Heritage Insurance Q2 net income rises 29%

Heritage Insurance Holdings

05/08/2026 22:15

Overview
US property and casualty insurer's Q2 revenue rose 3% year-over-year
Q2 EPS rose 32% year-over-year; net income up 28.5%
Company repurchased over 1 mln shares for $24.6 mln in 2026
Board continues suspension of quarterly dividend, will reassess distributions each quarter

Outlook
Heritage expects commercial premiums to level off in H2 2026 as it grows outside Florida
Company anticipates improved reinsurance costs will support competitive pricing and stable margins

Result Drivers
LOWER NET LOSSES - Co said net losses fell due to favorable prior-year loss development and reduced weather-related losses
REINSURANCE SAVINGS - Placement of catastrophe excess of loss reinsurance program led to lower ceded premiums and improved margins
COMPETITIVE PRESSURE - Gross premiums written declined due to competitive pricing in Florida commercial residential market, partially offset by personal lines growth

Company press release: ID:nPn9Rj9pva

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Beat*
$214.20 mln
$212.71 mln (2 Analysts)
Q2 EPS
 
$2.05
 
Q2 Net Income
 
$61.71 mln
 
Q2 Combined Ratio
 
64.9%
 
Q2 Expense Ratio
 
34.5%
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 $33.50, about 12.4% above its August 4 closing price of $29.80
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 three months ago

Reuters Recommended Reads
Aug 4 - Mercury General Q2 net income rises, combined ratio improves
Aug 5 - Global Indemnity Q2 net income rises on premium growth
Aug 4 - Goldman Sachs, Talcott launch $1 billion Bermuda reinsurance sidecar

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.)