Heritage Announces Preliminary Fourth Quarter 2020 Weather and Separation Costs

Rhea-AI Summary

Heritage Insurance Holdings (NYSE: HRTG) reported anticipated fourth quarter 2020 net catastrophe losses of approximately $28.6 million and other weather losses of $12.9 million. The company also expects $4.9 million in separation costs due to executive departures. These preliminary figures are unaudited and subject to change pending completion of quarter-end accounting processes. As of December 31, 2020, adjustments may arise that could materially impact final results. Heritage, a super-regional property and casualty insurer, writes over $1 billion in premiums.

Positive

• Heritage writes over $1 billion in gross personal and commercial residential premiums.

Negative

• Anticipated net catastrophe losses of $28.6 million for Q4 2020.
• Expected other weather losses of $12.9 million for Q4 2020.
• Projected separation costs of $4.9 million related to executive departures.

CLEARWATER, Fla., Jan. 25, 2021 /PRNewswire/ -- Heritage Insurance Holdings, Inc. (NYSE: HRTG) ("Heritage" or the "Company"), a super-regional property and casualty insurance holding company, announced today that it expects to incur approximately $28.6 million of net current accident year catastrophe losses and $12.9 of net current accident year other weather losses in fourth quarter 2020.

Additionally, the Company expects to incur approximately $4.9 million of fourth quarter 2020 separation costs related to previously announced executive departures.

These preliminary, unaudited financial estimates are based on information available to management as of the date of this press release, remain subject to the completion of normal quarter-end accounting procedures and adjustments, and are subject to change. The Company's independent registered public accounting firm has not completed its audit of the Company's results for the year ended December 31, 2020. During the course of the preparation of our consolidated financial statements and related notes, and completion of the Company's financial close and audit procedures for the twelve months ended December 31, 2020, adjustments to the preliminary estimates may be identified, and such adjustments may be material. In addition, other developments may arise between now and the time the financial statements for the twelve months ended December 31, 2020 are finalized. The Company undertakes no obligation to update the information in this press release in the event facts or circumstances change after the date of this press release.

Financial information, including material announcements about Heritage, is routinely posted on investors.heritagepci.com. 

About Heritage
Heritage Insurance Holdings, Inc. is a super-regional property and casualty insurance holding company. Through its insurance subsidiaries and a large network of experienced agents, the Company writes over $1 billion of gross personal and commercial residential premium across its multi-state footprint.

Forward-Looking Statements
Statements in this press release that are not historical facts are forward-looking statements that are subject to certain risks and uncertainties that could cause actual events and results to differ materially from those discussed herein.  Without limiting the generality of the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," "or "continue" or the other negative variations thereof or comparable terminology are intended to identify forward-looking statements. Forward-looking statements in this press release include management's estimates of certain fourth quarter 2020 financial results. The risks and uncertainties that could cause our actual results to differ from those expressed or implied herein include, the matters described from time to time by the Company in its filings with the Securities and Exchange Commission, including, but not limited to, the Company's Annual Report on Form 10-K for the year ended December 31, 2019 filed with the Securities and Exchange Commission on March 10, 2020.  The Company undertakes no obligations to update, change or revise any forward-looking statement, whether as a result of new information, additional or subsequent developments or otherwise.

Investor Contact:
Arash Soleimani, CFA, CPA
Executive Vice President
727.871.0206
asoleimani@heritagepci.com

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SOURCE Heritage Insurance Holdings, Inc.

FAQ

What are the expected net catastrophe losses for HRTG in Q4 2020?

Heritage Insurance anticipates net catastrophe losses of approximately $28.6 million for Q4 2020.

What other weather losses is HRTG expecting in Q4 2020?

The company expects other weather losses of around $12.9 million for Q4 2020.

How much is HRTG projecting in separation costs for Q4 2020?

Heritage Insurance estimates separation costs of approximately $4.9 million related to executive departures for Q4 2020.

What is the total gross premium written by Heritage Insurance?

Heritage Insurance writes over $1 billion in gross personal and commercial residential premiums.