Heritage Insurance (HRTG) Q4 2024 earnings summary

Executive summary

• Net income for 2024 was $61.5 million ($2.01 per share), up from $45.3 million ($1.73 per share) in 2023, despite $105 million pre-tax hurricane losses.

• Q4 2024 net income was $20.3 million ($0.66 per share), down from $30.9 million ($1.15 per share) in Q4 2023, impacted by $57.0 million pre-tax losses from Hurricane Milton.

• Book value per share reached $9.50 at year-end 2024, up 30.3% from 2023 and 85.2% from 2022.

• Maintained profitability for two consecutive quarters with significant catastrophe losses, validating strategic initiatives.

• Twelve consecutive quarters of in-force premium growth, despite a 13.6% reduction in policy count year-over-year.

Financial highlights

• Gross premiums earned in Q4 increased 6.1% to $360.5 million; net premiums earned up 12.2% to $199.3 million.

• Total Q4 revenues rose 12.5% to $210.3 million; full-year revenue grew 11.1% to $817.0 million.

• Net investment income for Q4 was $8.5 million, up 27% year-over-year.

• Premiums in force at year-end were $1.43 billion, up 5.7% from 2023.

• Net loss ratio for Q4 increased to 54.7% from 51% year-over-year, mainly due to Hurricane Milton.

Outlook and guidance

• Expect continued rate increases to provide a tailwind for growth in 2025.

• Anticipate $35–$40 million pre-tax catastrophe losses in Q1 2025 from California wildfires.

• Plans to strategically re-open territories for new personal lines business and allocate capital to profitable geographies and products in 2025.

• Focus remains on underwriting discipline, rate adequacy, and data-driven exposure management for sustained profitability.

• Controlled new business growth expected to accelerate through 2025, with focus on risk management and underwriting discipline.