Heritage Insurance (HRTG) investor relations material

Executive summary

• Achieved net income of $195.6 million ($6.32 per share) for 2025, up from $61.5 million ($2.01 per share) in 2024, despite $31.8 million in pre-tax wildfire losses.

• Q4 2025 net income was $66.7 million ($2.15 per share), up 228.5% year-over-year.

• Tangible/book value per share rose 72.5% to $16.39, driven by net income and reduced unrealized losses.

• Strategic focus on underwriting discipline, capital allocation, rate adequacy, and targeted growth in profitable geographies.

• Entering Texas E&S market in 2026, leveraging data analytics and AI for risk selection and operational efficiency.

Financial highlights

• Net income for the full year 2025 was $195.6 million, up 217.8% from $61.5 million in 2024.

• Q4 net income was $66.7 million ($2.15 per share), up from $20.3 million ($0.66 per share) in Q4 2024.

• Net premiums earned in Q4 rose 1.7% to $202.7 million; gross premiums earned up 0.4% to $361.7 million.

• Net investment income for Q4 increased 15.9% to $9.8 million.

• Net combined ratio improved to 62.0 from 89.7, reflecting strong underwriting performance.

Outlook and guidance

• Rate adequacy achieved in over 90% of open geographies; new business premium production up over 60% in Q4 year-over-year.

• Plans to expand into Texas E&S market and continue geographic/product diversification.

• Revenue growth expected to accelerate through 2026 as new business ramps up.

• Reinsurance pricing anticipated to improve in 2026 due to favorable market and litigation trends.

• Strategic focus remains on underwriting discipline, data-driven analytics, and prudent top-line growth.