HCI Group Enters the Tokenized Real-World Assets Market with Pilot Project Mirroring Returns of Specific Participations in HCI's Catastrophe XOL Reinsurance Programs
HCI Group Enters the Tokenized Real-World Assets Market with Pilot Project Mirroring Returns of Specific Participations in HCI's Catastrophe XOL Reinsurance Programs
HCI Group (NYSE:HCI) launched a pilot of digital tokenized reinsurance securities that mirror returns from specific participations by Fortex Re in HCI’s 2026-2027 catastrophe excess-of-loss reinsurance programs.
The three SurancePlus-issued token series offer distinct risk-return profiles, estimated redemption values, and a minimum $5,000 investment for qualified investors.
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This announcement adds a new tokenized layer to HCI’s catastrophe XOL strategy via 3 pilot token ser...
Analysis
This announcement adds a new tokenized layer to HCI’s catastrophe XOL strategy via 3 pilot token series and a $5,000 minimum. It broadens capital access but exposes token holders to catastrophe loss risk; investors may watch uptake and structuring feedback.
Key Figures
Series A offering price:$11.10 per tokenSeries A est. redemption:$36.00 per tokenSeries B offering price:$22.12 per token+5 more
8 metrics
Series A offering price$11.10 per tokenInitial pilot tokenized reinsurance security Series A
Series A est. redemption$36.00 per tokenIllustrative value assuming no catastrophe losses and year-end redemption
Series B offering price$22.12 per tokenInitial pilot tokenized reinsurance security Series B
Series B est. redemption$49.00 per tokenIllustrative value assuming no catastrophe losses and year-end redemption
Series C offering price$30.01 per tokenInitial pilot tokenized reinsurance security Series C
Series C est. redemption$35.20 per tokenIllustrative value assuming no catastrophe losses and year-end redemption
Minimum investment$5,000Minimum purchase size for qualified investors in the pilot tokens
Risk periodAnnualTokens structured to align with the annual reinsurance treaty cycle
"launch of a pilot project featuring digital tokenized reinsurance securities offering contractual returns"
Digital tokens that represent ownership stakes in reinsurance contracts, letting investors buy, sell or hold slices of insurance risk on a blockchain. Think of it like buying a small piece of a large insurance policy that can be traded like a stock: it can offer portfolio diversification and returns that don’t move with the stock market, faster settlement and lower fees, but carries both insurance exposure and technology/regulatory risks.
catastrophe excess-of-loss reinsurancefinancial
"participations ... in HCI's catastrophe excess-of-loss reinsurance programs"
Catastrophe excess-of-loss reinsurance is a type of insurance for insurers that kicks in only after an insurer’s losses from a single major disaster (like a hurricane or earthquake) exceed a set threshold; it covers the portion of the loss above that threshold up to a cap. For investors, this matters because it limits an insurer’s exposure to extreme, sudden claims—reducing the chance of a catastrophic hit to the company’s capital and earnings, much like a backup vault that only opens for very large losses.
insurance-linked securitiesfinancial
"shorter investment horizon than is typical for many traditional insurance-linked securities offerings"
Insurance-linked securities are financial products that let investors buy a share of the risk from insurance policies—typically covering disasters like hurricanes or large liability claims—so the investor bears some of the insurer’s losses in exchange for a return. They matter to investors because returns are often uncorrelated with stock and bond markets, offering portfolio diversification similar to owning a fire extinguisher in a house: it won’t make the house more valuable, but it reduces the chance of losing everything in a disaster.
rule 506(c)regulatory
"accredited investors under Rule 506(c) of Regulation D and to qualified non-U.S. investors"
A SEC rule that lets companies publicly advertise private securities offerings, provided they sell only to accredited investors and take reasonable steps to verify buyers’ financial status. Think of it like a public event that still requires checking IDs and qualifications at the door: it widens a company’s pool of potential backers but requires stricter verification to protect less-experienced investors. For investors, it signals easier deal access but also higher due diligence responsibility.
regulation dregulatory
"accredited investors under Rule 506(c) of Regulation D and to qualified non-U.S. investors"
Regulation D is a set of rules that govern how companies can raise money from investors without going through the full process required for public stock offerings. It provides simplified options for private placements, making it easier for companies to seek investments from a smaller group of investors. For investors, it offers opportunities to invest in private companies, often with fewer restrictions, but also with different levels of risk and disclosure.
regulation sregulatory
"qualified non-U.S. investors under Regulation S of the U.S. Securities Act of 1933"
Regulation S is a set of rules that allows companies to sell securities (like shares or bonds) to investors outside the United States without having to follow all U.S. securities laws. It matters because it makes it easier for companies to raise money from international investors while still complying with U.S. regulations.
TAMPA, Fla., June 17, 2026 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE: HCI) today announced the launch of a pilot project featuring digital tokenized reinsurance securities offering contractual returns that mirror the performance of specific participations by its Cayman Islands-based reinsurance subsidiary, Fortex Reinsurance SPC, Ltd. ("Fortex Re"), in HCI's catastrophe excess-of-loss reinsurance programs. HCI is launching this pilot project to explore new ways to expand investor access to catastrophe risk as an asset class.
“We are pioneering a new method of risk transfer by connecting the reinsurance market with new sources of capital,” said Paresh Patel, HCI’s Chairman and Chief Executive Officer. “While still in its early stages, we believe tokenized reinsurance securities have the potential to expand access to the reinsurance market by lowering investment barriers, shortening investment duration, and creating the potential for increased liquidity for qualified investors.”
The initial pilot project consists of three separate digital tokenized securities, which are available for purchase through SurancePlus:
Token Offering
Offering Price per Token
Estimated Redemption Value per Token*
Series A
$11.10
$36.00
Series B
$22.12
$49.00
Series C
$30.01
$35.20
*Illustrated values reflect the following: (1) no catastrophe losses affecting the underlying reinsurance participation, (2) redemption at the end of the annual risk period, and (3) values are before any additional return from collateral investment income.
Each token has a distinct risk-return profile and may be purchased individually or combined through varying allocations, enabling investors to tailor catastrophe risk exposures to their investment objectives.
Additionally, the securities are structured to align with the annual reinsurance treaty cycle, resulting in a meaningfully shorter investment horizon than is typical for many traditional insurance-linked securities offerings, including catastrophe bonds.
Finally, the securities will be available for a minimum investment of $5,000 to qualified U.S. accredited investors under Rule 506(c) of Regulation D and to qualified non-U.S. investors under Regulation S of the U.S. Securities Act of 1933, as amended. Subject to applicable securities laws and transfer restrictions, securities offered pursuant to Regulation S are generally expected to become eligible for resale sooner than those offered pursuant to Rule 506(c) of Regulation D, which are generally subject to longer holding periods, often up to one year.
While synthetically structured to mirror the performance of specific participations by Fortex Re in HCI's 2026-2027 catastrophe excess-of-loss reinsurance programs, these securities are issued by SurancePlus and have no impact on Fortex Re's or HCI's reinsurance programs.
About HCI Group, Inc.
HCI Group is a diversified holding company engaged in insurance, reinsurance, real estate, claims services, and insurance technology. The HCI Group portfolio of companies includes multiple property and casualty underwriters, exchanges, and captive reinsurers as well as a claims management business, a commercial real estate investment company, and a leading insurance technology company Exzeo Group. HCI Group was founded in 2006.
HCI Group'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 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 https://www.hcigroup.com/. Exzeo’s common shares trade on the New York Stock Exchange under the ticker symbol “XZO.” For more information about Exzeo, visit https://www.exzeo.com/.
Forward-Looking Statements
This news release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "estimate," "expect," "intend," "plan," "confident," "prospects" 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. For example, catastrophe losses on the underlying reinsurance contracts may cause a loss of some or all of the value of the securities. 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 material adverse effects on the company's business, financial condition and results of operations. HCI Group, Inc. disclaims all obligations to update any forward-looking statements.
Company Contact:
Nat Otis Investor Relations HCI Group, Inc. Tel (813) 355-5341 notis@hcigroup.com
What did HCI Group (NYSE:HCI) announce on June 17, 2026 about tokenized reinsurance?
HCI Group announced a pilot of digital tokenized reinsurance securities mirroring returns from Fortex Re’s participations in HCI’s catastrophe excess-of-loss programs. According to HCI Group, the project aims to expand investor access to catastrophe risk through shorter durations and potential liquidity for qualified investors.
What are the Series A, B, and C token prices and estimated redemption values in HCI Group’s pilot (HCI)?
The pilot offers three SurancePlus-issued token series. According to HCI Group, Series A is priced at $11.10 with estimated redemption of $36.00, Series B at $22.12 with $49.00, and Series C at $30.01 with $35.20, assuming no catastrophe losses and year-end redemption.
Who can invest in HCI Group’s tokenized catastrophe reinsurance securities (HCI)?
The tokens are available with a $5,000 minimum investment. According to HCI Group, they may be purchased by qualified U.S. accredited investors under Rule 506(c) of Regulation D and by qualified non-U.S. investors under Regulation S of the U.S. Securities Act of 1933.
How do HCI Group’s tokenized reinsurance securities align with the reinsurance treaty cycle?
The digital securities are structured around the annual reinsurance treaty cycle. According to HCI Group, this structure creates a shorter investment horizon than many traditional insurance-linked securities, including catastrophe bonds, while mirroring performance of specific participations in HCI’s 2026-2027 catastrophe excess-of-loss programs.
Do HCI Group’s new tokenized securities affect its existing catastrophe reinsurance programs?
The tokens synthetically mirror Fortex Re’s participations but do not change underlying programs. According to HCI Group, the securities are issued by SurancePlus and have no impact on Fortex Re’s or HCI’s catastrophe excess-of-loss reinsurance programs or structures.
What are the key risks of investing in HCI Group’s tokenized catastrophe reinsurance securities (HCI)?
Token values depend on catastrophe loss experience. According to HCI Group, catastrophe losses on the underlying reinsurance contracts may cause a loss of some or all of the value of the securities, in addition to standard investment and holding period risks.
