Heritage Insurance Reports Strong Q2 Net Income Growth Driven by Reduced Losses
TAMPA, Fla., August 6, 2025 — Heritage Insurance Holdings, Inc. (NYSE: HRTG) announced a significant increase in its second-quarter net income, propelled by lower losses and improved underwriting performance. The property and casualty insurer reported a net income of $18.5 million, or $0.61 per diluted share, for the quarter ending June 30, 2025, compared to $7.9 million, or $0.27 per diluted share, in the same period last year.
The surge in profitability was primarily attributed to a substantial reduction in net losses and loss adjustment expenses, which dropped to $85.2 million from $102.4 million year-over-year. This improvement reflects Heritage’s strategic efforts to optimize its risk portfolio and enhance claims management processes. Gross premiums written also grew by 8.3% to $215.6 million, driven by strong demand in its core markets across Florida and the Southeast.
“We are pleased with our Q2 results, which demonstrate the effectiveness of our disciplined underwriting and proactive loss mitigation strategies,” said Ernesto Garateix, CEO of Heritage Insurance. “Our focus on operational efficiency and prudent risk selection continues to strengthen our financial position, positioning us well for sustained growth.”
The company’s combined ratio, a key measure of underwriting profitability, improved to 94.7% from 98.2% in the prior-year quarter, signaling better expense management relative to premium revenue. Additionally, Heritage reported a 12.1% increase in net premiums earned, reaching $190.3 million.
Despite challenges in the broader insurance market, including inflationary pressures and elevated reinsurance costs, Heritage’s proactive measures have bolstered its resilience. The company also benefited from favorable weather patterns in Q2, which contributed to lower catastrophe-related losses compared to the prior year.
Heritage reaffirmed its commitment to expanding its footprint in stable, high-growth regions while maintaining a conservative approach to capital management. The insurer’s book value per share rose to $6.45, up 15.2% from $5.60 at the end of Q2 2024, reflecting enhanced shareholder value.
Looking ahead, Heritage remains optimistic about its 2025 outlook, citing ongoing portfolio optimization and a robust reinsurance program as key drivers of future performance. Analysts expect the company to continue capitalizing on its streamlined operations to navigate the dynamic insurance landscape.
About Heritage Insurance Holdings, Inc.
Heritage Insurance Holdings, Inc. is a super-regional property and casualty insurance holding company headquartered in Tampa, Florida. Through its insurance subsidiaries, the company provides personal and commercial residential insurance across multiple states, focusing on delivering tailored solutions to policyholders.
Contact:
Heritage Insurance Investor Relations
investors@heritagepci.com
(855) 620-9978
Disclaimer: This article contains forward-looking statements based on current expectations. Actual results may differ due to various factors, including market conditions and regulatory changes.
Losses and loss adjustment expenses decreased 28.6%, and policy acquisition costs declined 8.6%, supported by higher ceding commissions under the quota share reinsurance program. General and administrative costs rose 7.1%, driven mainly by personnel expenses, with the net G&A ratio roughly half a percentage point higher than in the comparable period.