NYSE$HRTG

Heritage Insurance Holdings · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Net income increased slightly driven by higher net premiums earned and net investment income, offset by increased operating expenses.

Heritage Insurance Holdings reported a slight increase in net income for Q1 2024, driven by growth in net premiums earned and net investment income, which was partially offset by higher operating expenses. The company's strategic initiatives, including rate adequacy and selective underwriting, contributed to a combined ratio of 94.0%.

  • Net income increased to $14.2 million, or $0.47 per diluted share.
  • Net premiums earned increased by 8.1% to $179.4 million.
  • The net combined ratio improved slightly to 94.0%.
  • Premiums-in-force grew by 6.2% to $1.4 billion.

Headline financials

Total Revenue

$191M

Previous: $177M+8.1%
EPS

$0.47

Previous: $0.55-14.5%
Gross premiums written growth

356684000.0%

No prior period
Ceded premium ratio

47.4%

No prior period
Net loss ratio

56.9%

No prior period
Net expense ratio

37.1%

No prior period
Net combined ratio

94.0%

No prior period
Net premiums earned growth

179426000.0%

No prior period
Return on average equity

25.0%

No prior period
Premiums in force

$1.39B

No prior period
Book value per share

$7.67

No prior period
Capital Expenditures

-$229K

Previous: -$37K-518.9%
Free Cash Flow

$14M

Previous: $14M+0.2%
Net Income

$14.2M

Previous: $14M+1.5%
Operating Income

$22.7M

Previous: $20.1M+13.0%
Gross Profit

$34.3M

Previous: $24.7M+39.0%
Cash & Equivalents

$386M

Previous: $330M+17.0%
Total Assets

$2.13B

Previous: $2.16B-1.3%

Revenue & EPS history

Heritage Insurance · Revenue · Quarterly

$191M

Q1 2024+8.1%vs Q1 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

The company focuses on profitability through rating action, selective underwriting and selective growth, capital allocation, exposure management and strategic reduction of policy count in certain geographies.

Tailwinds

  • Focus on profitability through rating action
  • Selective underwriting and selective growth
  • Capital allocation
  • Exposure management
  • Strategic reduction of policy count in certain geographies

Headwinds

  • Inflation and other changes in economic conditions
  • Lack of effectiveness of exclusions and loss limitation methods
  • Uncertainty of our models and our reliance on such models as a tool to evaluate risk
  • Impact of macroeconomic and geopolitical conditions
  • Impact of new federal and state regulations

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 2024

Historical avgQ1 2024

+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

Earnings price reactions
QuarterReport dateReaction (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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