Core Viewpoint - Heritage Insurance Holdings, Inc. (HRTG) has significantly outperformed its industry and broader market indices year to date, with an 81.4% increase in share price [1][2]. Group 1: Financial Performance - HRTG has beaten earnings estimates in three of the last four quarters, indicating strong operational performance [2]. - The consensus estimate for 2024 earnings has decreased by 14.9%, while the estimate for 2025 suggests a substantial increase of 118% [3]. - The return on equity for HRTG in the trailing 12 months was 29.2%, significantly higher than the industry average of 7.5% [8]. - The return on invested capital (ROIC) for HRTG was 19.7%, also above the industry average of 5.8% [8]. Group 2: Growth Strategy - HRTG's growth strategy emphasizes rate adequacy and selective underwriting, with a focus on profitability [4]. - The company has ceased writing new personal lines policies in Florida and the Northeast due to declining profitability [4]. - HRTG is exploring growth opportunities in the excess and surplus (E&S) business across more states [5]. Group 3: Market Position and Valuation - HRTG shares are currently trading at a price-to-book multiple of 1.42, which is lower than the industry average of 1.50, indicating that the stock is undervalued [10]. - The average price target for HRTG is $16.00 per share, suggesting a potential upside of 35.3% from recent closing prices [9]. Group 4: Risk Management - HRTG is exposed to severe weather events, but its reinsurance program is designed to protect the balance sheet from significant losses [6]. - The company anticipates a reduction in the ceded premium ratio due to improvements in its reinsurance program and increasing gross premiums earned [6]. Group 5: Analyst Sentiment - Despite the strong performance, there is mixed analyst sentiment regarding HRTG, with a Zacks Rank of 3 (Hold) indicating caution [12].

Financial Data and Key Metrics Changes - The company reported net income of $8.2 million, or $0.27 per share, a significant improvement from a net loss of $7.4 million, or a loss of $0.28 per share in the prior year quarter [11][23] - Year-to-date net income reached $41.2 million, or $1.35 per share, compared to $14.4 million, or $0.55 per share in the same period of 2023 [12] - Total revenues for the quarter were $211.9 million, up 13.7% from $186.3 million in the prior year quarter [25] - The net loss ratio improved to 65.4%, down from 74.4% in the same quarter last year [29][32] - The company ended the quarter with total assets of $2.4 billion and shareholders' equity of $279.3 million, with book value per share increasing to $9.10, up 61.1% from $5.65 in the prior year quarter [33] Business Line Data and Key Metrics Changes - The commercial residential business saw a 23.6% increase in premium in force compared to the third quarter of 2023, now accounting for 21.4% of total in-force premium [27] - The E&S business experienced a growth of nearly $25 million, or 116%, compared to the year-ago third quarter [19] Market Data and Key Metrics Changes - The company maintained a robust level of reinsurance coverage through year-end 2024, with a $1.3 billion reinsurance tower for the southeast [28] - Legislative changes in Florida are positively impacting the economics of writing new profitable business in the state [17] Company Strategy and Development Direction - The company is focusing on controlled growth, enhancing rate adequacy, and maintaining disciplined underwriting [16][20] - A strategic pivot to writing personal lines business has begun, which is expected to positively impact earnings [36] - The company aims to be profitable in every state it operates, continuously evaluating rate adequacy [40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, anticipating continued profitability and growth driven by strategic initiatives [21][36] - The company expects more earned rate to come through in 2025 than in 2024, indicating a positive trajectory [42] Other Important Information - The company has suspended the quarterly dividend to support long-term growth initiatives [35] - The average rating of the investment portfolio is AA- with a duration of 3.19 years, aimed at taking advantage of higher yields [34] Q&A Session Summary Question: Sustainability of Loss Ratio Improvements - Management indicated that while the third quarter typically performs well, favorable trends in the attritional loss ratio suggest a new normal for profitability [38][39] Question: Rate Momentum and Earnings Impact - Management confirmed that significant rate actions taken will continue to benefit earnings, with more expected in 2025 [40][42] Question: Attractive Geographies for Business - Florida remains attractive due to legislative changes, while the Northeast is also being considered for further business opportunities [44] Question: Reserve Development and Legal Environment - Management noted that reserve development is primarily influenced by Hurricane Irma, with ongoing volatility due to the legal environment [47] Question: Potential for Claim Management Fees - Management acknowledged the possibility of some claim management fees but indicated they would not be material [50]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON D.C. 20549 ________________________________________________________ Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $0.0001 per share HRTG New York Stock Exchange Form 10-Q ________________________________________________________ x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR o TRANSITION REPORT PUR ...

For the quarter ended September 2024, Heritage Insurance (HRTG) reported revenue of $211.85 million, up 13.7% over the same period last year. EPS came in at $0.27, compared to -$0.28 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $209.91 million, representing a surprise of +0.92%. The company delivered an EPS surprise of +1250.00%, with the consensus EPS estimate being $0.02.While investors scrutinize revenue and earnings changes year-over-year and how they compare ...

Company Performance - Heritage Insurance reported quarterly earnings of $0.27 per share, significantly exceeding the Zacks Consensus Estimate of $0.02 per share, and compared to a loss of $0.28 per share a year ago, representing an earnings surprise of 1,250% [1] - The company posted revenues of $211.85 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.92%, and showing an increase from year-ago revenues of $186.3 million [2] - Heritage Insurance has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates four times during the same period [2] Stock Performance - Heritage Insurance shares have increased approximately 66.9% since the beginning of the year, outperforming the S&P 500's gain of 21.2% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.24 on revenues of $212.93 million, and for the current fiscal year, it is $0.87 on revenues of $817.72 million [7] Industry Outlook - The Zacks Industry Rank for Insurance - Property and Casualty is currently in the top 20% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry performance can materially impact stock performance [5][8]

TAMPA, Fla., Nov. 6, 2024 /PRNewswire/ -- Heritage Insurance Holdings, Inc. (NYSE: HRTG) ("Heritage" or the "Company"), a super-regional property and casualty insurance holding company, today reported third quarter of 2024 financial results.Third Quarter 2024 Result Highlights Net income of $8.2 million or $0.27 per diluted share, improved from net loss of ($7.4) million or ($0.28) per diluted share in the prior year quarter Gross premiums earned of $354.2 million, up 5.1% from $337.0 million in the prior ...

Core Viewpoint - Heritage Insurance Holdings, Inc. (HRTG) is currently trading at a discount compared to the Zacks Property and Casualty Insurance industry, with a price-to-book value of 1.42X, lower than the industry average of 1.62X and the broader sector's 3.8X [1] Company Overview - HRTG has a market capitalization of $362.4 million and an average trading volume of 0.5 million shares over the last three months [2] Valuation Comparison - HRTG shares are attractively valued compared to NMI Holdings (NMIH) but are considered expensive when compared to MGIC Investment Corporation (MTG) and Radian Group (RDN) [3] Stock Performance - HRTG shares have increased by 82.5% over the past three months, outperforming its industry, sector, and the Zacks S&P 500 composite during the same period [4] Technical Indicators - HRTG shares are trading well above the 50-day moving average, indicating a bullish trend [6] Analyst Sentiment - Positive sentiment is reflected as two analysts have raised earnings estimates for 2024 and 2025 by 33.1% and 26.7%, respectively, over the past 60 days [8] Growth Drivers - Key growth factors for HRTG include rate adequacy, selective underwriting, and limiting new business in over-concentrated markets. The company has ceased writing new personal lines policies in Florida and the Northeast due to declining profitability [9] - HRTG's excess and supply (E&S) business has shown strong performance in states like California, Florida, and South Carolina, with plans to explore growth opportunities in more states [11] Financial Management - HRTG has a solid reinsurance program to protect its balance sheet, especially against coastal risks. Improvements in this program and growing gross premiums are expected to lower the ceded premium ratio [12] - The company has suspended dividend payments to strengthen its financial position and is investing in technology and high-potential segments [12] Profitability Metrics - HRTG's return on equity in the trailing 12 months was 26.3%, significantly higher than the industry average of 8% [13] - The return on invested capital (ROIC) for HRTG was 17.2%, also above the industry average of 6.1%, indicating effective fund utilization [14] Investment Outlook - HRTG's focus on organic growth in its commercial and residential business, along with improvements in pricing and margins, positions it well for future growth. The company currently holds a Zacks Rank 1 (Strong Buy) [16][17]

Some investors prefer to target small-cap stocks, as their growth potential is undoubtedly hard to ignore. After all, don't we all dream of getting in early on the next big thing? Of course, it's critical for investors to realize the higher volatility nature of small-caps, as they are less liquid and more sensitive to monetary policy. For those interested in the idea, two small-caps – Heritage Insurance (HRTG) and EZCORP (EZPW) – sport favorable growth profiles paired with positive Zacks Ranks. Let's take a ...

Friday's mixed jobs report extended the broader selloff in markets this week with September known to be the most volatile month of the year. Amid heightened market volatility investors may want to consider several insurance stocks that have made their way onto the coveted Zacks Rank #1 (Strong Buy) list. Specifically, three of these highly ranked insurance stocks hail from the Zacks Insurance-Property and Casualty Industry which is currently in the top 18% of over 250 Zacks industries. Considering insurance ...

Shares of Heritage Insurance Holdings, Inc. (HRTG) closed at $16.24 on Tuesday, near its 52-week high of $16.55, after having gained 149.2% year to date. Shares outperformed the industry, the Finance sector as well as the Zacks S&P 500 composite index in the same time frame. This super-regional U.S. property and casualty insurance holding company delivered an earnings surprise in three of the last four quarters, while missed in one. Prudent underwriting execution and rate adequacy initiatives pursued over t ...