HCI Group Completes Reinsurance Programs with Increased Retention, Premiums Down

HCI Group has completed its catastrophe reinsurance programs for the 2026-2027 treaty year. Key highlights include a maximum first-event consolidated retention of $163 million, a 4% increase from 2025-2026, and total net consolidated reinsurance premiums of $381 million, a 10% decrease from 2025-2026. The total aggregate excess of loss limit is $4.1 billion, a 16% increase from 2025-2026. The company's Chairman and CEO, Paresh Patel, expressed satisfaction with the placements, citing structural improvements at a lower cost and a strengthened risk transfer strategy.

HCI Group has finalized its catastrophe reinsurance programs for the 2026-2027 treaty year, with key adjustments to its risk management framework. The company has set maximum first-event consolidated retention of $163 million, representing a 4% increase from the previous year. Total net consolidated reinsurance premiums for the period amount to $381 million, a 10% decline compared to the 2025-2026 period. Meanwhile, the total aggregate excess of loss limit has been raised to $4.1 billion, a 16% increase from the prior year.

These changes reflect a strategic shift toward a more cost-effective risk transfer model. Paresh Patel, Chairman and CEO of HCI Group, noted that the placements include strengthened risk transfer strategy, achieved at a lower cost. This follows strong first-quarter 2026 performance, with gross premiums earned reaching $326 million and net income hitting $85 million. The company continues to focus on balance sheet strength and capital efficiency as it prepares for future growth opportunities.