SCHEDULE: Paresh Patel Discloses 6.86% Stake in Exzeo Group

Paresh Patel, a key individual, has disclosed a 6.86% beneficial ownership stake in Exzeo Group, Inc., including common stock and exercisable options.

Summary

• Paresh Patel beneficially owns 6,572,013 shares of Exzeo Group, Inc. common stock.
• This ownership represents 6.86% of the company's outstanding common stock.
• The stake comprises 1,572,013 shares of common stock and 5,000,000 shares underlying currently exercisable options.
• The percentage is calculated based on 90,771,289 shares outstanding as of December 11, 2025, plus the 5,000,000 exercisable options.
• Patel holds sole voting and dispositive power over all 6,572,013 shares.
• The securities were not acquired or held for the purpose of changing or influencing the control of the issuer.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this filing positively as it discloses a significant insider ownership stake, which typically indicates strong confidence from a key individual in the company's future performance, despite a minor restriction on option exercise.

Positives

• A significant beneficial ownership stake by an individual, Paresh Patel, signals confidence in Exzeo Group, Inc.'s future.
• The inclusion of 5,000,000 shares from currently exercisable options indicates a potential future increase in direct common stock holdings.

Negatives

• Paresh Patel has an agreement with HCI Group, Inc. restricting the exercise of options if it would cause HCI Group, Inc. to own less than 80.1% of Exzeo's outstanding shares, potentially limiting Patel's flexibility.

Risks

• The agreement with HCI Group, Inc. imposes a restriction on Paresh Patel's ability to fully exercise his options, which could impact his liquidity or control over his full potential stake if HCI Group's ownership threshold is approached.

Future Outlook

Paresh Patel's ability to fully exercise his 5,000,000 options is subject to an agreement with HCI Group, Inc., which stipulates that such exercise must not cause HCI Group, Inc. to own less than 80.1% of Exzeo's outstanding shares. This condition introduces a potential future constraint on the full realization of his option-based ownership.

Management Comments

• I certify that, to the best of my knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect.

Industry Context

StockSavvy.ai notes that significant insider ownership, such as the 6.86% stake disclosed by Paresh Patel, often signals strong confidence from key individuals in the company's long-term prospects. This can be viewed positively by the market, suggesting alignment of interests between management and shareholders. The restriction on option exercise tied to HCI Group's majority stake highlights a common control mechanism in companies with a dominant shareholder, ensuring the parent entity maintains its strategic position.

Comparison to Industry Standards

• StockSavvy.ai observes that an insider stake of 6.86% is a substantial holding, often exceeding typical executive ownership percentages in many publicly traded companies. For instance, in the technology or insurance sectors (where Exzeo/HCI might operate), executive ownership often ranges from 1-5% for non-founder executives.
• The agreement restricting option exercise to maintain HCI Group's 80.1% ownership is a specific control mechanism, common in situations where a parent company (HCI Group) maintains a supermajority stake in a subsidiary (Exzeo Group) to ensure strategic control and potentially facilitate certain corporate actions that require high shareholder approval thresholds. This is comparable to control agreements seen in spin-offs or controlled subsidiaries where the parent seeks to retain significant influence.

Corporate Governance

Related Party Transactions

• The agreement between Paresh Patel and HCI Group, Inc. regarding the exercise of options can be considered a related party arrangement, as HCI Group, Inc. is a significant shareholder and likely a controlling entity of Exzeo Group, Inc., and Paresh Patel is a key individual.

Stakeholder Impact

• Shareholders: The disclosure of a significant insider stake by Paresh Patel may instill confidence among other shareholders, signaling strong alignment of interests and belief in the company's value.
• Paresh Patel: His ability to fully realize his option-based ownership is constrained by the agreement with HCI Group, Inc., which could impact his personal financial planning and control over his full potential stake.
• HCI Group, Inc.: The agreement ensures HCI Group, Inc. maintains its supermajority ownership (above 80.1%) in Exzeo Group, Inc., preserving its control and strategic flexibility.

Next Steps

• Paresh Patel may exercise his 5,000,000 options in the future, subject to the agreement with HCI Group, Inc.

Key Dates

Recommendation

The disclosure of a significant insider stake by Paresh Patel is a positive signal, indicating confidence from a key individual. However, this is a routine ownership disclosure and does not provide new operational or financial performance data to warrant a 'buy' or 'sell' recommendation. The restriction on option exercise is a minor negative for the individual but not a material concern for the company's core operations. Therefore, a 'hold' recommendation is appropriate, awaiting further operational updates or financial results.

Keywords

Exzeo Group, Paresh Patel, Schedule 13G, Beneficial Ownership, Common Stock, Options, Insider Ownership, SEC Filing, HCI Group