NYSE$HRTG

Heritage Insurance Holdings · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Net income increased due to higher net premiums earned and net investment income.

Heritage Insurance Holdings reported a strong second quarter with net income increasing to $18.9 million, driven by growth in net premiums earned and higher net investment income. The company's strategic initiatives, including rate adequacy and selective underwriting, contributed to improved financial results. They are now positioned to selectively resume writing new business in Florida and the Northeast.

  • Net income reached $18.9 million or $0.61 per diluted share, up from $7.8 million or $0.30 per diluted share year-over-year.
  • Gross premiums earned increased by 6.1% to $350.1 million compared to the prior year quarter.
  • Net premiums earned grew by 7.6% to $190.3 million from $176.8 million in the prior year quarter.
  • The net combined ratio improved to 92.5%, a 2.6 point improvement from 95.1% in the prior year quarter.

Headline financials

Total Revenue

$204M

Previous: $185M+9.9%
EPS (adj)

$0.61

Previous: $0.32+90.6%
Capital Expenditures

-$2.69M

Previous: -$6.09M+55.8%
Free Cash Flow

$16.2M

Previous: $1.69M+858.9%
Net Income

$18.9M

Previous: $7.78M+142.6%
Operating Income

$27.6M

Previous: $16.4M+68.6%
Gross Profit

$51.6M

Previous: $33.4M+54.4%
Cash & Equivalents

$481M

Previous: $247M+94.6%
Total Assets

$2.6B

Previous: $2.36B+10.3%

Revenue & EPS history

Heritage Insurance · Revenue · Quarterly

$204M

Q2 2024+9.9%vs Q2 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Heritage plans to pursue a strategy of controlled growth anchored by continued risk management and stringent underwriting. Given improved rate adequacy across our regions, they will begin underwriting new policies in Florida and the Northeast as we pursue a controlled growth strategy designed to accelerate revenue growth.

Tailwinds

  • Improved rate adequacy across regions
  • Underwriting new policies in Florida and the Northeast
  • Controlled growth strategy to accelerate revenue growth
  • Leveraging existing sales and marketing teams in Florida and the Northeast
  • Expect a meaningful reduction in ceded premium ratio going forward

Headwinds

  • Inflation and other changes in economic conditions
  • Impact of macroeconomic and geopolitical conditions
  • Impact of new federal and state regulations
  • Continued and increased impact of abusive and unwarranted claims
  • Pricing competition and other initiatives by competitors

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 Q2 2024

Historical avgQ2 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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