Florida property owners watching their insurance bills: here’s rare good news. HCI Group just reported third-quarter earnings that show what happens when hurricanes don’t hit. Net income jumped to $67.9 million from $9.4 million a year earlier—a 622% increase—driven almost entirely by avoiding the catastrophic losses that hammered them in 2024.
The Tampa-based property insurer’s gross loss ratio dropped from 39.8% to 22%. Translation? For every dollar of premium collected, they’re paying 18 cents less in claims compared to last year. That’s the kind of improvement that eventually shows up in your renewal notice, though timing matters.
Should Florida homeowners expect relief at renewal? The answer’s more complicated than the numbers suggest.
$40M Hurricane Bill Creates 2024-2025 Comparison
Last year’s third quarter included $40 million in losses from Hurricane Helene alone. This year? No major storm events hit HCI’s coverage territory during July through September. That single difference explains most of the profit jump.
Total losses and loss adjustment expenses fell to $66.2 million from $105.7 million. But before celebrating, consider the context: HCI operates primarily in Florida and coastal areas where hurricane frequency remains high according to Insurance Information Institute data.
Here’s what changed year-over-year:
| Metric | Q3 2024 | Q3 2025 | Change |
|---|---|---|---|
| Gross Premiums Earned | $265.5M | $301.1M | +13% |
| Loss & Loss Adjustment | $105.7M | $66.2M | –37% |
| Gross Loss Ratio | 39.8% | 22% | -17.8 pts |
| Net Income | $9.4M | $67.9M | +622% |
The company also collected $301.1 million in gross premiums, up from $265.5 million—reflecting more policies in force. Growth during a tough Florida market signals competitive positioning.
Why Growth Happened While Other Insurers Exited Florida
HCI added policies while competitors fled the state. Recent NAIC filings show multiple carriers reducing Florida exposure or exiting entirely between 2023-2025. Yet HCI moved the opposite direction.
Three factors explain this:
- Reinsurance access improved slightly. Premiums ceded to reinsurers dropped to $106.1 million from $109.7 million, suggesting HCI secured coverage at better rates or retained more risk strategically.
- Citizens Property Insurance couldn’t absorb all departing carrier policies, creating opportunities for private insurers willing to write coverage. HCI stepped in where state-backed insurance left gaps.
- Underwriting got pickier about roof age, construction type, and coastal proximity. Volume growth doesn’t mean they’re taking bad risks—it means selective expansion in a constrained market.
But there’s a cost. Policy acquisition and underwriting expenses jumped to $31.7 million from $26.1 million. That 21% increase? Directly tied to processing more applications, inspections, and policy issuance.
Does Better Loss Ratio Mean Lower Premiums in 2026?
Probably not yet.
Insurers set rates based on expected future losses, not last quarter’s results. HCI’s pricing reflects Florida’s catastrophe risk over multi-year periods, not a single storm-free summer. One good quarter after years of hurricane chaos doesn’t justify rate cuts—especially when 2024 Atlantic hurricane season predictions remain elevated.
What improved profitability DOES mean:
- Financial stability to pay future claims. A $67.9 million profit quarter builds reserves needed when the next major storm hits. That matters more than premium relief.
- Reduced likelihood of emergency rate hikes if HCI avoided the financial stress that forced competitors to file emergency increases in 2024-2025.
- Continued coverage availability in regions where options remain limited. Profitability keeps carriers in market rather than triggering exits.
The state of Florida’s Office of Insurance Regulation still reviews all rate filings. Even with better earnings, insurers must justify increases with actuarial data. HCI can’t arbitrarily raise rates just because they’re profitable.
What HCI Policyholders Should Watch Next
Your renewal notice tells the real story, not quarterly earnings reports. But these indicators suggest what’s coming:
Reinsurance costs at Jan 1 renewal: The global reinsurance market resets contracts annually on January 1. If HCI secures cheaper catastrophe coverage for 2026, some savings might flow to policyholders by mid-year renewals. If reinsurance costs spike again, expect increases regardless of HCI’s strong quarter.
Atlantic hurricane activity through November: The 2025 season runs through November 30. Any late-season major storm hitting Florida erases this quarter’s gains instantly and resets rate expectations.
Legislative changes in Tallahassee: Florida’s insurance reforms continue evolving. Assignment of benefits restrictions, roof age requirements, and Citizens depopulation efforts all impact private carrier economics. Monitor state legislative sessions.
Check your policy’s notice requirements. Most Florida property policies require 45-90 days advance notice for non-renewal or significant rate changes. That timing matters if you’re shopping alternatives.
How Regional Insurers Compete Against National Carriers
HCI’s Tampa base matters. Regional insurers like HCI Group compete differently than national giants like State Farm or Allstate, who’ve pulled back Florida homeowners exposure dramatically.
Regional advantages include:
- Faster local claim response and inspection capabilities, especially after storms when national carriers struggle with adjuster shortages across multiple states simultaneously.
- Market specialization allowing aggressive underwriting in specific property types—newer construction with impact-resistant features, elevated structures in flood zones, or specific coastal regions where they’ve built historical loss data.
- Lower overhead compared to maintaining nationwide infrastructure, potentially translating to competitive pricing on similar coverage when catastrophe costs stabilize.
But risks exist too. Geographic concentration means one bad hurricane season devastates finances—exactly what happened in Q3 2024 with Hurricane Helene. National carriers spread that risk across tornado, wildfire, hail, and hurricane territories.
That’s why reinsurance matters so much. HCI cedes roughly 35% of premiums to reinsurers ($106.1M of $301.1M), transferring catastrophic risk to global markets. When reinsurance works, regional insurers thrive. When it fails or becomes unaffordable, they exit markets or go under.
Frequently Asked Questions
Will HCI Group lower my property insurance premium after this profitable quarter?
Unlikely in the short term. Insurance pricing reflects expected future losses over multi-year periods, not a single quarter’s results. While HCI’s 22% loss ratio shows improvement, Florida’s ongoing catastrophe risk keeps rates elevated. Better profitability does mean financial stability to avoid emergency increases and continued market presence, but rate decreases typically require sustained multi-year improvement in loss experience plus lower reinsurance costs.
How does HCI’s $67.9M profit compare to larger Florida property insurers?
HCI operates at regional scale, collecting $301.1 million in quarterly premiums. Larger carriers like Universal Property & Casualty or Heritage Insurance process 2-3x that volume. However, HCI’s 622% year-over-year profit increase and 22% loss ratio outperform many competitors still recovering from 2024 hurricane losses. For context, Citizens Property Insurance—Florida’s state-backed insurer—handles billions in exposure but operates as a residual market, not a profit-focused entity like HCI.
Should I switch to HCI Group if they’re more profitable than my current Florida insurer?
Profitability alone doesn’t determine the best coverage. Compare these factors: premium cost for identical coverage limits, deductibles (especially wind/hail vs. all other perils), claims service reputation from recent policyholders who filed hurricane claims, financial strength ratings from AM Best or Demotech, and coverage availability for your specific property characteristics (roof age, construction type, coastal proximity). HCI’s strong quarter shows financial stability, but your property’s risk profile and coverage needs matter more than the insurer’s recent earnings.
What happens if a major hurricane hits Florida in Q4 2025 or early 2026?
HCI’s Q3 gains could evaporate quickly. A single Category 3+ hurricane making landfall in HCI’s coverage territory might generate $100-200 million in losses based on historical patterns—far exceeding this quarter’s $67.9 million profit. That’s exactly what happened with Hurricane Helene’s $40 million impact in Q3 2024. This volatility explains why one good quarter doesn’t justify rate decreases. Insurers must maintain reserves for inevitable future catastrophes, not distribute short-term profits. The 2025 Atlantic hurricane season runs through November 30.
Bottom Line: Stability Over Savings
HCI Group’s 622% profit jump sounds dramatic, but it’s really just reversion to normal after 2024’s hurricane chaos. The company avoided major storm losses, collected more premiums from policy growth, and posted healthy margins.
For Florida homeowners, this means continued access to private market coverage in a state where options keep shrinking. Don’t expect premium relief yet—catastrophe risk hasn’t changed, only recent experience. But financial strength keeps insurers writing policies instead of exiting markets or pushing policyholders to Citizens.
Check your renewal notice timing. If HCI sends non-renewal or significant increase notices, you’ll need 45-90 days to shop alternatives. Start comparing quotes 90 days before renewal if you’re shopping—Florida’s market constraints mean finding coverage takes longer than in other states.
The real test comes when the next major hurricane hits. That’s when this quarter’s profits justify their existence.