insurance Company, Inc. by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to the corresponding number exhibit to our Form 10-Q filed August 8, 2025.

10.32		Second Layer Reinstatement Premium Protection Reinsurance Contract effective June 1, 2025 issued to TypTap Insurance Company and Homeowners Choice Property & Casualty Insurance Company, Inc. by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to the corresponding number exhibit to our Form 10-Q filed August 8, 2025.

10.33		Second Layer Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2025 issued to TypTap Insurance Company and Homeowners Choice Property & Casualty Insurance Company, Inc. by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to the corresponding number exhibit to our Form 10-Q filed August 8, 2025.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)


10.34		Second Layer Reinstatement Premium Protection Reinsurance Contract effective June 1, 2025 issued to TypTap Insurance Company and Homeowners Choice Property & Casualty Insurance Company, Inc. by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to the corresponding number exhibit to our Form 10-Q filed August 8, 2025.

10.35		Sixth Layer Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2025 issued to TypTap Insurance Company and Homeowners Choice Property & Casualty Insurance Company, Inc. by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to the corresponding number exhibit to our Form 10-Q filed August 8, 2025.

10.36		Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2025 issued to TypTap Insurance Company and Homeowners Choice Property & Casualty Insurance Company, Inc. by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to the corresponding number exhibit to our Form 10-Q filed August 8, 2025.

10.37		Reinstatement Premium Protection Reinsurance Contract effective June 1, 2025 issued to TypTap Insurance Company and Homeowners Choice Property & Casualty Insurance Company, Inc. by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to the corresponding number exhibit to our Form 10-Q filed August 8, 2025.

10.38		Reinstatement Premium Protection Contract effective June 1, 2025 issued to Condo Owners Reciprocal Exchange by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to the corresponding number exhibit to our Form 10-Q filed August 8, 2025.

10.39		Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2025 issued to Condo Owners Reciprocal Exchange by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to the corresponding number exhibit to our Form 10-Q filed August 8, 2025.

10.40		Equity Distribution Agreement between HCI Group, Inc., Truist Securities, Inc. and Citizens JMP Securities, LLC. Incorporated by reference to Exhibit 1.2 of our Form S-3 filed January 22, 2024.

10.41		Amended and Restated Common Stock Purchase Warrant between HCI Group, Inc. and CB Snowbird Holdings, L.P. Incorporated by reference to Exhibit 4.17 of our Form S-3 filed January 22, 2024.

10.42		Registration Rights Agreement between HCI Group, Inc. and CB Snowbird Holdings, L.P. Incorporated by reference to Exhibit 4.18 of our Form S-3 filed January 22, 2024.

10.43		Stock Redemption Agreement between TypTap Insurance Group, Inc. and CB Snowbird Holdings, L.P. Incorporated by reference to Exhibit 4.19 of our Form S-3 filed January 22, 2024.

10.44		Assumption Agreement between Homeowners Choice Property & Casualty Insurance Company, Inc. and Citizens Property Insurance Corporation. Incorporated by reference to Exhibit 99.1 of our Form 8-K filed October 2, 2023.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)


10.45		Assumption Agreement between TypTap Insurance Company and Citizens Property Insurance Corporation. Incorporated by reference to Exhibit 99.1 of our Form 8-K filed November 6, 2023.

10.46		Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2025 issued to Condo Owners Reciprocal Exchange by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to the corresponding number exhibit to our Form 10-Q filed August 8, 2025.

10.47		Property Catastrophe Excess of Loss Reinsurance Contract effective June 1, 2025 issued to Condo Owners Reciprocal Exchange by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to the corresponding number exhibit to our Form 10-Q filed August 8, 2025.

10.48^		TypTap Insurance Group, Inc. 2021 Equity Incentive Plan. Incorporated by reference to Exhibit 10.5 of our Form 8-K filed March 1, 2021.

10.49^		Form of Restricted Stock Award Agreement of TypTap Insurance Group, Inc. Incorporated by reference to Exhibit 10.6 of our Form 8-K filed March 1, 2021.

10.51^		Stock Option Agreement between Paresh Patel and TypTap Insurance Group, Inc. dated October 1, 2021. Incorporated by reference to Exhibit 99.1 to our Form 8-K filed October 7, 2021.

10.52^		TypTap Insurance Group, Inc. 2021 Omnibus Incentive Plan. Incorporated by reference to Exhibit 99.2 of our Form 8-K filed October 7, 2021.

10.53		Purchase Agreement, dated May 18, 2022, by and among HCI Group, Inc., JMP Securities LLC and Truist Securities, Inc., as representatives of the several purchasers named therein. Incorporated by reference to Exhibit 10.1 of our Form 8-K filed May 23, 2022.

10.54^		Stock Option Agreement between Paresh Patel and HCI Group, Inc. dated September 15, 2023.

10.57^		Form of executive restricted stock award contract. Incorporated by reference to the corresponding numbered exhibit to our Form 10-Q filed May 1, 2014.

10.58		Purchase Agreement, dated February 28, 2017, by and between HCI Group, Inc. and JMP Securities LLC and SunTrust Robinson Humphrey, Inc., as representatives of the several initial purchasers named therein. Incorporated by reference to Exhibit 10.1 of our Form 8-K filed February 28, 2017.

10.59		Facultative Excess of Loss Reinsurance Contract effective June 1, 2025 issued to Condo Owners Reciprocal Exchange by Subscribing Reinsurers. Portions of this exhibit have been omitted pursuant to Regulation S-K Item 601(b)(10)(iv). Incorporated by reference to the corresponding number exhibit to our Form 10-Q filed August 8, 2025.

10.62		Amended and Restated Credit Agreement, dated June 2, 2023, between HCI Group, Inc. and Fifth Third Bank. Incorporated by reference to the corresponding numbered exhibit to our Form 10-Q filed August 9, 2023.

10.63		Security and Pledge Agreement and Revolving Credit Promissory Note, dated June 2, 2023, between HCI Group, Inc. and Fifth Third Bank. Incorporated by reference to Exhibits 99.2, and 99.3 to our Form 8-K filed June 8, 2023.

10.64		Second Amended and Restated Credit Agreement, Second Amended and Restated Security and Pledge Agreement, and Renewed, Amended and Restated Revolving Credit Promissory Note, dated

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)


		November 3, 2023, between HCI Group, Inc. and Fifth Third Bank. Incorporated by reference to Exhibits 99.1, 99.2, and 99.3 to our Form 8-K filed November 9, 2023.

10.65		Underwriting Agreement, dated December 6, 2023, by and between HCI Group, Inc. and Citizens JMP Securities, LLC. Incorporated by reference to Exhibit 1.1 to our Form 8-K filed December 7, 2023.

10.66^		Executive Employment Agreement between Paresh Patel and HCI Group, Inc. dated April 17, 2024. Incorporated by reference to Exhibit 99.1 to our Form 8-K filed April 23, 2024.

10.67^		Restricted Stock Award Contract between Paresh Patel and HCI Group, Inc. dated April 17, 2024. Incorporated by reference to Exhibit 99.2 to our Form 8-K filed April 23, 2024.

10.105^		Restricted Stock Award Contract between Paresh Patel and HCI Group, Inc. dated January 16, 2020. Incorporated by reference to Exhibit 99.1 to our Form 8-K filed January 23, 2020.

10.106^		Nonqualified Stock Option Agreement between Paresh Patel and HCI Group, Inc. dated January 16, 2020. Incorporated by reference to Exhibit 99.2 to our Form 8-K filed January 23, 2020.

10.107		Reimbursement Contract effective June 1, 2025 between Condo Owners Reciprocal Exchange and the State Board of Administration of the State of Florida which administers the Florida Hurricane Catastrophe Fund. Incorporated by reference to the corresponding numbered exhibit to our Form 10-Q filed August 8, 2025.

10.108		Reimbursement Contract effective June 1, 2025 between Homeowners Choice Property & Casualty Insurance Company, Inc. and the State Board of Administration of the State of Florida which administers the Florida Hurricane Catastrophe Fund. Incorporated by reference to the corresponding numbered exhibit to our Form 10-Q filed August 8, 2025.

10.109		Reimbursement Contract effective June 1, 2025 between Tailrow Insurance Exchange and the State Board of Administration of the State of Florida which administers the Florida Hurricane Catastrophe Fund. Incorporated by reference to the corresponding numbered exhibit to our Form 10-Q filed August 8, 2025.

10.110		Reimbursement Contract effective June 1, 2025 between TypTap Insurance Company and the State Board of Administration of the State of Florida which administers the Florida Hurricane Catastrophe Fund. Incorporated by reference to the corresponding numbered exhibit to our Form 10-Q filed August 8, 2025.

10.124		Property Quota Share Reinsurance Contract effective December 31, 2020 issued to United Property and Casualty Insurance Company by Homeowners Choice Property & Casualty Insurance Company. Incorporated by reference to the corresponding numbered exhibit to our Form 10-K filed March 10, 2022.

10.125		Renewal Rights Agreement effective January 18, 2021 by and among United Property and Casualty Insurance Company, United Insurance Holdings Corp., United Insurance Management, L.C. and Homeowners Choice Property & Casualty Insurance Company. Incorporated by reference to the corresponding numbered exhibit to our Form 10-K filed March 10, 2022.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)


10.126		Property Quota Share Reinsurance Contract effective June 1, 2021 issued to United Property and Casualty Insurance Company by Homeowners Choice Property & Casualty Insurance Company and TypTap Insurance Company. Incorporated by reference to the corresponding numbered exhibit to our Form 10-K filed March 10, 2022.

10.127		Renewal Rights Agreement effective December 30, 2021 by and among United Property and Casualty Insurance Company, United Insurance Holdings Corp., United Insurance Management, L.C. and Homeowners Choice Property & Casualty Insurance Company. Incorporated by reference to the corresponding numbered exhibit to our Form 10-K filed March 10, 2022.

10.128		Property Quota Share Reinsurance Contract effective December 31, 2021 issued to United Property and Casualty Insurance Company by Homeowners Choice Property & Casualty Insurance Company. Incorporated by reference to the corresponding numbered exhibit to our Form 10-K filed March 10, 2022.

10.129		Property Quota Share Reinsurance Contract effective June 1, 2022 issued to United Property and Casualty Insurance Company by TypTap Insurance Company. Incorporated by reference to the corresponding numbered exhibit to our Form 10-Q filed August 9, 2022.

31.1*		Certification of the Chief Executive Officer

31.2*		Certification of the Chief Financial Officer

32.1**		Written Statement of the Chief Executive Officer Pursuant to 18 U.S.C.ss.1350

32.2**		Written Statement of the Chief Financial Officer Pursuant to 18 U.S.C.ss.1350

101*		XBRL Instant Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

104*		Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.

*		Filed herewith.
**		Furnished herewith.
^		Management contract or compensatory plan.

HCI GROUP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except share and per share amounts, unless otherwise stated)

SIGNATURES

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.


	HCI GROUP, INC.

November 7, 2025	By:	/s/ Paresh Patel
		Paresh Patel
		Chief Executive Officer
		(Principal Executive Officer)

November 7, 2025	By:	/s/ James Mark Harmsworth
		James Mark Harmsworth
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

HCI Group - 10-Q quarterly report FY2025 Q3

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