NYSE$HRTG

Heritage Insurance Holdings · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Heritage Insurance reported a decline in net income for Q4 2024 due to increased catastrophe losses, despite strong premium growth.

Heritage Insurance saw an increase in gross premiums written and earned in Q4 2024, driven by growth in commercial residential and surplus lines business. However, net income declined due to significant catastrophe losses from Hurricane Milton. The company continued its strategic exposure management, reducing policies in force while increasing premiums. Loss and expense ratios rose, leading to a higher combined ratio.

  • Total revenue grew 12.5% year-over-year to $210.3 million.
  • Net income declined to $20.3 million from $30.9 million in Q4 2023 due to hurricane-related losses.
  • Gross premiums written increased 3.7% to $338.7 million.
  • Combined ratio rose to 89.7%, up from 84.9% in Q4 2023.

Headline financials

Total Revenue

$210M

Previous: $187M+12.5%
EPS (adj)

$0.66

Previous: $1.15-42.6%
Gross premiums written growth

0.0%

Previous: 0.0%
Ceded premium ratio

44.7%

Previous: 47.7%-6.3%
Net loss ratio

54.7%

Previous: 51.0%+7.3%
Net expense ratio

35.0%

Previous: 33.9%+3.2%
Net combined ratio

89.7%

Previous: 84.9%+5.7%
Net premiums earned growth

0.0%

No prior period
Return on average equity

28.5%

No prior period
Premiums in force

$1.43B

No prior period
Book value per share

$9.50

No prior period
Net Income

$20.3M

Previous: $30.9M-34.4%
Operating Income

$31.5M

Previous: $36.2M-12.9%

Revenue & EPS history

Heritage Insurance · Revenue · Quarterly

$210M

Q4 2024+12.5%vs Q4 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Heritage expects continued premium growth in 2025 while maintaining underwriting discipline. Legislative reforms and exposure management are anticipated to improve profitability, though catastrophic weather events remain a risk.

Tailwinds

  • Continued strategic expansion into profitable geographies.
  • Legislative actions in Florida expected to reduce claims abuses.
  • Reinsurance pricing stabilization supports financial flexibility.
  • Strong growth in commercial and surplus lines business.
  • Effective risk management strategies contributing to premium increases.

Headwinds

  • Increased net loss ratio due to catastrophe-related losses.
  • Higher expense ratio impacting profitability.
  • Market volatility in reinsurance pricing remains a challenge.
  • Policy count declined as exposure management was prioritized.
  • Potential for further extreme weather events impacting future quarters.

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 Q4 2024

Historical avgQ4 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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