HCIMEDIUM SIGNALOPERATIONAL10-K

HCI streamlined its business structure by consolidating insurance subsidiaries into a single operating segment while achieving solid revenue growth and improved operational cash generation.

The organizational simplification suggests management is focusing on core insurance operations and operational efficiency. The consolidation of multiple segments into fewer operating units typically indicates a maturing business strategy focused on scalability rather than diversification.

Comparing 2026-02-26 vs 2025-02-28View on EDGAR →
FINANCIAL ANALYSIS

HCI delivered solid financial performance with revenue growing 20% to $900.9 million and operating cash flow expanding notably to $444.4 million. The company strengthened its balance sheet with total assets growing 13% to $2.5 billion, while total liabilities declined meaningfully by 20% to $1.4 billion, though total debt increased 71% to $237.8 million. Interest expense fell substantially from $150K to just $2K, suggesting improved debt management despite the higher debt levels.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
-98.7%
$150K$2K

Interest expense declined — debt repayment or refinancing at lower rates improving earnings quality.

Total Debt
Balance Sheet
+71.3%
$138.9M$237.8M

Debt increased 71.3% — substantial leverage increase; assess whether deployed for growth or covering losses.

Share Buybacks
Cash Flow
+47%
$1.0M$1.5M

Share repurchases increased 47% — management returning capital, signals confidence in intrinsic value.

Operating Cash Flow
Cash Flow
+33.9%
$331.8M$444.4M

Operating cash flow surged 33.9% — exceptional cash generation, highest quality earnings signal.

Dividends Paid
Cash Flow
+21%
$13.7M$16.6M

Dividend payments increased 21% — management confidence in sustained cash generation.

Revenue
P&L
+20.1%
$750.1M$900.9M

Revenue growing 20.1% — solid top-line momentum, watch margins for quality of growth.

Total Liabilities
Balance Sheet
-19.7%
$1.8B$1.4B

Liabilities reduced 19.7% — deleveraging improves balance sheet strength and financial flexibility.

Total Assets
Balance Sheet
+13.4%
$2.2B$2.5B

Asset base grew 13.4% — expansion through organic growth, acquisitions, or capital deployment.

LANGUAGE CHANGES
NEW — 2026-02-26
PRIOR — 2025-02-28
ADDED
You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made and are not guarantees of future performance.
Except as required by applicable securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
2 PART I ITEM 1 Business Our Business HCI Group, Inc., together with its subsidiaries (collectively, we, our, us, the Company, or HCI ), is primarily engaged in the property and casualty insurance business.
We provide various homeowners property and casualty insurance products for properties located in the State of Florida, which is our primary market, as well as in other states in the northeast and southeast regions of the United States ( U.S.
Our insurance operations are supported by other insurance-related subsidiaries within the consolidated group.
(formerly known as TypTap Insurance Group, Inc.) ( Exzeo ), a 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.
We utilize Exzeo's internally developed software technologies to identify profitable underwriting opportunities, drive efficiency in claim processing and settlements, and streamline operations across our insurance operations and other insurance-related businesses.
We also provide attorney-in-fact ( AIF ) services for reciprocal insurance exchanges owned by their policyholders.
Although we do not have any equity interest in the reciprocal insurance exchanges, we are required to consolidate them as their primary beneficiary.
In addition, we have a commercial real estate group that is primarily engaged in the business of developing and operating commercial properties for investment purposes or for our own use.
REMOVED
is a Florida-based company that, through its subsidiaries, is engaged in property and casualty insurance, information technology services, insurance management, real estate and reinsurance.
References to we, our, us, the Company, or HCI in this Form 10-K generally refer to HCI Group, Inc.
Our principal executive offices are located at 3802 Coconut Palm Drive, Tampa, Florida 33619, and our telephone number is (813) 849-9500.
As described in Change in Segment Information under Note 1 -- Nature of Operations to our consolidated financial statements under Item 8 of this Annual Report on Form 10-K, our organizational change during the third quarter of 2024 has grouped all insurance subsidiaries into one single operating segment to enhance operational efficiency and simplify financial reporting.
Accordingly, we manage our operations in the following organizational segments, based on managerial emphasis and evaluation of financial and operating performances: a) Insurance Operations Property and casualty insurance Reinsurance and other auxiliary operations b) TypTap Group Insurance management services Information technology Reinsurance brokerage services c) Reciprocal Exchange Operations d) Real Estate Operations e) Other Operations Attorney-in-fact services Holding company operations Insurance Operations Property and Casualty Insurance We currently have three insurance subsidiaries.
Our active insurance subsidiaries are Homeowners Choice Property Casualty Insurance Company, Inc.
A third insurance subsidiary, perRisk Insurance Company, has yet to conduct its surplus lines insurance business.
We use 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.
In addition, software is also used to analyze potential and current properties based on statistical models for catastrophic events, allowing us to pursue the optimal candidates for insurance coverage.
Our insurance subsidiaries 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.
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