Hci Group, Inc. · NYSE:HCI
Hci — Q1 2025 Earnings Presentation
29 slides from Hci's earnings presentation, May 8, 2025
Slide 1: Investor Presentation
Investor Presentation NYSE: HCI | JUNE 2025
Slide 2: Forward-Looking Statement
This presentation includes certain forward‐looking statements and information, including statements regarding plans, strategies and expectations of HCI Group, Inc. (“HCI” or the “Company”). When used in this Forward-Looking presentation, words such as “believes,” “anticipates,” “expects,” “estimates
Slide 3: About Us
About Us $1.2B $68.7M 19.7% Premiums In-Force Net Income Gross Loss Ratio (as of 3/31/25) (Q1-25) (as of 3/31/25) $5.35 $48.55 30% Quarterly Diluted Earnings Per Share Book Value Per Share Debt to Capital Ratio (first quarter 2025) (as of 3/31/25) (as of 3/31/25) “By the end of the second quarter, w
Slide 4: Highlights
Highlights A holding company that operates two distinct operating units, with each unit have defined management teams and operational objectives. 2006 founded Combining technology and industry knowledge to drive profitable growth consecutive quarters Allocating capital with purpose and discipline wh
Slide 5: Growing Through Investment & Innovation
Growing Through Investment & Innovation Tailrow Insurance Exchange commences operations HCI Group premium TypTap launches in force exceeds Executed Launched Launched $1 billion TypTap Insurance nationwide expansion first Citizens real estate TypTap insurance Group rebranded to assumption division bu
Slide 6: HCI Includes Two Highly Successful Business Divisions
HCI Includes Two Highly Successful Business Divisions Insurance Companies Reinsurance • HCI currently owns or controls four insurance • Class 3 captive Bermuda reinsurer. companies. • Opportunistically participates on reinsurance • Insurance companies control over $1.2 billion of towers for the four
Slide 7: HCI Divisions
HCI Divisions 6
Slide 8: Overview of Insurance Companies
Overview of Insurance Companies Launched in 2007 Launched in 2016 Commenced operations in Commenced operations in 2024 as reciprocal exchange 2025 as reciprocal exchange Homeowners and Technology-driven condominium owners homeowners insurance Writes Florida-based Writes Florida-based personal insura
Slide 9: A Growing Business
A Growing Business 1 Premium in Force (in $M) Geographic Footprint $1,226 $1,244 $995 $719 $737 $528 $353 $338 $369 2017 2018 2019 2020 2021 2022 2023 2024 Q1-25 Best-in-class Proactively Deploying Excess Opportunistically Underwriter in the Managing Risk Capital Into Investments Add Policies Florid
Slide 10: A Profitable Homeowners Business
A Profitable Homeowners Business Loss Ratio 1 Leverage Impact technology to of Legislative constantly Reforms in evaluate Florida underwriting criteria Gross loss ratio has benefitted from a: • Rate adequacy 51.3% • Exposure • 25% decline management in claims frequency Hurricane Ian 34.6% •Legislati
Slide 11: Steady Improvement
Steady Improvement Shareholders Equity (in $M) Invested Assets (in $M) $523 $1,563 $453 $1,407 $1,057 $325 $850 $163 2022 2023 2024 Q1-25 2022 2023 2024 Q1-25 Book Value Per Share Debt Leverage (%) 1 57% $48.55 $42.10 39% $33.36 34% 30% $18.91 2022 2023 2024 Q1-25 2022 2023 2024 Q1-25 10 (1) Exclude
Slide 12: Exzeo
esete.
Slide 13: Overview of Exzeo
Overview of Advanced Underwriting Insurance Management Data & Analytics Solutions Solutions • Over a decade of expertise in • Exzeo transforms both structured and • Exzeo designs, markets, underwrites, developing and training underwriting unstructured data into an actionable and administers insuranc
Slide 14: Exzeo Product Ecosystem
Exzeo Product Ecosystem • Improve risk selection • Streamline operations and drive • Faster quoting efficiency • Better agent experience • Integrated, digital solution + g Ma Po g n ritin na • Real-time visibility lic me de i Un uot rw ge y Q nt • Leverage big data Designed to Serve • Efficient clai
Slide 15: HCI Developed its Own Technology
HCI Developed its Own Technology Exzeo Was Launched in 2012 to Build Third insurance and Develop HCI’s Entire Technology Stack product is launched – Second commercial insurance residential product is condo Wholly-owned technology First insurance launched – insurance subsidiary product is homeowners
Slide 16: Technology Advantages
Turn-key insurance technology solution based on a proprietary platform of purpose built software and data-analytics applications Transforms structure and unstructured data into actional format for our advanced Technology underwriting models. Advantages Over a decade of expertise in developing and tr
Slide 17: Individual Level Risk Evaluation Results in Lower Loss Ratio
Individual Level Risk Evaluation Results in Lower Loss Ratio Property level (HCI insurance carriers) vs. zip code level (industry) Algorithms can determine “green properties” vs. “red properties” in the same neighborhood 16
Slide 18: Our differentiated data engine enables precise risk selection
Our differentiated data engine enables precise risk selection Satellite imaging to determine proportion of ‘hip’ vs. ‘gable’ roofs1 TypTap’s powerful data engine Extensive data fields Text mining of public litigation history In-house sourcing through proprietary research Satellite imaging to Careful
Slide 19: We Use Technology to Underwrite at the Individual Property Level
We Use Technology to Underwrite at the 73%1 Individual Property Level industry average loss ratio Differentiated Strategy Up to 1000 Data Points per Property Individual property level risk evaluation Individual Property Level Risk Selection Only write insurance for homes that are expected to be prof
Slide 20: Reinsurance
Reinsurance 19
Slide 21: Claddaugh Generating Profits for Our Shareholders
Claddaugh Generating Profits for Our Shareholders Cumulative Net Premium Earned Since 2008 $250 Claddaugh is used to $200 opportunistically manage reinsurance cycles for HCI’s insurance divisions. $150 $100 $50 Since its formation in 2008, Claddaugh has contributed 1 $45M in pre-tax income to HCI. $
Slide 22: Real Estate
Real Estate 21
Slide 23: Creating Value in Real Estate
Acquire properties with differentiated value drivers Creating Value in Real Estate Optimize Reinvest or capital harvest Greenleaf Capital owns and structure operates HCI’s real estate portfolio. Its holdings include a set of premier commercial assets in rapidly growing Florida. Develop or reposition
Slide 24: Recent Sales Transactions
Generating Gains from our Real Estate Portfolio PROPERTY LOCATION DATE PURCHASED GROSS PROCEEDS2 BOOK VALUE PRE-TAX GAIN1 Recent Sales Transactions Office Building Tampa 2010 $44.0M $7.0M $37.0M Office Building Tampa 2017 $14.5M $1.1M $13.4M Grocery Anchored Retail Eustis, FL 2016 $13.0M $10.6M $2.5
Slide 25: Florida Real Estate Portfolio With Embedded Value
Florida Real Estate Portfolio With Embedded Value PROPERTY APPRAISED VALUE (1) BOOK VALUE(3) DEBT ON PROPERTY Office Portfolio $25M $18M $4M OPERATING Anchored Retail 28M 17M $11M Waterfront Specialty Use Portfolio 40M 16M - DEVELOPMENT UNDER Properties Under Development 52M 49M - $145M1 $100M APPRA
Slide 26: HCI Group Investment Portfolio
HCI Group Investment Portfolio A conservative allocation, positioned for higher rates and opportunistic investments 1% 4% 5% Fixed Income Cash Real Estate & Other Total invested assets1 48% $1.6 billion 42% Equity Limited Partnerships Fixed Income Average Duration ~1.5 year (1) As of 3/31/25 25
Slide 27: Experienced & Focused Leadership Team
Experienced & Focused Leadership Team PARESH PATEL MARK HARMSW ORTH Chairman & Chief Executive Officer, HCI Group Chief Financial Officer, HCI Group ▪ Founder; Chairman since 2007 & CEO since 2011 ▪ CFO since 2017; previously SVP of Finance ▪ Designed HCI’s policy administration systems, leveraging
Slide 28: Delivering Shareholder Value
Delivering Shareholder Value capital returned to $448M shareholders since inception2 17% insider ownership >4400% Total Shareholder Return since IPO 12% 10-year average ROE1 1) As of 3/31/2025 2) Includes $269M buybacks and $179M dividends 27
Slide 29: Contact Us
Contact Us I N V E S T O R R E L AT I O N S HCI C O N TA C T G R O U P, I N C . Bill Broomall, CFA 3802 Coconut Palm Drive VP, Investor Relations Tampa, FL 33619 Tel (813) 776-1012 Tel (813) 849-9500 wbroomall@typtap.com www.hcigroup.com contactus@hcigroup.com 28