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Mar 31, 2020
Heritage Insurance Q1 2020 Earnings Report
Reported a net income increase driven by higher net premiums earned and a lower net combined ratio.
Key Takeaways
Heritage Insurance Holdings, Inc. reported a net income of $7.6 million, or $0.27 per diluted share, for the first quarter of 2020. Gross premiums written increased by 8.9% year-over-year to $229.1 million. The company repurchased 766,900 shares for $8.0 million and saw minimal impact from COVID-19 during the quarter.
Net income for the quarter totaled $7.6 million, or $0.27 per diluted share.
Book value per share rose to $16.11, an increase of 9.0% year-over-year.
Gross premiums written amounted to $229.1 million, up 8.9% year-over-year.
The company repurchased 766,900 shares for $8.0 million during the quarter.
Revenue by Geographic Location
Forward Guidance
Company expects minimal impact to the business going forward.
Positive Outlook
- The majority of gross and net premiums written are from renewals of expiring policies.
- Homeowners insurance is a must-have product for most consumers.
- New business could be partially or fully offset by increased retention in renewal portfolio.
- Management will take necessary actions to mitigate any negative impacts to our business, operations or financial results.
- Company's business is relatively insulated from an economic slowdown.
Challenges Ahead
- Monitoring the short- and long-term impacts of COVID-19.
- Uncertainties associated with future economic conditions.
- New business could be impacted if consumers are not buying as many new homes in our geographies.
- Prolonged economic slowdown as a result of COVID-19.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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