Heritage announces share repurchase program

Program's authority to run until December 31

Heritage announces share repurchase program

Insurance News

By Kenneth Araullo

P&C provider Heritage Insurance has unveiled a new share repurchase initiative valued at $10.0 million, coming after the current $10.0 million share buyback scheme’s conclusion on December 31, 2023.

This fresh repurchase plan allows Heritage to buy back shares from the open market or through private deals, adhering to the regulatory framework provided by federal securities laws. The program is slated to run until December 31, 2024.

Decisions regarding the exact number of shares to be repurchased and the timing of such acquisitions will be influenced by a variety of factors. These include the company’s operational liquidity, prevailing market and business conditions, and specific legal requirements.

Additionally, the company said that it will consider the constraints imposed by debt covenants within its existing credit agreements, as well as the potential returns from alternative investment options.

The share repurchase program comes amid improvements for Heritage’s Q4 2023 results, which saw a net income of $30.9 million, or $1.15 per diluted share, marking an increase from $12.5 million, or $0.48 per diluted share, recorded in the same period the previous year.

In February, the company also launched a new venture into the catastrophe bond market, aiming to secure at least $100 million in collateralized reinsurance specifically for US named storms.

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