UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-36462 Heritage Insurance Holdings, Inc. (Exact name of Registrant as specified in its charter) (State of Incorporation) (IRS Employer Delaware 45-5338504 Identification No.) 1 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON D.C. 20549 Form 10-Q (Address, including zip code, of principal executive offices) (727) 362-7200 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-36462 Heritage Insurance Holdings, Inc. (Exact name of Registrant as specified in its charter) (S ...

Financial Performance - For the year ended December 31, 2022, the company reported gross premiums written of $1.3 billion and an operating loss of $157.4 million, which included a non-cash goodwill impairment charge of $92.0 million[21]. - The company's total assets as of December 31, 2022, were $2.4 billion, with total stockholders' equity of $131.0 million[21]. - As of December 31, 2022, the company held $280.9 million in cash and cash equivalents and $653.6 million in investments, including $635.6 million in fixed maturities[62]. - The company’s investment policy limits investments in any one issuer to no more than 2% of admitted assets[61]. - The company is subject to risk-based capital standards requiring it to report risk-based capital calculations to state regulators[67]. Underwriting and Risk Management - The company aims to improve profitability through disciplined underwriting and diversification, leading to a decline in policy count while achieving a higher average premium per policy[22]. - The underwriting team leverages proprietary data analytics to analyze various risk evaluation factors, including premiums to be received and geographic concentrations of policies[42]. - The liability for losses and loss adjustment expenses includes claims incurred but not yet reported (IBNR) and is continually reviewed and adjusted based on industry trends[48][49]. - The company purchased reinsurance from over 50 third-party private reinsurers, all rated "A-" or higher, to limit exposure to individual risks and catastrophic events[54]. - The reinsurance program provides coverage in excess of state regulator requirements, based on the probable maximum loss estimated to occur once in every 100 years[56]. Reinsurance Strategy - The reinsurance program includes various coverage types, and the company is exploring cost-efficient alternatives such as catastrophe bonds to manage reinsurance expenses[23]. - The company has established relationships with highly rated reinsurers, which help improve the cost-effectiveness of its reinsurance program[32]. - The company has a 45% participation in the Florida Hurricane Catastrophe Fund limit remaining for Hurricane Irma losses[57]. - Florida personal lines in-force premium has declined as part of the strategy to re-allocate capital to products and geographies that maximize long-term returns[40]. Technology and Efficiency - The company is focused on enhancing technology resources to streamline processes and improve efficiency for agents and policyholders[26]. - The technology platform supports integrated systems for underwriting, claims processing, and customer service, leading to improved efficiency and reduced errors[51]. Employee and Agency Relations - The company employs 612 full-time and part-time employees and is committed to providing a diverse and inclusive work environment[70]. - NBIC maintains master agency agreements with approximately 500 retail independent agents, representing over 800 agency locations, with the three largest independent agency relationships accounting for 15.6% of annualized premiums[38]. - Approximately 28% of the company's voluntary personal lines policies are written by agents affiliated with eight large agency networks[37]. - Zephyr writes approximately 50.6% of its premium through agents affiliated with three large agency networks[39]. Investment Portfolio - The fixed income securities portfolio had a weighted-average credit quality rating of A+ as of December 31, 2022, consistent with the previous year[289]. - The duration of financial instruments subject to interest rate risk was 3.179 years at December 31, 2022, down from 3.903 years at December 31, 2021[289]. - A hypothetical 300 basis point increase in interest rates would decrease the estimated fair value of fixed-maturity securities by approximately 10%[290]. - The fixed-maturity portfolio composition included 18% rated AAA, 49% rated AA, and 14% rated BBB as of December 31, 2022[291]. - Investments in commercial mortgages cannot exceed 10% of admitted assets, and prohibited investments include short sales and margin purchases[61]. Market and Economic Conditions - The insurance business is seasonal, with hurricanes typically occurring from June 1 to November 30, impacting reinsurance costs[63]. - The company reported no material exposure to foreign currency exchange risk as of December 31, 2022[294].

Heritage Insurance Holdings, Inc. (NYSE:HRTG) Q4 2022 Earnings Conference Call March 3, 2023 9:00 AM ET Company Participants Ernie Garateix - Chief Executive Officer Kirk Lusk - Chief Financial Officer Conference Call Participants Paul Newsome - Piper Sandler Mark Hughes - Truist Operator Good day and welcome to the Heritage Insurance Holdings Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note today’s event is being recorded. I would now like to turn the conference over to Kir ...

Heritage Insurance Holdings, Inc. (NYSE:HRTG) Q3 2022 Results Conference Call November 9, 2022 9:00 AM ET Company Participants Kirk Lusk - Chief Financial Officer Ernie Garateix - Chief Executive Officer Conference Call Participants Mark Hughes - Truist Paul Newsome - Piper Sandler Operator Good day, and welcome to the Heritage Third Quarter 2022 Earnings Call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I'd now ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-36462 Heritage Insurance Holdings, Inc. (Exact name of Registrant as specified in its charter) (State of Incorporation) (IRS Employer Delaware 45-5338504 Identification N ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-36462 Heritage Insurance Holdings, Inc. (Exact name of Registrant as specified in its charter) (State of Incorporation) (IRS Employer Delaware 45-5338504 Identification No.) 1 ...

Financial Data and Key Metrics Changes - The company reported a net income of $2.9 million or $0.11 per diluted share for Q2 2022, a significant improvement from a net loss of $4 million in the prior year quarter [10][19] - The net combined ratio improved to 99.4%, down from 105.2% in Q2 2021, reflecting a 4.7 point improvement in the loss ratio and a 1.1 point improvement from expenses [25][26] - Shareholders' equity decreased to $180.5 million or $6.80 per share, primarily due to a goodwill write-down and unrealized losses on fixed income investments [27][29] Business Line Data and Key Metrics Changes - The average premium per policy increased by 11.5% from Q2 2021, driven by strategic rate increases and selective underwriting [12][13] - In-force premiums grew by 3% from Q1 2022 to over $1.2 billion, while policies in-force decreased by 1.6% from Q1 [22] - The company suspended offering new personal residential policies in highly populated counties in Florida, resulting in an 18.9% reduction in policies in force in the state [16] Market Data and Key Metrics Changes - Net current accident year weather losses increased to $38.1 million, up 7.34% from the prior year quarter, impacting the net loss ratio by 24.1 points [12][25] - The company experienced a nearly 19% year-over-year decrease in personal lines policies in force in Florida [22] Company Strategy and Industry Competition - The company remains committed to proactive rate increases to offset higher loss costs and improve profitability [14][23] - The management is focused on generating underwriting profits and has taken actions to de-risk in certain areas while expanding in others [28][29] - The company is actively evaluating the impacts of legislation on the homeowners insurance marketplace, particularly in Florida, and is cautiously optimistic about potential positive changes [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the litigious practices in Florida, which are driving up costs for property insurance buyers [17] - The company anticipates that rate increases will continue to align with loss costs across all geographies [23] - Management believes that consistent profit generation is essential to regain company value and achieve target returns on equity [29] Other Important Information - The company completed its catastrophe reinsurance program, integrating traditional reinsurance and insurance-linked securities [14] - The adjusted book value per share, after adding back unrealized losses, is $8.35 per share [27] Q&A Session Summary Question: What are the typical rate hikes in Florida and other markets? - The rate increases in Florida have been in the mid-teens, with additional inflation guard factors leading to total premium increases exceeding 20% [37][39] Question: How do you see loss cost trends at this point? - Loss costs have been around 11% to 12% over a 3, 5, and 10-year timeframe, with some recent material price decreases [40][41] Question: What are the RBC ratios looking like? - The RBC ratios are in excess of 320 for Heritage, 400 for Zephyr, and 370 for NBIC [54] Question: What are the expectations for potential regulatory changes in Florida? - The company appreciates recent reforms but believes more needs to be done to limit the litigious nature of the market [63] Question: Will the company consider new markets for growth? - The company is always looking at new markets while continuing to limit exposure in Florida [65]

Financial Performance - Total assets decreased to $1,836,396 thousand as of March 31, 2022, from $1,980,762 thousand at December 31, 2021, representing a decline of approximately 7.2%[16] - Gross premiums written increased to $283,196 thousand for the three months ended March 31, 2022, compared to $274,181 thousand for the same period in 2021, reflecting a growth of 3.7%[17] - Net premiums earned rose to $152,929 thousand in Q1 2022, up from $142,199 thousand in Q1 2021, marking an increase of 7.3%[17] - The company reported a net loss of $30,759 thousand for the three months ended March 31, 2022, compared to a net loss of $5,148 thousand for the same period in 2021, indicating a significant increase in losses[17] - Total revenues for Q1 2022 were $158,608 thousand, up from $147,243 thousand in Q1 2021, which is an increase of 7.8%[17] - Losses and loss adjustment expenses surged to $140,038 thousand in Q1 2022, compared to $97,909 thousand in Q1 2021, representing a rise of 42.5%[17] Assets and Liabilities - The company’s total liabilities decreased to $1,554,630 thousand as of March 31, 2022, from $1,637,711 thousand at December 31, 2021, a reduction of approximately 5.1%[16] - Stockholders' equity fell to $281,766 thousand at March 31, 2022, down from $343,051 thousand at December 31, 2021, reflecting a decrease of about 17.9%[16] - Total cash, cash equivalents, and restricted cash decreased to $293,586 thousand at the end of March 31, 2022, down from $364,752 thousand at December 31, 2021[28] - The company’s cash and cash equivalents decreased from $359,337 thousand at December 31, 2021, to $286,170 thousand at March 31, 2022[28] - The company reported a decrease in unearned premiums of $4,183 thousand for the three months ended March 31, 2022[26] Investment and Income - Net investment income for the three months ended March 31, 2022, was $2,521,000, an increase of 38.8% from $1,817,000 in the same period of 2021[42] - Net investment income, less investment expenses, rose to $2,000,000 in Q1 2022, compared to $1,293,000 in Q1 2021, reflecting a 54.8% increase[42] - The company reported net realized investment losses of $16 thousand for the three months ended March 31, 2022, compared to net realized gains of $80 thousand in the same period of 2021[40] - The total fair value of debt securities available-for-sale was $673,511 thousand as of March 31, 2022, down from $669,354 thousand at December 31, 2021[39] Shareholder Actions - The company declared cash dividends of $0.06 per common stock, totaling $1,621 thousand for the three months ended March 31, 2022[22] - The Company repurchased 721,118 shares of its common stock for $5.0 million under its share repurchase program as of March 31, 2022, leaving a capacity to repurchase an additional $20.0 million[113][114] - The Company declared a quarterly dividend of $0.06 per share on March 4, 2022, payable on April 6, 2022, to stockholders of record as of March 17, 2022[115] Debt and Financing - The Company had $11.7 million of Convertible Senior Notes outstanding as of March 31, 2022, down from $23.4 million at the end of 2021[98] - The Company’s Term Loan Facility had an outstanding principal amount of $68.3 million as of March 31, 2022, with quarterly amortization payments decreasing to $875,000 starting December 31, 2021[90] - The Revolving Credit Facility had $15.0 million of borrowings and a $7.5 million letter of credit outstanding as of March 31, 2022[92] - Total long-term debt as of March 31, 2022, was $123.7 million, compared to $120.8 million at the end of 2021[98] Operational Metrics - The net combined ratio for Q1 2022 was 129.5%, up 21.8 points from 107.7% in the prior year quarter, primarily due to a higher net loss and LAE ratio[160] - Premiums in force were $1.2 billion, up 4.7% from Q1 2021, while policies in force decreased by 5.5% to 559,496[141] - Ceded premiums increased to $134.4 million, up 4.9% from $128.2 million in the prior year quarter, due to higher costs in the catastrophe excess of loss reinsurance program[143] Tax and Regulatory - The Company recorded an income tax benefit of $10.6 million for the three months ended March 31, 2022, compared to $2.6 million in 2021, with effective tax rates of 25.7% and 33.2%, respectively[72] - The Company is permitted to pay out dividends not exceeding $10.0 million in any fiscal year, provided there is no default or event of default[98] Miscellaneous - The Company did not establish an allowance for credit losses as of March 31, 2022, due to the decline in fair value being attributed to increased market interest rates rather than credit losses[43] - The Company has not experienced a material impact from the transition away from LIBOR as a benchmark interest rate[195] - There have been no material changes to the company's risk factors since the last annual report filed on March 14, 2022[202]

Heritage Insurance Holdings, Inc. (NYSE:HRTG) Q1 2022 Earnings Conference Call May 6, 2022 9:25 AM ET Company Participants Ernie Garateix – Chief Executive Officer Kirk Lusk – Chief Financial Officer Conference Call Participants Marla Backer – Sidoti Paul Newsome – Piper Sandler Matt Carletti – JMP Nick Lacoviello – Dowling and Partners Operator Good morning. And welcome to the Heritage Insurance Holdings, First Quarter 2022, earnings conference call. All participants will be in a listen-only mode. [Operato ...