Managing Policy Acquisition Costs: A Key Driver of HRTG's Profits?

Key Takeaways Heritage Insurance uses policy acquisition costs to fuel expansion and strengthen profitability.HRTG's 2024 net expense ratio rose to 36% as acquisition costs outpaced net earned premiums.Digitalization, retention gains, and selective underwriting help HRTG manage costs and boost margins.For Heritage Insurance Group (HRTG) , policy acquisition costs play a crucial role in determining its profitability. Policy acquisition costs (“PAC”) consist of commissions paid to outside agents at the time o ...