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 ...

Financial Performance - Total assets increased to $2,029,905 thousand as of June 30, 2022, compared to $1,980,762 thousand at December 31, 2021, reflecting a growth of approximately 2.6%[15] - Gross premiums written for the three months ended June 30, 2022, were $365,284 thousand, up from $337,700 thousand in the same period of 2021, representing an increase of about 8.5%[16] - Net premiums earned rose to $158,271 thousand for the three months ended June 30, 2022, compared to $146,499 thousand in the prior year, marking an increase of approximately 8.0%[16] - Total revenues for the six months ended June 30, 2022, were $322,378 thousand, an increase from $297,441 thousand in the same period of 2021, reflecting a growth of about 8.4%[16] - The company reported a net loss of $87,866 thousand for the three months ended June 30, 2022, compared to a net loss of $3,950 thousand for the same period in 2021, indicating a significant decline in profitability[16] - The net loss for the six months ended June 30, 2022, was $118.625 million, compared to a net loss of $9.097 million for the same period in 2021[22] - The company reported a total comprehensive loss of $100,166 thousand for the three months ended June 30, 2022, compared to a loss of $1,182 thousand in the same period of 2021, indicating a substantial increase in losses[16] Asset and Liability Management - Total liabilities increased to $1,849,359 thousand as of June 30, 2022, from $1,637,711 thousand at December 31, 2021, representing a rise of approximately 12.9%[15] - The company recorded a goodwill impairment of $91,959 thousand for the three months ended June 30, 2022, which significantly impacted the overall financial results[16] - The company recorded a goodwill impairment charge of $92.0 million during Q2 2022, resulting in a total goodwill balance of $0 as of June 30, 2022, down from $91.959 million at the end of 2021[59] - The total carrying value of non-consolidated VIEs was $17,352,000, down from $23,929,000 as of December 31, 2021, representing a decrease of approximately 27.4%[44] Investment Activities - The Company’s total investments measured at fair value as of June 30, 2022, amounted to $635,458,000, compared to $669,354,000 as of December 31, 2021, indicating a decrease of about 5.1%[48] - The Company’s net investment income for the three months ended June 30, 2022, was $2.654 million, an increase from $2.003 million in the same period of 2021[39] - The Company reported total realized gains of $32 and total realized losses of $150 for the six months ended June 30, 2022, resulting in net realized losses of $118[36] - The Company has not established an allowance for credit losses as of June 30, 2022, as the decline in fair value was attributed to increased market interest rates[41] Cash Flow and Financing - Net cash used in operating activities was $(47.535) million, a decrease from $104.402 million provided in the same period last year[22] - Cash and cash equivalents were $290.9 million as of June 30, 2022, down from $359.3 million as of December 31, 2021, due to timing of reinsurance payments[204] - The Company drew $15 million from its Revolving Credit Facility to purchase and retire $11.7 million of Convertible Notes during the first half of 2022[210] - The effective interest rate for the Term Loan Facility was 3.526% and for the Revolving Credit Facility was 4.0625% as of June 30, 2022[106] Premiums and Policies - Direct premiums written for the three months ended June 30, 2022, were $365.3 million, compared to $337.7 million for the same period in 2021[92] - The average premium per policy increased by 11.5% for the quarter ended June 30, 2022, compared to the prior year quarter[143] - Policies in force in Florida decreased by 18.9% to 195,987 as of June 30, 2022, down from 241,581 in the prior year[148] - Total insured value in Florida declined by 14.9% to $103,200,520,845 as of June 30, 2022, from $121,256,973,834 in the prior year[148] Operating Expenses - Total operating expenses increased by 61.7% to $249.3 million in Q2 2022, primarily due to a $92.0 million goodwill impairment charge[165] - The total operating expenses were $447.3 million for the six months ended June 30, 2022, up 45.6% from $307.3 million in the prior year, primarily due to a goodwill impairment charge[190] Tax and Deferred Assets - The company recorded a tax provision of $563,000 for the three months ended June 30, 2022, compared to an income tax benefit of $2.0 million in the same period of 2021[70] - The total deferred tax asset increased to $50.419 million as of June 30, 2022, from $34.801 million as of December 31, 2021, marking a growth of approximately 44.8%[72] Strategic Initiatives - The company may pursue acquisitions and strategic investments, potentially increasing capital expenditures to support growth strategies[206] - The company plans to use its revolving credit facility to issue a standby letter of credit amounting to $31.8 million for a reinsurance agreement[139]

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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Year Ended December 31, 2021 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. Delaware 45-5338504 (STATE OF INCORPORATION) (I.R.S. ID) 1401 N. Westshore Blvd., Tampa, FL., 33607 (727) 362-7200 Securities registered pursuant ...

Heritage Insurance Holdings, Inc. (NYSE:HRTG) Q4 2021 Earnings Conference Call March 8, 2022 9:30 AM ET Company Participants Ernie Garateix – Chief Executive Officer Arash Soleimani – Executive Vice President Kirk Lusk – Chief Financial Officer Conference Call Participants Marla Backer – Sidoti Matt Carletti – JMP Operator Good morning, everyone. And welcome to Heritage Insurance Holdings Fourth Quarter 2021 Financial Results Conference Call. My name is Jamie and I will be the Operator today. At this time, ...

Investor Presentation (NYSE: HRTG) November 2021 SAFE HARBOR Statements in this presentation that are not historical facts are forward ‐looking statements that are subject to certain risks and uncertainties that could cause actual events and results to differ materially from those discussed herein. Without limiting the generality of the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "approximate," "plan," "intend," "could," "would," "estimate," or similar expressions are intended ...

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, 2021 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 ...

Heritage Insurance Holdings, Inc. (NYSE:HRTG) Q3 2021 Earnings Conference Call November 5, 2021 9:30 AM ET Company Participants Arash Soleimani - Executive Vice President Ernie Garateix - Chief Executive Officer Kirk Lusk - Chief Financial Officer Conference Call Participants Matt Carletti - JMP Paul Newsome - Piper Sandler Mark Hughes - Truist Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are designed to hel ...