Heritage Reports Third Quarter 2026 Results
Key Highlights
- ➤Q3 net income $51.1M, up 1.4% despite $15.8M catastrophe losses
- ➤Q3 EPS $1.72, up 5.5%, aided by 4.0% fewer diluted shares
- ➤Revenue $219.2M, up 3.2%, driven by net premiums and investment income
- ➤Net combined ratio 73.0%, nearly flat despite higher weather losses
- ➤New $50.0M share-repurchase program begins after December 31, 2026
Expert Statements
Ernie Garateix, CEO of Heritage Insurance Holdings, Inc.
“Several years ago, we implemented a strategy of long-term sustainability which includes a focus on improving profitability, strengthening the balance sheet, and reducing volatility in our financial results. Today, we are generating record earnings, producing substantial capital and are positioned well to continue our momentum into the future. We believe Heritage has proven to be a stronger, better diversified and more resilient business, operating as a super-regional insurance carrier. We have the ability to opportunistically deploy capital across multiple geographies, products and distribution channels, which allows us to allocate capital to the most attractive risk-adjusted return opportunities while maintaining the underwriting discipline that has defined our transformation.”
Ernie Garateix, CEO of Heritage Insurance Holdings, Inc.
“Our third quarter results demonstrate our earnings resilience as we absorbed higher weather losses and still modestly grew earnings per share. Despite the significant progress that we have made transforming our business and building the sustainable earnings power of the Company, we believe our full value has yet to be realized. As a result, we have repurchased more than one million shares of our common stock year to date. Additionally, our expanding geographic reach and the capabilities we have built position Heritage to capitalize on selective growth opportunities across our markets while remaining selective in areas where competition has intensified.”
TAMPA, Fla., Oct. 28, 2026 /PRNewswire/ -- Heritage Insurance Holdings, Inc. (NYSE: HRTG) ("Heritage" or the "Company"), a super-regional property and casualty insurance holding company, today reported third quarter of 2026 financial results.
* Year-to-date net income of $149.3 million, up 15.8%, and earnings per share of $4.94 per diluted share, up 18.5%, compared with $128.9 million and $4.17 per diluted share, for the nine months ended September 30, 2025. * Third quarter net income of $51.1 million, compared with $50.4 million in the prior-year quarter, despite $15.8 million of pre-tax catastrophe losses in the current quarter, compared with no catastrophe losses in the prior-year quarter. * Earnings per share increased 5.5% to $1.72 per diluted share in the third quarter, as compared to $1.63 per diluted share in the prior-year quarter, aided by a 4.0% reduction in diluted shares outstanding. * Total revenue increased 3.2% to $219.2 million from $212.5 million in the prior-year quarter, with net premiums earned up 5.4% and net investment income up 17.3% from the prior-year quarter. * Net loss ratio increased 1.3 percentage points to 39.6%, from 38.3% in the prior-year quarter, reflecting higher catastrophe and weather losses, largely offset by $14.0 million of favorable prior-year reserve development. * Net combined ratio was relatively flat at 73.0%, compared with 72.9% in the prior-year quarter. * Net expense ratio improved 1.2 percentage points to 33.4%, from 34.6% in the prior-year quarter. * Annualized return on equity of 35.1% for the third quarter of 2026 and 36.1% year to date, with stockholders' equity at September 30, 2026 up 37.0% from September 30, 2025. * Book value per share of $20.22, up 23.4% from year-end 2025 and 42.9% from the prior-year quarter. * Debt-to-capital ratio improved to 10.5% from 15.3% in the prior-year quarter. * Repurchased 1,101,508 shares of common stock at a cost of $27.9 million in 2026. Ernie Garateix, Heritage's CEO, commented, "Several years ago, we implemented a strategy of long-term sustainability which includes a focus on improving profitability, strengthening the balance sheet, and reducing volatility in our financial results. Today, we are generating record earnings, producing substantial capital and are positioned well to continue our momentum into the future. We believe Heritage has proven to be a stronger, better diversified and more resilient business, operating as a super-regional insurance carrier. We have the ability to opportunistically deploy capital across multiple geographies, products and distribution channels, which allows us to allocate capital to the most attractive risk-adjusted return opportunities while maintaining the underwriting discipline that has defined our transformation."
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