Key Highlights:

  • Total Revenue came in at USD 214.2 million, up 3.0% year over year driven by higher net premiums earned.
  • Diluted EPS totaled USD 2.05, representing a 32.3% increase from USD 1.55 in the prior year quarter.
  • Net Income stood at USD 61.7 million for the second quarter, rising 28.5% compared to USD 48.0 million.
  • Net Loss Ratio was reported at 30.4%, an 8.1 percentage point improvement reflecting favorable prior year reserve development and lower.

Heritage Insurance Holdings, Inc. (NYSE:HRTG) is scheduled to report third quarter results on Wednesday, Oct. 28, after the market close. Consensus estimates call for adjusted earnings per share of USD 0.91 on revenue of USD 217.34 million, against a market capitalization of USD 1.10 billion.

In the most recently reported quarter, Total Revenue came in at USD 214.2 million, up 3.0% year over year driven by higher net premiums earned and increased investment income. Diluted EPS totaled USD 2.05, representing a 32.3% increase from USD 1.55 in the prior year quarter.

Combined Ratio and Other Business Trends

Combined Ratio came in at 64.9%, improving from 72.9% in the prior year quarter. Gross Premiums Written totaled USD 388.4 million, a 5.5% decrease primarily due to reduced Florida commercial residential business. Net Premiums Earned stood at USD 201.1 million, increasing 2.4% resulting from lower ceded premiums and optimized reinsurance. Book Value Per Share was reported at USD 19.09, rising 54.5% year over year and 16.5% from Dec. 31, 2025.

Prior Year Reserve Development and Capital Position

Prior Year Reserve Development came in at USD 23.4 million favorable for the quarter, compared to USD 2.3 million in the prior year period, reflecting stable frequency and severity trends. Annualized Return on Average Equity totaled 45.4% during the quarter, compared with 53.9% in the prior year period. Net Investment Income stood at USD 10.6 million, up 17.3% year over year due to growth in invested assets. Operating Cash Flow was reported at USD 166.5 million for the second quarter, a 277% increase compared to the prior year quarter. Share Repurchases came in at USD 24.6 million year-to-date, representing approximately 1 million shares or 3% of shares outstanding.

Reinsurance Cost Savings and Additional Detail

Reinsurance Cost Savings came in at USD 63.2 million on an annualized basis, achieved through the successful placement of the 2026 to 2027 catastrophe excess of loss program. Debt-to-Capital Ratio totaled 11% at quarter end, reflecting improved capital generation and debt reductions. Personal Residential Premiums in Force stood at USD 1.16 billion, representing 1.2% year-over-year growth. Commercial Residential Premiums in Force was reported at USD 236.7 million, a 12.7% decline due to competitive pricing pressure. Net Weather Losses came in at USD 11.5 million for the current accident quarter, down from USD 12.5 million in the prior year period.

Figures to Follow in the Release

Investors can watch third quarter results against the figures management has already put on record, including the following: Total Revenue came in at USD 214.2 million, up 3.0% year over year driven by higher net premiums earned and increased investment income.