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Heritage Insurance
🇺🇸 NYSE:HRTG
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•
Dec 31, 2023

Heritage Insurance Q4 2023 Earnings Report

Heritage reported improved financial results in Q4 2023, driven by increased net premiums earned, higher net investment income, and lower net losses incurred.

Key Takeaways

Heritage Insurance Holdings, Inc. reported a net income of $30.9 million, or $1.15 per diluted share, for the fourth quarter of 2023, compared to a net income of $12.5 million, or $0.48 per diluted share, in the prior year quarter. The improvement was primarily driven by an increase in net premiums earned, higher net investment income, and lower net losses incurred. Gross premiums earned increased by 7.0% year-over-year, and the net combined ratio improved by 11.2 points to 84.9%.

Net income increased to $30.9 million, or $1.15 per diluted share, up from $12.5 million, or $0.48 per diluted share, in the prior year quarter.

Gross premiums earned rose by 7.0% to $339.6 million compared to $317.3 million in the prior year quarter.

Net premiums earned increased by 6.9% to $177.7 million, up from $166.2 million in the prior year quarter.

The net combined ratio improved by 11.2 points to 84.9%, driven by a lower net loss ratio.

Total Revenue
$187M
Previous year: $175M
+7.1%
EPS
$1.15
Previous year: $0.48
+139.6%
Ceded Premium Ratio
47.7%
Loss Ratio
51%
Expense Ratio
33.9%
Gross Profit
$149M
Previous year: $115M
+29.8%
Cash and Equivalents
$464M
Previous year: $281M
+65.1%
Free Cash Flow
$98.3M
Previous year: -$15.5M
-732.6%
Total Assets
$1.38B
Previous year: $2.39B
-42.5%

Heritage Insurance

Heritage Insurance

Heritage Insurance Revenue by Geographic Location

Forward Guidance

Heritage Insurance Holdings looks forward to maintaining momentum across its sixteen-state platform, driven by its solid foundation, strategic clarity, and the dedication of its experienced workforce. The company is well-positioned for selective growth going forward.

Positive Outlook

  • Strategic focus on achieving rate adequacy across the portfolio.
  • Driving superior underwriting results.
  • Building a better quality and more diversified book of business.
  • Effectively managing reinsurance costs and driving lower claims related losses.
  • Maintaining enhanced and long-term relationships with reinsurers.

Challenges Ahead

  • Inflation and changes in economic conditions.
  • Potential ineffectiveness of exclusions and loss limitation methods.
  • Uncertainty of models used to evaluate risk.
  • Impact of macroeconomic and geopolitical conditions.
  • Impact of new federal and state regulations.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Heritage Insurance