NYSE$HRTG
Heritage Insurance Holdings · Q1 2025 earnings
Q1 2025 earnings · · After market close · Investor relations
Briefing
Heritage Insurance Holdings, Inc. reported a significant increase in net income and improved profitability ratios for the first quarter of 2025, driven by strategic initiatives and higher net premiums earned.
Heritage Insurance Holdings, Inc. reported a net income of $30.5 million for the first quarter of 2025, a substantial increase from $14.2 million in the prior year quarter. This improvement was primarily driven by an 11.5% increase in net premiums earned and better underwriting performance, as reflected in a 9.5 point improvement in the net combined ratio to 84.5%.
- Net income surged to $30.5 million ($0.99 per diluted share) from $14.2 million ($0.47 per diluted share) in the prior year quarter, marking a 114.2% increase.
- Net premiums earned grew by 11.5% to $200.0 million, contributing to the improved financial performance.
- The net combined ratio improved significantly by 9.5 points to 84.5%, indicating enhanced underwriting profitability.
- Return on average equity increased to 39.3% from 25.0% in the prior year quarter, demonstrating strong shareholder value creation.
Headline financials
Revenue & EPS history
Heritage Insurance · Revenue · Quarterly
$212M
Forward guidance
Heritage is entering a managed growth phase, re-opening territories for new personal lines business and expects to increase the pace of production growth, while maintaining disciplined underwriting and strategic profitability initiatives.
Tailwinds
- Opening territories for new personal lines business, with 75% of production capacity now open and the balance expected by year-end 2025.
- Anticipated increase in the pace of production growth due to territory expansion.
- Positive impact from Florida legislature actions curtailing claims abuse, improving outlook on the Florida market.
- Continued focus on generating underwriting profit through rate adequacy and selective underwriting.
- Strategic allocation of capital to maximize long-term returns and maintain a balanced, diversified portfolio.
Headwinds
- The company does not anticipate a need to sell investments in advance of maturity, but unrealized losses are expected to roll off the portfolio as investments mature.
- The effective tax rate can fluctuate throughout the year as estimates used in quarterly tax provisions are updated.
- The company will continue to evaluate dividend distribution and stock repurchases on a quarterly basis, with no shares repurchased during the quarter.
- Exposure management trends over the last several years for personal lines business led to a slight decrease in gross premiums written, though this is expected to reverse.
- The company continues to operate in catastrophe-exposed geographies, which inherently carries risk of significant losses.
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 2025
+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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