HCI Group, Inc., together with its subsidiaries, engages in the property and casualty insurance, insurance management, reinsurance, real estate, and information technology businesses in the United States. It operates through Insurance Operations, TypTap Group, Reciprocal Exchange Operations, and Real Estate Operations segments. The company provides residential insurance products, such as homeowners, fire, and wind-only insurance to homeowners, condominium owners, and …
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Competitive advantage assessment
Key strengths
Top-Quartile Underwriting MarginsGross margin at 73.1% (top 13%) and operating margin at 47.6% (top 4%) reflect strong underwriting discipline.
Superior Returns on FloatFloat investment returns are strong (signal score 0.99), with ROA at 12.57% vs peers — investment income amplifies underwriting profit.
Key risks
Volatile Underwriting ResultsUnderwriting stability is low (score 0.16), indicating significant exposure to loss cycle or catastrophe volatility.
Volatile Capital Returns Signal Cat ExposureCapital adequacy stability is low (score 0.14), indicating elevated catastrophe or reserve cycle exposure.
The dashed ring is the peer median. Defense scores are percentile ranks
against peers, so 50 is roughly the typical company in this group.
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Where HCI ranks in Insurance - Property & Casualty
HCI Group, Inc. ranks #9 of 44
scored companies in Insurance - Property & Casualty by moat score — the top 20%.
The widest moat in the group is Palomar Holdings, Inc. (PLMR)
at 76/100.
Moat scores for companies ranked near HCI in Insurance - Property & Casualty
How HCI scores on the Insurance & Reinsurance defenses
Underwriting Discipline
Score 57
· 25% of the moat score
Underwriting discipline is the core insurance moat, and it consists mostly of the willingness to lose business.
Float Investment Quality
Score 65
· 20% of the moat score
Float is the money an insurer holds between collecting premiums and paying claims — capital it invests but does not own.
Pricing Power
Score 61
· 18% of the moat score
For an insurer, pricing power is the ability to push rate ahead of claims inflation and keep the policyholders anyway.
Capital Strength & Solvency
Score 59
· 17% of the moat score
Capital is what lets an insurer credibly promise to pay a claim that has not happened yet, and it is scrutinised by regulators and rating agencies alike.
Operational Efficiency
Score 89
· 12% of the moat score
The expense ratio — what it costs to acquire and administer a policy — is the half of the combined ratio management fully controls.
Scale & Diversification
Score 65
· 8% of the moat score
Diversification is a real economic advantage in insurance rather than a portfolio preference: risks spread across perils, geographies and lines are less likely to arrive at once, so the same capital supports more premium.
HCI Group, Inc. (HCI) scores 64 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #9 of 44 scored companies in Insurance - Property & Casualty, the top 20%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 45 companies in Insurance - Property & Casualty. Its strongest defense is Operational Efficiency (89/100) and its weakest is Underwriting Discipline (57/100).
How does HCI Group, Inc. compare with other Insurance - Property & Casualty companies?
HCI Group, Inc. ranks #9 of 44 scored companies in Insurance - Property & Casualty by moat score. The widest moat in Insurance - Property & Casualty is Palomar Holdings, Inc. (PLMR) at 76/100. The companies ranked closest are Horace Mann Educators Corporati (HMN) at 65 just above it and W.R. Berkley Corporation (WRB) at 59 just below it.
How is the moat score calculated?
Each company is scored with an industry-specific template — Insurance & Reinsurance in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 45 companies in Insurance - Property & Casualty. The defenses are then weighted to produce the overall score out of 100.
Why is HCI Group, Inc. scored with the Insurance & Reinsurance template?
An insurer is paid before it knows what its product cost, and invests the money in the meantime. Profit therefore comes from two sources that must both work: pricing risk better than rivals, and earning a return on the float those premiums create. The Insurance template scores that pair, along with the capital that lets a company survive the year in which the losses arrive together.
Which competitive defenses are measured for HCI Group, Inc.?
The Insurance & Reinsurance template measures 6 defenses, and HCI scores: Underwriting Discipline (57), Float Investment Quality (65), Pricing Power (61), Capital Strength & Solvency (59), Operational Efficiency (89), Scale & Diversification (65). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.
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