Heritage Insurance Q3 2020 Earnings Report
Key Takeaways
Heritage Insurance Holdings reported a net loss of $5.2 million for Q3 2020, primarily due to significant weather-related losses. Gross premiums written increased by 17.3% year-over-year, and book value per share rose by 3.9%. The company is focusing on bottom-line profitability through rate increases.
Net loss of $5.2 million, or $0.19 per diluted share, was reported.
Book value per share increased to $15.97, up 3.9% year-over-year.
Gross premiums written reached $278.2 million, a 17.3% increase year-over-year.
Net current accident quarter weather losses totaled $47.3 million, up substantially from the prior year.
Heritage Insurance
Heritage Insurance
Heritage Insurance Revenue by Geographic Location
Forward Guidance
The company is carefully monitoring the short- and long-term effects of COVID-19 and anticipates no significant impact on its business.
Positive Outlook
- The company sees its business as relatively insulated from a short-term economic slowdown.
- Property owners and renters generally view insurance products as a necessity.
- The company will take necessary actions to mitigate any negative impacts to its business, operations or financial results.
- Company grew book value per share year-over year.
- Company saw strong organic growth throughout its footprint.
Challenges Ahead
- Uncertainties associated with future economic conditions.
- Potential for a prolonged economic slowdown as a result of COVID-19.
- Elevated weather losses in the third quarter.
- Higher net loss ratio due to weather losses and reserve development.
- Increased net combined ratio.