HCI: Too Good To Ignore, But Wait For Risk To Fade

Jun. 13, 2025 5:33 PM ETHCI Group, Inc. (HCI) StockHCI
Alpha Mantra
228 Followers
(9min)

Summary

  • HCI Group has delivered strong financial performance, driven by Florida P&C market stabilization and industry-leading underwriting standards.
  • Legislative reforms in Florida have improved profitability for insurers, with HCI benefiting from increased returns and book value growth.
  • The planned Exzeo technology spin-off could unlock additional value and enhance HCI's valuation multiples.
  • Despite attractive fundamentals, I rate HCI as a hold due to elevated hurricane risk in the near term.

Aerial View of Miami Beach Shoreline with Turquoise Waters

Nico De Pasquale Photography/DigitalVision via Getty Images

Introduction

HCI Group (NYSE:HCI) is a Tampa-based P&C insurance company operating primarily in the volatile and high-risk hurricane market of Florida. Despite operating in the high-risk market, HCI has demonstrated steady performance and

This article was written by

228 Followers
I am a value focused investor, conducting fundamental research on sectors like but not limited to chemicals, homebuilders, building materials, industrials and metals & mining. I prefer to invest in stocks which are cheaply available and have a catalyst in the near future. My investment horizon ranges from a quarter to two years. I have over 3 years of active investing experience and served as buy side analyst at boutique research firm and family offices.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About HCI Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on HCI

Related Stocks

SymbolLast Price% Chg
HCI
--