Heritage Insurance Holdings ( (HRTG) ) has released its Q1 earnings. Here is a breakdown of the information Heritage Insurance Holdings presented to its investors.
Heritage Insurance Holdings, Inc. is a super-regional property and casualty insurance holding company that operates across multiple states, including the northeast, southeast, Hawaii, and California, with a focus on personal and commercial residential insurance.
In the first quarter of 2025, Heritage Insurance Holdings reported a significant increase in net income to $30.5 million, or $0.99 per diluted share, compared to $14.2 million, or $0.47 per diluted share, in the same period last year. This improvement was achieved despite the challenges posed by the California wildfires, which resulted in a net pre-tax impact of $31.8 million in losses and loss adjustment expenses.
Key financial highlights for the quarter include a 3.6% increase in gross premiums earned to $353.8 million and an 11.5% rise in net premiums earned to $200.0 million. The company also reported an improved net loss ratio of 49.7% and a net combined ratio of 84.5%, reflecting better underwriting performance. Return on average equity surged to 39.3% from 25% in the prior year quarter.
Looking ahead, Heritage Insurance Holdings is poised for a phase of managed growth, with plans to open new territories for personal lines business and collaborate with independent agents to expand production. The company remains committed to disciplined underwriting and rate adequacy, leveraging data-driven analytics to manage exposure effectively.
Management is optimistic about the future, citing positive legislative changes in Florida and a strategic focus on profitability and growth. Heritage aims to sustain its momentum by enhancing customer service and claims capabilities while exploring new opportunities for expansion.