Heritage Reports Third Quarter 2026 Results

Lower reinsurance costs helped lift net premiums earned despite a decline in gross premiums earned.

Rhea-AI Summary

Heritage Insurance Holdings (HRTG) reported third-quarter 2026 net income of $51.1 million, rising despite higher catastrophe losses than a year earlier. Diluted earnings per share rose 5.5% to $1.72, helped by a 4.0% reduction in diluted shares. Revenue increased 3.2% to $219.2 million. Pre-tax catastrophe losses totaled $15.8 million, versus none a year earlier, while favorable prior-year reserve development increased to $14.0 million from $5.0 million.

The combined ratio, measuring underwriting costs against net premiums earned, edged up to 73.0% from 72.9%. Nine-month net income rose 15.8% to $149.3 million. Book value per share reached $20.22, up 42.9% year over year. Gross premiums written fell 3.1%, reflecting lower commercial residential premiums. The board approved a new up to $50.0 million buyback program to begin after the existing program expires December 31, 2026, and run through December 31, 2027.

23 points · 0 major

MixediHow this balance works

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

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0 major · 14 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter diluted EPS rose 5.5% to $1.72, aided by 4.0% fewer diluted shares.
• Moderate pointThird-quarter revenue increased 3.2% to $219.2 million year over year.
• Moderate point. Forward-looking: it has not happened yet and may not happen.New buyback authorization permits up to $50.0 million after the existing program expires, through December 31, 2027. 4.6% of market cap
• Moderate point2026 repurchases totaled 1,101,508 shares for approximately $27.9 million; existing authorization remaining was $34.1 million. 2.6% of market cap
• Moderate pointBook value per share reached $20.22, up 23.4% from year-end 2025 and 42.9% year over year.
• Moderate pointDebt-to-capital ratio improved to 10.5% from 15.3% a year earlier.
• Moderate pointCash and invested assets reached $1.4 billion, up 8.8% from December 31, 2025.
• Moderate pointThird-quarter net premiums earned increased 5.4% to $205.6 million; nine-month premiums increased 2.5% to $606.408 million.
• Moderate pointThird-quarter ceded premiums, paid for reinsurance, decreased 11.8% to $147.2 million year over year.
• Moderate pointJune catastrophe reinsurance placement generated $63.2 million in treaty-year expense savings; seven-twelfths will be recognized in 2026.
• Moderate pointThird-quarter net investment income rose 17.3% to $11.4 million from $9.7 million a year earlier.
• Moderate pointFavorable prior-year loss reserve development increased to $14.0 million from $5.0 million in the prior-year quarter.
• Moderate pointNine-month loss ratio improved to 38.6% from 42.2% a year earlier.
• Moderate pointNine-month combined ratio improved to 72.9% from 76.8% a year earlier.

9 minor points

• Minor pointThird-quarter net income increased 1.4% to $51.1 million from $50.4 million a year earlier.
• Minor pointNine-month net income rose 15.8% to $149.3 million; diluted EPS increased 18.5% to $4.94.
• Minor pointNine-month revenue increased 2.2% to $646.095 million year over year.
• Minor pointStockholders' equity increased 37.0% from September 30, 2025.
• Minor pointThird-quarter expense ratio improved to 33.4% from 34.6%; nine-month expense ratio improved to 34.3% from 34.6%.
• Minor pointThird-quarter effective tax rate declined to 24.5% from 26.2% a year earlier.
• Minor pointPersonal residential premiums-in-force increased 0.2%; other premiums-in-force increased 10.3% year over year.
• Minor pointCommercial residential policies-in-force increased 5.7% to 3,228 year over year.
• Minor point. Forward-looking: it has not happened yet and may not happen.Heritage's growth initiatives include entry into Texas through excess and surplus lines insurance.

Negative

• Moderate pointThird-quarter pre-tax catastrophe losses totaled $15.8 million, versus none in the prior-year quarter. 1.5% of market cap
• Moderate pointCurrent accident-quarter net weather and catastrophe losses reached $33.6 million, versus $13.8 million a year earlier. 3.1% of market cap
• Moderate pointThird-quarter net losses and loss adjustment expenses rose $6.6 million to $81.4 million year over year.
• Moderate pointGross premiums written declined 3.1% to $322.8 million quarterly and 3.8% to $1,057.965 million over nine months.
• Moderate pointGross premiums earned declined 2.5% to $352.8 million quarterly and 1.1% to $1,057.497 million over nine months.
• Moderate pointCommercial residential premiums-in-force fell 16.1% year over year amid competitive pricing pressure.
• Moderate pointThird-quarter general and administrative expenses increased 5.2%, reflecting higher employee compensation and related costs.
• Moderate pointAnnualized quarterly return on equity fell to 35.1% from 49.2%; nine-month return fell to 36.1% from 47.2%.
• Moderate pointFixed-income portfolio unrealized losses increased $22.7 million net of tax from year-end 2025, reducing equity. 2.1% of market cap

5 minor points

• Minor pointThird-quarter loss ratio increased to 39.6% from 38.3% a year earlier.
• Minor pointThird-quarter combined ratio edged up to 73.0% from 72.9% a year earlier.
• Minor pointPersonal residential policies-in-force declined 4.3%; other policies-in-force declined 6.7% year over year.
• Minor pointThird-quarter other revenue decreased $2.6 million on lower fee income.
• Minor pointThird-quarter net realized gains decreased $2.8 million from the elevated prior-year quarter.

Key Figures

Net income: $51.1 million Diluted EPS: $1.72 per diluted share Total revenue: $219.2 million +5 more

Net income

$51.1 million

Third quarter 2026; compared with $50.4 million in the prior-year quarter

Diluted EPS

$1.72 per diluted share

Third quarter 2026; up 5.5% from the prior-year quarter

Total revenue

$219.2 million

Third quarter 2026; up 3.2% from the prior-year quarter

Pre-tax catastrophe losses

$15.8 million

Third quarter 2026

Net loss ratio

39.6%

Third quarter 2026; increased 1.3 percentage points year over year

Net expense ratio

33.4%

Third quarter 2026; improved 1.2 percentage points year over year

Net combined ratio

73.0%

Third quarter 2026; compared with 72.9% in the prior-year quarter

Share repurchase authorization

Up to $50.0 million

New program runs through December 31, 2027, after the existing program expires

Previous Earnings Reports

2 past events · Latest: Aug 05

Same Type 2 events

1. Aug 05

   Q2 earnings results

   24h Move

   +16.5%

   Reported higher net income and diluted EPS, with improved loss and combined ratios.

2. May 07

   Q1 earnings results

   24h Move

   -20.1%

   Reported year-over-year net income and diluted EPS growth alongside improved combined ratio.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

net combined ratio, loss adjustment expenses, catastrophe excess of loss, surplus lines

4 terms

net combined ratio financial

"Net combined ratio represents the sum of net losses and LAE, PAC and G&A expenses"

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.

loss adjustment expenses financial

"net losses and loss adjustment expenses ("LAE") as a percentage of net premiums earned"

Costs an insurance company incurs to investigate, process, defend and settle claims — for example, fees for claims adjusters, legal defense, and settlement negotiations. These expenses act like the labor and admin needed to handle a warranty repair: they don’t pay the claim itself but add to the total cost of claims, so rising loss adjustment expenses reduce insurers’ profits and signal how efficiently future claims are likely to be handled.

catastrophe excess of loss financial

"The catastrophe excess of loss reinsurance placement generated treaty-year expense savings"

A catastrophe excess of loss is a type of reinsurance contract that covers an insurer’s losses from a single large disaster once those losses exceed a fixed retention, up to a defined limit. It matters to investors because it reduces an insurer’s exposure to extreme, concentrated claims and therefore affects the company’s capital stability and earnings volatility in the face of major events—like a homeowner whose small deductible is followed by an umbrella policy that kicks in for a big loss.

surplus lines regulatory

"our entry to the State of Texas on an excess and surplus lines basis"

Insurance written by nonadmitted (not licensed in the buyer’s state) carriers to cover risks that licensed, admitted insurers will not accept; surplus lines policies are placed by specially licensed surplus lines brokers after a buyer cannot obtain required coverage from admitted insurers, and they are exempt from state rate-and-form regulation though subject to state surplus lines filing, tax and consumer notice rules.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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TAMPA, Fla., Oct. 28, 2026 /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 2026 financial results.

Third Quarter 2026 Result Highlights

• Year-to-date net income of $149.3 million, up 15.8%, and earnings per share of $4.94 per diluted share, up 18.5%, compared with $128.9 million and $4.17 per diluted share, for the nine months ended September 30, 2025.
• Third quarter net income of $51.1 million, compared with $50.4 million in the prior-year quarter, despite $15.8 million of pre-tax catastrophe losses in the current quarter, compared with no catastrophe losses in the prior-year quarter.
• Earnings per share increased 5.5% to $1.72 per diluted share in the third quarter, as compared to $1.63 per diluted share in the prior-year quarter, aided by a 4.0% reduction in diluted shares outstanding.
• Total revenue increased 3.2% to $219.2 million from $212.5 million in the prior-year quarter, with net premiums earned up 5.4% and net investment income up 17.3% from the prior-year quarter.
• Net loss ratio increased 1.3 percentage points to 39.6%, from 38.3% in the prior-year quarter, reflecting higher catastrophe and weather losses, largely offset by $14.0 million of favorable prior-year reserve development.
• Net combined ratio was relatively flat at 73.0%, compared with 72.9% in the prior-year quarter.
• Net expense ratio improved 1.2 percentage points to 33.4%, from 34.6% in the prior-year quarter.
• Annualized return on equity of 35.1% for the third quarter of 2026 and 36.1% year to date, with stockholders' equity at September 30, 2026 up 37.0% from September 30, 2025.
• Book value per share of $20.22, up 23.4% from year-end 2025 and 42.9% from the prior-year quarter.
• Debt-to-capital ratio improved to 10.5% from 15.3% in the prior-year quarter.
• Repurchased 1,101,508 shares of common stock at a cost of $27.9 million in 2026.

Ernie Garateix, Heritage's CEO, commented, "Several years ago, we implemented a strategy of long-term sustainability which includes a focus on improving profitability, strengthening the balance sheet, and reducing volatility in our financial results. Today, we are generating record earnings, producing substantial capital and are positioned well to continue our momentum into the future. We believe Heritage has proven to be a stronger, better diversified and more resilient business, operating as a super-regional insurance carrier. We have the ability to opportunistically deploy capital across multiple geographies, products and distribution channels, which allows us to allocate capital to the most attractive risk-adjusted return opportunities while maintaining the underwriting discipline that has defined our transformation."

Mr. Garateix continued, "Our third quarter results demonstrate our earnings resilience as we absorbed higher weather losses and still modestly grew earnings per share. Despite the significant progress that we have made transforming our business and building the sustainable earnings power of the Company, we believe our full value has yet to be realized. As a result, we have repurchased more than one million shares of our common stock year to date. Additionally, our expanding geographic reach and the capabilities we have built position Heritage to capitalize on selective growth opportunities across our markets while remaining selective in areas where competition has intensified."

Strategic Profitability Initiatives

The Company's core strategic initiatives remain in place:

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

The Company continues to focus on the following profitability initiatives:

• Target geographies 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 entry to 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 and manage volatility while pursuing growth.

Capital Management

During the third quarter of 2026, the Company repurchased an aggregate of 100,000 shares of common stock for approximately $3.3 million under the previously announced share repurchase program and has repurchased 1,101,508 shares for approximately $27.9 million in 2026. As of September 30, 2026, the Company had $34.1 million remaining under the existing authorization. On October 28, 2026, the Board of Directors established a new share repurchase program to commence upon the expiration of the existing program on December 31, 2026, for the purpose of repurchasing up to an aggregate of $50.0 million of common stock through December 31, 2027.

Results of Operations

The following table summarizes results of operations for the three and nine months ended September 30, 2026, and 2025 (amounts in thousands, except percentages and per share amounts):

		Three Months Ended September 30,													Nine Months Ended September 30,
		2026				2025				Change					2026				2025				Change
Total revenues		$	219,241			$	212,459				3.2		%		$	646,095			$	632,013				2.2		%
Net income		$	51,124			$	50,421				1.4		%		$	149,317			$	128,919				15.8		%
Diluted earnings per share		$	1.72			$	1.63				5.5		%		$	4.94			$	4.17				18.5		%
Book value per share		$	20.22			$	14.15				42.9		%		$	20.22			$	14.15				42.9		%
Return on equity *			35.1		%		49.2		%		(14.1)		pts			36.1		%		47.2		%		(11.1)		pts
Underwriting summary
Gross premiums written		$	322,778			$	333,160				(3.1)		%		$	1,057,965			$	1,100,125				(3.8)		%
Gross premiums earned		$	352,781			$	361,961				(2.5)		%		$	1,057,497			$	1,069,383				(1.1)		%
Ceded premiums		$	(147,190)			$	(166,829)				(11.8)		%		$	(451,089)			$	(477,901)				(5.6)		%
Net premiums earned		$	205,591			$	195,132				5.4		%		$	606,408			$	591,482				2.5		%
Ceded premium ratio			41.7		%		46.1		%		(4.4)		pts			42.7		%		44.7		%		(2.0)		pts
Ratios to Net Premiums Earned:
Loss ratio			39.6		%		38.3		%		1.3		pts			38.6		%		42.2		%		(3.6)		pts
Expense ratio			33.4		%		34.6		%		(1.2)		pts			34.3		%		34.6		%		(0.3)		pts
Combined ratio			73.0		%		72.9		%		0.1		pts			72.9		%		76.8		%		(3.9)		pts

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

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.

Debt-to-Capital ratio represents total short term and long term interest bearing debt divided by total debt plus stockholders' equity.

Third Quarter 2026 Results:

Third quarter 2026 net income increased to $51.1 million, or $1.72 per diluted share, compared with $50.4 million, or $1.63 per diluted share, in the prior-year quarter. Diluted earnings per share increased 5.5%, benefiting from a 4.0% reduction in diluted shares outstanding primarily from share repurchases. Third quarter results absorbed $15.8 million of pre-tax catastrophe losses, including $9.1 million from Hurricanes Lala and Lowell, and $6.7 million from other catastrophe weather events, primarily the late September Nor'easter, compared with no catastrophe losses in the prior-year quarter. Revenue growth reflected lower ceded premiums, which increased net premiums earned, as well as higher investment income from a larger invested asset base.

Premiums-in-force were $1.40 billion, down 2.8% from $1.44 billion in the third quarter of 2025, primarily due to commercial residential premium reductions resulting from competitive pricing pressure. A reduction in Florida personal lines in-force premiums was more than offset by personal lines growth in other states.

Gross premiums written decreased 3.1% to $322.8 million from $333.2 million in the prior-year quarter, primarily reflecting lower commercial residential premiums, partially offset by growth in personal lines. The Florida commercial residential market remains highly competitive, and management continues to emphasize underwriting discipline and adequate profitability by requiring our commercial residential business to meet Heritage's pricing and risk standards.

Gross premiums earned were $352.8 million, compared with $362.0 million in the prior-year quarter, reflecting the decline in commercial residential business due to the competitive market conditions discussed above.

Ceded premiums decreased 11.8% to $147.2 million, compared with $166.8 million in the prior-year quarter. The reduction in ceded premiums reflected a full quarter of savings driven by the improved pricing of the Company's June 2026 catastrophe excess of loss program as well as the decrease in the northeast net quota share program, which was effective December 31, 2025. The catastrophe excess of loss reinsurance placement generated treaty-year expense savings of $63.2 million, of which seven-twelfths will be recognized in calendar year 2026.

Net premiums earned increased 5.4% to $205.6 million from $195.1 million in the prior-year quarter, driven by lower ceded premiums more than offsetting the decrease in gross earned premiums.

Total revenue increased 3.2% to $219.2 million, reflecting higher net premiums earned and increased investment income. Other revenue decreased $2.6 million on lower fee income, and net realized gains decreased $2.8 million, as both were elevated in the prior-year quarter. Net investment income rose 17.3% to $11.4 million in the third quarter of 2026 from $9.7 million in the prior-year quarter, driven by growth in invested assets. Cash and invested assets were $1.4 billion at September 30, 2026, up 8.8% from December 31, 2025. The investment portfolio remains conservatively positioned, emphasizing high-quality fixed-income investments with asset durations closely matched to liabilities.

Net losses and LAE were $81.4 million, up $6.6 million from $74.8 million in the prior-year quarter. The net loss ratio increased 1.3 points to 39.6% from 38.3% in the same quarter last year. Net weather and catastrophe losses for the current accident quarter were $33.6 million, compared with $13.8 million in the prior-year quarter, and included $9.1 million of hurricane losses and $6.7 million of other catastrophe losses. Net favorable prior-year loss development was $14.0 million in the third quarter of 2026, compared with $5.0 million in the prior-year quarter.

The net expense ratio improved 1.2 points to 33.4%, from 34.6% in the prior-year quarter. Policy acquisition costs were relatively flat compared to the prior year quarter. General and administrative expenses increased 5.2%, reflecting higher employee compensation and related costs offset by a decrease in corporate insurance expense, primarily from a non-recurring premium refund.

The net combined ratio was relatively flat at 73.0% compared with 72.9% in the prior-year quarter, with a decrease in expense ratio nearly offsetting the increase in loss ratio.

The effective tax rate was 24.5% compared to 26.2% in the prior-year 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 1.7 points lower than the prior-year quarter, with the variance driven by 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:	Q3 2026				Q3 2025				% Change
Personal Residential		335,909				350,844				(4.3)		%
Commercial Residential		3,228				3,053				5.7		%
Other		8,783				9,412				(6.7)		%
Total		347,920				363,309				(4.2)		%
Premiums-in-force:	(in thousands)
Personal Residential		1,157,426				1,154,731				0.2		%
Commercial Residential		232,126				276,660				(16.1)		%
Other		10,118				9,171				10.3		%
Total		1,399,670				1,440,562				(2.8)		%
Total Insured Value:	(in thousands)
Personal Residential		321,025,541				318,439,324				0.8		%
Commercial Residential		50,354,442				46,824,497				7.5		%
Total		371,379,983				365,263,822				1.7		%

Book Value Analysis:

Book Value Per Share	As Of
	September 30, 2026				December 31, 2025				September 30, 2025
	(in thousands, except share and per share amounts)
Numerator:
Common stockholders' equity	$	599,140.70			$	505,251.00			$	437,253.00
Denominator:
Total Shares Outstanding		29,632,416				30,833,776				30,911,435
Book Value Per Common Share	$	20.22			$	16.39			$	14.15

Book value per share was $20.22 at September 30, 2026, an increase of 23.4% from December 31, 2025 and an increase of 42.9% from September 30, 2025. The increase in stockholders' equity from December 31, 2025 was primarily driven by net income, partially offset by a $22.7 million net-of-tax increase in unrealized losses on the Company's fixed income securities portfolio and the $27.9 million repurchase of 1,101,508 shares of common stock in 2026. The decline in the number of shares outstanding from December 31, 2025 was driven by the repurchase of common stock and shares surrendered which was partially offset by the issuance of restricted stock in 2026. Average stockholders' equity increased 42.2% over the prior-year quarter, which caused the return on equity for the prior-year quarter to be higher than the current quarter, despite higher net income.

The accumulated other comprehensive loss of $33.2 million, net of tax, represents unrealized losses on the investment portfolio and is unrelated to credit risk but is instead attributable to rising interest rates. 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 3.3 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:
Thursday, October 29, 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)
	September 30, 2026				December 31, 2025
ASSETS	(unaudited)
Fixed maturities, available-for-sale, at fair value	$	852,630			$	713,237
Equity securities, at fair value		816				1,064
Other investments, net		1,210				1,285
Total investments		854,656				715,586
Cash and cash equivalents		532,098				559,274
Restricted cash		13,286				13,307
Accrued investment income		7,125				6,556
Premiums receivable, net		87,931				95,331
Reinsurance recoverable on paid and unpaid claims, net		218,885				318,588
Prepaid reinsurance premiums		383,966				307,039
Deferred income tax asset, net		15,128				5,855
Income tax receivable, net		571				—
Deferred policy acquisition costs, net		64,852				64,544
Property and equipment, net		26,402				28,254
Right-of-use lease asset, finance		10,773				12,598
Right-of-use lease asset, operating		5,852				4,878
Intangibles, net		25,651				30,189
Other assets		15,646				33,823
Total Assets	$	2,262,822			$	2,195,822
LIABILITIES AND STOCKHOLDERS' EQUITY
Unpaid losses and loss adjustment expenses	$	459,875			$	579,477
Unearned premiums		708,385				707,923
Reinsurance payable		339,143				232,801
Long-term debt, net		70,432				78,428
Advance premiums		26,776				19,164
Income tax payable, net		—				4,282
Accrued compensation		8,703				8,844
Lease liability, finance		13,612				15,587
Lease liability, operating		6,073				5,800
Accounts payable and other liabilities		30,682				38,265
Total Liabilities	$	1,663,681			$	1,690,571
Stockholders' Equity:
Common stock, $0.0001 par value		3				3
Additional paid-in capital		360,888				365,736
Accumulated other comprehensive loss, net of taxes		(33,243)				(10,555)
Treasury stock, at cost		(161,074)				(133,183)
Retained earnings		432,567				283,250
Total Stockholders' Equity		599,141				505,251
Total Liabilities and Stockholders' Equity	$	2,262,822			$	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 September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
REVENUE:
Gross premiums written		$	322,778			$	333,160			$	1,057,965			$	1,100,125
Change in gross unearned premiums			30,003				28,801				(468)				(30,742)
Gross premiums earned			352,781				361,961				1,057,497				1,069,383
Ceded premiums			(147,190)				(166,829)				(451,089)				(477,901)
Net premiums earned			205,591				195,132				606,408				591,482
Net investment income			11,361				9,686				31,823				27,295
Net realized (losses) gains on debt securities and other investments			(38)				2,746				(59)				2,746
Other revenue			2,327				4,895				7,923				10,490
Total revenue			219,241				212,459				646,095				632,013
EXPENSES:
Losses and loss adjustment expenses			81,391				74,766				234,045				249,793
Policy acquisition costs			45,114				45,182				135,959				134,143
General and administrative expenses			23,506				22,345				72,194				70,604
Total expenses			150,011				142,293				442,198				454,540
Operating income			69,230				70,166				203,897				177,473
Interest expense, net			1,515				1,850				4,983				6,157
Income before taxes		$	67,715			$	68,316			$	198,914			$	171,316
Income tax expense			16,591				17,895				49,597				42,397
Net income		$	51,124			$	50,421			$	149,317			$	128,919
Weighted average shares outstanding
Basic			29,727,529				30,962,464				30,141,881				30,888,169
Diluted			29,784,837				31,021,780				30,200,528				30,947,450
Earnings per share
Basic		$	1.72			$	1.63			$	4.95			$	4.17
Diluted		$	1.72			$	1.63			$	4.94			$	4.17

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 personal and commercial residential premium across its multi-state footprint covering the northeast, southeast and Hawaii on an admitted basis, with additional excess and surplus lines premium in California, Florida, Hawaii, South Carolina and Texas.

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 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 expectations and plans regarding premiums, including premium growth and ceded premium outlook; our expectations regarding personal lines policy count growth; our expectations regarding the reversal of unrealized losses; 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 evaluation of the value of our common stock; our new geography and product diversification and expansion strategy, including our plans relating to building 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; 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

 

View original content:https://www.prnewswire.com/news-releases/heritage-reports-third-quarter-2026-results-302922705.html

SOURCE Heritage Insurance Holdings, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Heritage's third-quarter 2026 earnings and revenue?

Heritage reported $51.1 million in net income, $1.72 in diluted earnings per share and $219.2 million in revenue. Compared with the prior-year quarter, net income increased 1.4%, diluted EPS increased 5.5% and revenue increased 3.2%.

How much is Heritage's new share repurchase program?

The new program authorizes repurchases of up to $50.0 million of common stock through December 31, 2027. It will commence upon expiration of the existing program on December 31, 2026. The existing authorization had $34.1 million remaining at September 30, 2026.

What drove Heritage's lower third-quarter 2026 reinsurance premiums?

Lower ceded premiums reflected a full quarter of savings from improved pricing on the June 2026 catastrophe excess-of-loss program and a reduction in the northeast net quota-share program effective December 31, 2025. The catastrophe placement generated $63.2 million in treaty-year expense savings, of which seven-twelfths will be recognized in calendar year 2026.

Which storms contributed to Heritage's third-quarter 2026 catastrophe losses?

Hurricanes Lala and Lowell contributed $9.1 million of pre-tax catastrophe losses. Other catastrophe weather events contributed $6.7 million, primarily from the late-September Nor'easter.