NYSE$HRTG
Heritage Insurance Holdings · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
Reported a net income for the first quarter of 2023, reversing a net loss from the prior year quarter due to higher net earned premium and lower weather losses.
Heritage Insurance Holdings reported a net income of $14.0 million for Q1 2023, a significant improvement from the net loss of $30.8 million in Q1 2022. This turnaround was primarily driven by higher net earned premium and significantly lower weather losses. Premiums-in-force increased by 10.9% year-over-year, while the net combined ratio improved by 35.0 points.
- Net income was $14.0 million, or $0.55 per diluted share, compared to a net loss of $30.8 million, or ($1.15) per diluted share, in the prior year quarter.
- Premiums-in-force exceeded $1.3 billion, up 10.9% year-over-year, driven by rate increases, while policy count decreased by 9.0%.
- Gross premiums written increased by 9.6% to $310.3 million, and gross premiums earned increased by 10.3% to $317.0 million.
- The net combined ratio improved to 94.5%, a decrease of 35.0 points from 129.5% in the first quarter of 2022, driven by lower net loss and expense ratios.
Headline financials
Revenue & EPS history
Heritage Insurance · Revenue · Quarterly
$177M
Forward guidance
Heritage anticipates that the impact of rate increases and underwriting changes made in 2022 and those made in 2023 will continue to have a favorable impact on its financial position throughout the year. The company remains committed to allocating capital toward products and geographies that maximize long-term returns and is focused on generating an underwriting profit through rate adequacy and more selective underwriting.
Tailwinds
- Rate increases and underwriting changes are expected to positively impact financial results throughout the year.
- Capital will be allocated to products and geographies that maximize long-term returns.
- The company is focused on generating an underwriting profit through rate adequacy and more selective underwriting.
- Selective growth of the commercial residential business is expected to continue.
- The company is optimistic about achieving consistent long-term quarterly earnings and sustainable shareholder value through strategic profitability initiatives.
Headwinds
- Higher reinsurance costs are being mitigated by making appropriate rate adjustments and managing exposure.
- Policy count for Florida personal lines business intentionally declined by 16.8% as compared to the prior year period.
- The Board of Directors has decided to continue its temporary suspension of the quarterly dividend to shareholders.
- The decrease from first quarter 2022 is attributable to underwriting losses during 2022, coupled with large unrealized losses on the Company’s fixed income securities portfolio, and a non-cash goodwill impairment charge of $90.8 million, net of taxes, made in the second quarter of 2022.
- The Company undertakes no obligations to update, change or revise any forward-looking statement, whether as a result of new information, additional or subsequent developments or otherwise.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 19 quarterly earnings reports · overlaid with Q1 2023
+3.3%
Avg return
Earnings day
+7.4%
Avg return
5 days after
+10.3%
Avg return
30 days after
66%
35 / 53 earnings
Positive
+37.8%
Q2 2022
Best reaction
-21.9%
Q1 2024
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -20.0% | -21.6% | — | |
| Q4 2025 | -0.1% | +5.0% | -1.0% | |
| Q3 2025 | +12.7% | +19.3% | +8.0% | |
| Q1 2025 | +23.1% | +27.0% | +26.3% | |
| Q4 2024 | +1.0% | +7.7% | +36.6% | |
| Q3 2024 | +6.6% | +13.4% | +11.2% | |
| Q2 2024 | +2.1% | +42.5% | +124.4% | |
| Q1 2024 | -21.9% | -19.5% | -16.7% | |
| Q4 2023 | +28.2% | +17.6% | +41.8% | |
| Q3 2023 | +13.5% | +24.5% | +43.9% | |
| Q2 2023 | +8.0% | +16.2% | -0.2% | |
| Q1 2023 | +10.6% | +34.4% | +41.2% | |
| Q4 2022 | +36.8% | +43.2% | +15.8% | |
| Q3 2022 | -20.0% | -15.4% | -8.0% | |
| Q2 2022 | +37.8% | +24.4% | +6.7% | |
| Q1 2022 | -9.5% | -22.1% | -11.2% | |
| Q4 2021 | +16.9% | +14.7% | +17.5% | |
| Q3 2021 | -3.7% | -6.5% | -5.6% | |
| Q2 2021 | +3.4% | +6.9% | -4.7% | |
| Q1 2021 | -4.4% | +0.3% | -7.9% | |
| Q4 2020 | +1.7% | +10.4% | +9.6% | |
| Q3 2020 | +3.1% | -4.0% | +9.0% | |
| Q2 2020 | +7.2% | +14.2% | +10.0% | |
| Q1 2020 | +3.4% | +11.0% | +19.2% | |
| Q4 2019 | -6.0% | -1.1% | -15.2% | |
| Q3 2019 | +12.0% | +5.8% | -0.2% | |
| Q2 2019 | +3.5% | +2.5% | -2.5% | |
| Q1 2019 | +4.2% | +9.7% | +15.1% | |
| Q4 2018 | +1.3% | -7.6% | -3.0% | |
| Q3 2018 | +6.7% | +13.8% | +13.9% | |
| Q2 2018 | -9.6% | -9.7% | -11.8% | |
| Q1 2018 | +5.9% | +12.2% | +10.7% | |
| Q4 2017 | +2.9% | +2.1% | -6.3% | |
| Q3 2017 | +2.6% | +5.2% | +12.2% | |
| Q2 2017 | +6.1% | -8.1% | -24.4% | |
| Q1 2017 | +7.9% | +3.5% | +7.3% | |
| Q4 2016 | -8.9% | -12.0% | -19.4% | |
| Q3 2016 | +11.6% | +19.8% | +34.7% | |
| Q2 2016 | +13.8% | +10.6% | +13.8% | |
| Q1 2016 | -2.6% | — | — | |
| Q4 2015 | -11.7% | — | — | |
| Q3 2015 | +4.9% | — | — | |
| Q2 2015 | -13.4% | — | — | |
| Q1 2014 | -0.9% | — | — | |
| Q1 2015 | +1.4% | — | — | |
| Q4 2012 | -1.1% | — | — | |
| Q3 2013 | -1.1% | — | — | |
| Q1 2013 | -1.1% | — | — | |
| Q4 2014 | +0.8% | — | — | |
| Q3 2014 | +5.4% | — | — | |
| Q2 2013 | +2.1% | — | — | |
| Q4 2013 | +2.1% | — | — | |
| Q2 2014 | -0.2% | — | — |
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