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Heritage Insurance Holdings, Inc. Reports Financial Results for First Quarter of 2018

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Heritage Insurance Holdings, Inc. Reports Financial Results for First Quarter of 2018

PR Newswire

CLEARWATER, Fla., May 7, 2018 /PRNewswire/ -- Heritage Insurance Holdings, Inc. (NYSE:HRTG) ("Heritage" or the "Company"), a property and casualty insurance holding company, today reported its financial results for the fiscal quarter ended March 31, 2018.

Heritage Insurance (PRNewsFoto/Heritage Insurance Holdings, Inc)

First Quarter Highlights

  • Book value per share increased 19.1% quarter-over-quarter to $15.09 as of March 31, 2018
  • Operating income of $24.8 million
  • $1.6 million of dividends paid in Q1 2018
  • Q1 2018 net income of $14.8 million and earnings per share of $0.58
  • Net combined ratio declined to 82.2% in Q1 2018 from 94.8% in Q1 2017
  • Stockholders' equity of $388.9 million at March 31, 2018
  • Premiums in force increased by 48% to $923.3 million at March 31, 2018 compared to $622.4 million at March 31, 2017
  • Repurchased 115,200 shares of our common stock in Q1 for an aggregate purchase price of $2 million
  • Board of Directors declared a first quarter dividend of $0.06 per share
  • Hurricane Irma
    • Closed 92% of approximately 32,000 Irma Claims
    • Vertically integrated repair division continues to perform services related to Hurricane Irma claims

Bruce Lucas, the Company's Chairman and CEO, said, "We believe our diversified business plan is paying off, as evidenced by our results. Year-over-year, our consolidated gross loss ratio declined 6.8 points to 23.4%. Our vertically integrated claims model and diversification away from AOB prone areas are favorably impacting our consolidated loss ratio, and were key factors in lowering our net combined ratio from 94.8% to 82.2% year-over-year. We are taking active steps to expand Contractors Alliance Network to all states, which we believe will positively impact future consolidated loss ratios. Additionally, we began an initiative in 2015 to diversify our business, which has been highly successful. We are no longer a Florida-only insurer and have transformed the company into a Super Regional Insurer, which is evident when looking at our consolidated total insured value by region, especially Florida, where the percentage of Florida TIV declined from 70.1% to 31.8% year-over-year. Finally, we have completed our 2018-2019 reinsurance program with favorable results. Year-over-year, our reinsurance costs only increased less than 1% on a risk adjusted basis, substantially better than our initial projections."

Results of Operations

The following table summarizes our results of operations for the three months ended March 31, 2018 and 2017 (in thousands, except percentages and per share amounts):



Three Months Ended March 31,




2018


2017


Change


Revenue








Gross premiums written

$


204,366


$


142,235




44%


Gross premiums earned

$


227,163


$


154,608




47%


Ceded premiums

$


(121,055)


$


(62,432)




94%


Net premiums earned

$


106,108


$


92,176




15%















Total revenues

$


112,026


$


99,293




13%


Operating income

$


24,817


$


11,890




109%


Income before income taxes

$


19,997


$


9,709




106%


Net income

$


14,829


$


5,983




148%















Per Share Data:












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