Heritage Insurance (US:HRTG)2024-05-02 01:15Financial Performance - First quarter 2024 net income was $14.2 million or $0.47 per diluted share, an increase from $14.0 million or $0.55 per diluted share in the prior year quarter, driven by higher net premiums earned and net investment income[6]. - Gross premiums earned reached $341.4 million, up 7.7% from $317.0 million in the prior year quarter, while net premiums earned increased by 8.1% to $179.4 million from $166.0 million[6]. - Total revenues for Q1 2024 reached $191.302 million, a 8.3% increase from $176.921 million in Q1 2023[21]. - Operating income improved to $22.704 million in Q1 2024, up from $20.091 million in Q1 2023, marking an increase of 13.1%[21]. - Net income for Q1 2024 was $14.225 million, slightly up from $14.008 million in Q1 2023, indicating a growth of 1.5%[21]. Ratios and Metrics - The net loss ratio improved to 56.9%, a decrease of 1.8 points from 58.7% in the prior year quarter, reflecting higher net premiums earned outpacing net losses[6]. - The net combined ratio was 94.0%, an improvement of 0.5 points from 94.5% in the prior year quarter, driven by a lower net loss ratio[6]. - Ceded premium ratio decreased to 47.4%, down 0.2 points from 47.6% in the prior year quarter, driven by growth in gross premiums earned[14]. Investment and Assets - The company experienced a 53.2% increase in net investment income, totaling $8.6 million, due to higher short-term interest rates[14]. - Total assets decreased to $2.130 billion as of March 31, 2024, from $2.153 billion at the end of 2023, a decline of 1.1%[19]. - Total liabilities decreased to $1.895 billion as of March 31, 2024, down from $1.933 billion at the end of 2023, a reduction of 2.0%[19]. - Stockholders' equity increased to $234.935 million as of March 31, 2024, compared to $220.280 million at the end of 2023, an increase of 6.7%[19]. Premiums and Policies - Premiums-in-force totaled $1.4 billion, a 6.2% increase compared to $1.3 billion in the prior year quarter, marking the ninth consecutive quarter of growth in in-force premium[14]. - The policy count reduced by over 72,000 or 14.2% from the first quarter of 2023, while premium in force increased by $80.7 million or 6.2%[7]. - Gross premiums written increased to $356.684 million for Q1 2024, up from $310.309 million in Q1 2023, representing a growth of 14.9%[21]. - Net premiums earned rose to $179.426 million in Q1 2024, compared to $166.029 million in Q1 2023, reflecting an increase of 8.2%[21]. Shareholder Actions - The company suspended its quarterly dividend to shareholders and will evaluate dividend distribution and stock repurchases on a quarterly basis[8]. - The company reported a weighted average of 30,376,682 basic shares outstanding for Q1 2024, compared to 25,558,305 in Q1 2023, reflecting an increase of 18.5%[21]. Future Outlook - The company expects future policy rate increases and strategic growth through selective underwriting and capital allocation[23].