Heritage Insurance Q4 2024 Earnings Report
Key Takeaways
Heritage Insurance saw an increase in gross premiums written and earned in Q4 2024, driven by growth in commercial residential and surplus lines business. However, net income declined due to significant catastrophe losses from Hurricane Milton. The company continued its strategic exposure management, reducing policies in force while increasing premiums. Loss and expense ratios rose, leading to a higher combined ratio.
Total revenue grew 12.5% year-over-year to $210.3 million.
Net income declined to $20.3 million from $30.9 million in Q4 2023 due to hurricane-related losses.
Gross premiums written increased 3.7% to $338.7 million.
Combined ratio rose to 89.7%, up from 84.9% in Q4 2023.
Heritage Insurance
Heritage Insurance
Heritage Insurance Revenue by Geographic Location
Forward Guidance
Heritage expects continued premium growth in 2025 while maintaining underwriting discipline. Legislative reforms and exposure management are anticipated to improve profitability, though catastrophic weather events remain a risk.
Positive Outlook
- Continued strategic expansion into profitable geographies.
- Legislative actions in Florida expected to reduce claims abuses.
- Reinsurance pricing stabilization supports financial flexibility.
- Strong growth in commercial and surplus lines business.
- Effective risk management strategies contributing to premium increases.
Challenges Ahead
- Increased net loss ratio due to catastrophe-related losses.
- Higher expense ratio impacting profitability.
- Market volatility in reinsurance pricing remains a challenge.
- Policy count declined as exposure management was prioritized.
- Potential for further extreme weather events impacting future quarters.