Heritage Insurance Q4 net income jumps 228.5% yr/yr

Heritage Insurance Holdings

09/03/2026 10:36

Overview

Insurance firm's Q4 net income rose 228.5% yr/yr

Company's Q4 EPS increased 225.8% yr/yr, reflecting improved underwriting and lower expenses

Company announced a $25 mln share repurchase plan for 2026

Outlook

Heritage plans to enter Texas market with excess and surplus lines products

Company suspends quarterly dividend to prioritize strategic growth

Heritage aims to enhance data-driven analytics using AI

Result Drivers

NET INCOME - Heritage cited higher net premiums earned and investment income, lower losses and loss adjustment expenses and a reduction in policy acquisition costs as primary drivers of Q4 net income increase

WEATHER IMPACT - Favorable weather conditions reduced net weather losses, contributing to net loss ratio improving to 31.3% from 54.7% a year ago

NEW BUSINESS GROWTH - New business premium production increased 60.4% in Q4 due to focus on rate adequacy and profitable markets

Company press release: ID:nPn3m3r89a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$215.32 mln
$212.60 mln (2 Analysts)
Q4 EPS
$2.15
Q4 Combined Ratio
62.00%
Q4 Expense Ratio
30.70%


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 $35.50, about 32.1% above its March 6 closing price of $26.88

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