HCI Group, Inc.

Good afternoon and welcome to HCI Group's second quarter 2026 earnings call. My name is Ali 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 August 20th, 2026, starting later today. The call is also being broadcast live via webcast and available via webcast replay until August 6, 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 Investor Relations. Please proceed.

Thank you and good afternoon. Welcome to HCI Group's second quarter 2026 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 in actual events, these developments could have materially adverse effects on the company's business, financial condition, and results of operations. HCI Group disclaims all obligations to update any forward-looking statements. Now, with that, I'll turn the call over to Mark Harmsworth, Chief Financial Officer.

Thanks, Nat. Good afternoon, and thank you for joining us on our second quarter earnings call. This was another very strong quarter for the company. Pre-tax income of more than $110 million was 18% higher than the same quarter last year, and year-to-date, pre-tax income of $226 million was 16% higher than the first six months of last year. When comparing with last year, remember that was a record year, and so far, this is an even better one. Diluted earnings per share were $5.60, up from $5.18 in the second quarter last year, and year-to-date, diluted earnings per share were $11.05. Gross premiums earned for the quarter grew by 6% from the second quarter last year, driven by policy growth, while average premium per policy remained flat. Total revenue grew by 11%, driven by the premium growth, as well as an increase in services revenue generated from new clients in Exio. The loss ratio this quarter was 22%, just a touch higher than the first quarter, reflecting the normal seasonal trend. and is well within the 20% to 25% range we've been discussing for some time now. In terms of the combined ratio, we've indicated this should be in the 60% to 65% range, absent any CAT activity, and the combined ratio this quarter of 61% was right in the range. Let's turn to the balance sheet for a minute, which continues to strengthen. We have more than $2 billion in cash and investments. Stockholder equity is over $1 billion. The debt-to-cap ratio was less than 6%, and book value per share is now $86.60. As we discussed in our last call, while the growth in book value per share has been impressive, remember this does not include any unrealized gains on our ownership of Exio or our real estate portfolio. If the fair value of Exio and our real estate portfolio were added, pro forma book value per share would be over $150.00. Over the last 36 months, our after-tax return on equity has been 35% in a period that includes two major hurricanes, Milton and Helene. This is a very compelling return for an insurance company, and yet we trade at less than 1.2 times adjusted book. This is the reason we've been buying back the stock. As you know, we announced a buyback plan in March under which we were authorized to purchase up to $80 million of stock and we are pleased to say that we have completed that program. We have fully utilized that authorization, buying back a total of 504,000 shares, representing about 4% of the outstanding shares of the company. In terms of holding company liquidity, we have just over $160 million of liquidity at the HCI level. This does not include the 75 million shares we own of Exio, which now trade publicly. Wrapping up in the quarter, this has been another fantastic one for the company. 2025 was a record year for HCI, and the first two quarters of this year have been even better. Revenue is growing, margins are expanding, we are generating record cash flows, have minimal debt, we continue to generate superior returns on capital, and we've bought back 4% of the company. And with that, I'll hand it over to Karin.