Amir SohailTAMPA, Fla., (ZEEST MEDIA) — HCI Group, Inc. (NYSE: HCI) has successfully completed its catastrophe reinsurance programs for the 2026-2027 treaty year, which runs from June 1, 2026 through May 31, 2027.
Key Highlights
- Maximum first-event consolidated retention of $163 million, a 4% increase from 2025-2026.
- Total aggregate excess of loss limit of $4.1 billion, a 16% increase from 2025-2026.
- Total net consolidated reinsurance premiums of $381 million, a 10% decrease from 2025-2026.
Management Commentary
“We are delighted to have successfully completed our reinsurance programs for the 2026-2027 treaty year and appreciate the continued support from our global reinsurance partners throughout the process,” said Paresh Patel, HCI’s Chairman and Chief Executive officer. “This year’s placements include meaningful structural improvements achieved at a materially lower cost, further strengthening our overall risk transfer strategy. In addition, our Cayman Islands-based reinsurer, Fortex Re, is now participating across two of our three towers, marking an important step in expanding its role within our broader reinsurance strategy and an initiative we look forward to scaling further over time.”
2026-2027 Catastrophe Reinsurance Programs
HCI has secured three reinsurance towers for the 2026-2027 treaty year. Reinsurance Tower 1 covers HCI subsidiary Homeowners Choice Property & Casualty Insurance Company, Inc. for policies issued throughout the company’s primary Florida operating footprint, largely concentrated across the central and southern regions of the state. Reinsurance Tower 2 is shared between Homeowners Choice and HCI subsidiary TypTap Insurance Company, and covers all TypTap policies, whether issued in Florida or outside of Florida, as well as Homeowners Choice policies issued outside of Florida. Reinsurance Tower 3 is shared between Homeowners Choice and HCI-sponsored reciprocal insurance companies Tailrow Insurance Exchange and Condo Owners Reciprocal Exchange (known as CORE,) and covers Homeowners Choice policies issued throughout the remaining northern Florida region not included within Tower 1, as well as all Tailrow and CORE policies.
The maximum first-event consolidated retention is $162.6 million, representing a 4% increase from the prior treaty year, while the consolidated retention below the Florida Hurricane Catastrophe Fund layers remains unchanged year over year at $155.0 million. For a first event, combined statutory retentions are $22.8 million, plus a combined maximum retention attributable to Claddaugh and Fortex Re of $139.8 million. For a second event, combined statutory retentions are $22.8 million, plus a combined maximum retention attributable to Claddaugh and Fortex Re of $52.3 million.
Across the three reinsurance towers, HCI secured $4.06 billion in aggregate excess of loss limit for the 2026-2027 treaty year, representing a 16% increase from the prior treaty year. HCI also secured full reinstatement premium protection for excess of loss treaties containing paid reinstatement provisions. Claddaugh Casualty Insurance Company Ltd, HCI’s Bermuda-based reinsurance subsidiary, selectively participates across all three reinsurance towers. In addition, Fortex Reinsurance SPC, Ltd., HCI’s newly formed Cayman Islands-based reinsurance subsidiary, selectively participates on Reinsurance Towers 1 and 3. All participating reinsurers are AM Best rated ‘A-’ (Excellent) or better, or have fully collateralized their obligations to HCI.
For the three reinsurance towers, HCI expects to incur approximately $381.2 million of net consolidated reinsurance premiums ceded to third parties, excluding Claddaugh and Fortex Re, for the period from June 1, 2026 through May 31, 2027, representing a 10% reduction from the preceding twelve-month period. The reinsurance premiums are an estimate based on exposure projections and subject to true up at September 30, 2026.
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 diversified holding company engaged in insurance, reinsurance, real estate, claims services, and insurance technology. The HCI Group portfolio of companies includes multiple property and casualty underwriters, exchanges, and captive reinsurers as well as a claims management business, a commercial real estate investment company, and a leading insurance technology company Exzeo Group. HCI Group was founded in 2006.
HCI Group’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 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 https://www.hcigroup.com/. Exzeo’s common shares trade on the New York Stock Exchange under the ticker symbol “XZO.” For more information about Exzeo, visit https://www.exzeo.com/.
Forward-Looking Statements
This news release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “estimate,” “expect,” “intend,” “plan,” “confident,” “prospects” and “project” and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions, but rather are subject to various risks and uncertainties. For example, reinsurance premiums are estimates based on exposure projections and subject to true up. Further, future cash flow and earnings may limit HCI’s ability or willingness to engage in share buybacks. Some of these risks and uncertainties are identified in the company’s filings with the Securities and Exchange Commission. Should any risks or uncertainties develop into actual events, these developments could have material adverse effects on the company’s business, financial condition and results of operations. HCI Group, Inc. disclaims all obligations to update any forward-looking statements.
Company Contact:
Nat Otis
Investor Relations
HCI Group, Inc.
Tel (813) 355-5341
notis@hcigroup.com
Publication Partner:Zeest Media
