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Dec 31, 2021
Heritage Insurance Q4 2021 Earnings Report
Reported strong underwriting income on revenue growth and combined ratio improvement.
Key Takeaways
Heritage Insurance Holdings reported a net loss of $49.2 million for Q4 2021, compared to a net income of $2.8 million in the prior year quarter. However, non-GAAP adjusted net income was $11.3 million, up from $2.8 million in the prior year quarter, driven by stronger underwriting profitability. The combined ratio improved to 93.2%, the lowest in two years.
Net loss of $49.2 million, or $(1.79) per share, down from $2.8 million, or $0.10 per diluted share in the prior year quarter.
Non-GAAP adjusted net income of $11.3 million, or $0.41 per diluted share, up from $2.8 million, or $0.10 per diluted share in the prior year quarter.
Net combined ratio improved to 93.2% from 108.7% in the fourth quarter of 2020.
Gross premiums earned increased by 10.7% to $293.7 million.
Forward Guidance
Company expects continued positive momentum in 2022 and beyond, due to strategic initiatives launched in 2021.
Positive Outlook
- Meaningful rate increases
- Re-underwriting existing business
- Selectively accepting new business
- Optimizing distribution network
- Enhancing the agent experience
Challenges Ahead
- Success of the Company’s underwriting and profitability initiatives
- The continued and potentially prolonged impact of the COVID-19 pandemic on the economy, demand for our products and our operations
- Inflation and other changes in economic conditions (including changes in interest rates and financial and real estate markets), including as a result of the COVID-19 pandemic
- The impact of new federal and state regulations that affect the property and casualty insurance market
Historical Earnings Impact
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Avg. Return Before/After Earnings
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