Heritage Insurance Holdings, Inc. (NYSE:HRTG) reported fourth-quarter results on Monday that came in ahead of analyst expectations, supported by stronger underwriting results and significantly lower catastrophe-related losses.
Following the announcement, the insurer’s shares gained 5.62% in pre-market trading.
The property and casualty insurance company posted adjusted earnings per share of $2.15 for the quarter, far exceeding the analyst consensus estimate of $0.98 by $1.17.
Total revenue reached $215.32 million, topping forecasts of $212.56 million and rising 2.4% compared with $210.26 million in the same quarter a year earlier. Net premiums earned came in at $202.7 million, representing a 1.7% year-over-year increase from $199.3 million.
Heritage’s net combined ratio improved markedly to 62.0%, a drop of 27.7 percentage points from 89.7% in the fourth quarter of 2024. The net loss ratio fell to 31.3%, improving by 23.4 percentage points from 54.7% in the prior-year period, largely due to much lower weather-related claims.
Weather-related losses totaled $7.7 million during the quarter, compared with $45.6 million in the same period last year. The company also reported no catastrophe losses, versus $40.0 million a year earlier.
“Our fourth quarter results benefited from the cumulative effect of the strategic initiatives launched several years ago,” said CEO Ernie Garateix. “Our focus on rate adequacy, disciplined underwriting and high service levels to our agents and policyholders, coupled with favorable weather, resulted in record earnings this quarter and for the full year.”
Net income for the quarter rose to $66.7 million, or $2.15 per diluted share, compared with $20.3 million, or $0.66 per diluted share, in the fourth quarter of the previous year.
For the full year 2025, the company reported net income of $195.6 million, or $6.32 per share, a sharp increase from $61.5 million, or $2.01 per share, in 2024.
Book value per share climbed 72.5% to $16.39, up from $9.50 at the end of 2024. Meanwhile, the board decided to suspend the company’s quarterly dividend in order to prioritize strategic growth initiatives, including plans to expand into the Texas market through excess and surplus lines insurance offerings.