HCI Group, Inc.HCI

HCI Group, Inc. Segments Disclosure

10-KFiled Feb 26, 20267 min read

Note 15 -- Segment Information

The Company has five reportable segments: Insurance Operations, Exzeo, Reciprocal Exchange Operations, Real Estate, and Corporate and Other. Due to their economic characteristics, the Company’s property and casualty insurance division and reinsurance operations, excluding the insurance operations under Reciprocal Exchange Operations, are grouped together into one reportable segment under Insurance Operations. The Exzeo segment includes insurance technology and operations solutions for property and casualty insurance carriers. The Reciprocal Exchange Operations segment represents the insurance operations of consolidated reciprocal insurance exchanges that are owned by their policyholders. The Real Estate segment relates to the commercial real estate group that is primarily engaged in the business of developing and operating commercial properties for investment purposes or for internal use. The Corporate and Other segment represents the activities of the holding companies and any other operations that do not meet the quantitative and qualitative thresholds for a reportable segment.

The Company’s segments are based on the manner in which the Company’s Chief Executive Officer, who is the chief operating decision maker (the “CODM”), evaluates performance and makes decisions regarding the allocation of resources. The CODM evaluates performance and allocates resources using various measures primarily through reviews of various operational performance packages, investor presentations, and the Company’s SEC filings, as well as through the approval of the Company’s annual budget and forecast. The Company’s reported segment profit measure is income (loss) before income taxes as this measure is most consistent with the amounts included in the consolidated statements of income. Intersegment transactions are not eliminated from segment results while intrasegment transactions are eliminated from segment results. The accounting policies of the Company’s reportable segments are the same as those of the Company, except as otherwise noted. The determination of segments may change over time due to changes in operational emphasis, revenue, and results of operations.

The following tables present segment information reconciled to the Company’s consolidated statements of income for the periods presented:

 

For the Year Ended December 31, 2025

 

Insurance
Operations

 

 

Exzeo

 

 

Reciprocal Exchange Operations

 

 

Real
Estate (a)

 

 

Corporate/
Other (b)

 

 

Reclassification/
Elimination

 

 

Consolidated

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums earned (c)

 

$

1,145,843

 

 

$

—

 

 

$

95,648

 

 

$

—

 

 

$

—

 

 

$

(5,346

)

 

$

1,236,145

 

Premiums ceded

 

 

(385,801

)

 

 

—

 

 

 

(34,024

)

 

 

—

 

 

 

—

 

 

 

5,346

 

 

 

(414,479

)

Net premiums earned

 

 

760,042

 

 

 

—

 

 

 

61,624

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

821,666

 

Net income from investment portfolio

 

 

55,180

 

 

 

4,302

 

 

 

3,899

 

 

 

—

 

 

 

7,956

 

 

 

(3,050

)

 

 

68,287

 

Policy fee income

 

 

6,747

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

111

 

 

 

—

 

 

 

6,858

 

Other

 

 

12,461

 

 

 

216,980

 

 

 

26

 

 

 

14,823

 

 

 

15,500

 

 

 

(255,655

)

 

 

4,135

 

Total revenue

 

 

834,430

 

 

 

221,282

 

 

 

65,549

 

 

 

14,823

 

 

 

23,567

 

 

 

(258,705

)

 

 

900,946

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

298,818

 

 

 

—

 

 

 

22,393

 

 

 

—

 

 

 

—

 

 

 

(79,384

)

 

 

241,827

 

Amortization of deferred policy
  acquisition costs

 

 

109,548

 

 

—

 

 

 

5,773

 

 

—

 

 

—

 

 

—

 

 

 

115,321

 

Other policy acquisition expenses

 

 

67,135

 

 

 

43,725

 

 

 

12,651

 

 

—

 

 

 

9,050

 

 

 

(125,456

)

 

 

7,105

 

Stock-based compensation expense

 

 

1,469

 

 

 

2,635

 

 

 

—

 

 

 

—

 

 

 

6,866

 

 

 

—

 

 

 

10,970

 

Interest expense

 

 

—

 

 

 

—

 

 

 

4,500

 

 

 

1,290

 

 

 

7,866

 

 

 

(4,500

)

 

 

9,156

 

Depreciation and amortization

 

 

2,413

 

 

 

2,934

 

 

 

—

 

 

 

2,741

 

 

 

743

 

 

 

(2,198

)

 

 

6,633

 

Personnel and other operating expenses

 

 

41,231

 

 

 

61,696

 

 

 

1,601

 

 

 

9,164

 

 

 

13,505

 

 

 

(46,593

)

 

 

80,604

 

Total expenses

 

 

520,614

 

 

 

110,990

 

 

 

46,918

 

 

 

13,195

 

 

 

38,030

 

 

 

(258,131

)

 

 

471,616

 

Income (loss) before income taxes (d)

 

$

313,816

 

 

$

110,292

 

 

$

18,631

 

 

$

1,628

 

 

$

(14,463

)

 

$

(574

)

 

$

429,330

 

Total revenue from non-affiliates (e)

 

$

818,364

 

 

$

6,671

 

 

$

70,895

 

 

$

11,364

 

 

$

4,607

 

 

 

 

 

 

 

Gross premiums written

 

$

1,156,241

 

 

$

—

 

 

$

138,529

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)
Other revenue under real estate primarily consisted of rental income from investment properties.
(b)
Other revenue under corporate and other primarily consisted of management fees for attorney-in-fact services.
(c)
Gross premiums earned under insurance operations include $5,346 earned from the reciprocal exchange operations.
(d)
The income (loss) before income taxes in the reclassification/elimination column is attributable to intercompany transactions among operating segments. The insurance operations and the reciprocal exchange operations record service fee expenses based on earned premiums or other appropriate measures, while Exzeo and the AIF operations recognize service fee revenues according to revenue recognition standards. Although both service fee expenses and revenues are fully eliminated on consolidation, they do not completely offset each other in this presentation due to the different methods of recognition.
(e)
Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation.

 

 

For the Year Ended December 31, 2024

 

Insurance
Operations

 

 

Exzeo

 

 

Reciprocal Exchange Operations

 

 

Real
Estate (a)

 

 

Corporate/
Other (b)

 

 

Reclassification/
Elimination

 

 

Consolidated

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums earned (c)

 

$

1,036,129

 

 

$

—

 

 

$

51,207

 

 

$

—

 

 

$

—

 

 

$

(4,116

)

 

$

1,083,220

 

Premiums ceded

 

 

(387,814

)

 

 

—

 

 

 

(21,961

)

 

 

—

 

 

 

—

 

 

 

4,116

 

 

 

(405,659

)

Net premiums earned

 

 

648,315

 

 

 

—

 

 

 

29,246

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

677,561

 

Net income from investment portfolio

 

 

49,218

 

 

 

548

 

 

 

1,509

 

 

 

—

 

 

 

15,467

 

 

 

(1,566

)

 

 

65,176

 

Policy fee income

 

 

2,502

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,137

 

 

 

4,639

 

Other

 

 

17,223

 

 

 

133,948

 

 

 

9

 

 

 

14,067

 

 

 

10,821

 

 

 

(173,393

)

 

 

2,675

 

Total revenue

 

 

717,258

 

 

 

134,496

 

 

 

30,764

 

 

 

14,067

 

 

 

26,288

 

 

 

(172,822

)

 

 

750,051

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

405,280

 

 

 

—

 

 

 

13,318

 

 

 

—

 

 

 

—

 

 

 

(43,890

)

 

 

374,708

 

Amortization of deferred policy
  acquisition costs

 

 

91,718

 

 

—

 

 

 

2,779

 

 

—

 

 

—

 

 

—

 

 

 

94,497

 

Other policy acquisition expenses

 

 

56,471

 

 

 

39,013

 

 

 

5,753

 

 

—

 

 

—

 

 

 

(96,332

)

 

 

4,905

 

Stock-based compensation expense

 

 

1,345

 

 

 

3,380

 

 

 

—

 

 

 

—

 

 

 

5,464

 

 

 

—

 

 

 

10,189

 

Interest expense

 

 

—

 

 

 

3,329

 

 

 

2,853

 

 

 

882

 

 

 

12,462

 

 

 

(6,182

)

 

 

13,344

 

Depreciation and amortization

 

 

2,447

 

 

 

2,596

 

 

 

—

 

 

 

1,641

 

 

 

641

 

 

 

(1,140

)

 

 

6,185

 

Personnel and other operating expenses

 

 

48,519

 

 

 

50,942

 

 

 

293

 

 

 

6,771

 

 

 

16,049

 

 

 

(49,778

)

 

 

72,796

 

Total expenses

 

 

605,780

 

 

 

99,260

 

 

 

24,996

 

 

 

9,294

 

 

 

34,616

 

 

 

(197,322

)

 

 

576,624

 

Income (loss) before income taxes (d)

 

$

111,478

 

 

$

35,236

 

 

$

5,768

 

 

$

4,773

 

 

$

(8,328

)

 

$

24,500

 

 

$

173,427

 

Total revenue from non-affiliates (e)

 

$

697,404

 

 

$

1,048

 

 

$

34,880

 

 

$

10,654

 

 

$

10,818

 

 

 

 

 

 

 

Gross premiums written

 

$

1,085,355

 

 

$

—

 

 

$

81,412

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)
Other revenue under real estate primarily consisted of rental income from investment properties.
(b)
Other revenue under corporate and other primarily consisted of management fees for attorney-in-fact services.
(c)
Gross premiums earned under insurance operations include $4,116 earned from the reciprocal exchange operations.
(d)
The income (loss) before income taxes in the reclassification/elimination column is attributable to intercompany transactions among operating segments. The insurance operations and the reciprocal exchange operations record service fee expenses based on earned premiums or other appropriate measures, while Exzeo and the AIF operations recognize service fee revenues according to revenue recognition standards. Although both service fee expenses and revenues are fully eliminated on consolidation, they do not completely offset each other in this presentation due to the different methods of recognition.
(e)
Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation.

For the Year Ended December 31, 2023

 

Insurance
Operations

 

 

Exzeo

 

 

Reciprocal Exchange Operations (a)

 

 

Real
Estate (b)

 

 

Corporate/
Other

 

 

Reclassification/
Elimination

 

 

Consolidated

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross premiums earned

 

$

765,512

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

765,512

 

Premiums ceded

 

 

(269,627

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(269,627

)

Net premiums earned

 

 

495,885

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

495,885

 

Net income from investment portfolio

 

 

30,803

 

 

 

52

 

 

 

—

 

 

 

1

 

 

 

8,112

 

 

 

8,485

 

 

 

47,453

 

Gain on sale

 

 

—

 

 

 

—

 

 

 

—

 

 

 

8,811

 

 

 

—

 

 

 

(8,811

)

 

 

—

 

Policy fee income

 

 

2,163

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,541

 

 

 

4,704

 

Other

 

 

15,791

 

 

 

88,333

 

 

 

—

 

 

 

9,897

 

 

 

2,250

 

 

 

(113,643

)

 

 

2,628

 

Total revenue

 

 

544,642

 

 

 

88,385

 

 

 

—

 

 

 

18,709

 

 

 

10,362

 

 

 

(111,428

)

 

 

550,670

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

271,222

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(16,643

)

 

 

254,579

 

Amortization of deferred policy
  acquisition costs

 

 

86,214

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

86,214

 

Other policy acquisition expenses

 

 

27,852

 

 

 

36,837

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(60,081

)

 

 

4,608

 

Stock-based compensation expense

 

 

1,718

 

 

 

2,927

 

 

 

—

 

 

 

—

 

 

 

4,703

 

 

 

—

 

 

 

9,348

 

Interest expense

 

 

—

 

 

 

1,722

 

 

 

—

 

 

 

720

 

 

 

10,397

 

 

 

(1,722

)

 

 

11,117

 

Depreciation and amortization

 

 

2,454

 

 

 

2,202

 

 

 

—

 

 

 

1,610

 

 

 

707

 

 

 

(1,251

)

 

 

5,722

 

Loss on extinguishment of debt

 

 

—

 

 

 

—

 

 

 

—

 

 

 

177

 

 

 

—

 

 

 

(177

)

 

 

—

 

Personnel and other operating expenses

 

 

39,616

 

 

 

43,813

 

 

 

—

 

 

 

6,054

 

 

 

6,061

 

 

 

(34,112

)

 

 

61,432

 

Total expenses

 

 

429,076

 

 

 

87,501

 

 

 

—

 

 

 

8,561

 

 

 

21,868

 

 

 

(113,986

)

 

 

433,020

 

Income (loss) before income taxes (c)

 

$

115,566

 

 

$

884

 

 

$

—

 

 

$

10,148

 

 

$

(11,506

)

 

$

2,558

 

 

$

117,650

 

Total revenue from non-affiliates (d)

 

$

531,495

 

 

$

52

 

 

$

—

 

 

$

15,416

 

 

$

8,087

 

 

 

 

 

 

 

Gross premiums written

 

$

898,622

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)
No operation during 2023.
(b)
Other revenue under real estate primarily consisted of rental income from investment properties.
(c)
The income (loss) before income taxes in the reclassification/elimination column results from the recast of segment information.
(d)
Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation.

The following table presents gross premium earned by geographic location:

 

 

 

Years Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Florida

 

$

1,115,905

 

 

$

964,659

 

 

$

642,544

 

Non-Florida

 

 

120,240

 

 

 

118,561

 

 

 

122,968

 

Gross premiums earned

 

$

1,236,145

 

 

$

1,083,220

 

 

$

765,512

 

The following table presents segment assets reconciled to the Company’s total assets on the consolidated balance sheets:

 

 

 

December 31,

 

 

 

2025

 

 

2024

 

Segments

 

 

 

 

 

 

Insurance Operations

 

$

1,895,081

 

 

$

1,905,878

 

Exzeo

 

 

347,734

 

 

 

89,441

 

Reciprocal Exchange Operations

 

 

184,453

 

 

 

105,556

 

Real Estate

 

 

130,971

 

 

 

96,795

 

Corporate and Other

 

 

120,686

 

 

 

175,282

 

Consolidation and Elimination

 

 

(149,997

)

 

 

(142,739

)

Total assets

 

$

2,528,928

 

 

$

2,230,213

 

 

As of December 31, 2025 and 2024, substantially all of the Company’s assets were located in Florida.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 28, 2025
2023Mar 8, 2024
2022Mar 10, 2023
2021Mar 10, 2022
2020Mar 12, 2021
2019Mar 6, 2020
2018Mar 8, 2019
2017Mar 7, 2018
2016Feb 22, 2017

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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