Heritage Insurance Q1 net income rises on underwriting improvements, continues dividend suspension

Heritage Insurance Holdings

07/05/2026 21:46

Overview

US property and casualty insurer's Q1 revenue was flat yr/yr; net income rose 20%

Company improved Q1 net combined ratio to 81.0% from 84.5% on lower net losses

Heritage repurchased $12 mln in stock, authorizes new $50 mln buyback plan

Outlook

Company plans to expand into Texas on a surplus lines basis in 2026

Heritage to focus on rate adequacy, underwriting discipline and prudent top line growth in 2026

Company to continue suspension of quarterly dividend to prioritize strategic growth

Result Drivers

UNDERWRITING IMPROVEMENTS - Co said lower net loss ratio was driven by rate actions, underwriting discipline, and targeted exposure management

LOWER WEATHER LOSSES - Net weather and catastrophe losses decreased compared to prior year quarter

HIGHER INVESTMENT INCOME - Net investment income rose 15.1% yr/yr, driven by a higher balance of invested assets

Company press release: ID:nPn4C7cpRa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$212.66 mln
$216.67 mln (2 Analysts)
Q1 EPS
$1.19
Q1 Combined Ratio
81.00%
Q1 Expense Ratio
35.20%


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 $36.50, about 27.1% above its May 6 closing price of $28.72

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)