NYSE$HRTG
Heritage Insurance Holdings · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
Heritage Insurance experienced a net loss but showed improvement compared to the prior year, driven by increased premiums, investment income, and reduced losses incurred.
Heritage Insurance Holdings reported a net loss of $7.4 million for Q3 2023, an improvement compared to the $48.2 million loss in the same quarter of the previous year. This improvement was primarily driven by an increase in net premiums earned, higher net investment income, and lower net losses incurred. The company's strategic initiatives, including rate increases and exposure management, are showing positive results despite catastrophic weather events.
- Net loss improved to $7.4 million, compared to a net loss of $48.2 million in the prior year quarter.
- Gross premiums earned increased by 9.4% year-over-year, reaching $337.0 million.
- The net loss ratio improved significantly to 74.4%, a 23.2 point decrease from the prior year quarter.
- Florida personal lines policies-in-force intentionally declined by 16.0% compared to the prior year period as part of exposure management efforts.
Headline financials
Revenue & EPS history
Heritage Insurance · Revenue · Quarterly
$186M
Forward guidance
The company did not provide specific forward guidance but emphasized strategic initiatives aimed at consistent long-term quarterly earnings and shareholder value.
Tailwinds
- Generate underwriting profit through rate adequacy and more selective underwriting.
- Continued significant rating actions throughout the book of business resulting in an increase in average premium per policy.
- Allocate capital to products and geographies that maximize long-term returns.
- Maintain a balanced and diversified portfolio.
- Provide coverage suitable to the market and return targets.
Headwinds
- Challenges in the property insurance space, including social and actual inflation.
- Increased frequency and severity of catastrophic events.
- Rising reinsurance costs.
- Temporary decline in new business due to strategic tightening of underwriting criteria.
- Suspension of the quarterly dividend to shareholders.
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 Q3 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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