Heritage Insurance has continued its financial rebound. In the release of its Q3 results it reported net income of $50.4 million, compared to net income of $8.2 million in the third quarter of 2024.
Gross premiums earned for the quarter reached $362.0 million, representing a 2.2% increase from US$354.2 million in the prior-year period. Net premiums earned totaled $195.1 million, a decrease of 1.9% compared to $198.9 million in the same quarter last year.
The company’s net loss ratio for the third quarter improved to 38.3%, down from 65.4% in the third quarter of 2024. The net expense ratio was 34.6%, compared to 35.2% in the prior year, resulting in a net combined ratio of 72.9%. This marks a decrease from 100.6% in the third quarter of the previous year.
Return on average equity for the quarter was 49.2%, up from 12.2% in the prior year quarter. Book value per share increased 48.9% from year-end 2024 and was up 55.5% compared to the third quarter of 2024.
Heritage’s recent financial performance has been shaped by trends seen earlier in the year. In the second quarter, the company reported net income of $48 million, up from $18.9 million in the prior-year quarter. The improvement was attributed to declining losses and loss adjustment expenses, reduced operating costs, and an increase in net premiums earned.
The company had notably ceased writing new personal lines policies in Florida and the Northeast in late 2022 due to profitability concerns and market conditions. By mid-2024, Heritage began selectively re-entering those markets, adopting a controlled growth strategy that emphasizes risk management and disciplined underwriting.
Heritage CEO Ernie Garateix commented, “Our third quarter results continue to demonstrate the successful execution of our strategic initiatives and the corresponding increase in the Company's earnings trajectory which started at the end of 2023.”
Garateix said that the company has focused on “disciplined underwriting, driving rate adequacy, and providing our insureds with quality customer service.”
These actions, he says, have “created significant earnings power for the company, as we delivered record in force premiums this quarter.”
