Heritage Insurance Holdings Stock Earnings Reports

Heritage Insurance reported a strong Q3 2025: net income of $50.4M ($1.63 diluted) vs. $8.2M a year ago, and year-to-date net income of $129M ($4.17). Results reflect successful strategic initiatives — rate adequacy, disciplined underwriting, exposure management and improved claims/customer service — which have reduced loss ratios and built earnings power. Gross premiums earned rose modestly to $362M while net premiums earned declined slightly to $195.1M due to higher ceded premiums (including a $4M reinstatement for Hurricane Ian and expanded Northeast quota share). The net loss ratio improved dramatically to 38.3% (vs. 65.4% prior year), and the net combined ratio improved to 72.9% (vs. 100.6% prior year). Policies-in-force have contracted over the last four years as the company re-underwrote personal lines, but management has reopened most geographies and Q3 new business written jumped to $36M (up 166% YoY), with $17M of that from Florida. Management expects personal lines policy count to return to growth in 2026 and sees ample room to grow across 16 states and potentially new regions/products. Reinsurance relationships are stable and management is optimistic on reinsurance pricing improvement in 2026 due to reduced litigation and increased capacity. Capital position strengthened: total assets $2.4B, shareholders' equity $437.3M, book value per share $14.15 (up ~49% YTD), and combined statutory surplus $352.2M (up $93.4M YoY), supporting managed growth. The company restarted its share repurchase program in Q3 and the board authorized an additional $25M buyback capacity. Capital priorities: growth first, buybacks second, dividends thereafter.