HRTG Stock Forecast & Price Target

Heritage Insurance Holdings Inc. reported a statutory surplus of $352 million at the quarter-end, reflecting a significant increase of $66 million compared to the previous year. The company demonstrated notable growth in new business, generating $36 million in the quarter, which represents a remarkable 166% increase year-over-year, particularly driven by $17 million originating from Florida. Additionally, with premiums-in-force amounting to $1.4 billion and achieving rate adequacy across its market footprint, Heritage Insurance is well-positioned for continued growth, anticipating an increase in policy counts at a pace in the low-to-mid-single-digits.

Heritage Insurance Holdings Inc. reported a net combined ratio of 72.9%, a significant improvement from the previous year's 100.6%, but it was accompanied by a higher net expense ratio of 34.6%, surpassing internal expectations. Furthermore, the company experienced a 2% year-over-year decline in net premiums earned, reflecting a slowdown influenced by increased ceded premiums and a declining policy count of 9%. The reduction in legal staffing—down to half of its peak—raises concerns about the company's ability to efficiently manage ongoing issues, compounded by the expectation of returning catastrophic and weather-related losses in the upcoming year.