Heritage Insurance misses Q2 revenue estimates

Heritage Insurance Holdings

05/08/2025 21:29

Overview

Heritage Insurance Q2 net income rises to $48 mln, driven by lower net loss ratio

Revenue missed analyst expectations, despite strategic initiatives boosting profitability

Co suspends quarterly dividend to prioritize strategic growth

Result Drivers

UNDERWRITING DISCIPLINE - Improved net loss ratio attributed to disciplined underwriting and rate adequacy, per CEO Ernie Garateix

EXPANSION - Reopening of profitable geographies led to 46.3% increase in new business premium compared to last year

STRATEGIC INITIATIVES - Focus on rate adequacy and selective underwriting contributed to improved earnings trajectory

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$208.04 mln
$212.10 mln (2 Analysts)
Q2 EPS
$1.55
Q2 Combined Ratio
72.9%
Q2 Expense Ratio
34.4%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the property & casualty insurance peer group is "buy"

Wall Street's median 12-month price target for Heritage Insurance Holdings Inc is $29.00, about 26.9% above its August 4 closing price of $21.21

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nPn3Jfwqwa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)