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Yahoo
03-06-2025
- Business
- Yahoo
4 Insurance Stocks That Have Outperformed the S&P 500 in a Year
Better pricing, prudent underwriting and exposure growth have helped the insurance industry perform well. Redesigning and repricing of products and services to maintain sales and profitability, increased automation, prudent underwriting standards, and an improving rate environment are expected to drive premium growth and boost the industry's efficiency. The insurance industry has outperformed the Zacks S&P 500 composite and the Finance sector in the past year. The insurance industry has rallied 21.9% in the past year compared with the Zacks S&P 500 composite's return of 11.9% and the Finance sector's growth of 18%.Here are four insurance stocks that have performed well over the past year, riding on strong fundamentals. HCI Group, Inc. HCI, Heritage Insurance Holdings, Inc. HRTG, Horace Mann Educators Corporation HMN and The Travelers Companies, Inc. TRV have outperformed the industry, the sector and the S&P 500 composite in the past year. These stocks are poised to maintain the rally, given their solid prospects. Image Source: Zacks Investment Research Non-life insurers are exposed to catastrophe losses and their profitability is vulnerable to the same. According to CoreLogic, the estimate for insurance market losses across residential and commercial exposures for the Eaton and Palisades Fires in Los Angeles is between $35 billion and $45 billion. Per Moody's RMS Event Response, the insured losses for the January 2025 Los Angeles firestorm events are projected between $20 billion and $30 catastrophe losses continue to provide impetus to policy renewal rates. MarketScout's Market Barometer reports a 3% rise in commercial insurance rates and a 4.9% increase in personal lines in the first quarter of 2025. Price hikes, operational strength, higher retention, strong renewal and the appointment of retail agents should help write higher premiums. Per Deloitte Insights, gross premiums are estimated to increase sixfold to $722 billion by insurers benefit from a diversified portfolio that lowers concentration risk. While higher demand for protection products benefits sales and premiums of life insurance operations, better pricing and increased exposure to intangibles and cyber threats support premium growth of non-life insurance operations. Per the 2024 global insurance outlook published in Financial Services, U.S. demand for catastrophe reinsurance is expected to grow, putting upward pressure on prices. The insurance industry is rate-sensitive. An improving rate environment is a boon for insurers, especially long-tail insurers. The Fed kept the funds rate at 4.25-4.50% for a third consecutive meeting held in May 2025. With a large invested asset base, investment income should remain healthy, even if the Fed cuts rates later this year. Also, the insurance players are investing heavily in technology to improve scale and efficiency. This should help them generate higher margins and improve industry is also witnessing accelerated digitalization to improve scale and efficiency. While a solid policyholders' surplus helps the industry absorb losses, a sturdy capital level supports inorganic expansion, investment in growth initiatives and distribution of wealth to shareholders. With the help of the Zacks Stock Screener, we have selected three insurance stocks with an impressive Value Score of A or B. The stocks mentioned below either carry a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) at present. Back-tested results have shown that for stocks with a solid Value Score and a favorable Zacks Rank, the returns are even better. HCI Group: It is a holding company that conducts its business activities through its subsidiaries. HCI is engaged in diverse business activities, including property and casualty insurance, information technology, real estate and reinsurance. HCI provides property and casualty insurance. HCI's insurance product includes property and casualty homeowners' insurance, condominium-owners' insurance and tenants' insurance for individuals owning property. You can see the complete list of today's Zacks #1 Rank stocks Zacks Consensus Estimate for HCI Group's 2025 earnings per share indicates a year-over-year increase of 109.7%. The consensus estimate for revenues is pegged at $887.81 million, implying a year-over-year improvement of 18.3%. The consensus estimate for 2026 revenues indicates an increase of 5.9% from the 2025 estimates. HCI has an impressive Growth Score of of the three analysts covering the stock have raised estimates for 2025, and each of two has raised the same for 2026 over the past 30 days. The consensus estimate for 2025 and 2026 has moved 3.8% and 13% north, respectively, in the past 30 days. The company's earnings have improved 19% in the past five years. HCI Group delivered a four-quarter average earnings surprise of 42.13%. The insurer has an impressive Value Score of A, as well as a favorable VGM Score of A. HCI shares have rallied 77% in the past year. The company's return on equity in the trailing 12 months was 27.6%, better than the industry average of 9.3%.Heritage Insurance: It provides personal and commercial residential insurance products. HRTG offers personal residential insurance, commercial residential insurance for properties and personal residential and wind-only property insurance, licensed in the state of Pennsylvania. Its growing commercial residential business, expanding E&S business and improving pricing are expected to deliver better margins and boost earnings. Rate adequacy, selective profit-oriented underwriting criteria and restricting new business in over-concentrated markets or products should drive profitability for Heritage Insurance. The excess and supply (E&S) business is another growth lever for Heritage. HRTG stated that it will consider and evaluate growth opportunities in a greater number of states. Its reinsurance program shields Heritage Insurance from exposure to hurricanes and other severe weather events in the coastal area. The Zacks Consensus Estimate for Heritage Insurance's 2025 earnings per share indicates a year-over-year increase of 61.6%. The consensus estimate for revenues is pegged at $854.90 million, implying a year-over-year improvement of 4.6%. The consensus estimate for 2026 earnings per share and revenues indicates an increase of 13.2% and 7.3%, respectively, from the 2025 of the two analysts covering the stock has raised estimates for 2025 and 2026 over the past 30 days. The consensus estimate for 2025 and 2026 has moved 33.7% and 17.5% north, respectively, in the past 30 days. The company's earnings have improved 17.6% in the past five years. Heritage Insurance delivered a four-quarter average earnings surprise of 363.17%. The insurer has an impressive Value Score of B. HRTG shares have rallied 209.1% in the past year. The company's return on equity in the trailing 12 months was 26.95%, better than the industry average of 9.36%.Horace Mann Educators: It is the largest financial services company serving the U.S. educator market. Niche focus, improving product offerings, better pricing and a strengthened distribution model are likely to benefit first-quarter results. Earned premium growth ahead of loss cost growth is likely to have favored the combined ratio. Continued share buybacks are expected to have boosted the bottom Zacks Consensus Estimate for Horace Mann Educators' 2025 earnings per share indicates a year-over-year increase of 26.1%. The consensus estimate for revenues is pegged at $1.70 billion, implying a year-over-year improvement of 6.6%. The consensus estimate for 2026 earnings per share and revenues indicates increases of 10.3% and 5.7%, respectively, from the 2025 estimates. HMN has an impressive Growth Score of of the two analysts covering the stock has raised estimates for 2025, and one of the two has raised the same for 2026 over the past 30 days. The consensus estimate for 2025 and 2026 has moved 5.5% and 4.7% north, respectively, in the past 30 days. The company's earnings have improved 8.7% in the past five years. Horace Mann Educators has a solid track record of beating earnings estimates in three of the last four quarters and matching in one, the average being 24.09%. The insurer has an impressive Value Score of A, as well as a favorable VGM Score of A. HMN shares have rallied 28.8% in the past year. The company's return on equity in the trailing 12 months was 11.86%, better than the industry average of 9.36%.The Travelers: Travelers Companies is one of the leading writers of auto and homeowners' insurance, plus commercial U.S. property-casualty insurance. High levels of retention, improved pricing, increased new business and a positive renewal premium change, banking on the strength of a compelling product portfolio of coverages across nine lines of business, position it well for growth. Travelers' commercial businesses should continue to perform well on the back of stability in the markets where it operates, as well as the execution of its Zacks Consensus Estimate for Travelers' 2025 revenues is pegged at $49.17 billion, implying a year-over-year improvement of 5.8%.The consensus estimate for 2026 earnings per share and revenues indicates an increase of 30.8% and 6.3%, respectively, from the 2025 estimates. Four of the 14 analysts covering the stock have raised estimates for 2025, and two of the 14 have raised the same for 2026 over the past 30 days. The consensus estimate for 2025 and 2026 has moved 1% and 0.7% north, respectively, in the past 30 days. The company's earnings have improved 17.2% in the past five years. TRV delivered a four-quarter average earnings surprise of 75.37%. The insurer has an impressive Value Score of B, as well as a favorable VGM Score of B. The Travelers shares have rallied 31.3% in the past year. The company's return on equity in the trailing 12 months was 16.1%, better than the industry average of 9.36%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report HCI Group, Inc. (HCI) : Free Stock Analysis Report Horace Mann Educators Corporation (HMN) : Free Stock Analysis Report Heritage Insurance Holdings, Inc. (HRTG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Globe and Mail
02-06-2025
- Business
- Globe and Mail
HCI Group Announces Completion of its 2025 – 2026 Catastrophe Reinsurance Programs
TAMPA, Fla., June 02, 2025 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE: HCI) has successfully completed its catastrophe reinsurance programs for the 2025-2026 treaty year, which runs from June 1, 2025 through May 31, 2026. 'We are grateful for the strong support from our global reinsurance partners, whose continued confidence in HCI underscores the quality of our underwriting and our disciplined approach to risk,' said Paresh Patel, HCI's chairman and chief executive officer. 'We believe our reinsurance programs are prudently structured to protect the long-term financial stability of our insurance companies. With the reinsurance placement now finalized, we are well-positioned to pursue strategic initiatives aimed at delivering sustained value to our shareholders.' HCI secured three reinsurance towers for the 2025-2026 treaty year. Reinsurance Tower 1 is shared between HCI subsidiary, Homeowners Choice Property & Casualty Insurance Company, and HCI sponsored reciprocal insurance company, Tailrow Insurance Exchange, and covers all Homeowners Choice policies issued in Florida and all Tailrow policies issued in Florida. Reinsurance Tower 2 is shared between HCI subsidiary, TypTap Insurance Company, and Homeowners Choice and covers all TypTap policies (whether issued in Florida or outside of Florida) and all Homeowners Choice policies issued outside of Florida. Reinsurance Tower 3 covers all Condo Owners Reciprocal Exchange policies issued in Florida. Condo Owners Reciprocal Exchange, known as CORE, is a reciprocal insurance company sponsored by HCI. Across the three reinsurance towers, HCI secured over $3.5 billion in excess of loss aggregate limit and full reinstatement premium protection for the 2025-2026 treaty year. Claddaugh Casualty Insurance Company Ltd, HCI's Bermuda-based reinsurance subsidiary, selectively participates across all three reinsurance towers. All participating reinsurers are AM Best rated 'A-' (Excellent) or better or have fully collateralized their obligations to HCI. The statutory retentions for the first and second event are $18 million for both Reinsurance Tower 1 and Reinsurance Tower 2, and $3 million for Reinsurance Tower 3. Claddaugh's estimated maximum retained loss is approximately $117 million for a first event and $35 million for a second event. For the three reinsurance towers, HCI expects to incur net consolidated reinsurance premiums ceded to third parties, excluding Claddaugh, of approximately $422 million from June 1, 2025 through May 31, 2026. The reinsurance premiums are an estimate based on exposure projections and subject to true up at September 30, 2025. More information is available in the Company's Form 8-K, filed today with the U.S. Securities and Exchange Commission. About HCI Group, Inc. HCI Group is a holding company with two distinct operating units. The first unit includes four top-performing insurance companies, a captive reinsurance company, and operations in claims management and real estate. The second unit, called Exzeo Group, is a leading innovator of insurance technology that utilizes advanced underwriting algorithms and data analytics. Exzeo empowers property and casualty insurers to transform underwriting outcomes and achieve industry-leading results. The company's common shares trade on the New York Stock Exchange under the ticker symbol "HCI" and are included in the Russell 2000 and S&P SmallCap 600 Index. HCI Group, Inc. regularly publishes financial and other information in the Investor Information section of the company's website. For more information about HCI Group and its subsidiaries, visit
Yahoo
28-05-2025
- Business
- Yahoo
Factors that Powered HCI Group's (HCI) Performance in Q1
Wasatch Global Investors, an asset management company, released its 'Wasatch Micro-Cap Fund' first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund was down -16.57% in the quarter, outperforming the benchmark Russell Microcap® Growth Index's -17.75% return. U.S. equities fell in Q1, driven by tariffs, budget cuts, economic weakness, stagflation concerns, and AI-related companies, affecting micro-cap companies. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Wasatch Micro-Cap Fund highlighted stocks such as HCI Group, Inc. (NYSE:HCI). HCI Group, Inc. (NYSE:HCI) engages in the business of property and casualty insurance, reinsurance, real estate, and information technology. The one-month return of HCI Group, Inc. (NYSE:HCI) was 12.90%, and its shares gained 68.28% of their value over the last 52 weeks. On May 27, 2025, HCI Group, Inc. (NYSE:HCI) stock closed at $165.18 per share with a market capitalization of $1.91 billion. Wasatch Micro-Cap Fund stated the following regarding HCI Group, Inc. (NYSE:HCI) in its Q1 2025 investor letter: "HCI Group, Inc. (NYSE:HCI) was the largest contributor to Fund performance during the quarter. It provides homeowners insurance, primarily in Florida. The company benefited from lower-than-expected claims during hurricane season, firmer pricing and strong earnings expectations for the year." A homeowner happily smiling while holding a copy of their new insurance policy. HCI Group, Inc. (NYSE:HCI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held HCI Group, Inc. (NYSE:HCI) at the end of the first quarter, which was 20 in the previous quarter. While we acknowledge the potential of HCI Group, Inc. (NYSE:HCI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Is HCI Group (HCI) a Solid Growth Stock? 3 Reasons to Think "Yes"
Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a growth stock that can live up to its true potential can be a tough task. In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end. However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects. HCI Group (HCI) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank. Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). While there are numerous reasons why the stock of this property and casualty insurance holding company is a great growth pick right now, we have highlighted three of the most important factors below: Arguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration. While the historical EPS growth rate for HCI Group is 117%, investors should actually focus on the projected growth. The company's EPS is expected to grow 109.7% this year, crushing the industry average, which calls for EPS growth of 2.9%. Growth investors often overlook asset utilization ratio, also known as sales-to-total-assets (S/TA) ratio, but it is an important feature of a real growth stock. This metric shows how efficiently a firm is utilizing its assets to generate sales. Right now, HCI Group has an S/TA ratio of 0.36, which means that the company gets $0.36 in sales for each dollar in assets. Comparing this to the industry average of 0.33, it can be said that the company is more efficient. In addition to efficiency in generating sales, sales growth plays an important role. And HCI Group looks attractive from a sales growth perspective as well. The company's sales are expected to grow 18.4% this year versus the industry average of 5.8%. Beyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements. There have been upward revisions in current-year earnings estimates for HCI Group. The Zacks Consensus Estimate for the current year has surged 3.7% over the past month. While the overall earnings estimate revisions have made HCI Group a Zacks Rank #2 stock, it has earned itself a Growth Score of A based on a number of factors, including the ones discussed above. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. This combination indicates that HCI Group is a potential outperformer and a solid choice for growth investors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report HCI Group, Inc. (HCI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
08-05-2025
- Business
- Yahoo
HCI Group: Q1 Earnings Snapshot
TAMPA, Fla. (AP) — TAMPA, Fla. (AP) — HCI Group Inc. (HCI) on Thursday reported first-quarter profit of $69.7 million. On a per-share basis, the Tampa, Florida-based company said it had profit of $5.35. The results topped Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of $4.49 per share. The property and casualty insurance holding company posted revenue of $216.4 million in the period, which also beat Street forecasts. Three analysts surveyed by Zacks expected $210.2 million. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on HCI at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
