HCI Group, Inc. announces completion of its reinsurance programs for 2025-2026, securing over $3.5 billion in coverage.
Quiver AI Summary
HCI Group, Inc. has finalized its catastrophe reinsurance programs for the 2025-2026 treaty year, securing over $3.5 billion in excess of loss coverage across three reinsurance towers. Chairman and CEO Paresh Patel expressed gratitude for the support from their global reinsurance partners, emphasizing confidence in HCI's underwriting and risk management. The reinsurance structure aims to ensure the long-term financial stability of HCI’s insurance companies, positioning them for future strategic initiatives that will enhance shareholder value. The reinsurance coverage includes a range of policies from its subsidiaries, with significant participation from HCI's Bermuda-based subsidiary, Claddaugh Casualty Insurance Company Ltd. For the treaty year, HCI anticipates net consolidated reinsurance premiums of approximately $422 million, subject to adjustment later in the year.
Potential Positives
- HCI Group secured over $3.5 billion in excess of loss aggregate limit and full reinstatement premium protection, demonstrating a strong risk management strategy.
- The completion of the catastrophe reinsurance programs underscores the confidence of global reinsurance partners in HCI's underwriting quality and disciplined risk approach.
- The reinsurance structure is designed to protect the long-term financial stability of HCI's insurance companies, indicating a focus on sustainable growth.
- The involvement of HCI's Bermuda-based subsidiary, Claddaugh Casualty Insurance Company Ltd, in the reinsurance towers highlights the company's integrated approach to risk management across international markets.
Potential Negatives
- Reinsurance premiums ceded to third parties are estimated at approximately $422 million, which could impact short-term profitability.
- The maximum retained loss of approximately $117 million for a first event indicates significant exposure to risk.
- Retentions of $18 million for the first two events may highlight vulnerability in HCI's risk management strategy.
FAQ
What is HCI Group's recent achievement in reinsurance?
HCI Group has successfully completed its catastrophe reinsurance programs for the 2025-2026 treaty year, securing over $3.5 billion in coverage.
Who are HCI Group's reinsurance partners?
HCI Group's reinsurance partners are global firms that are recognized for their financial strength, all rated 'A-' or better by AM Best.
How many reinsurance towers did HCI secure?
HCI secured three reinsurance towers, each covering different insurance policies issued by its subsidiaries in Florida and beyond.
What is the estimated cost of reinsurance premiums for HCI?
The estimated net consolidated reinsurance premiums ceded to third parties for HCI are approximately $422 million for the treaty year.
Where can I find more information about HCI Group?
More information about HCI Group can be found on their website and in their Form 8-K filed with the SEC.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$HCI Hedge Fund Activity
We have seen 110 institutional investors add shares of $HCI stock to their portfolio, and 125 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- AMERICAN CENTURY COMPANIES INC added 284,315 shares (+168.8%) to their portfolio in Q1 2025, for an estimated $42,428,327
- ALYESKA INVESTMENT GROUP, L.P. removed 120,000 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $13,983,600
- FREESTONE GROVE PARTNERS LP added 118,144 shares (+224.9%) to their portfolio in Q1 2025, for an estimated $17,630,629
- PARK WEST ASSET MANAGEMENT LLC removed 64,349 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $9,602,801
- GOLDMAN SACHS GROUP INC removed 59,683 shares (-29.0%) from their portfolio in Q1 2025, for an estimated $8,906,494
- NORGES BANK removed 55,600 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $6,479,068
- PHILADELPHIA FINANCIAL MANAGEMENT OF SAN FRANCISCO, LLC removed 53,352 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $7,961,718
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$HCI Analyst Ratings
Wall Street analysts have issued reports on $HCI in the last several months. We have seen 1 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- Citigroup issued a "Outperform" rating on 05/19/2025
To track analyst ratings and price targets for $HCI, check out Quiver Quantitative's $HCI forecast page.
Full Release
TAMPA, Fla., June 02, 2025 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE: HCI) has successfully completed its catastrophe reinsurance programs for the 2025-2026 treaty year, which runs from June 1, 2025 through May 31, 2026.
“We are grateful for the strong support from our global reinsurance partners, whose continued confidence in HCI underscores the quality of our underwriting and our disciplined approach to risk,” said Paresh Patel, HCI’s chairman and chief executive officer. “We believe our reinsurance programs are prudently structured to protect the long-term financial stability of our insurance companies. With the reinsurance placement now finalized, we are well-positioned to pursue strategic initiatives aimed at delivering sustained value to our shareholders.”
HCI secured three reinsurance towers for the 2025-2026 treaty year. Reinsurance Tower 1 is shared between HCI subsidiary, Homeowners Choice Property & Casualty Insurance Company, and HCI sponsored reciprocal insurance company, Tailrow Insurance Exchange, and covers all Homeowners Choice policies issued in Florida and all Tailrow policies issued in Florida. Reinsurance Tower 2 is shared between HCI subsidiary, TypTap Insurance Company, and Homeowners Choice and covers all TypTap policies (whether issued in Florida or outside of Florida) and all Homeowners Choice policies issued outside of Florida. Reinsurance Tower 3 covers all Condo Owners Reciprocal Exchange policies issued in Florida. Condo Owners Reciprocal Exchange, known as CORE, is a reciprocal insurance company sponsored by HCI.
Across the three reinsurance towers, HCI secured over $3.5 billion in excess of loss aggregate limit and full reinstatement premium protection for the 2025-2026 treaty year. Claddaugh Casualty Insurance Company Ltd, HCI’s Bermuda-based reinsurance subsidiary, selectively participates across all three reinsurance towers. All participating reinsurers are AM Best rated ‘A-’ (Excellent) or better or have fully collateralized their obligations to HCI.
The statutory retentions for the first and second event are $18 million for both Reinsurance Tower 1 and Reinsurance Tower 2, and $3 million for Reinsurance Tower 3. Claddaugh’s estimated maximum retained loss is approximately $117 million for a first event and $35 million for a second event.
For the three reinsurance towers, HCI expects to incur net consolidated reinsurance premiums ceded to third parties, excluding Claddaugh, of approximately $422 million from June 1, 2025 through May 31, 2026. The reinsurance premiums are an estimate based on exposure projections and subject to true up at September 30, 2025.
More information is available in the Company’s Form 8-K, filed today with the U.S. Securities and Exchange Commission.
About HCI Group, Inc.
HCI Group is a holding company with two distinct operating units. The first unit includes four top-performing insurance companies, a captive reinsurance company, and operations in claims management and real estate. The second unit, called Exzeo Group, is a leading innovator of insurance technology that utilizes advanced underwriting algorithms and data analytics. Exzeo empowers property and casualty insurers to transform underwriting outcomes and achieve industry-leading results.
The company's common shares trade on the New York Stock Exchange under the ticker symbol "HCI" and are included in the Russell 2000 and S&P SmallCap 600 Index. HCI Group, Inc. regularly publishes financial and other information in the Investor Information section of the company’s website. For more information about HCI Group and its subsidiaries, visit www.hcigroup.com .
Company Contact:
Bill Broomall, CFA
Investor Relations
HCI Group, Inc.
Tel (813) 776-1012
[email protected]
Investor Relations Contact:
Matt Glover
Gateway Group, Inc.
Tel 949-574-3860
[email protected]