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Jun 30, 2021

Heritage Insurance Q2 2021 Earnings Report

Heritage reported a net loss due to higher weather losses and a reinstatement premium, partially offset by increased net premiums earned and a lower net expense ratio.

Key Takeaways

Heritage Insurance Holdings, Inc. reported a net loss of $4.0 million for the second quarter of 2021, compared to a net income of $4.1 million in the prior year quarter. The decrease was primarily due to higher weather losses, a $9.4 million reinstatement premium, and lower investment income, which was partially offset by higher net premiums earned and a lower net expense ratio. Gross premiums written increased by 16.3% year-over-year.

Net loss of $4.0 million, or $0.14 per share.

Gross premiums written of $337.7 million, up 16.3% year-over-year.

Net current accident quarter weather losses of $35.5 million, up from $26.8 million in the prior year quarter.

Additional ceded premium of $9.4 million, reflecting reinstatement of severe convective storm reinsurance coverage.

Total Revenue
$146M
Previous year: $129M
+13.5%
EPS
-$0.14
Previous year: $0.15
-193.3%
Gross Premiums Written Growth
16.3%
Ceded Premium Ratio
48.7%
Gross Profit
$146M
Previous year: $129M
+13.5%
Cash and Equivalents
$447M
Previous year: $288M
+55.0%
Free Cash Flow
$63.4M
Previous year: $46.1M
+37.6%
Total Assets
$2.35B
Previous year: $2.17B
+8.6%

Heritage Insurance

Heritage Insurance

Forward Guidance

The company continues to monitor the short- and long-term impacts of COVID-19 and does not expect a material impact to its business going forward.