TAMPA,
Fla., Nov. 2, 2023 /PRNewswire/ -- Heritage
Insurance Holdings, Inc. (NYSE: HRTG) ("Heritage" or the
"Company"), a super-regional property and casualty insurance
holding company, today reported third quarter of 2023 financial
results.
Third Quarter 2023 Result Highlights
- Third quarter net loss of $7.4
million or ($0.28) per diluted
share improved from net loss of $48.2
million or ($1.83) per diluted
share in the prior year quarter, primarily driven by an increase in
net premiums earned, higher net investment income, and lower net
losses incurred.
- Gross premiums earned of $337.0
million, up 9.4% from $308.0
million in the prior year quarter.
- Net loss ratio of 74.4%, an improvement of 23.2 points from
97.6% in the prior year quarter.
- Net expense ratio of 36.4%, an increase of 0.7 points from
35.7% in the prior year quarter.
- Net combined ratio of 110.8%, an improvement of 22.5 points
from 133.3% in the prior year quarter.
- G&A expense rate increased slightly, predominantly due to
investment in systems to drive future efficiencies and speed to
market.
- Continued successful exposure management with Florida personal lines policies-in-force
intentionally declining by 16.0%, as compared to the prior year
period.
"Our policyholders, agents, and employees were affected by two
catastrophic events this quarter. In early August, wildfires on the
island of Maui caused devastating
losses, followed by Hurricane Idalia in the Florida panhandle at the end of the month,"
said Heritage CEO Ernie Garateix.
"Our policyholders and employees affected by these events remain in
our thoughts and we are steadfast in our commitment to fair and
timely claims handling," Garateix emphasized.
"Despite challenges in the property insurance space, including
social and actual inflation, increased frequency and severity of
catastrophic events, and rising reinsurance costs, I'm encouraged
to report a substantial improvement in our financial position and
strides toward sustained profitability. Our management team
continues to drive exposure management, strengthen underwriting
criteria, and work toward rate adequacy throughout our book of
business. These strategic efforts are showing promising results as
we have seen positive outcomes despite the catastrophe weather
experienced during the quarter. Our average premium across the book
of business continues to rise meaningfully, reflecting the ongoing
focus on profitability." Garateix concluded, "We are in the
business of catastrophe risk, and our results this quarter were
impacted accordingly. Nonetheless, we maintain our focus on
appropriate risk management and high-quality service for our
customers. Weather events underscore the importance of our role,
and we are prepared to support our clients and communities as we
all work toward recovery."
Strategic Profitability Initiatives
The following provides an update to the Company's strategic
initiatives that are expected to enable Heritage to achieve
consistent long-term quarterly earnings and drive shareholder
value. The Supplemental Information table included in this earnings
release demonstrates progress made on these initiatives compared to
the third quarter 2022.
- Generate underwriting profit though rate adequacy and more
selective underwriting.
- Continued significant rating actions throughout the book of
business resulting in an increase in average premium per policy
throughout the book of 25.5% compared to the third quarter of 2022
and 5.1% from the second quarter of 2023.
- Premiums-in-force of $1.3 billion
were up 8.4% from the prior year quarter, while policy count was
down 13.6%, driven by continued underwriting efforts to manage
exposure for personal residential business while selectively
growing the Company's commercial residential business. Continued
strategic tightening of underwriting criteria led to a temporary
decline in new business, particularly in over-concentrated or
underpriced markets. This proactive measure is pivotal for
long-term portfolio health and risk management, especially in
geographies with higher catastrophe risk.
- Allocate capital to products and geographies that maximize
long-term returns.
- Strategically increased Florida commercial residential
premiums-in-force by 75.3% over the prior year quarter while total
insured value ("TIV") for that product increased 30.9% and policies
in force increased by only 9.5%.
- Reduction of policy count for the Florida personal lines product to continue
goal of improving the quality of the book of business. Policies in
force for Florida personal lines
business intentionally declined by 16.0% as compared to the prior
year period and 4.2% from the second quarter of 2023.
- This disciplined underwriting approach resulted in a policy
count reduction from the prior year quarter of 12.6% in other
states with only a 1.1% decrease in premiums-in-force.
- Maintain a balanced and diversified portfolio.
- Even with the substantial increase in commercial residential
business, no state represents over 26.5% of the
Company's TIV.
- The top four states grew TIV by an average of 0.6% while the
smallest five states grew TIV by 24.5%.
- As a result of diversification efforts, the top five personal
lines states represented 71.7% of all TIV at third quarter
2023 compared to 72.2% of all TIV at third quarter 2022.
- Florida's TIV increased
by 1.8%, a result of intentional growth in the Company's commercial
residential product offerings and the adoption of inflation guard,
which ensures accurate replacement cost values across all business
sectors. This was partly offset by a reduction in Florida personal lines policies compared to
the previous year's quarter. TIV outside of Florida accounted for 73.5% of the entire
portfolio, a slight decrease from 74.8% in the third quarter of
2022. This change was driven by ongoing exposure management in
personal lines business across the portfolio and selective
expansion of Florida's commercial
lines business.
- Provide coverage suitable to the market and return
targets.
- Selective use of Excess & Surplus lines ("E&S")
premium-in-force in California,
Florida, and South Carolina.
- Continue to evaluate other strategic states for E&S
products.
Capital Management
Heritage's Board of Directors has decided to continue its
suspension of the quarterly dividend to shareholders. The Board of
Directors will continue to evaluate dividend distribution and stock
repurchases on a quarterly basis. No shares of common stock were
repurchased during the quarter.
Results of Operations
The following table summarizes results of operations for the
three and nine months ended September 30,
2023 and 2022 (amounts in thousands, except percentages and
per share amounts):
|
|
Three Months Ended
September 30,
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2023
|
|
|
2022
|
|
|
Change
|
|
|
|
2023
|
|
|
2022
|
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenue
|
$
|
|
186,300
|
|
$
|
|
165,493
|
|
|
|
12.6
|
|
%
|
$
|
|
548,532
|
|
$
|
|
487,872
|
|
|
|
12.4
|
|
%
|
Net (loss)
income
|
$
|
|
(7,424)
|
|
$
|
|
(48,240)
|
|
|
|
(84.6)
|
|
%
|
$
|
|
14,363
|
|
$
|
|
(166,864)
|
|
|
|
(108.6)
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per
share
|
$
|
|
(0.28)
|
|
$
|
|
(1.83)
|
|
|
|
(84.7)
|
|
%
|
$
|
|
0.55
|
|
$
|
|
(6.29)
|
|
|
|
(108.7)
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per
share
|
$
|
|
5.65
|
|
$
|
|
4.54
|
|
|
|
24.4
|
|
%
|
$
|
|
5.65
|
|
$
|
|
4.54
|
|
|
|
24.4
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
equity
|
|
|
(19.0)
|
|
%
|
|
(129.4)
|
|
%
|
|
110.4
|
|
pts
|
|
|
13.6
|
|
%
|
|
(96.6)
|
|
%
|
|
110.2
|
|
pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting
summary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums
written
|
$
|
|
309,510
|
|
$
|
|
304,501
|
|
|
|
1.6
|
|
%
|
$
|
|
1,016,378
|
|
$
|
|
952,981
|
|
|
|
6.7
|
|
%
|
Gross premiums
earned
|
$
|
|
336,976
|
|
$
|
|
307,959
|
|
|
|
9.4
|
|
%
|
$
|
|
984,012
|
|
$
|
|
891,539
|
|
|
|
10.4
|
|
%
|
Ceded
premiums
|
$
|
|
(160,335)
|
|
$
|
|
(148,266)
|
|
|
|
8.1
|
|
%
|
$
|
|
(464,539)
|
|
$
|
|
(420,645)
|
|
|
|
10.4
|
|
%
|
Net premiums
earned
|
$
|
|
176,641
|
|
$
|
|
159,693
|
|
|
|
10.6
|
|
%
|
$
|
|
519,473
|
|
$
|
|
470,894
|
|
|
|
10.3
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ceded premium
ratio
|
|
|
47.6
|
|
%
|
|
48.1
|
|
%
|
|
(0.5)
|
|
pts
|
|
|
47.2
|
|
%
|
|
47.2
|
|
%
|
|
0.0
|
|
pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Net Premiums
Earned:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss ratio
|
|
|
74.4
|
|
%
|
|
97.6
|
|
%
|
|
(23.2)
|
|
pts
|
|
|
64.6
|
|
%
|
|
84.4
|
|
%
|
|
(19.8)
|
|
pts
|
Expense
ratio
|
|
|
36.4
|
|
%
|
|
35.7
|
|
%
|
|
0.7
|
|
pts
|
|
|
35.7
|
|
%
|
|
36.3
|
|
%
|
|
(0.6)
|
|
pts
|
Combined
ratio
|
|
|
110.8
|
|
%
|
|
133.3
|
|
%
|
|
(22.5)
|
|
pts
|
|
|
100.2
|
|
%
|
|
120.7
|
|
%
|
|
(20.5)
|
|
pts
|
Note: Percentages
and sums in the table may not recalculate precisely due to
rounding.
|
|
Ratios
Ceded premium ratio represents ceded premiums as a
percentage of gross premiums earned.
Net loss ratio represents net losses and loss adjustment
expenses ("LAE") as a percentage of net premiums earned.
Net expense ratio represents policy acquisition costs
("PAC") and general and administrative ("G&A") expenses as a
percentage of net premiums earned. Ceding commission income is
reported as a reduction of PAC and G&A expenses.
Net combined ratio represents the sum of net losses and
LAE, PAC and G&A expenses as a percentage of net premiums
earned. The net combined ratio is a key measure of underwriting
performance traditionally used in the property and casualty
industry. A combined ratio under 100% generally reflects profitable
underwriting results.
Third Quarter 2023 Results
- Third quarter net loss of $7.4
million or $(0.28) per diluted
share, an improvement from a net loss of $48.2 million or ($1.83) per diluted share in the prior year
quarter. This improvement is attributable to growth of 10.6% in net
premiums earned, an increase of 137.8% in net investment income,
and a reduction of 15.7% in net losses and LAE. It was partly
offset by elevated policy administration and general and
administrative costs, largely due to the increase in gross premiums
written over the prior year quarter and operational investments,
culminating in a lower combined ratio compared to the same period
last year.
- Premiums-in-force of $1.3
billion, represented an 8.4% increase from third quarter
2022 due to continued proactive rate increases across the entire
portfolio and underwriting actions, despite an intentional policy
count reduction of approximately 74,000 policies. Premiums-in-force
were also favorably impacted by strategic growth of the Company's
commercial residential product and use of inflation guard across
all products.
- Gross premiums written were $309.5
million, up 1.6% from $304.5
million in the prior year quarter, reflecting a strategic
and substantial increase in Florida commercial residential lines business
and a higher average premium per policy throughout the book of
business, partly offset by targeted exposure management. Gross
premiums written for Florida
personal lines business was up $5.8
million due to rate increases, despite a 16.0% reduction in
policy count from the prior year quarter.
- Gross premiums earned of $337.0
million, up 9.4% from $308.0
million in the prior year quarter, reflecting higher gross
premiums written over the last twelve months driven by a higher
average premium per policy and organic growth of the commercial
residential business.
- Net premiums earned of $176.7
million, up 10.6% from $160.0
million in the prior year quarter, reflecting higher gross
premium earned outpacing the increase in ceded premiums for the
quarter.
- Ceded premium ratio of 47.6%, down 0.5 points from 48.1% in the
prior year quarter driven by 9.4% growth in gross premiums earned
outpacing the growth of ceded premiums of 8.1%.
- Net loss ratio decreased to 74.4%, a 23.2 point decline from
97.6% in the same quarter last year reflecting higher net premiums
earned and reduced net losses and LAE. The reduction in net losses
and LAE improved largely due to diminished weather and attritional
losses. Net weather losses for the current accident year were
$51.6 million, a decrease from
$63.8 million in the previous year's
quarter. Catastrophe losses remained consistent at $40.0 million, with this quarter's losses
attributed to the Maui wildfire
and Hurricane Idalia and prior year quarter's losses from Hurricane
Ian. Other weather losses totaled $11.5
million, showing a reduction from the prior year quarter
amount of $23.8 million.
Additionally, the net loss ratio experienced an impact from net
unfavorable loss development of $793,000, a deviation from the net favorable
$1.0 million development in the third
quarter of 2022.
- The net expense ratio was 36.4% in third quarter 2023, up 0.7
points from the prior year quarter amount of 35.7%, driven by
higher general and administrative costs mostly related to software
and associated costs with the implementation of a new claims system
aimed at driving future efficiencies.
- Net combined ratio of 110.8%, improved 22.5 points from 133.3%
in the prior year quarter, driven by a lower net loss ratio as
described above.
- Net investment income, inclusive of realized investment losses
and unrealized losses on equity securities, was $6.5 million in third quarter 2023, up from
$2.9 million in the prior year
quarter reflecting actions to align the investments with the yield
curve.
- Effective tax rate was 38.3% compared to 2.2% in the prior year
quarter, driven by the impact of changes to a valuation allowance
which is updated quarterly, as well as permanent differences in
relation to projected annual pre-tax income or loss. The valuation
allowance relates to tax elections made by Osprey Re, the Company's
captive reinsurer domiciled in Bermuda. For the current year quarter, the
valuation allowance decreased, while for the prior year quarter,
the valuation allowance was established.
Supplemental
Information:
|
|
Policies-in-force:
|
|
Q3
2023
|
|
|
Q3
2022
|
|
|
%
Change
|
|
|
Florida
|
|
|
158,914
|
|
|
|
188,383
|
|
|
|
(15.6)
|
|
%
|
Other States
|
|
|
308,683
|
|
|
|
352,989
|
|
|
|
(12.6)
|
|
%
|
Total
|
|
|
467,597
|
|
|
|
541,372
|
|
|
|
(13.6)
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Premiums-in-force:
|
|
|
|
|
|
|
|
|
|
|
Florida
|
$
|
|
681,067,580
|
|
$
|
|
569,589,537
|
|
|
|
19.6
|
|
%
|
Other States
|
|
|
665,351,760
|
|
|
|
672,812,875
|
|
|
|
(1.1)
|
|
%
|
Total
|
$
|
|
1,346,419,340
|
|
$
|
|
1,242,402,412
|
|
|
|
8.4
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Total Insured
Value:
|
|
|
|
|
|
|
|
|
|
|
Florida
|
$
|
|
104,654,005,306
|
|
$
|
|
102,784,056,201
|
|
|
|
1.8
|
|
%
|
Other States
|
|
|
290,916,611,744
|
|
|
|
304,657,398,158
|
|
|
|
(4.5)
|
|
%
|
Total
|
$
|
|
395,570,617,050
|
|
$
|
|
407,441,454,359
|
|
|
|
(2.9)
|
|
%
|
|
Book Value Analysis
Book value per share of $5.65 at
September 30, 2023, was up 10.1% from
fourth quarter 2022 and 24.4% from third quarter 2022. The increase
from the comparable quarter of 2022 is primarily attributable to
year-to-date net income through the third quarter of 2023 as well
as a reduction in unrealized losses on the Company's fixed income
securities portfolio from the third quarter of 2022. The unrealized
losses are unrelated to credit risk but due to the rising interest
rate environment during 2022 and 2023.
Book Value Per
Share
|
|
As Of
|
|
|
|
September 30,
2023
|
|
|
December 31,
2022
|
|
|
September 30,
2022
|
|
Numerator:
|
|
|
|
|
|
|
|
|
|
Common stockholders'
equity
|
$
|
|
151,386
|
|
$
|
|
131,039
|
|
$
|
|
117,697
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
Total Shares
Outstanding
|
$
|
|
26,796,586
|
|
$
|
|
25,539,433
|
|
$
|
|
25,898,930
|
|
Book Value Per Common
Share
|
|
|
5.65
|
|
|
|
5.13
|
|
|
|
4.54
|
|
|
Conference Call Details:
Friday, November 3, 2023 –
9:00 a.m. ET
Participant Dial-in Numbers Toll
Free: 1-888-346-3095
Participant International Dial In: 1-412-902-4258
Canada Toll Free: 1-855-669-9657
Webcast:
To listen to the live webcast, please go to
http://investors.heritagepci.com. This webcast will be archived and
accessible on the Company's website.
HERITAGE INSURANCE
HOLDINGS, INC.
Condensed
Consolidated Balance Sheets
(Amounts in
thousands, except share amounts)
|
|
|
|
September 30,
2023
|
|
|
December 31,
2022
|
|
ASSETS
|
|
(unaudited)
|
|
|
|
|
Fixed maturities,
available-for-sale, at fair value
|
|
$
|
651,520
|
|
|
$
|
635,572
|
|
Equity securities, at
fair value
|
|
|
1,739
|
|
|
|
1,514
|
|
Other investments,
net
|
|
|
11,745
|
|
|
|
16,484
|
|
Total
investments
|
|
|
665,004
|
|
|
|
653,570
|
|
Cash and cash
equivalents
|
|
|
228,848
|
|
|
|
280,881
|
|
Restricted
cash
|
|
|
9,733
|
|
|
|
6,691
|
|
Accrued investment
income
|
|
|
3,725
|
|
|
|
3,817
|
|
Premiums receivable,
net
|
|
|
80,256
|
|
|
|
92,749
|
|
Reinsurance
recoverable on paid and unpaid claims, net
|
|
|
727,435
|
|
|
|
805,059
|
|
Prepaid reinsurance
premiums
|
|
|
403,684
|
|
|
|
306,977
|
|
Income tax
receivable
|
|
|
14,872
|
|
|
|
12,118
|
|
Deferred income tax
asset, net
|
|
|
16,092
|
|
|
|
16,841
|
|
Deferred policy
acquisition costs, net
|
|
|
104,098
|
|
|
|
99,617
|
|
Property and
equipment, net
|
|
|
32,418
|
|
|
|
25,729
|
|
Right-of-use lease
asset, finance
|
|
|
18,214
|
|
|
|
20,132
|
|
Right-of-use lease
asset, operating
|
|
|
7,166
|
|
|
|
7,335
|
|
Intangibles,
net
|
|
|
44,101
|
|
|
|
49,575
|
|
Other
assets
|
|
|
13,060
|
|
|
|
11,509
|
|
Total
Assets
|
|
$
|
2,368,706
|
|
|
$
|
2,392,600
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Unpaid losses and loss
adjustment expenses
|
|
$
|
971,321
|
|
|
$
|
1,131,807
|
|
Unearned
premiums
|
|
|
688,872
|
|
|
|
656,641
|
|
Reinsurance
payable
|
|
|
282,663
|
|
|
|
199,803
|
|
Long-term debt,
net
|
|
|
122,066
|
|
|
|
128,943
|
|
Advance
premiums
|
|
|
33,706
|
|
|
|
26,516
|
|
Accrued
compensation
|
|
|
8,611
|
|
|
|
6,594
|
|
Lease liability,
finance
|
|
|
20,903
|
|
|
|
22,557
|
|
Lease liability,
operating
|
|
|
8,439
|
|
|
|
8,690
|
|
Accounts payable and
other liabilities
|
|
|
80,739
|
|
|
|
80,010
|
|
Total
Liabilities
|
|
$
|
2,217,320
|
|
|
$
|
2,261,561
|
|
Stockholders'
Equity:
|
|
|
|
|
|
|
Common stock, $0.0001
par value
|
|
|
3
|
|
|
|
3
|
|
Additional paid-in
capital
|
|
|
336,829
|
|
|
|
334,711
|
|
Accumulated other
comprehensive loss, net of taxes
|
|
|
(49,719)
|
|
|
|
(53,585)
|
|
Treasury stock, at
cost
|
|
|
(130,900)
|
|
|
|
(130,900)
|
|
Retained
deficit
|
|
|
(4,827)
|
|
|
|
(19,190)
|
|
Total Stockholders'
Equity
|
|
|
151,386
|
|
|
|
131,039
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
2,368,706
|
|
|
$
|
2,392,600
|
|
HERITAGE INSURANCE
HOLDINGS, INC.
Condensed
Consolidated Statements of Operations and Other Comprehensive
(Loss) Income
(Amounts in
thousands, except share amounts)
(Unaudited)
|
|
|
|
For the Three
Months Ended
September 30,
|
|
|
For the Nine
Months Ended
September 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums
written
|
|
$
|
309,510
|
|
|
$
|
304,501
|
|
|
$
|
1,016,378
|
|
|
$
|
952,981
|
|
Change in gross
unearned premiums
|
|
|
27,466
|
|
|
|
3,458
|
|
|
|
(32,366)
|
|
|
|
(61,442)
|
|
Gross premiums
earned
|
|
|
336,976
|
|
|
|
307,959
|
|
|
|
984,012
|
|
|
|
891,539
|
|
Ceded
premiums
|
|
|
(160,335)
|
|
|
|
(148,266)
|
|
|
|
(464,539)
|
|
|
|
(420,645)
|
|
Net premiums
earned
|
|
|
176,641
|
|
|
|
159,693
|
|
|
|
519,473
|
|
|
|
470,894
|
|
Net investment
income
|
|
|
6,867
|
|
|
|
2,887
|
|
|
|
19,048
|
|
|
|
7,050
|
|
Net realized losses
and impairment losses
|
|
|
(379)
|
|
|
|
(3)
|
|
|
|
(49)
|
|
|
|
(121)
|
|
Other
revenue
|
|
|
3,171
|
|
|
|
2,916
|
|
|
|
10,060
|
|
|
|
10,049
|
|
Total
revenues
|
|
|
186,300
|
|
|
|
165,493
|
|
|
|
548,532
|
|
|
|
487,872
|
|
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses and loss
adjustment expenses
|
|
|
131,397
|
|
|
|
155,849
|
|
|
|
335,495
|
|
|
|
397,409
|
|
Policy acquisition
costs, net
|
|
|
42,427
|
|
|
|
39,194
|
|
|
|
124,202
|
|
|
|
115,826
|
|
General and
administrative expenses, net
|
|
|
21,911
|
|
|
|
17,758
|
|
|
|
61,022
|
|
|
|
54,947
|
|
Goodwill and
intangible asset impairment
|
|
|
—
|
|
|
|
—
|
|
|
|
767
|
|
|
|
91,959
|
|
Total
expenses
|
|
|
195,735
|
|
|
|
212,801
|
|
|
|
521,486
|
|
|
|
660,141
|
|
Operating (loss)
income
|
|
|
(9,435)
|
|
|
|
(47,308)
|
|
|
|
27,046
|
|
|
|
(172,269)
|
|
Interest expense,
net
|
|
|
2,591
|
|
|
|
2,027
|
|
|
|
8,211
|
|
|
|
5,750
|
|
(Loss) income before
income taxes
|
|
|
(12,026)
|
|
|
|
(49,335)
|
|
|
|
18,835
|
|
|
|
(178,019)
|
|
(Benefit) provision
for income taxes
|
|
|
(4,602)
|
|
|
|
(1,095)
|
|
|
|
4,472
|
|
|
|
(11,155)
|
|
Net (loss)
income
|
|
$
|
(7,424)
|
|
|
$
|
(48,240)
|
|
|
$
|
14,363
|
|
|
$
|
(166,864)
|
|
OTHER COMPREHENSIVE
(LOSS) INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in net
unrealized (losses) gains on investments
|
|
|
(4,494)
|
|
|
|
(17,471)
|
|
|
|
4,664
|
|
|
|
(65,403)
|
|
Reclassification
adjustment for net realized investment
losses
|
|
|
379
|
|
|
|
3
|
|
|
|
390
|
|
|
|
121
|
|
Income tax benefit
(expense) related to items of other
comprehensive (loss) income
|
|
|
970
|
|
|
|
4,089
|
|
|
|
(1,188)
|
|
|
|
15,282
|
|
Total comprehensive
(loss) income
|
|
$
|
(10,569)
|
|
|
$
|
(61,619)
|
|
|
$
|
18,229
|
|
|
$
|
(216,864)
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
26,698,806
|
|
|
|
26,369,265
|
|
|
|
25,941,422
|
|
|
|
26,536,700
|
|
Diluted
|
|
|
26,698,806
|
|
|
|
26,369,265
|
|
|
|
25,980,931
|
|
|
|
26,536,700
|
|
(Loss) earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.28)
|
|
|
$
|
(1.83)
|
|
|
$
|
0.55
|
|
|
$
|
(6.29)
|
|
Diluted
|
|
$
|
(0.28)
|
|
|
$
|
(1.83)
|
|
|
$
|
0.55
|
|
|
$
|
(6.29)
|
|
|
About Heritage
Heritage Insurance Holdings, Inc. is a super-regional property
and casualty insurance holding company. Through its insurance
subsidiaries and a large network of experienced agents, the Company
writes approximately $1.3 billion of
gross personal and commercial residential premium across its
multi-state footprint.
Forward-Looking Statements
Statements in this
press release that are not historical facts are forward-looking
statements that are subject to certain risks and uncertainties that
could cause actual events and results to differ materially from
those discussed herein. Without limiting the generality of the
foregoing, words such as "may," "will," "expect," "believe,"
"anticipate," "intend," "could," "would," "estimate," "or
"continue" or the other negative variations thereof or comparable
terminology are intended to identify forward-looking statements.
This release includes forward-looking statements relating to the
expected positive impact of our strategic initiatives on our future
financial results, including focus on profitability through rating
action and selective underwriting, capital allocation, exposure
management and strategic reduction of policy count in certain
geographies; impact of rate increases, including the ability to
mitigate the expected impact of increased reinsurance costs through
rate adjustments; ability to achieve consistent long-term
sustainable growth and long-term quarterly earnings and drive
shareholder value; continued increase in average premium per
policy; future dividend payments and stock repurchases; our ability
to maintain a balanced and diversified portfolio; and expectations
regarding our fixed income investment portfolio. The risks and
uncertainties that could cause our actual results to differ from
those expressed or implied herein include, without limitation: the
success of the Company's underwriting and profitability
initiatives; inflation and other changes in economic conditions
(including changes in interest rates and financial and real estate
markets), including changes that may impact demand for our products
and our operations; the impact of macroeconomic and geopolitical
conditions, including the impact of supply chain constraints,
inflationary pressures, labor availability and the conflict between
Russia and Ukraine; the impact of new federal and state
regulations that affect the property and casualty insurance market;
the cost of reinsurance, the collectability of reinsurance and our
ability to obtain reinsurance coverage on terms and at a cost
acceptable to us; assessments charged by various governmental
agencies; pricing competition and other initiatives by competitors;
our ability to obtain regulatory approval for requested rate
changes, and the timing thereof; legislative and regulatory
developments; the outcome of litigation pending against us,
including the terms of any settlements; risks related to the nature
of our business; dependence on investment income and the
composition of our investment portfolio; the adequacy of our
liability for losses and loss adjustment expense; our ability to
build and maintain relationships with insurance agents; claims
experience; ratings by industry services; catastrophe losses;
reliance on key personnel; weather conditions (including the
severity and frequency of storms, hurricanes, tornadoes and hail);
changes in loss trends; acts of war and terrorist activities; court
decisions and trends in litigation; and other matters described
from time to time by us in our filings with the Securities and
Exchange Commission, including, but not limited to, the Company's
Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and
Exchange Commission on March 13,
2023, and subsequent filings. The Company undertakes no
obligations to update, change or revise any forward-looking
statement, whether as a result of new information, additional or
subsequent developments or otherwise.
Investor
Investor Contact:
Kirk
Lusk
Chief Financial Officer
klusk@heritagepci.com
investors@heritagepci.com
Mike Houston and Zack Mukewa
Lambert
HRTG@lambert.com
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SOURCE Heritage Insurance Holdings, Inc.