HCI Group, Inc.

Good afternoon and thank you for standing by today's conference call will begin shortly once again thank you for your patience today's conference call will begin shortly. Good afternoon and welcome to HCI Group's fourth quarter 2025 earnings call. My name is Tom and I will be your conference operator. At this time, all participants will be in a listen-only mode. Before we begin today's call, I would like to remind everyone that this conference call is being recorded and will be available for replay through March 25, 2026, starting later today. The call is also being broadcast live via webcast and available via webcast replay until February 25, 2027. On the Investor Information section, of HCI Group's website at www.hcigroup.com. I would now like to turn the call over to Nat Otis, HCI Group. Nat, please proceed.

Thank you, and good afternoon. Welcome to HCI Group's fourth quarter 2025 earnings call. To access today's webcast, please visit the investor information section of our corporate website at www.hcigroup.com. Before we begin, I'd like to take the opportunity to remind our listeners that today's presentation and responses to questions may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as anticipate, estimate, expect, intend, plan, and project, and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions, but rather are subject to various risks and uncertainties. Some of these risks and uncertainties are identified in the company's filings with the Securities and Exchange Commission. Should any risks or uncertainties develop into actual events, these developments could have materially adverse effects on the company's business, financial conditions, and results of operations. HCI Group disclaims all the obligations to update any forward-looking statements. Now, with that, I will turn the call over to Mark Harmsworth, Chief Financial Officer.

Thanks, Nat. Good afternoon, everyone, and thank you for taking the time to join our call. As we disclosed in the earnings release, pretax income was $144 million in the fourth quarter and $429 million for the full year. Diluted earnings per share were $7.25 for the quarter and $22.72 for the year. Growth premiums earned in the fourth quarter were up 12% from the same quarter last year, and were up 14% for the full year. The growth loss ratio in the fourth quarter was 15.6%. While this includes a modest amount of favorable development from prior periods, with that added back, the normalized loss ratio was 17.5% for the fourth quarter and only 20% for the full year. For the past three years now, claims and litigation frequency have continued to decline resulting in a loss ratio that has been lower each successive year, illustrating the positive impacts of the legislative reform as well as our disciplined underwriting. The combined ratio was less than 45% in the fourth quarter. There is some noise created by the citizens' assumptions that we did in the fourth quarter. We booked some favorable loss development, as I mentioned, and a few other things. But if we adjust for all of this, the normalized combined ratio was less than sixty percent for the fourth quarter. Let's turn to the balance sheet for a minute. Growth in earnings combined with prudent capital management have resulted in a fantastic balance sheet. Shareholder equity at the end of the year was over one billion dollars and has more than tripled in just two years. Book value per share is now over eighty dollars. This does not include any unrealized gains on real estate or on our investment in Exeo. If these were to be included, pro forma book value would be about $140 per share. Cash flow continues to be strong. Over the past two years, we've generated more than three quarters of a billion dollars in cash from operations, and consolidated cash at the end of the year was over 1.2 billion. In terms of holding company liquidity, we have $175 million of liquidity at the HCI level, This does not include the 75 million shares we own of Exio, which now trade publicly. In addition to the strong liquidity position at the holding company level, the consolidated surplus in the underwriters has never been stronger. We now have well over a half a billion dollars of surplus in the underwriters. The gross leverage ratio is only 2.5, leaving plenty of room for additional growth without the need for new capital. Our strong balance sheet should continue to provide comfort to our policyholders and our shareholders should take comfort in our efficient use of capital. Our after-tax return on equity over the past three years, a period of time that included three hurricanes, is over 35%. In summary, this has been another fantastic quarter and year for the company. Revenue is growing. The loss ratio and expense ratios are declining. We are generating record cash flows, have minimal debt, and we are generating superior returns on capital. With that, I'll hand it over to Karen.