NYSE$HRTG
Heritage Insurance Holdings · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
Reported a net loss due to current accident year weather losses, including Hurricane Ian, and a valuation allowance on deferred tax assets.
Heritage Insurance Holdings, Inc. reported a net loss of $48.2 million for the third quarter of 2022, driven by weather-related losses and a valuation allowance. Gross premiums written increased, but net earned premiums decreased. The company is focused on managing exposure and achieving rate adequacy.
- Net loss of $48.2 million, or $1.83 per diluted share, compared to a net loss of $16.4 million, or $0.59 per diluted share, in the prior year quarter.
- Gross premiums written increased by 11.1% year-over-year to $304.5 million.
- Net earned premiums decreased by 1.7% year-over-year to $159.7 million.
- Net current accident year weather losses increased by 24.2% year-over-year to $63.8 million, including $40 million from Hurricane Ian.
Headline financials
Revenue & EPS history
Heritage Insurance · Revenue · Quarterly
$165M
Forward guidance
Heritage Insurance Holdings is focused on strategic initiatives to achieve consistent long-term quarterly earnings and drive shareholder value. The company aims to generate underwriting profit through rate adequacy and selective underwriting, optimize capital allocation, and improve portfolio diversity.
Tailwinds
- Premiums-in-force are up 5.8% from the prior year quarter, driven by higher rates.
- Average premium per policy throughout the book increased 13.6% over the prior year quarter.
- Continued offering of Florida commercial lines product with 18.2% growth in annual premium.
- Diversification efforts led to a premium in-force growth of 14.1% in other States.
- TIV in other states improved to 74.8%, compared to 71.3% as of the third quarter of 2021.
Headwinds
- Reduction of policy count for Florida personal lines product is a key focus and will continue if meaningful legislation to reduce abusive claims practices does not occur.
- Policy count for Florida personal lines business intentionally declined by 18.8% as compared to the prior year period.
- Given that Heritage’s stock is trading below tangible book value and the loss in the quarter, Heritage’s Board of Directors has decided to temporarily suspend the quarterly dividend to shareholders.
- Net earned premiums are down 1.7% reflecting a 12.4% increase in contract year reinsurance cost with higher ceded premium outpacing the increase in gross earned premiums for the quarter.
- Book value per share decreased to $4.54 at September 30, 2022, down 64.6% from fourth quarter 2021.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q3 2022
+3.3%
Avg return
Earnings day
+7.4%
Avg return
5 days after
+9.5%
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% | -21.0% | |
| 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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