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Dec 31, 2020

Heritage Insurance Q4 2020 Earnings Report

Heritage reported net income for Q4 2020, despite experiencing elevated weather losses.

Key Takeaways

Heritage Insurance Holdings, Inc. reported a net income of $2.8 million for the fourth quarter of 2020. The company experienced growth in gross premiums written, but results were impacted by significant weather losses.

Net income was $2.8 million, or $0.10 per diluted share.

Book value per share increased to $15.94, up 1.8% year-over-year.

Gross premiums written increased to $282.3 million, up 19.9% year-over-year.

Net current accident quarter weather losses totaled $38.9 million, increasing from $15.3 million in the prior year quarter.

Total Revenue
$160M
Previous year: $131M
+21.7%
EPS
$0.1
Previous year: $0.44
-77.3%
Combined Ratio
108.7%
Previous year: 89.3%
+21.7%
Gross Profit
$151M
Previous year: $139M
+9.3%
Cash and Equivalents
$441M
Previous year: $268M
+64.3%
Free Cash Flow
$51.5M
Previous year: $3.45M
+1392.1%
Total Assets
$2.09B
Previous year: $1.94B
+7.7%

Heritage Insurance

Heritage Insurance

Forward Guidance

Company management believes that their solid organic growth platform and heightened focus on underwriting profitability position them well for 2021 and beyond.

Positive Outlook

  • Solid organic growth platform
  • Heightened focus on underwriting
  • Profitability initiatives
  • New partnership with The Hartford
  • Writing homeowners insurance in Maryland

Challenges Ahead

  • Potential prolonged impact of COVID-19 pandemic
  • Inflation and changes in economic conditions
  • Impact of new federal and state regulations
  • Costs and collectability of reinsurance
  • Potential litigation outcomes