Heritage Reports Second Quarter 2022 Results
Heritage Insurance Holdings (NYSE: HRTG) reported a net loss of $87.9 million for Q2 2022, compared to a loss of $4.0 million last year. This significant decline was primarily due to a $90.8 million non-cash goodwill impairment charge. However, adjusted net income rose to $2.9 million, driven by an 8.0% increase in net earned premiums. Gross premiums written increased by 8.2% to $365.3 million, and the net loss ratio improved to 64.1%. Despite these improvements, the company faces challenges with a 7.3% decrease in policies-in-force, particularly in Florida.
- Adjusted net income increased to $2.9 million, up from a loss of $4.0 million year-over-year.
- Gross premiums written rose by 8.2% to $365.3 million, reflecting strong rate increases.
- Net loss ratio improved to 64.1%, down from 68.8% in the prior year quarter.
- Net loss of $87.9 million, significantly worse than the prior year's loss of $4.0 million.
- Goodwill impairment charge of $90.8 million impacted financial results.
- 7.3% decline in policies-in-force, particularly in Florida, indicates potential challenges in retention and new policy acquisition.
TAMPA, Fla., Aug. 4, 2022 /PRNewswire/ -- Heritage Insurance Holdings, Inc. (NYSE: HRTG) ("Heritage" or the "Company"), a super-regional property and casualty insurance holding company, today reported second quarter of 2022 financial results.
Second Quarter 2022 Results
- Second quarter net loss of
$87.9 million or$3.32 per diluted share, down from a net loss of$4.0 million or$0.14 per diluted share in the prior year quarter, with the reduction stemming from a net$90.8 million or$3.48 per diluted share non-cash goodwill impairment charge. - Goodwill impairment charge driven by: (i) disruptions in the equity markets, specifically for property and casualty insurance companies, largely due to recent weather-related catastrophe events; (ii) elevated loss ratios for property insurers in our markets; and (iii) trading of our stock below book value.
- Second quarter adjusted net income1 of
$2.9 million or$0.11 per diluted share, up from an adjusted net loss1 of$4.0 million , or$0.14 per diluted share in the prior year quarter driven by an improvement in the net combined ratio of 5.8 points, to99.4% . - Net loss ratio of
64.1% , 4.7 points lower from the prior year quarter of68.8% , driven by higher net earned premium, which outpaced the0.7% increase in losses. - Net current accident year weather losses of
$38.1 million , up7.3% from$35.5 million in the prior year quarter. Current accident year weather losses include$32.1 million of net current accident quarter catastrophe losses, up from$24.5 million in the prior year quarter, and$6.0 million of other weather losses, down from$11.0 million in the prior year quarter. - Net expense ratio of
35.3% , down 1.1 point from the prior year quarter amount of36.4% . - Exposure management highlights:
- Premiums-in-force of
$1.2 billion , up3.4% year-over-year, with the increase driven by higher average premium per policy of11.5% over the prior year quarter. - Policies-in-force declined
7.3% , driven primarily by a planned reduction of policies in the state of Florida, designed to improve underwriting results. The delta was driven by a combination of fewer new policies, non-renewals, and lower retention as expected from rate increases. - Efforts to increasingly diversify business outside Florida and into Northeast, Mid-Atlantic, West and Pacific regions resulted in the following reductions in Florida: an
18.9% reduction in policies-in-force and a14.9% reduction of total insured value ("TIV") resulting in only a5.7% reduction in premiums-in-force year-over-year. - Overall TIV increased by
0.2% , despite the reduction in policy count of approximately 43,000, due to higher average TIV for most states reflecting continued selective underwriting. - Gross premiums earned of
$296.2 million , up3.7% from$285.6 million in the prior year quarter, reflecting higher gross premiums written over the last twelve months driven by higher average premium per policy. - Gross premiums written of
$365.3 million , up8.2% from$337.7 million in the prior year quarter, driven by higher rates, with intentional exposure-management and re-underwriting efforts resulting in a4.6% increase in Florida driven by rate actions and growth of12.1% in other regions. - Total capital returned to shareholders of
$1.6 million , reflects$0.06 per share of the regular quarterly dividend. - Continued execution of Heritage's diversification strategy, with
74.4% of TIV outside of Florida, up from69.8% as of second quarter 2021.
"Our underwriting profit for the quarter and nearly 6-point reduction in our combined ratio demonstrate that our focus on profitability, exposure management and rate adequacy are having the desired impact," said Heritage CEO Ernie Garateix. "Our improved metrics are significant in comparison to the prior year quarter and we expect these improvements to continue each successive quarter. Additionally, I'm pleased with the outcome of our catastrophe reinsurance program which incepted June 1st. Heritage secured appropriate levels of reinsurance, we did not use the new Florida Reinsurance to Assist Policyholders program, and our program included deployment of Citrus Re, which brings in additional collateralized reinsurance through the capital markets. We are cautiously optimistic that the actions taken by the Florida legislature will have a positive impact on our results and the challenging claims environment, but also believe that more legislative action needs to be taken to improve the health of the Florida property insurance market."
Capital Management
Given that Heritage's stock is trading below tangible book value, Heritage's Board of Directors has decided for this quarter to allocate the
Results of Operations
The following table summarizes results of operations for the three and six months ended June 30, 2022 and 2021 (amounts in thousands, except percentages and per share amounts):
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||
Revenue | $ | 163,770 | $ | 150,197 | 9.0 | % | $ | 322,378 | $ | 297,441 | 8.4 | % | ||||||||||||||
Net loss | $ | (87,866) | $ | (3,950) | NM | % | $ | (118,625) | $ | (9,097) | NM | % | ||||||||||||||
Adjusted net income (loss) [1] | $ | 2,908 | $ | (3,950) | (173.6) | % | $ | (27,851) | $ | (9,097) | 206.2 | % | ||||||||||||||
Loss per share | $ | (3.32) | $ | (0.14) | NM | % | $ | (4.46) | $ | (0.33) | NM | % | ||||||||||||||
Adjusted net income (loss)[1] | $ | 0.11 | $ | (0.14) | (178.6) | % | $ | (1.05) | $ | (0.33) | 218.2 | % | ||||||||||||||
Book value per share | $ | 6.80 | $ | 15.20 | (55.3) | % | $ | 6.80 | $ | 15.20 | (55.3) | % | ||||||||||||||
Adjusted book value[1] | $ | 8.35 | $ | 15.20 | (45.1) | % | $ | 8.35 | $ | 15.20 | (45.1) | % | ||||||||||||||
Return on equity* | (152.0) | % | (3.7) | % | (148.3) | pts | (90.6) | % | (4.2) | % | (86.4) | pts | ||||||||||||||
Adjusted return on equity[1]* | 5.0 | % | (3.7) | % | 8.7 | pts | (21.3) | % | (4.2) | % | (17.1) | pts | ||||||||||||||
Underwriting summary | ||||||||||||||||||||||||||
Gross premiums written | $ | 365,284 | $ | 337,700 | 8.2 | % | $ | 648,480 | $ | 611,881 | 6.0 | % | ||||||||||||||
Gross premiums earned | $ | 296,211 | $ | 285,646 | 3.7 | % | $ | 583,579 | $ | 556,057 | 4.9 | % | ||||||||||||||
Ceded premiums earned | $ | (137,940) | $ | (139,147) | (0.9) | % | $ | (272,379) | $ | (267,359) | 1.9 | % | ||||||||||||||
Net premiums earned | $ | 158,271 | $ | 146,499 | 8.0 | % | $ | 311,200 | $ | 288,698 | 7.8 | % | ||||||||||||||
Ceded premium ratio | 46.6 | % | 48.7 | % | (2.1) | pts | 46.7 | % | 48.1 | % | (1.4) | pts | ||||||||||||||
Ratios to Net Premiums Earned: | ||||||||||||||||||||||||||
Loss ratio | 64.1 | % | 68.8 | % | (4.7) | pts | 77.6 | % | 68.8 | % | 8.8 | pts | ||||||||||||||
Expense ratio | 35.3 | % | 36.4 | % | (1.1) | pts | 36.6 | % | 37.6 | % | (1.0) | pts | ||||||||||||||
Combined ratio | 99.4 | % | 105.2 | % | (5.8) | pts | 114.2 | % | 106.4 | % | 7.8 | pts | ||||||||||||||
* Return on equity represents annualized net income for the period divided by average stockholders' equity during the period. |
Note: Percentages and sums in the table may not recalculate precisely due to rounding. |
NM: Not meaningful |
Ratios
Ceded premium ratio represents ceded premiums as a percentage of gross premiums earned.
Net loss ratio represents net losses and loss adjustment expenses ("LAE") as a percentage of net premiums earned.
Net expense ratio represents policy acquisition costs ("PAC") and general and administrative ("G&A") expenses as a percentage of net premiums earned. Ceding commission income is reported as a reduction of PAC and G&A expenses.
Net combined ratio represents the sum of net losses and LAE, PAC and G&A expenses as a percentage of net premiums earned. The net combined ratio is a key measure of underwriting performance traditionally used in the property and casualty industry. A net combined ratio under
Second Quarter 2022 Financial Results
Second quarter 2022 net loss was
Adjusted net income[1] was
Gross premiums written were
Premiums-in-force were
Gross premiums earned were
The ceded premium ratio was
The net loss ratio was
The net expense ratio was
The net combined ratio was
Supplemental Information | ||||||||
At June 30, | ||||||||
2022 | 2021 | |||||||
Policies in force: | ||||||||
Florida | 195,987 | 241,581 | ||||||
Other States | 354,534 | 352,205 | ||||||
Total | 550,521 | 593,786 | ||||||
Premiums in force: | ||||||||
Florida | $ | 564,814,121 | $ | 598,869,936 | ||||
Other States | 648,621,713 | 574,888,835 | ||||||
Total | $ | 1,213,435,834 | $ | 1,173,758,771 | ||||
Total Insured Value: | ||||||||
Florida | $ | 103,200,520,845 | $ | 121,256,973,834 | ||||
Other States | 299,177,714,835 | 280,332,366,098 | ||||||
Total | $ | 402,378,235,680 | $ | 401,589,339,932 | ||||
Book Value Analysis
Book value per share decreased to
Book Value Per Common Share | As Of | ||||||
June 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Jun 30, 2021 | ||||
Numerator: | |||||||
Common stockholder's equity | $ 180,546 | $ 281,766 | $ 343,051 | $ 42,873 | |||
Denominator: | |||||||
Total Shares Outstanding | 26,544,096 | 26,444,720 | 26,753,511 | 27,946,941 | |||
Book Value Per Common Share | $ 6.80 | $ 10.65 | $ 12.82 | $ 15.20 | |||
Adjusted Book Value Per Common Share[1] | $ 8.35 | $ 11.75 | $ 12.99 | $ 15.20 | |||
Conference Call Details:
Friday, August 5, 2022– 9:30 a.m. ET
Participant Dial-in Numbers Toll Free: 1-888-346-3095
Participant International Dial In: 1-412-902-4258
Canada Toll Free: 1-855-669-9657
Webcast:
To listen to the live webcast, please go to http://investors.heritagepci.com/. This webcast will be archived and accessible on the Company's website.
[1] Represents a non-GAAP financial measure. Information regarding non-GAAP financial measures, including required reconciliations, are set forth below under the "Non-GAAP Financial Measures" section of this release.
HERITAGE INSURANCE HOLDINGS, INC. Condensed Consolidated Balance Sheets (Amounts in thousands, except share amounts) | ||||||||
June 30, 2022 | December 31, 2021 | |||||||
ASSETS | (unaudited) | |||||||
Fixed maturities, available-for-sale, at fair value | $ | 635,458 | $ | 669,354 | ||||
Equity securities, at fair value | 1,514 | 1,415 | ||||||
Other investments, net | 17,352 | 23,929 | ||||||
Total investments | 654,324 | 694,698 | ||||||
Cash and cash equivalents | 290,932 | 359,337 | ||||||
Restricted cash | 5,416 | 5,415 | ||||||
Accrued investment income | 3,215 | 3,167 | ||||||
Premiums receivable, net | 81,277 | 71,925 | ||||||
Reinsurance recoverable on paid and unpaid claims, net | 289,106 | 269,391 | ||||||
Prepaid reinsurance premiums | 468,748 | 265,873 | ||||||
Income tax receivable | 13,281 | 11,739 | ||||||
Deferred income tax asset, net | 9,762 | — | ||||||
Deferred policy acquisition costs, net | 99,468 | 93,881 | ||||||
Property and equipment, net | 19,622 | 17,426 | ||||||
Right-of-use lease asset, net | 26,047 | 27,753 | ||||||
Intangibles, net | 52,751 | 55,926 | ||||||
Goodwill | — | 91,959 | ||||||
Other assets | 15,956 | 12,272 | ||||||
Total Assets | $ | 2,029,905 | $ | 1,980,762 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Unpaid losses and loss adjustment expenses | $ | 553,909 | $ | 590,166 | ||||
Unearned premiums | 655,351 | 590,419 | ||||||
Reinsurance payable | 375,284 | 191,728 | ||||||
Long-term debt, net | 122,990 | 120,757 | ||||||
Deferred income tax liability, net | — | 9,426 | ||||||
Advance premiums | 37,827 | 24,504 | ||||||
Accrued compensation | 7,730 | 8,014 | ||||||
Lease liability | 29,647 | 31,172 | ||||||
Accounts payable and other liabilities | 66,621 | 71,525 | ||||||
Total Liabilities | $ | 1,849,359 | $ | 1,637,711 | ||||
Stockholders' Equity: | ||||||||
Common stock, | 3 | 3 | ||||||
Additional paid-in capital | 333,747 | 332,797 | ||||||
Accumulated other comprehensive loss, net of taxes | (41,194) | (4,573) | ||||||
Treasury stock, at cost | (128,557) | (123,557) | ||||||
Retained earnings | 16,547 | 138,381 | ||||||
Total Stockholders' Equity | 180,546 | 343,051 | ||||||
Total Liabilities and Stockholders' Equity | $ | 2,029,905 | $ | 1,980,762 | ||||
HERITAGE INSURANCE HOLDINGS, INC. Condensed Consolidated Statements of Operations and Other Comprehensive Loss (Amounts in thousands, except share amounts) (Unaudited) | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
REVENUES: | ||||||||||||||||
Gross premiums written | $ | 365,284 | $ | 337,700 | $ | 648,480 | $ | 611,881 | ||||||||
Change in gross unearned premiums | (69,073) | (52,054) | (64,901) | (55,824) | ||||||||||||
Gross premiums earned | 296,211 | 285,646 | 583,579 | 556,057 | ||||||||||||
Ceded premiums | (137,940) | (139,147) | (272,379) | (267,359) | ||||||||||||
Net premiums earned | 158,271 | 146,499 | 311,200 | 288,698 | ||||||||||||
Net investment income | 2,163 | 956 | 4,163 | 2,249 | ||||||||||||
Net realized losses | (102) | (1,000) | (118) | (920) | ||||||||||||
Other revenue | 3,438 | 3,742 | 7,133 | 7,414 | ||||||||||||
Total revenues | 163,770 | 150,197 | 322,378 | 297,441 | ||||||||||||
EXPENSES: | ||||||||||||||||
Losses and loss adjustment expenses | 101,522 | 100,834 | 241,560 | 198,743 | ||||||||||||
Policy acquisition costs, net | 38,375 | 37,833 | 76,632 | 73,199 | ||||||||||||
General and administrative expenses, net | 17,466 | 15,520 | 37,190 | 35,320 | ||||||||||||
Goodwill impairment | 91,959 | — | 91,959 | — | ||||||||||||
Total expenses | 249,322 | 154,187 | 447,341 | 307,262 | ||||||||||||
Operating Loss | (85,552) | (3,990) | (124,963) | (9,821) | ||||||||||||
Interest expense, net | 1,751 | 1,925 | 3,723 | 3,803 | ||||||||||||
Loss before income taxes | (87,303) | (5,915) | (128,686) | (13,624) | ||||||||||||
Provision (benefit) for income taxes | 563 | (1,965) | (10,061) | (4,527) | ||||||||||||
Net loss | $ | (87,866) | $ | (3,950) | $ | (118,625) | $ | (9,097) | ||||||||
OTHER COMPREHENSIVE LOSS | ||||||||||||||||
Change in net unrealized losses on investments | (16,161) | 3,625 | (47,932) | (6,972) | ||||||||||||
Reclassification adjustment for net realized investment losses (gains) | 102 | (22) | 118 | (102) | ||||||||||||
Income tax benefit (expense) related to items of other comprehensive losses (gains) | 3,759 | (835) | 11,193 | 1,640 | ||||||||||||
Total comprehensive loss | $ | (100,166) | $ | (1,182) | $ | (155,246) | $ | (14,531) | ||||||||
Weighted average shares outstanding | ||||||||||||||||
Basic | 26,453,456 | 27,904,923 | 26,620,418 | 27,866,364 | ||||||||||||
Diluted | 26,453,456 | 27,904,923 | 26,620,418 | 27,866,364 | ||||||||||||
Loss per share | ||||||||||||||||
Basic | $ | (3.32) | $ | (0.14) | $ | (4.46) | $ | (0.33) | ||||||||
Diluted | $ | (3.32) | $ | (0.14) | $ | (4.46) | $ | (0.33) | ||||||||
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 approximately
Non-GAAP Financial Measures
We measure our performance with several financial and operating metrics. We use these metrics to assess the progress of our business, make decisions on where to allocate capital, time and investments and assess the long-term performance of our company. Certain of these financial metrics are reported in accordance with U.S. GAAP and certain of these metrics are considered non-GAAP financial measures. As our business evolves, we may make changes to our key financial and operating metrics used to measure our performance. For further information and a reconciliation to the most applicable financial measures under U.S. GAAP, refer to our reconciliations below.
Non-GAAP adjusted net income is a non-GAAP financial measure and the most directly comparable GAAP financial measure is net income. Non-GAAP adjusted net income is calculated by adding back the non-recurring, non-cash charges of
Non-GAAP adjusted earnings per share (EPS) is a non-GAAP measure and is calculated by dividing the non-GAAP adjusted net income by the number of fully diluted shares at end the of period.
Non-GAAP adjusted return on equity is a non-GAAP measure and is calculated by using non-GAAP adjusted net income as the base for the calculation.
Non-GAAP adjusted book value per share is a non-GAAP measure and is calculated by dividing total stockholders' equity excluding accumulated other comprehensive loss, net of tax, by the total common shares outstanding.
We use these non-GAAP financial measures internally as performance measures and believe that these measures reflect the financial performance of the Company's ongoing business and core operations. As a supplement to the primary GAAP presentations, non-GAAP financial measures provide meaningful supplemental information about our operating performance. We believe that these non-GAAP financial measures facilitate comparisons with our historical results and with the results of peer companies who present similar measures (although other companies may define non-GAAP measures differently than we define them, even when similar terms are used to identify such measures). These metrics should only be considered as supplemental to net income, earnings per share and return on equity as measures of our performance. These measures should also not be used as a supplement to, or substitute for, cash flow from operating activities (computed in accordance with U.S. GAAP).
The following tables are reconciliations of adjusted net income, adjusted earnings per share and adjusted return on equity to the most directly comparable U.S. GAAP financial measures for the three and six months ended June 30, 2022 and 2021, respectively:
Statement of Operations Non-GAAP Reconciliation | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||||||
Income Statement Data | (in thousands except per share data) | ||||||||||||||||||||||||||
Net loss | $ | (87,866) | $ | (3,950) | NM | % | $ | (118,625) | $ | (9,097) | $ | NM | % | ||||||||||||||
Less: Goodwill impairment, net of tax | (90,774) | — | NM | (90,774) | — | NM | |||||||||||||||||||||
Non-GAAP adjusted net income (loss) | $ | 2,908 | $ | (3,950) | (173.6) | % | $ | (27,851) | $ | (9,097) | $ | 206.2 | % | ||||||||||||||
Diluted Earnings Per Share Data | |||||||||||||||||||||||||||
Net loss | $ | (3.32) | $ | (0.14) | NM | % | $ | (4.46) | $ | (0.33) | NM | % | |||||||||||||||
Less: Goodwill impairment1 | (3.43) | — | NM | (3.41) | — | NM | |||||||||||||||||||||
Non-GAAP adjusted net income (loss) | $ | 0.11 | $ | (0.14) | (178.6) | % | $ | (1.05) | $ | (0.33) | 203.0 | % | |||||||||||||||
Return on Equity Data | |||||||||||||||||||||||||||
Return on Equity | (152.0) | % | (3.7) | % | (148.3) | pts | (90.6) | % | (4.2) | % | (86.4) | pts | |||||||||||||||
Less: Goodwill impairment, net of tax | (157.1) | % | — | % | (157.1) | pts | (69.3) | % | — | % | (69.3) | pts | |||||||||||||||
Non-GAAP adjusted return on equity | 5.0 | % | (3.7) | % | 8.7 | pts | (21.3) | % | (4.2) | % | (17.1) | pts | |||||||||||||||
1 Amount is calculated by dividing the goodwill impairment, net of tax, of |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Return on Equity Non-GAAP Reconciliation | 2022 | 2021 | 2022 | 2021 | |||||||||||||
(in thousands except per share data) | |||||||||||||||||
Income Statement Data | (annualized) | ||||||||||||||||
Net loss | $ | (351,464) | $ | (15,800) | $ | (237,250) | $ | (18,194) | |||||||||
Adjusted net income (loss) | $ | 11,634 | $ | (15,800) | $ | (55,702) | $ | (18,194) | |||||||||
Divided by Average Equity: | |||||||||||||||||
Shareholders' equity at the beginning of period | $ | 281,766 | $ | 427,448 | $ | 343,051 | $ | 442,344 | |||||||||
Shareholders' equity at the end of period | 180,546 | 424,873 | 180,546 | 424,873 | |||||||||||||
Average Shareholders' Equity | $ | 231,156 | $ | 426,161 | $ | 261,798 | $ | 433,608 | |||||||||
Return on Equity | (152.0) | % | (3.7) | % | (90.6) | % | (4.2) | % | |||||||||
Adjusted return on equity | 5.0 | % | (3.7) | % | (21.3) | % | (4.2) | % | |||||||||
As Of | |||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Jun 30, | ||||||||||||||||
Stockholders' Equity to Adjusted Stockholders' Equity Reconciliation | 2022 | 2022 | 2021 | 2021 | |||||||||||||||
Common stockholders' equity | $ | 180,546 | $ | 281,766 | $ | 343,051 | $ | 424,873 | |||||||||||
Add: Accumulated other comprehensive loss, net of tax | 41,194 | 28,894 | 4,573 | — | |||||||||||||||
Non-GAAP adjusted common stockholders' equity | $ | 221,740 | $ | 310,660 | $ | 347,624 | $ | 424,873 | |||||||||||
Weighted shares outstanding | 26,544 | 26,444 | 26,754 | 27,947 | |||||||||||||||
Book value per common share | $ | 6.80 | $ | 10.66 | $ | 12.82 | $ | 15.20 | |||||||||||
Non-GAAP adjusted book value per common share | $ | 8.35 | $ | 11.75 | $ | 12.99 | $ | 15.20 | |||||||||||
Note: Percentages and sums in the tables may not recalculate precisely due to rounding. |
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. This release includes forward-looking statements relating to the impact of our strategic initiatives on our future financial results, including focus on profitability, exposure management, rate adequacy and our ability to create value for our shareholders; future dividend payments; the impact of legislation on the homeowner's insurance marketplace and litigious practices in Florida; our ability to successfully manage inflationary pressures; expectations regarding our fixed income investment portfolio; and our ability to successfully regain value in the Company and achieve our target return on equity. The risks and uncertainties that could cause our actual results to differ from those expressed or implied herein include, without limitation: the success of the Company's underwriting and profitability initiatives; the continued and potentially prolonged impact of the COVID-19 pandemic on the economy, demand for our products and our operations; inflation and other changes in economic conditions (including changes in interest rates and financial and real estate markets), including as a result of the COVID-19 pandemic; the impact of macroeconomic and geopolitical conditions, including the impact of supply chain constraints, inflationary pressures, labor availability and the conflict between Russia and Ukraine; the impact of new federal and state regulations that affect the property and casualty insurance market; the costs of reinsurance, the collectability of reinsurance and our ability to obtain reinsurance coverage on terms and at a cost acceptable to us; assessments charged by various governmental agencies; pricing competition and other initiatives by competitors; our ability to obtain regulatory approval for requested rate changes, and the timing thereof; legislative and regulatory developments; the outcome of litigation pending against us, including the terms of any settlements; risks related to the nature of our business; dependence on investment income and the composition of our investment portfolio; the adequacy of our liability for losses and loss adjustment expense; our ability to build and maintain relationships with insurance agents; claims experience; ratings by industry services; catastrophe losses; reliance on key personnel; weather conditions (including the severity and frequency of storms, hurricanes, tornadoes and hail); changes in loss trends; acts of war and terrorist activities; court decisions and trends in litigation; and other matters described from time to time by us in our 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, 2021 filed with the Securities and Exchange Commission on March 14, 2022 and subsequent filings. 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:
Kirk Lusk
Chief Financial Officer
klusk@heritagepci.com
investors@heritagepci.com
Mike Houston and Julia Ward
Lambert
HRTG@lambert.com
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SOURCE Heritage Insurance Holdings, Inc.
FAQ
What were the Q2 2022 financial results for Heritage Insurance Holdings (HRTG)?
What caused the significant loss reported by HRTG in Q2 2022?
How did Heritage Insurance's gross premiums written perform in Q2 2022?
What was the adjusted net income for HRTG in Q2 2022?
How did policies-in-force change for Heritage Insurance in Q2 2022?
