Highlights

  • HCI Group shows 95.76% basic EPS growth, P/E of 8.79 and PEG of 0.72.
  • Second quarter net income after noncontrolling interests was $73,797 thousand, against $66,160 thousand.
  • The net combined ratio was 61.5% in the second quarter, against 61.9%.
  • HCI completed its $80.0 million share repurchase program on July 17, 2026.

Basic earnings per share growth of 95.76% over one year, a trailing twelve-month P/E of 8.79 and a PEG of 0.72 on an expected basis define HCI Group (NYSE:HCI) as an undervalued growth stock, with shares trading at USD 196.87 on October 28, 2026, down 1.55%. Alongside those figures, the property and casualty insurance holding company authorized an $80.0 million share repurchase program in March, completed that program on July 17, and reported second quarter 2026 net income after noncontrolling interests of $73,797 thousand in its quarterly report.

HCI Group, Inc. is headquartered in Tampa, Florida, and incorporated in Florida. It is primarily engaged in property and casualty insurance, providing homeowners products in Florida, its primary market, and in other states in the northeast and southeast. Its group includes Exzeo Group, a publicly traded majority-owned insurance technology subsidiary, attorney-in-fact services for reciprocal insurance exchanges and a commercial real estate group. HCI reports five segments: Insurance Operations, Exzeo, Reciprocal Exchange Operations, Real Estate, and Corporate and Other.

Growth: Second Quarter Earnings, Premiums and Policies in Force

Net income after noncontrolling interests was $73,797 thousand in the second quarter of 2026 against $66,160 thousand a year earlier. Basic earnings per share were $5.78 against $5.57, and diluted earnings per share were $5.60 against $5.18. For the six months, basic earnings per share were $11.39 against $12.00 and diluted earnings per share were $11.05 against $10.57.

Total revenue was $246,653 thousand against $221,920 thousand. Net premiums earned were $219,012 thousand against $200,106 thousand. The company attributed the premium increase primarily to a higher volume of policies in force from policies assumed from Citizens during the first and fourth quarters of 2025. Policies in force were approximately 290,100 at June 30, 2026 against approximately 270,100 a year earlier.

Other revenue was $5,135 thousand against $2,567 thousand, which it attributed primarily to new insurance carrier customers on Exzeo's technology platform.

Valuation: P/E of 8.79, PEG of 0.72 and Underwriting Ratios

The P/E ratio of 8.79 is measured on trailing twelve-month earnings, and the PEG ratio of 0.72 is on an expected basis. The net combined ratio was 61.5% for the second quarter against 61.9%, made up of a loss ratio of 32.5% against 32.2% and an expense ratio of 29.0% against 29.7%.

Total stockholders' equity was $1,079,909 thousand at June 30, 2026, against $1,041,077 thousand at December 31, 2025. Net cash provided by operating activities was $273,927 thousand for the six months against $307,005 thousand.

Capital Returns, Liquidity and Debt

The board authorized the share repurchase program of up to $80.0 million in March 2026, running through February 27, 2027. HCI repurchased 363,538 shares for $57.0 million in the second quarter and 473,609 shares for $74.5 million in the six months, and on July 17, 2026 completed the program with 504,330 shares repurchased for $80.0 million. Exzeo separately completed its $12.0 million repurchase program on July 8, 2026.

The board declared a quarterly dividend of $0.40 per common share on July 1, 2026, payable on September 18, 2026. Cash and cash equivalents were $872.3 million at June 30, 2026. The company had $36.0 million outstanding under its Revolving Credit Facility, which provides up to $150.0 million of capacity and expires on November 5, 2030, with $114.0 million available. Promissory notes had a total principal amount of $32,001 thousand.

Disclosed Risks and Outlook

The company states that its business is to cover losses from hurricanes and other catastrophic events, and that such events could have an adverse effect on its results and financial condition. Hurricane and tropical storm season in Florida and other southeastern states typically runs from June 1 through November 30, and the company's reinsurance treaty year typically takes effect on June 1, so changes in reinsurance cost appear in results beginning each June.

The gross loss ratio was 22.2% against 21.3%. General and administrative personnel expenses were $23,948 thousand against $19,985 thousand, which the company attributed to additional personnel, merit increases and stock-based compensation. Approximately 75.5% of the reinsurance recoverable balance was receivable from six reinsurers. The company stated that it does not believe known litigation will have a material effect on its financial position.

HCI issued no numerical guidance. It stated that Fortex Reinsurance SPC, its Cayman Islands captive reinsurance subsidiary licensed in March 2026, will provide flexibility to retain risk and reduce the cost of third-party reinsurance, and that it selectively pursues additional policy assumptions from Citizens that fit its risk appetite.