Heritage Insurance stock price rises over 5%, Q4 earnings surpass expectations

Tampa, Florida — On Monday, Heritage Insurance Holdings, Inc. (NYSE:HRTG) announced its fourth-quarter results exceeded analyst expectations, driven by improved underwriting performance and reduced catastrophe losses.

Following the earnings release, the company’s stock rose 5.62% in pre-market trading.

The property and casualty insurance company reported an adjusted earnings per share of $2.15, significantly higher than the analyst consensus of $0.98, beating expectations by $1.17.

Revenue reached $215.32 million, surpassing the expected $212.56 million and increasing 2.4% from $210.26 million in the same period last year. Net earned premiums totaled $202.7 million, up 1.7% from $199.3 million a year earlier.

The company’s net combined ratio improved to 62.0%, down 27.7 percentage points from 89.7% in Q4 2024. The net loss ratio was 31.3%, a 23.4 percentage point improvement from 54.7% last year, reflecting a significant reduction in weather-related losses.

Total net weather losses for the quarter were $7.7 million, down from $45.6 million in the same period last year, with no catastrophe losses reported, compared to $40.0 million last year.

CEO Ernie Garateix stated, “Our Q4 performance benefited from the cumulative effects of strategic initiatives launched several years ago. Our focus on adequate pricing, disciplined underwriting, and providing high-level service to agents and policyholders, combined with favorable weather conditions, enabled us to achieve record-breaking results for the quarter and the full year.”

Net income for the quarter was $66.7 million, or $2.15 per diluted share, compared to $20.3 million, or $0.66 per diluted share, in the same period last year.

For 2025, full-year net profit is projected to reach $195.6 million, or $6.32 per share, up from $61.5 million, or $2.01 per share, in 2024.

Book value per share increased 72.5% from $9.50 at the end of 2024 to $16.39. The company’s board of directors suspended quarterly dividend payments to prioritize strategic growth initiatives, including plans to enter the Texas market through excess and surplus insurance.

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