Heritage Insurance posts strong 2025 earnings jump

Heritage Insurance Holdings, Inc. reported a sharp improvement in profitability for the fourth quarter and full year 2025.

Rhea-AI Filing Summary

Heritage Insurance Holdings, Inc. reported a sharp improvement in profitability for the fourth quarter and full year 2025. Fourth quarter net income rose to $66.7 million, or $2.15 per diluted share, up from $20.3 million, or $0.66, a year earlier, as higher net premiums earned and investment income combined with much lower losses and expenses.

For 2025, net income increased to $195.6 million, or $6.32 per diluted share, compared with $61.5 million, or $2.01, in 2024, despite $31.8 million of wildfire losses. The net combined ratio improved to 62.0% in the quarter from 89.7%, reflecting a lower loss ratio of 31.3% and a lower expense ratio of 30.7%.

Book value per share rose to $16.39 at December 31, 2025, up from $9.50, supported by strong earnings and a reduction in unrealized losses on fixed income securities as interest rates fell. The company kept its quarterly dividend suspended but repurchased shares, including 106,135 shares for $2.3 million in 2025 and 112,858 shares for $3.0 million in early 2026 under a new $25.0 million authorization.

Positive

• Profitability surged: 2025 net income increased to $195.6 million from $61.5 million, with Q4 net income more than tripling to $66.7 million as the combined ratio improved to 62.0% from 89.7%.
• Balance sheet and book value strengthened: book value per share rose to $16.39 from $9.50, supported by strong earnings and a $23.7 million reduction in unrealized losses on fixed income securities.

Negative

• None.

Insights

Insurance sector equity analyst

Heritage delivered much stronger 2025 earnings driven by underwriting and capital strength.

Heritage Insurance showed a major turnaround in profitability. Fourth quarter 2025 net income rose to $66.7 million and full-year net income to $195.6 million, helped by higher net premiums earned and lower losses and expenses. The net combined ratio improved to 62.0%, indicating very profitable underwriting.

Loss experience was materially better: the net loss ratio fell to 31.3%, aided by lower weather and catastrophe losses and reduced adverse development. Expense discipline also contributed, with the net expense ratio dropping to 30.7%. Management highlighted rate adequacy and disciplined underwriting as key drivers alongside favorable weather.

Capital levels strengthened meaningfully. Book value per share climbed to $16.39, supported by earnings and a $23.7 million reduction in unrealized losses as interest rates declined. The board continued its dividend suspension while authorizing up to $25.0 million of share repurchases through December 31, 2026, and the company has already repurchased shares under this plan.

8-K Event Classification

Item 2.02 — Results of Operations and Financial Condition

1 item

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

FAQ

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

How did Heritage Insurance (HRTG) perform financially in Q4 2025?

Heritage Insurance posted significantly stronger Q4 2025 results, with net income of $66.7 million, or $2.15 per diluted share, versus $20.3 million, or $0.66, a year earlier. Better underwriting, lower losses and reduced expenses drove this improvement.

What were Heritage Insurance’s full-year 2025 earnings compared to 2024?

For full-year 2025, Heritage Insurance reported net income of $195.6 million, or $6.32 per diluted share, up from $61.5 million, or $2.01, in 2024. This gain came despite $31.8 million of wildfire-related losses, reflecting stronger underwriting and investment performance.

How did Heritage Insurance’s underwriting metrics change in 2025?

Heritage Insurance’s underwriting results improved markedly in 2025. In Q4, the net loss ratio fell to 31.3% from 54.7%, the net expense ratio declined to 30.7% from 35.0%, and the net combined ratio improved to 62.0% from 89.7%, indicating more profitable underwriting.

What happened to Heritage Insurance’s book value per share by year-end 2025?

Book value per share at Heritage Insurance rose to $16.39 at December 31, 2025, compared with $9.50 a year earlier. The increase was mainly driven by strong net income and a $23.7 million reduction in unrealized losses on the fixed income securities portfolio.

What capital management actions did Heritage Insurance take in 2025 and early 2026?

Heritage Insurance continued suspending its quarterly dividend while repurchasing shares. It bought 106,135 shares for $2.3 million in 2025 and 112,858 shares for $3.0 million in Q1 2026 under a new authorization to repurchase up to $25.0 million of common stock.

How did weather and catastrophe losses affect Heritage Insurance’s 2025 results?

Weather-related impacts eased in late 2025. Q4 2025 net weather losses were $7.7 million, down sharply from $45.6 million a year earlier, with no catastrophe losses versus $40.0 million previously. For the full year, results included $31.8 million of California wildfire losses.

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

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Accepted by SEC EDGAR 03/09/2026 - 07:43 AM Learn about SEC filing dates

false 0001598665 0001598665 2025-03-09 2025-03-09

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 9, 2025

HERITAGE INSURANCE HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Delaware		001-36462		45-5338504
(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

1401 N. Westshore Blvd Tampa, Florida		33607
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (727) 362-7202

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.0001 per share		HRTG		New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Conditions.

On March 9, 2026, Heritage Insurance Holdings, Inc. (the “Company”) issued a press release announcing financial results for its fiscal quarter and full year ended December 31, 2025. A copy of the press release is attached hereto as Exhibit 99.1.

The information furnished under this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits. The following exhibit is being furnished as part of this Current Report on Form 8-K.

No.		Exhibit
99.1		Press Release dated March 9, 2026.
104		Cover Page Interactive Data File (the cover page tags are embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

				HERITAGE INSURANCE HOLDINGS, INC.
Date: March 9, 2026				By:		/s/ Kirk Lusk
						Kirk Lusk Chief Financial Officer

Exhibit 99.1

Heritage Reports Fourth Quarter and Full Year 2025 Results

Tampa, FL – March 9, 2026: Heritage Insurance Holdings, Inc. (NYSE: HRTG) (“Heritage” or the “Company”), a super-regional property and casualty insurance holding company, today reported fourth quarter of 2025 financial results.

Fourth Quarter 2025 Result Highlights

• Heritage reported net income of $66.7 million, an increase of 228.5% from net income of $20.2 million in the prior year quarter; and earnings per share of $2.15 per diluted share, an increase of 225.8% from $0.66 per diluted share from the prior year quarter.

• Gross premiums earned were $361.7 million, an increase of 0.4% from $360.4 million in the prior year quarter.

• Net premiums earned totaled $202.7 million, an increase of 1.7% from $199.3 million in the prior year quarter.

• Net loss ratio was 31.3%, an improvement of 23.4 percentage points from 54.7% in the prior year quarter.

• Net expense ratio was 30.7%, an improvement of 4.3 percentage points from 35.0% in the prior year quarter.

• Net combined ratio was 62.0%, an improvement of 27.7 percentage points from 89.7% in the prior year quarter.

• Return on average equity was 56.6%, up from 28.5% in the prior year quarter.

• Book value per share increased 72.5% from year end 2024 and was up 124.8% from year-end 2023.

“Our fourth quarter results benefited from the cumulative effect of the strategic initiatives launched several years ago and which have been continuously refined over the last two years. Our focus on rate adequacy, disciplined underwriting and high service levels to our agents and policyholders, coupled with favorable weather, resulted in record earnings this quarter and for the full year. Looking forward, we are well-positioned to deliver managed growth with rate adequacy in over 90% of our markets where we are open for new business. As a result, we have seen our new business premium production increase 60.4% in the quarter as compared to the fourth quarter of 2024. We believe we have the right agent relationships, reinsurer partnerships, management team, and infrastructure to prudently grow our top line in 2026. We appreciate our valued agents, agencies and reinsurance partners and recognize their influence on our success,” remarked Heritage CEO Ernie Garateix.

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.

2025 Progress on Strategic Initiatives

• Re-opened profitable geographies and allocated capital to sustain profits and margin on a measured basis.

• Persistent underwriting discipline and focus on rate adequacy.

• Continued data driven analytics.

• Enhanced customer service and claims capabilities.

• Leveraged infrastructure and capabilities to foster future growth.

Strategic Initiatives for 2026

• Target geographies open for new business, while closely managing risk and exposure.

• Continue persistent underwriting discipline and focus on rate adequacy while driving prudent growth of the top line.

• 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 to offer products on an excess and surplus lines basis.

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 106,135 shares of common stock during 2025 at a cost of $2.3 million under the Company’s previously announced share repurchase authorization, which authorizes the repurchase of up to an aggregate of $10.0 million of common stock through December 31, 2025. On November 5, 2025, the Board of Directors established a new share repurchase plan to commence upon the expiration of the 2025 share repurchase plan on December 31, 2025, for the purpose of repurchasing up to an aggregate of $25.0 million of common stock through December 31, 2026. The Company repurchased 112,858 shares of common stock during the first quarter of 2026 at a cost of $3.0 million under the new share repurchase plan.

Results of Operations

The following table summarizes results of operations for the three-months and years ended December 31, 2025 and 2024 (amounts in thousands, except percentages and per share amounts):

		Three Months Ended December 31,										Year Ended December 31,
		2025				2024				Change		2025				2024				Change
Total revenue		$	215,317			$	210,264			2.4%		$	847,330			$	816,985				3.71	%
Net income		$	66,675			$	20,294			228.5%		$	195,594			$	61,539				217.8	%
Earnings Per Diluted Share		$	2.15			$	0.66			225.8%		$	6.32			$	2.01				214.4	%
Book value per share		$	16.39			$	9.50			72.5%		$	16.39			$	9.50				72.5	%
Return on equity*			56.6	%			28.5	%		28.1 pts			49.1	%			24.1	%			25.0 pts
Underwriting summary
Gross premiums written		$	336,221			$	338,742			(0.7)%		$	1,436,346			$	1,432,942				0.2	%
Gross premiums earned		$	361,720			$	360,448			0.4%		$	1,431,103			$	1,406,106				1.8	%
Ceded premiums		$	(159,045	)		$	(161,170	)		(1.3)%		$	(636,946	)		$	(638,246	)			(0.2	)%
Net premiums earned		$	202,676			$	199,278			1.7%		$	794,157			$	767,860				3.4	%
Ceded premium ratio			44.0	%			44.7	%		(0.7) pts			44.5	%			45.4	%			(0.9	) pts
Ratios to Net Premiums Earned:
Loss ratio			31.3	%			54.7	%		(23.4) pts			39.4	%			58.2	%			(18.8	) pts
Expense ratio			30.7	%			35.0	%		(4.3) pts			33.6	%			36.0	%			(2.4	) pts
Combined ratio			62.0	%			89.7	%		(27.7) pts			73.1	%			94.2	%			(21.1	) 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.

Fourth Quarter 2025 Results:

Fourth quarter 2025 net income was $66.7 million or $2.15 per diluted share, compared to net income of $20.3 million or $0.66 per diluted share in the prior year quarter. The increase was primarily driven by higher net premiums earned and investment income, accompanied by a significant reduction in losses and loss adjustment expenses and a reduction in policy acquisition costs. Additionally, a lower effective tax rate caused the provision for income taxes in the current year quarter to be proportionately lower compared to the prior year quarter. A strong increase from the full year 2024’s net income of $61.5 million, or $2.01 per share. Of note, our full year results included $31.8 million of net pretax losses and loss adjustment expenses related to the California wildfires in the first quarter of 2025.

Premiums-in-force were $1.43 billion as of the fourth quarter 2025, relatively flat compared to the fourth quarter 2024.

Gross premiums written of $336.2 million were down 0.7% from $338.7 million in the prior year quarter, driven by a moderate reduction in our commercial residential business from by competitive market conditions, which was partly offset by rate driven growth in our personal lines business.

Gross premiums earned were $361.7 million, up 0.4% from $360.4 million in the prior year quarter, reflecting higher gross premiums written over the last twelve months.

Net premiums earned were $202.7 million, up 1.7% from $199.3 million in the prior year quarter, driven primarily by a reduction in ceded premiums from the prior year quarter.

Net loss ratio was 31.3%, a 23.4 point improvement from 54.7% in the same quarter last year reflecting significantly lower net losses and LAE coupled with higher net premiums earned. Net weather losses for the current accident quarter were $7.7 million, a decrease of $37.9 million from $45.6 million in the prior year quarter. There were no catastrophe losses in the current year quarter compared to $40.0 million in the prior year quarter. Other weather losses totaled $7.7 million, slightly up from the prior year quarter amount of $5.6 million. Attritional losses declined from the prior year quarter. Adverse loss development was $1.6 million compared to adverse development in the prior year quarter of $3.8 million.

The net expense ratio was 30.7%, a 4.3 point improvement from the prior year quarter amount of 35.0%, driven primarily by a reduction in policy acquisition costs from higher ceding commission income as well as relatively flat general and administrative expenses, coupled with an increase in net premiums earned.

Net combined ratio of 62.0% improved 27.7 points from 89.7% in the prior year quarter, driven by a lower net loss ratio and lower net expense ratio as described above.

Net investment income was $9.8 million up $1.3 million, or 15.9%, from $8.5 million in the prior year quarter reflecting larger investment balances coupled with actions to align the investments with the yield curve, while maintaining a high-quality portfolio of short duration.

The effective tax rate was 24.2% compared to 29.9% in the prior year quarter. The effective tax rate for the current year quarter was slightly lower than the statutory rate, driven primarily by higher pre-tax income which diluted the impacts of permanent tax differences. The effective tax rate for the prior year quarter was higher than the statutory rate, driven largely by the impact of the true up during the fourth quarter of 2024 from the previous three quarterly estimates. The impact of permanent tax differences on projected results of operations for the calendar year affects the effective tax rate, which can also fluctuate throughout the year as estimates used in the quarterly tax provision are updated with additional information.

Supplemental Information:

		At December 31,
Policies in force:		2025				2024				% Change
Florida			123,437				133,775				(7.7	)%
Other States			233,838				255,700				(8.5	)%
Total			357,275				389,475				(8.3	)%
Premiums in force:			(In thousands)
Florida		$	679,079			$	707,197				(4.0	)%
Other States			752,738				726,048				3.7	%
Total		$	1,431,817			$	1,433,245				(0.1	)%
Total Insured Value:			(In thousands)
Florida		$	105,997,817			$	102,661,095				3.3	%
Other States			257,533,142				264,950,914				(2.8	)%
Total		$	363,530,959			$	367,612,009				(1.1	)%

Book Value Analysis:

		As Of
Book Value Per Share		December 31, 2025				December 31, 2024				December 31, 2023
Numerator:
Common stockholders’ equity		$	505,251			$	290,799			$	220,280
Denominator:
Total Shares Outstanding			30,833,776				30,607,039				30,218,938
Book Value Per Common Share		$	16.39			$	9.50			$	7.29

Book value per share of $16.39 at December 31, 2025, was up 72.5% from the fourth quarter 2024 and up 124.8% from the fourth quarter 2023. The increase from December 31, 2024 is primarily attributable to net income as well as a $23.7 million reduction in unrealized losses on the Company’s fixed income securities portfolio. The unrealized losses are unrelated to credit risk but are instead attributable to rising interest rates, with the reduction in unrealized losses driven by lower interest rates during 2025. 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 3.2 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:

Monday, March 9, 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.

Consolidated Balance Sheets

(Amounts In thousands, except share amounts)

		December 31, 2025				December 31, 2024
ASSETS
Fixed maturities, available-for-sale, at fair value		$	713,237			$	655,555
Equity securities, at fair value			1,064				1,936
Other investments, net			1,285				5,952
Total investments			715,586				663,443
Cash and cash equivalents			559,274				452,666
Restricted cash			13,307				10,979
Accrued investment income			6,556				5,592
Premiums receivable, net			95,331				102,134
Reinsurance recoverable on paid and unpaid claims, net			318,588				740,204
Prepaid reinsurance premiums			307,039				309,802
Deferred income tax asset, net			5,855				13,876
Deferred policy acquisition costs, net			64,544				63,204
Property and equipment, net			28,254				38,080
Right-of-use lease asset, finance			12,598				15,082
Right-of-use lease asset, operating			4,878				5,850
Intangibles, net			30,189				36,372
Other assets			33,823				11,640
Total Assets		$	2,195,822			$	2,468,924
LIABILITIES AND STOCKHOLDERS’ EQUITY
Unpaid losses and loss adjustment expenses		$	579,477			$	1,042,687
Unearned premiums			707,923				702,707
Reinsurance payable			232,801				227,060
Long-term debt, net			78,428				116,319
Advance premiums			19,164				15,186
Income tax payable, net			4,282				846
Accrued compensation			8,844				8,926
Lease liability, finance			15,587				18,071
Lease liability, operating			5,800				6,945
Accounts payable and other liabilities			38,265				39,378
Total Liabilities		$	1,690,571			$	2,178,125
Stockholders’ Equity:
Common stock, $0.0001 par value			3				3
Additional paid-in capital			365,736				362,644
Accumulated other comprehensive loss, net of taxes			(10,555	)			(28,604	)
Treasury stock, at cost			(133,183	)			(130,900	)
Retained earnings			283,250				87,656
Total Stockholders’ Equity			505,251				290,799
Total Liabilities and Stockholders’ Equity		$	2,195,822			$	2,468,924

HERITAGE INSURANCE HOLDINGS, INC. AND SUBSIDIARIES

Consolidated Statements of Income and Other Comprehensive Income

(Amounts in thousands, except per share and share amounts)

		Three Months Ended December 31,								Year Ended December 31,
		2025				2024				2025				2024
REVENUE:
Gross premiums written		$	336,221			$	338,742			$	1,436,346			$	1,432,942
Change in gross unearned premiums			25,499				21,706				(5,243	)			(26,836	)
Gross premiums earned			361,720				360,448				1,431,103				1,406,106
Ceded premiums			(159,045	)			(161,170	)			(636,946	)			(638,246	)
Net premiums earned			202,676				199,278				794,157				767,860
Net investment income			9,861				8,510				37,156				36,631
Net realized gains on debt securities and other investments			(33	)			(722	)			2,713				(705	)
Other revenue			2,814				3,198				13,304				13,199
Total revenue			215,317				210,264				847,330				816,985
EXPENSES:
Losses and loss adjustment expenses			63,453				109,065				313,246				447,048
Policy acquisition costs			39,818				48,528				173,961				191,189
General and administrative expenses			22,367				21,153				92,972				85,138
Total expenses			125,639				178,746				580,179				723,375
Operating income		$	89,678			$	31,518			$	267,151			$	93,610
Interest expense, net			1,730				2,569				7,887				10,934
Income before taxes		$	87,948			$	28,949			$	259,264			$	82,676
Income tax expense			21,273				8,655				63,670				21,136
Net income		$	66,675			$	20,294			$	195,594			$	61,539
OTHER COMPREHENSIVE INCOME:
Change in net unrealized gains (losses) on investments			3,031				(11,582	)			23,588				8,771
Reclassification adjustment for net realized investment losses (gains)			112				(34	)			107				(51	)
Income tax expense related to items of other comprehensive income			(760	)			2,742				(5,646	)			(2,074	)
Total comprehensive income		$	69,058			$	11,420			$	213,643			$	68,185
Weighted average shares outstanding
Basic			30,897,929				30,670,779				30,890,609				30,595,348
Diluted			30,957,245				30,730,042				30,949,899				30,654,611
Earnings per share
Basic		$	2.16			$	0.66			$	6.33			$	2.01
Diluted		$	2.15			$	0.66			$	6.32			$	2.01

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; 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 belief regarding having the right team and infrastructure in place to prudently grow our top line in 2026; 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 plans for growth and expansion in certain geographies; 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 profit and growth in 2026 and beyond and the drivers of such profit and growth. 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 such models as a tool to evaluate risk; 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, 2024 filed with the Securities and Exchange Commission on March 13, 2025, 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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