HCI Group eyes Exzeo spin-off

HCI Group reported first quarter 2025 pre-tax income of $100.3 million and diluted EPS of $5.35, up from $3.81 a year ago. Net income after noncontrolling interests reached $69.7 million, driven by a 17% increase in gross premiums earned to $300.4 million, largely due to policy assumptions from Citizens Property Insurance Corporation.

The Florida-based insurer also announced plans to spin off its tech unit, Exzeo, into a standalone company by year-end, pending regulatory approvals. Exzeo provides underwriting and analytics technology for P&C insurers. “Exzeo currently manages approximately $1.2 billion in premiums on its platform. Up to this point, premiums on Exzeo’s platform have been tied to HCI. But this is only a small fraction of the U.S. homeowners insurance market. We see a massive opportunity to unleash our technology on the rest of the market that our technology does not currently touch. We want to replicate the success we’ve had working with HCI’s insurance companies and bring those underwriting results to the rest of the industry. By being a stand-alone company, it will create new opportunities to pursue our growth objectives by adding new customers who can benefit from our technology platform.” – Kevin Mitchell has been the President of TypTap Insurance Company.

Exzeo reported $52 million in revenue and $24 million in pretax income, assuming it operated as a standalone entity.

Despite higher reinsurance costs, HCI’s gross loss ratio improved to 19.7%, down from 31.1% in Q1 2024, reflecting lower claims and litigation frequency. The company also reported increased operating expenses tied to compensation and premium growth.

The group includes homeowners insurer TypTap, which wrote $142.4 million in gross premiums during the quarter. HCI’s leadership said the company is positioned for continued growth across its insurance and technology segments.