Heritage Reports First Quarter 2026 Results

Rhea-AI Summary

Heritage Insurance Holdings (NYSE: HRTG) reported Q1 2026 net income of $36.5M (+19.7% YoY) and diluted EPS of $1.19 (+20.2% YoY). Book value per share rose to $17.15, up 61.5% YoY. Net combined ratio improved to 81.0%. Net investment income increased 15.1% to $9.9M. The Board suspended the quarterly dividend and authorized a new $50.0M share repurchase plan; $12.0M has been repurchased year-to-date. The company plans surplus-lines entry into Texas and launched multiple new products in 2026.

Positive

• Net income of $36.5M, +19.7% YoY
• EPS $1.19, +20.2% YoY
• Book value per share $17.15, +61.5% YoY
• Net combined ratio improved to 81.0%
• $50.0M new share repurchase authorization (effective through 12/31/2026)
• Net investment income $9.9M, +15.1% YoY

Negative

• Board suspended the quarterly dividend to prioritize strategic growth
• Policies-in-force declined 6.33% YoY to 353,909 policies
• Quarter included $36.7M of net weather and catastrophe losses
• Repurchases and tax-withholding reduced shareholders' equity by $18.9M (approx.)

Key Figures

Q1 2026 net income: $36.5M Q1 2026 EPS (diluted): $1.19 Total revenues: $212.658M +5 more

8 metrics

Q1 2026 net income $36.5M Record first quarter 2026 net income, up 19.7% YoY

Q1 2026 EPS (diluted) $1.19 Earnings per diluted share, up 20.2% from $0.99 in Q1 2025

Total revenues $212.658M Three months ended March 31, 2026 vs $211.520M in 2025

Net combined ratio 81.0% Improved from 84.5% in the prior-year quarter

Net loss ratio 45.9% Improved by 3.8 points from 49.7% in Q1 2025

Book value per share $17.15 As of March 31, 2026; up 61.5% vs Q1 2025

Return on equity 28.5% Q1 2026 annualized ROE, with average equity up 65.5% YoY

Share repurchases 2026 $12.0M / 446,884 shs Repurchased through date of earnings release under prior authorization

Market Reality Check

Price: $28.75 Vol: Volume 169,377 is 0.6x th...

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$28.75 Last Close

Volume Volume 169,377 is 0.6x the 20-day average of 280,617, indicating muted pre-news activity. low

Technical Shares at $28.75 are trading above the 200-day MA of $25.88 and about 10.1% below the 52-week high.

Peers on Argus

Pre-news, HRTG was down 1.03% on light volume while peers were mixed: UFCS (-0.9...

1 Down

Pre-news, HRTG was down 1.03% on light volume while peers were mixed: UFCS (-0.97%), DGICA (-0.36%), UVE (+0.9%), DGICB (+5.45%), ACIC (-5.09%). Momentum scans only flagged GBLI (-3.22%), supporting a stock-specific rather than broad sector move.

Previous Earnings Reports

5 past events · Latest: Apr 21 (Neutral)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Apr 21	Earnings date notice	Neutral	+1.7%	Announced timing of Q1 2026 results release and conference call.
Mar 09	Q4/FY 2025 earnings	Positive	+0.8%	Reported strong Q4 and full-year 2025 results with improved combined ratio.
Nov 05	Q3 2025 earnings	Positive	+12.5%	Q3 2025 net income and combined ratio showed major YoY improvement.
Oct 22	Earnings date notice	Neutral	+2.8%	Set Q3 2025 earnings release and call schedule for early November.
Aug 05	Q2 2025 earnings	Positive	-12.2%	Strong Q2 2025 earnings with better loss and combined ratios and BVPS growth.

Pattern Detected

Earnings-related and earnings-date headlines have usually seen modest positive reactions, with one notable selloff on very strong earnings.

Recent Company History

Over the last year, Heritage’s earnings and earnings-date headlines have generally coincided with gains, with four of five prior tagged events showing positive moves of up to 12.48%. These reports emphasized improving combined ratios, rising book value per share, and strong net income growth. One strong Q2 2025 earnings release was followed by a -12.19% move, indicating that the stock can occasionally sell off despite favorable results. Today’s Q1 2026 report extends the narrative of improved profitability and capital return via repurchases.

Historical Comparison

+1.1% avg move · In the past year, five earnings-tagged headlines saw an average ±1.1% move, generally modest despite...

earnings

+1.1%

Average Historical Move earnings

In the past year, five earnings-tagged headlines saw an average ±1.1% move, generally modest despite often strong underwriting and book value trends.

Earnings releases have highlighted a progression of improving combined ratios, rising book value per share, and consistent profitability across Q2–Q4 2025 into Q1 2026.

Market Pulse Summary

This announcement reports record Q1 2026 net income of $36.5M, an improved net combined ratio of 81....

Analysis

This announcement reports record Q1 2026 net income of $36.5M, an improved net combined ratio of 81.0%, and book value per share of $17.15, continuing the profitability trend seen in recent quarters. Management is emphasizing disciplined underwriting, data analytics, and expansion, including Texas excess and surplus lines. At the same time, the board is keeping the dividend suspended while authorizing additional repurchases. Investors may watch future loss ratios, combined ratio progression, and capital deployment decisions across geographies and products.

Key Terms

net loss ratio, net combined ratio, return on average equity, catastrophe excess of loss program, +3 more

7 terms

net loss ratio financial

"Net loss ratio improved 3.8 percentage points to 45.9%, from 49.7% in the prior year quarter."

Net loss ratio is the share of an insurer’s premium revenue that goes toward paying claims and claim-related expenses after deducting reinsurance and similar adjustments. For investors, it shows how much of the company’s core revenue is eaten by payouts — like a shop that tells you what percent of sales is spent on refunds — so a lower net loss ratio generally signals healthier underwriting and higher potential profitability.

net combined ratio financial

"Net combined ratio improved by 3.5 percentage points to 81.0%, from 84.5% in the prior year quarter."

Net combined ratio measures an insurance company's underwriting profitability by comparing claims paid and operating costs to earned premiums after accounting for reinsurance. A ratio below 100% means the insurer is making money on its insurance policies; above 100% means it is paying out more in claims and costs than it receives in premiums. Investors use it like a household budget check to see whether the core insurance business is sustainably profitable or dependent on investment income.

return on average equity financial

"Return on average equity of 28.5% with average equity up 65.5% from the prior year quarter."

Return on average equity (ROAE) measures how much profit a company generates for its shareholders’ invested capital over a period, calculated by dividing net profit by the average shareholder equity during that period. It matters to investors because it shows how efficiently management turns owners’ money into earnings—like how much bread a baker bakes from the same oven space—helping compare profitability across companies and track performance over time.

catastrophe excess of loss program technical

"Our catastrophe excess of loss program this year will be completed with higher coverage than previously purchased..."

A catastrophe excess of loss program is an insurance arrangement where a primary insurer buys protection that only pays for claims after the insurer’s losses from a single disaster exceed a preset threshold. Think of it as an oversized umbrella that only opens when damage from a hurricane or earthquake goes beyond what the insurer can absorb. It matters to investors because it limits the company's worst-case losses, smooths earnings, and affects capital needs and risk of large reserve write-downs.

policy acquisition costs financial

"Policy acquisition costs were lower from the prior year quarter by 1.0%, driven mostly by lower costs associated with premium processing."

Policy acquisition costs are the upfront expenses an insurer pays to win and set up an insurance policy — for example sales commissions, underwriting and medical exam fees, marketing and broker payments. Investors care because these costs reduce short-term profits and are often treated as an investment that must be recovered over the life of the policy; like a company’s customer‑acquisition cost, they affect margins, cash flow and the long‑term return on each new policy.

excess and surplus lines regulatory

"plan to enter the State of Texas on an excess and surplus lines basis."

Excess and surplus lines refer to insurance coverage provided by specialized insurers for risks that standard insurers consider too unusual, high-risk, or hard to cover. These policies are important for investors because they help protect against rare or unexpected events that could impact financial stability or asset values, filling gaps where regular insurance options are unavailable.

combined ratio financial

"The net combined ratio is a key measure of underwriting performance traditionally used in the property and casualty industry."

The combined ratio is a way insurance companies measure how well they are doing by adding up all their costs and claims and comparing them to the money they earn from premiums. If the ratio is below 100%, it means the company is making a profit; if it's above 100%, they are losing money. It helps see if an insurance company is financially healthy or not.

AI-generated analysis. Not financial advice.

TAMPA, Fla., May 7, 2026 /PRNewswire/ -- Heritage Insurance Holdings, Inc. (NYSE: HRTG) ("Heritage" or the "Company"), a super-regional property and casualty insurance holding company, today reported first quarter of 2026 financial results.

First Quarter 2026 Result Highlights

• Heritage reported record first quarter net income of $36.5 million, an increase of 19.7% from net income of $30.5 million in the prior year quarter; and earnings per share of $1.19 per diluted share, an increase of 20.2% from $0.99 per diluted share in the prior year quarter.
• Gross and Net premiums earned were consistent with the prior year quarter.
• Net loss ratio improved 3.8 percentage points to 45.9%, from 49.7% in the prior year quarter.
• Net combined ratio improved by 3.5 percentage points to 81.0%, from 84.5% in the prior year quarter.
• Return on average equity of 28.5% with average equity up 65.5% from the prior year quarter.
• Book value per share increased 4.6% from year end 2025 and was up 61.5% from the first quarter of 2025.
• First quarter cash flow from operations of $24.9 million.
• Through the date of this earnings release, repurchased 446,884 shares of common stock during 2026 at a cost of $12.0 million.
• On track to start writing business in Texas on a surplus lines basis.
• Four new products rolled out in Q1 with six additional products slated to launch in the second half of 2026.

Ernie Garateix, Heritage's CEO, commented, "Our first quarter was the most profitable first quarter for the Company since becoming public in 2014. Our net loss ratio was also the lowest delivered in a first quarter since 2015 even with $37 million of weather related losses in the quarter. These results were derived from the consistent application of our strategic profitability initiatives established several years ago that focused on rate adequacy and underwriting discipline, allocating capital to products and geographies that maximize long-term returns, and targeting a balanced and diversified portfolio."

Mr. Garateix, continued, "As our strategic initiatives have taken hold, we have re-opened over 90% of our geographies as they have become rate adequate and through our disciplined underwriting program, the quality of the book of business has greatly improved. This strategy is delivering results with new business written rising 62.7% from the first quarter of 2025 and over 30.0% from fourth quarter of 2025. We have expanded geographically, added products, enhanced our data analytics and demonstrated our ability to perform during adverse weather and challenging market conditions. We are also extremely well positioned to take advantage of any market disruptions or emerging opportunities. With our capabilities and financial strength, we will focus on evaluating and allocating capital to profitable products or geographies and we are positioned to expand organically or as accretive business opportunities arise."

Strategic Profitability Initiatives

The Company has focused on three main strategic initiatives aimed at achieving consistent long-term quarterly earnings and driving shareholder value, which include:

• Generating underwriting profit through rate adequacy and more selective underwriting.
• Allocating capital to products and geographies that maximize long-term returns.
• Targeting a balanced and diversified portfolio.

These three initiatives will remain in place while we also expand our strategy to include our 2026 initiatives. To continue executing on these three strategic initiatives throughout 2026, the Company expects to focus on the following profitability initiatives:

• Target geographies open for new business, while closely managing risk and exposure.
• Continue persistent underwriting discipline and focus on rate adequacy while driving prudent top line growth.
• Enhance data driven analytics using AI and other technology tools.
• Continue the refinement of customer service and claims capabilities.
• Leverage infrastructure and capabilities to foster future growth, which includes our plan to enter the State of Texas on an excess and surplus lines basis.
• Act as opportunities emerge which will continue our diversification and expansion over the next several years.  
• Expand our relationship with reinsurance partners to expand capacity, manage volatility while pursuing growth.

Capital Management

Heritage's Board of Directors has decided to continue its suspension of the quarterly shareholder dividend to prioritize strategic growth. The Board of Directors will continue to evaluate dividend distributions on a quarterly basis. The Company repurchased 446,484 shares of common stock during 2026 through the current date, at a cost of $12.0 million under the Company's previously announced share repurchase authorization, which authorized the repurchase of up to an aggregate of $25.0 million of common stock through December 31, 2026. On May 7, 2026, the Board of Directors authorized a new $50.0 million share repurchase plan, replacing the prior plan. The new plan is effective immediately through December 31, 2026. 

Results of Operations

The following table summarizes results of operations for the three months ended March 31, 2026, and 2025 (amounts in thousands, except percentages and per share amounts):

		Three Months Ended March 31,
		2026				2025				Change
Total revenues		$	212,658			$	211,520				0.5		%
Net income		$	36,483			$	30,474				19.7		%
Earnings per share		$	1.19			$	0.99				20.2		%
Book value per share		$	17.15			$	10.62				61.5		%
Return on equity *			28.5		%		39.3		%		(10.8)		pts
Underwriting summary
Gross premiums written		$	346,745			$	355,997				(2.6)		%
Gross premiums earned		$	353,562			$	353,828				(0.1)		%
Ceded premiums		$	(153,870)			$	(153,794)				0.0		%
Net premiums earned		$	199,692			$	200,034				(0.2)		%
Ceded premium ratio			43.5		%		43.5		%		—		pts
Ratios to Net Premiums Earned:
Loss ratio			45.9		%		49.7		%		(3.8)		pts
Expense ratio			35.2		%		34.8		%		0.4		pts
Combined ratio			81.0		%		84.5		%		(3.5)		pts

* Return on equity represents annualized net income for the period divided by average stockholders' equity during the period.

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.

First Quarter 2026 Results:

First quarter 2026 net income was $36.5 million or $1.19 per diluted share, compared to net income of $30.5 million or $0.99 per diluted share in the prior year quarter, primarily driven by higher investment income and a reduction in losses, partly offset by higher general and administrative expenses. The reduction in losses is attributable to a slightly lower net attritional loss ratio resulting from the positive impact of rate actions, underwriting actions, and targeted exposure management taken over the last several years, which continue to favorably impact results, as well as lower weather losses. Policy acquisition costs were lower from the prior year quarter by 1.0%, driven mostly by lower costs associated with premium processing. General and administrative costs increased 4.4% from the prior year quarter driven primarily by human capital costs, with the net general and administrative expense ratio at 12.5% compared to 11.9% for the prior year quarter.

Premiums-in-force were $1.427 billion, a decrease of 0.4% compared to $1.432 billion as of the first quarter 2025.

Gross premiums written of $346.7 million were down 2.6% from $356.0 million in the prior year quarter, primarily driven by a reduction in commercial residential business which was partly offset by higher gross premiums written for personal lines business. The Florida commercial residential market has become increasingly competitive and management is committed to maintaining adequate margins; as such Heritage will only write business that meets our underwriting and pricing standards. Management is also leveraging the expertise of our commercial residential team to expand this product to other states, the most recent of which is Hawaii. Management believes we have achieved rate adequacy in over 90% of our territories and each of those territories were open for new business as of March 31, 2026. Our catastrophe excess of loss program this year will be completed with higher coverage than previously purchased but also at risk adjusted cost decreases. To the extent our cost of doing business decreases, our policyholders would benefit with reduced pricing, while we maintain adequate margins.

Gross premiums earned were $353.6 million, consistent with $353.8 million earned in the prior year quarter, as commercial residential business declined due to the market conditions described above but were largely offset by higher gross premiums earned for the personal residential business.

Net premiums earned were $199.7 million, consistent with $200.0 million earned in the prior year quarter, given a small reduction in gross premiums earned described above, with relatively flat ceded premiums for the quarter.

Net loss ratio decreased to 45.9%, a 3.8 point improvement from 49.7% in the same quarter last year, driven by lower net losses and LAE and relatively flat net premiums earned.  Net weather and catastrophe losses for the current accident quarter were $36.7 million, a decrease from $43.5 million in the prior year quarter. Catastrophe losses were $24.4 million compared to $31.8 million in the prior year quarter. Other weather losses totaled $12.3 million, an increase of $600,000 from the prior year quarter amount of $11.7 million. Net favorable prior year loss development was $8.2 million for the first quarter of 2025 compared to net favorable loss development of $7.8 million for the prior year quarter.

The net expense ratio was 35.2%, a 40 basis point increase from the prior year quarter amount of 34.8%, primarily driven by an increase in human capital-related costs, partly offset by lower policy acquisition costs, with relatively flat net premiums earned.

Net combined ratio of 81.0%, a 3.5 point improvement from 84.5% in the prior year quarter, driven by a lower net loss ratio partly offset by a higher net expense ratio as described above.

Net investment income increased to $9.9 million, a 15.1% increase from $8.6 million in the first quarter of 2025, driven mostly by a higher balance of invested assets. We continue to maintain a conservative portfolio with high quality investments and duration liability matched.

The effective tax rate was 25.6% compared to 23.8% in the prior year first quarter. We calculate the provision for income taxes during interim reporting periods by applying an estimate of the effective tax rate for the full year. The effective tax rate is 1.8 points higher than the prior year quarter, with the variance driven by estimates of pre-tax income and permanent items. The effective tax rate can fluctuate throughout the year as income changes and estimates used in each quarterly tax provision are updated with additional information.

Supplemental Information:

Policies-in-force:	Q1 2026				Q1 2025				% Change
Personal Residential		341,843				364,781				(6.29)		%
Commercial Residential		3,069				2,908				5.54		%
Other		8,997				10,132				(11.20)		%
Total		353,909				377,821				(6.33)		%
Premiums-in-force:
Personal Residential		1,161,078,115				1,144,698,410				1.43		%
Commercial Residential		256,415,766				278,158,021				(7.82)		%
Other		9,632,637				9,796,388				(1.67)		%
Total		1,427,126,518				1,432,652,819				(0.39)		%
Total Insured Value:
Personal Residential		317,090,936,074				320,649,423,206				(1.11)		%
Commercial Residential		48,009,340,202				42,995,169,737				11.66		%
Other	N/A				N/A					—		%
Total		365,100,276,276				363,644,592,943				0.40		%

Book Value Analysis:

		As of
Book Value Per Share		March 31, 2026				December 31, 2025				March 31, 2025
Numerator:
Common stockholders' equity		$	520,372			$	505,251			$	329,003
Denominator:
Total Shares Outstanding			30,334,925				30,833,776				30,993,270
Book Value Per Common Share		$	17.15			$	16.39			$	10.62

Book value per share was $17.15 at March 31, 2026, an increase of 4.6% from December 31, 2025 and an increase of 61.5% from the first quarter of 2025. The increase in Shareholders' Equity from December 31, 2025 was primarily driven by net income, partially offset by a $3.4 million net-of-tax increase in unrealized losses on the Company's fixed income securities portfolio, $10.0 million related to the repurchase of 370,484 shares of common stock, during the first quarter of 2026, and $8.9 million from vested performance‑based shares surrendered to satisfy tax withholding obligations. The decline in the number of shares outstanding was driven by the repurchase of common stock and shares surrendered for income tax withholdings, partly offset by issuance of restricted stock during the quarter. The increase in average stockholders' equity of 65.5% over the prior year quarter caused the ROAE for the prior year quarter to be higher than the current year quarter, despite higher net income for the current year quarter.

The unrealized losses are unrelated to credit risk but are instead attributable to rising interest rates, with the increase in unrealized losses driven by higher interest rates during the quarter. Heritage does not anticipate a need to sell investments in advance of their maturity. As such, the Company expects unrealized losses to continue to roll off the portfolio as investments mature. The average duration of the fixed income portfolio is 3.4 years as the Company has extended duration to take advantage of higher yields further out on the yield curve, while still maintaining a short duration, high credit quality portfolio.

Conference Call Details:
Friday, May 8, 2026– 9:00 a.m. ET
North American Dial-in Numbers Toll Free: 1-888-346-3095
International Dial In: 1-412-902-4258

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)
	March 31, 2026				December 31, 2025
ASSETS	(unaudited)
Fixed maturities, available-for-sale, at fair value	$	751,384			$	713,237
Equity securities, at fair value		1,072				1,064
Other investments, net		1,259				1,285
Total investments		753,715				715,586
Cash and cash equivalents		517,070				559,274
Restricted cash		16,221				13,307
Accrued investment income		6,272				6,556
Premiums receivable, net		93,989				95,331
Reinsurance recoverable on paid and unpaid claims, net		261,179				318,588
Prepaid reinsurance premiums		194,607				307,039
Deferred income tax asset, net		5,589				5,855
Deferred policy acquisition costs, net		64,367				64,544
Property and equipment, net		28,447				28,254
Right-of-use lease asset, finance		11,978				12,598
Right-of-use lease asset, operating		6,328				4,878
Intangibles, net		28,643				30,189
Other assets		32,579				33,823
Total Assets	$	2,020,984			$	2,195,822
LIABILITIES AND STOCKHOLDERS' EQUITY
Unpaid losses and loss adjustment expenses	$	544,043			$	579,477
Unearned premiums		701,090				707,923
Reinsurance payable		73,498				232,801
Long-term debt, net		77,613				78,428
Advance premiums		30,797				19,164
Income tax payable/receivable		15,499				4,282
Accrued compensation		4,896				8,844
Lease liability, finance		14,914				15,587
Lease liability, operating		6,521				5,800
Accounts payable and other liabilities		31,741				38,265
Total Liabilities	$	1,500,612			$	1,690,571
Stockholders' Equity:
Common stock, $0.0001 par value		3				3
Additional paid-in capital		357,813				365,736
Accumulated other comprehensive loss, net of taxes		(13,988)				(10,555)
Treasury stock, at cost		(143,189)				(133,183)
Retained earnings		319,733				283,250
Total Stockholders' Equity		520,372				505,251
Total Liabilities and Stockholders' Equity	$	2,020,984			$	2,195,822

 

HERITAGE INSURANCE HOLDINGS, INC. Condensed Consolidated Statements of Operations (Amounts in thousands, except per share and share amounts) (Unaudited)
	Three Months Ended March 31,
	2026				2025
REVENUE:
Gross premiums written	$	346,745			$	355,997
Change in gross unearned premiums		6,817				(2,169)
Gross premiums earned		353,562				353,828
Ceded premiums		(153,870)				(153,794)
Net premiums earned		199,692				200,034
Net investment income		9,867				8,575
Net realized gains (losses) on debt securities and other investments		16				(4)
Other revenue		3,083				2,915
Total revenue		212,658				211,520
EXPENSES:
Losses and loss adjustment expenses		91,597				99,407
Policy acquisition costs		45,335				45,815
General and administrative expenses		24,908				23,862
Total expenses		161,840				169,084
Operating income		50,818				42,436
Interest expense, net		1,779				2,426
Income before taxes	$	49,039			$	40,010
Income tax expense		12,556				9,536
Net income	$	36,483			$	30,474
Weighted average shares outstanding
Basic		30,680,933				30,697,826
Diluted		30,740,251				30,757,089
Earnings per share
Basic	$	1.19			$	0.99
Diluted	$	1.19			$	0.99

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 $1.4 billion of gross personal and commercial residential premium across its multi-state footprint covering the northeast, southeast, Hawaii and California excess and surplus lines.

Forward-Looking Statements

Statements in this press release and on our earnings conference call 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 and our earnings conference call include forward-looking statements, including statements relating to our strategic initiatives for 2026 and our ability to profitably grow our business and deliver value to our shareholders either organically or through accretive business opportunities; our ability to take advantage of market disruptions and emerging opportunities; our positioning to deliver managed growth with rate adequacy in our markets and our intent not to write policies that we believe are underpriced or do not meet our underwriting standards; our expectations and plans regarding our margins and maintaining adequate margins; our beliefs regarding commercial residential market competitiveness, generally, and pricing pressure in Florida, specifically; our expectations regarding our catastrophe excess of loss program; our capital allocation strategy, including our Board's evaluation of dividend distributions and share repurchases and our evaluation of the intrinsic value of our common stock; our new geography and product diversification and expansion strategy, including our plan to enter the Texas market on an E&S lines basis, and our plans relating to employee and agency and distribution relationships in any new market; our focus on underwriting discipline, exposure management and rate adequacy in existing and new geographies, leveraging our scale, continued enhancement of data and AI-driven analytics and our other strategic priorities for 2026; our expectations regarding reinsurance capacity and pricing, including the impact of certain tort reform legislation and lack of catastrophe losses, and the resulting effect on costs to insurance consumers; and our expectations regarding our financial results in 2026 and beyond and the drivers of such results. 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; lack of effectiveness of exclusions and loss limitation methods in the insurance policies we assume or write; inherent uncertainty of our models and our reliance on artificial intelligence as a tool in creating and using such models; the impact of macroeconomic and geopolitical conditions, including the impact of interest rates, supply chain constraints, inflationary pressures, tariffs, labor availability and geopolitical conflicts; the impact of new federal and state regulations that affect the property and casualty insurance market and our failure to meet increased regulatory requirements, including minimum capital and surplus requirements; continued and increased impact of abusive and unwarranted claims; 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, wildfires 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, 2025 filed with the Securities and Exchange Commission on March 12, 2026, 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 Contact:
Kirk Lusk
Chief Financial Officer
investors@heritagecompanies.com

 

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SOURCE Heritage Insurance Holdings, Inc.

FAQ

What were Heritage (HRTG) Q1 2026 earnings and EPS results?

Heritage reported $36.5M net income and $1.19 diluted EPS for Q1 2026. According to the company, net income rose 19.7% and EPS rose 20.2% versus Q1 2025, driven by higher investment income and lower net losses.

How did Heritage's underwriting metrics perform in Q1 2026 (HRTG)?

The net combined ratio improved to 81.0% in Q1 2026. According to the company, the improvement reflected a 3.8-point reduction in the net loss ratio partly offset by a 40-basis-point rise in the expense ratio.

What capital actions did Heritage (HRTG) announce on May 7, 2026?

Heritage suspended its quarterly dividend and authorized a new $50.0M share repurchase plan. According to the company, $12.0M of common stock has been repurchased year-to-date under prior authorization.

How did Heritage's book value per share change in Q1 2026 (HRTG)?

Book value per share was $17.15 at March 31, 2026, up 61.5% year-over-year. According to the company, the increase was driven primarily by net income, partially offset by repurchases and unrealized losses.

Did Heritage (HRTG) report any catastrophe or weather losses in Q1 2026?

Yes. Net weather and catastrophe losses for the quarter were $36.7M. According to the company, catastrophe losses were $24.4M and other weather losses were $12.3M for the period.

What growth and product initiatives did Heritage (HRTG) outline for 2026?

Heritage plans surplus-lines entry into Texas and rolled out four new products in Q1 2026 with six additional products planned for H2 2026. According to the company, expansion focuses on rate-adequate geographies and enhanced data analytics.