HCI Group (NYSE:HCI) Reports Sales Below Analyst Estimates In Q3 Earnings

Insurance and exertion institution HCI Group (NYSE:HCI) missed Wall Street’s gross expectations successful Q3 CY2025, but income roseate 23.4% twelvemonth connected twelvemonth to $216.4 million. Its GAAP nett of $4.90 per stock was importantly supra analysts’ statement estimates.

Is present the clip to bargain HCI Group? Find retired successful our afloat probe report.

Net Premiums Earned: $195 cardinal vs expert estimates of $202 cardinal (25.1% year-on-year growth, 3.5% miss)Revenue: $216.4 cardinal vs expert estimates of $224.7 cardinal (23.4% year-on-year growth, 3.7% miss)Pre-tax Profit: $90.6 cardinal (41.9% margin)EPS (GAAP): $4.90 vs expert estimates of $2.38 (significant beat)Book Value per Share: $63.41 vs expert estimates of $59.43 (45.9% year-on-year growth, 6.7% beat)Market Capitalization: $2.64 billion

Management Commentary“This was different beardown quarter, marked by coagulated profitability, industry-leading nett combined ratios, and meaningful maturation successful publication worth per share,” said HCI Group Chairman and Chief Executive Officer Paresh Patel.

Starting arsenic a Florida "take-out" insurer that assumed policies from the state-backed Citizens Property Insurance Corporation, HCI Group (NYSE:HCI) provides spot and casualty insurance, chiefly homeowners coverage, portion leveraging proprietary exertion to amended underwriting and claims processing.

Big picture, insurers make gross from 3 cardinal sources. The archetypal is the halfway concern of underwriting policies. The 2nd root is income from investing the “float” (premiums collected upfront not yet paid retired arsenic claims) successful assets specified arsenic fixed-income assets and equities. The 3rd is fees from assorted sources specified arsenic argumentation administration, annuities, oregon different value-added services. Thankfully, HCI Group’s 21.9% annualized gross maturation implicit the past 5 years was incredible. Its maturation surpassed the mean security institution and shows its offerings resonate with customers, a large starting constituent for our analysis.

We astatine StockStory spot the astir accent connected semipermanent growth, but wrong financials, a half-decade humanities presumption whitethorn miss caller involvement complaint changes, marketplace returns, and manufacture trends. HCI Group’s annualized gross maturation of 26.8% implicit the past 2 years is supra its five-year trend, suggesting its request was beardown and precocious accelerated.

Note: Quarters not shown were determined to beryllium outliers, impacted by outsized concern gains/losses that are not indicative of the recurring fundamentals of the business.