NYSE$HRTG

Heritage Insurance Holdings · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Heritage reported improved financial results in Q4 2023, driven by increased net premiums earned, higher net investment income, and lower net losses incurred.

Heritage Insurance Holdings, Inc. reported a net income of $30.9 million, or $1.15 per diluted share, for the fourth quarter of 2023, compared to a net income of $12.5 million, or $0.48 per diluted share, in the prior year quarter. The improvement was primarily driven by an increase in net premiums earned, higher net investment income, and lower net losses incurred. Gross premiums earned increased by 7.0% year-over-year, and the net combined ratio improved by 11.2 points to 84.9%.

  • Net income increased to $30.9 million, or $1.15 per diluted share, up from $12.5 million, or $0.48 per diluted share, in the prior year quarter.
  • Gross premiums earned rose by 7.0% to $339.6 million compared to $317.3 million in the prior year quarter.
  • Net premiums earned increased by 6.9% to $177.7 million, up from $166.2 million in the prior year quarter.
  • The net combined ratio improved by 11.2 points to 84.9%, driven by a lower net loss ratio.

Headline financials

Total Revenue

$187M

Previous: $175M+7.1%
EPS (adj)

$1.15

Previous: $0.48+139.6%
Gross premiums written growth

0.0%

No prior period
Ceded premium ratio

47.7%

No prior period
Net loss ratio

51.0%

No prior period
Net expense ratio

33.9%

No prior period
Net combined ratio

84.9%

No prior period
Capital Expenditures

$1.45M

Previous: -$3.24M+144.6%
Net Income

$30.9M

Previous: $12.5M+147.5%
Operating Income

$36.2M

Previous: $14.9M+142.6%
Gross Profit

$149M

Previous: $115M+29.8%
Stock-Based Comp

-$764K

Previous: $501K-252.5%

Revenue & EPS history

Heritage Insurance · Revenue · Quarterly

$187M

Q4 2023+7.1%vs Q4 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

Heritage Insurance Holdings looks forward to maintaining momentum across its sixteen-state platform, driven by its solid foundation, strategic clarity, and the dedication of its experienced workforce. The company is well-positioned for selective growth going forward.

Tailwinds

  • Strategic focus on achieving rate adequacy across the portfolio.
  • Driving superior underwriting results.
  • Building a better quality and more diversified book of business.
  • Effectively managing reinsurance costs and driving lower claims related losses.
  • Maintaining enhanced and long-term relationships with reinsurers.

Headwinds

  • Inflation and changes in economic conditions.
  • Potential ineffectiveness of exclusions and loss limitation methods.
  • Uncertainty of models used 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 20 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

+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

Earnings price reactions
QuarterReport dateReaction (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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro