Heritage Insurance (HRTG) - 2025 Q3 - Quarterly Results

Financial Performance - Third quarter 2025 net income was $50.4 million or $1.63 per diluted share, a 518.5% increase from $8.2 million or $0.27 per diluted share in the prior year quarter[8]. - Net income for the nine months ended September 30, 2025, was $128.9 million, compared to $41.2 million for the same period in 2024, reflecting a significant growth[34]. - Operating income for the three months ended September 30, 2025, was $70.2 million, significantly higher than $11.7 million for the same period in 2024[34]. - Total comprehensive income for the nine months ended September 30, 2025, was $144.6 million, compared to $56.8 million for the same period in 2024[34]. Premiums and Policies - Gross premiums earned were $362.0 million, up 2.2% from $354.2 million in the prior year quarter, while net premiums earned decreased by 1.9% to $195.1 million[8][21]. - New business premium written for the third quarter was $36.3 million, up 166% from $13.7 million in the same quarter last year[5]. - Gross premiums written for the three months ended September 30, 2025, were $333.2 million, up from $313.0 million in the same period of 2024, indicating a growth of 6.3%[34]. - Premiums-in-force reached an all-time high of $1.44 billion, an increase of 1.0% compared to $1.43 billion as of the third quarter 2024[20]. - Policies-in-force decreased by 9.4% to 363,309 from 401,091 in the prior year quarter, with a notable decline in Florida and other states[28]. Ratios and Financial Metrics - The net loss ratio improved to 38.3%, a decrease of 27.1 percentage points from 65.4% in the prior year quarter, reflecting significantly lower net losses and loss adjustment expenses[23][25]. - The net combined ratio improved to 72.9%, down 27.7 percentage points from 100.6% in the prior year quarter, driven by lower net loss and expense ratios[25]. - The effective tax rate was 26.2%, compared to 9.4% in the prior year quarter, influenced by updated estimates and previous year's tax refund benefits[27]. - Book value per share increased by 55.5% from the third quarter of 2024, reaching $14.15[8][13]. - Book value per share increased to $14.15 as of September 30, 2025, representing a 48.9% increase from December 31, 2024, and a 55.5% increase from September 30, 2024[29]. Assets and Liabilities - Total assets decreased to $2.37 billion as of September 30, 2025, down from $2.47 billion as of December 31, 2024[32]. - Total liabilities decreased to $1.93 billion as of September 30, 2025, compared to $2.18 billion as of December 31, 2024[32]. Strategic Outlook - The company expects more rates to earn through the portfolio in 2025 than any prior year, indicating a positive outlook for revenue growth[36]. - The company is focused on maintaining a balanced and diversified portfolio while pursuing controlled growth in profitable geographies and products[36]. - The average duration of the fixed income portfolio is 3.13 years, extended to take advantage of higher yields[29]. Share Repurchase - The company repurchased 106,135 shares of common stock during the quarter at a cost of $2.28 million, under a share repurchase authorization of up to $10.0 million[12].