In order to see if HRTG is a promising momentum pick, let's examine some Momentum Style elements to see if this property and casualty insurance holding company holds up. Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a cou ...

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HRTG has a P/S ratio of 0.76. This compares to its industry's average P/S of 1.32. Finally, investors should note that HRTG has a P/CF ratio of 6.54. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on t ...

Per CoreLogic, the risk modelling and catastrophe data company, the initial estimate for insured losses from the Los Angeles, California wildfires, is expected to be between $35 billion and $45 billion. Per Moody's RMS Event Response, the insured losses for the January 2025 Los Angeles firestorm events are estimated in the range of $20-$30 billion. Global commercial insurance rates decreased 2% in the fourth quarter of 2024, which marked the second consecutive quarterly decrease after seven years of rising ...

The article is for informational purposes only (not a solicitation or recommendation to buy or sell stocks). David is not a registered investment adviser. Investors should do their own research or consult a financial adviser to determine what investments are appropriate for their individual situation. This article expresses my opinions, and I cannot guarantee that the information/results will be accurate. Investing in stocks involves risk and could result in losses. Seeking Alpha's Disclosure: Past performa ...

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Year Ended December 31, 2024 OR UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________________ FORM 10-K _________________________________________________________ o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-36462 _________________________________________________________ Herit ...

Financial Data and Key Metrics Changes - For the full year 2024, the company achieved net income of $61.5 million or $2.01 per share, a significant increase from $45.3 million or $1.73 per share in 2023 [9] - The tangible book value per share grew by 30% to $9.50 at December 31, 2024, compared to year-end 2023, with an ROE of 24.1% [10] - In Q4 2024, net income was $20.3 million or $0.66 per diluted share, down from $30.9 million or $1.15 per diluted share in the prior year quarter, primarily due to higher catastrophe losses [19] Business Line Data and Key Metrics Changes - Gross premiums earned rose to $360.5 million, up 6.1% from $339.6 million in the prior year quarter, reflecting a strategic focus on rate adequacy and organic growth [22] - Net premiums earned increased to $199.3 million, up 12.2% from $177.7 million in the prior year quarter [22] - The commercial residential business saw a 13% increase in premiums in force compared to Q4 2023, now accounting for 20% of in-force premiums [23] Market Data and Key Metrics Changes - The company maintained a robust level of reinsurance coverage with $1.3 billion in the southeast, $1.1 billion in the northeast, and $750 million in Hawaii [26] - Legislative changes in Florida have positively impacted the economics of writing new profitable business, leading to a decline in frivolous lawsuits [15] Company Strategy and Development Direction - The company is focused on executing underwriting and rate adequacy initiatives while strategically reducing exposures in unprofitable areas [11] - New personal lines business is being selectively written with a focus on risk management and stringent underwriting [14] - The company aims to maintain a balanced and diversified portfolio, ensuring no single state represents over 30% of total insured value [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's earnings power moving forward, despite significant catastrophe losses [21] - The company anticipates continued rate increases to earn through its book of business, providing a tailwind for growth in 2025 [32] - The proactive approach to managing exposures and enhancing rate adequacy is expected to position the company well for continued success [33] Other Important Information - The company incurred approximately $105 million pretax from 2024 hurricanes, highlighting the impact of catastrophic events on financial performance [11][32] - The average duration of the fixed income portfolio is 3.1 years, with a focus on higher yields while maintaining a high-quality portfolio [30] Q&A Session Summary Question: Can you describe the profile of the LA Fire claims? - The company reported fifteen total loss claims, with the remaining twenty involving some form of smoke damage, primarily from the Mount Sage event [36] Question: Can you provide more detail on the prior period development for the quarter? - The prior period development primarily relates to Hurricane Irma, with claims winding down as the event reaches its tail end [38] Question: How is the company looking at growth in E and S markets? - The company continues to see momentum in E and S, adapting to market dynamics state by state and evaluating regulatory environments [44] Question: Which geographies are being considered for reopening profitable territories? - The company is considering reopening profitable territories across its entire footprint, including the northeast and southeast [47]

Core Viewpoint - Heritage Insurance (HRTG) is expected to report quarterly earnings of $0.52 per share, reflecting a year-over-year decline of 54.8%, while revenues are anticipated to be $199.87 million, an increase of 6.9% from the previous year [1]. Earnings Estimates - There has been no revision in the consensus EPS estimate for the quarter over the last 30 days, indicating that analysts have maintained their initial forecasts [1]. - Changes in earnings estimates are crucial for predicting investor reactions to the stock, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock price performance [2]. Revenue Forecasts - Analysts project 'Revenues- Net investment income' to be $9.91 million, indicating a year-over-year increase of 47.7% [4]. - The estimate for 'Revenues- Net premiums earned' is expected to reach $186.70 million, reflecting a year-over-year change of 5.1% [4]. - 'Revenues- Other revenue' is anticipated to be $3.27 million, suggesting a year-over-year decline of 5.9% [4]. Stock Performance - Heritage Insurance shares have increased by 1.3% over the past month, contrasting with the Zacks S&P 500 composite's decline of 4.1% [5]. - With a Zacks Rank of 4 (Sell), HRTG is expected to underperform the overall market in the near term [5].

Core Viewpoint - Heritage Insurance Holdings, Inc. will announce its fourth quarter and full year 2024 financial results on March 11, 2025, followed by a conference call on March 12, 2025 [1]. Group 1: Financial Results Announcement - The financial results for the fourth quarter and full year 2024 will be disclosed after market close on March 11, 2025 [1]. - A conference call and webcast will take place at 9:00 am ET on March 12, 2025 [1]. Group 2: Conference Call Details - Participants can join the call by dialing 1-888-346-3095 for domestic calls or 1-412-902-4258 for international calls [2]. - Participants should request to be joined into the Heritage Insurance Holdings Fourth Quarter 2024 Earnings Call [2]. Group 3: Webcast Information - A live audio webcast of the earnings call will be available in the investors section of the company's website [3]. - The call will be archived for replay, and financial information is routinely posted on the company's investor relations site [3]. Group 4: Company Overview - Heritage Insurance Holdings, Inc. is a super-regional property and casualty insurance holding company [4]. - The company writes approximately $1.4 billion of gross personal and commercial residential premium across multiple states, including the northeast, southeast, Hawaii, and California [4]. - As a catastrophe-focused property insurer, the company addresses the needs of policyholders affected by wildfires, hurricanes, winter storms, and severe convective storms [4].

Catastrophe Losses - Heritage Insurance Holdings, Inc. announced estimated catastrophe losses for Q4 2024, primarily due to Southern California wildfires[4] - The company expects additional catastrophe losses to be incurred in Q1 2025 related to the same wildfires[4]

Core Viewpoint - Heritage Insurance Holdings, Inc. is expected to report strong financial results for the fourth quarter of 2024, driven by lower non-catastrophe losses and significant claims settlements from Hurricane Milton [2][3]. Financial Performance - The company anticipates its best earnings quarter of the year in Q4 2024, surpassing the $18.9 million after-tax net income from Q2 2024 [2]. - An estimated $57.0 million impact from Hurricane Milton is included in the Q4 results, comprising retained catastrophe losses of $40.0 million and a net reinstatement premium of $17.0 million [2]. - As of January 21, 2025, the company has settled over 9,000 hurricane claims from 2024, paying out more than $140 million, with approximately 90% of claims closed [2]. Catastrophe Losses - For Q1 2025, the company expects pre-tax net current accident quarter catastrophe losses of approximately $35.0 - $40.0 million due to the Southern California wildfires [3]. - The company is actively participating in insurance villages in California to assist affected policyholders [3]. Company Overview - Heritage Insurance Holdings, Inc. is a super-regional property and casualty insurance holding company, writing approximately $1.4 billion in gross personal and commercial residential premiums across multiple states [4].