Heritage Insurance Holdings (11H) AI Stock Analysis

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Heritage Insurance Holdings

(Frankfurt:11H)

Rating:―N/A

Action:N/A

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Positive Factors

Improved UnderwritingImproved underlying loss performance indicates that rate setting, risk selection, claims management and Florida’s legal environment are supporting underwriting quality. If sustained, these improvements can help offset catastrophe volatility and preserve margins across future policy periods.

Negative Factors

Catastrophe ExposureHeritage remains exposed to weather and catastrophe events that can quickly raise claims and compress underwriting margins. The recent increase demonstrates that even disciplined operations may produce volatile results when severe events or elevated noncatastrophe weather losses affect the portfolio.

Heritage Insurance Holdings (11H) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 996.24M
Dividend Yield: ―
Average Volume (3M): 150
Price to Earnings (P/E): 4.7
Beta (1Y): 0.44
Revenue Growth: -2.96%
EPS Growth: 41.86%
Country: Germany
Employees: 542
Sector: Financial
Sector Strength: 68
Industry: Insurance - Property & Casualty

Heritage Insurance Holdings Business Overview & Revenue Model

Company Description

Heritage Insurance Holdings, Inc. (HRTG) operates through its subsidiaries, specializing in providing comprehensive insurance products for both personal and commercial residential properties. For individual policyholders, the company offers personal...

Heritage Insurance Holdings Earnings Call Summary

Earnings Call Date:Oct 28, 2026(Q3-2026)|% Change Since:-6.29%|Next Earnings Date:Mar 15, 2027

Earnings Call SentimentPositive

The call was broadly positive. Heritage reported higher earnings, strong nine-month growth, substantial book value appreciation, favorable reserve development, reinsurance savings, improved expense performance, and a stronger capital position despite elevated catastrophe losses and pricing pressure in Florida. The main challenges were lower Florida commercial premiums, continued personal-lines pricing declines, higher weather losses, and higher general and administrative expenses.

Positive Updates

Earnings Growth Despite Higher Catastrophe Activity

Third-quarter net income was $51.1 million versus $50.4 million a year ago, while diluted EPS increased 5.5% to $1.72 from $1.63. This growth occurred despite $15.8 million of pretax catastrophe losses compared with none in the prior-year quarter.

Negative Updates

Higher Weather and Catastrophe Losses

Current accident-quarter weather and catastrophe losses totaled $33.6 million versus $13.8 million a year ago. The amount included $9.1 million from Hurricanes Lala and Lowell, $6.7 million from the September nor'easter, and $17.8 million of noncatastrophe weather losses. Net losses and loss adjustment expense increased to $81.4 million from $74.8 million, and the net loss ratio rose to 39.6% from 38.3%.

Company Guidance

Management continues to expect a return to personal lines policy count growth in 2027; Texas’s contribution will be “modest this year,” with a “positive over a period of time” outlook, potential to grow faster than California’s roughly 4 years to $40 million of premium, and growth expected to be “relatively minor” and “into the single digits.” Florida renewal pricing could see “another 10% to 18%” next year, while NBIC’s quota share cession may decline by “5% to 7%,” with “something comparable” expected; the ceded premium ratio is considered “a good run rate,” with “a good possibility” it could be down “a little further next year,” favorably affecting the second half of next year. Reinsurance pricing could be down “anywhere from a -5 to -7 next year,” “possibly” higher, and management hopes it will “stabilize a little around that -5% to -8%,” although the decrease is expected to be “not to the same extent as this year.”

Heritage Insurance Holdings Risk Analysis

Heritage Insurance Holdings disclosed 37 risk factors in its most recent earnings report. Heritage Insurance Holdings reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Heritage Insurance Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

DE:11H against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLDE	91Outperform	$3.09B	5.36	49.36%	0.27%	41.68%	-57.66%
UVE	87Outperform	$1.33B	5.74	38.46%	1.60%	5.51%	92.17%
AII	85Outperform	$551.41M	7.68	28.82%	―	―	―
HCI	83Outperform	$2.34B	6.89	30.32%	0.84%	20.15%	47.34%
ACIC	68Neutral	$485.19M	5.59	25.89%	―	-5.31%	1.68%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

* Financial Sector Average

Performance Comparison

DE:11H and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:11H	Heritage Insurance Holdings	30.12	4.52	17.66%
UVE	Universal Insurance	48.13	14.23	41.96%
ACIC	American Coastal Insurance Corporation	10.18	-1.06	-9.43%
HCI	Hci Group, Inc.	189.86	7.86	4.32%
AII	American Integrity Insurance Group, Inc.	29.41	5.92	25.20%
SLDE	Slide Insurance Holdings, Inc.	26.04	9.50	57.47%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Heritage Insurance Holdings AI Stock Analysis