Heritage Reports Second Quarter 2023 Results
- Net income of $7.8 million, up from net loss of $87.9 million in prior year quarter
- Gross premiums written increased by 8.6% to $396.6 million
- Net loss ratio improved by 3.8 points to 60.3%
- Continued focus on underwriting profits and selective organic growth in commercial residential business
- None.
Second Quarter 2023 Result Highlights
- Second quarter net income of
or$7.8 million per diluted share, up from a net loss of$0.30 or ($87.9 million ) per diluted share in the prior year quarter primarily driven by growth in net premiums earned, and higher investment income, which resulted in an improved net combined ratio. The net loss in the prior year quarter was due to a$3.32 , net of tax, or$90.8 million per diluted share non-cash goodwill impairment charge, resulting in no remaining goodwill on the Company's balance sheet as of June 30, 2022.$3.43 - Second quarter adjusted net income of
or$8.3 million per diluted share, up from adjusted net income of$0.32 , or$2.9 million per diluted share in the prior year quarter driven by an improvement in the net combined ratio and higher net investment income.$0.11 - Gross premiums written of
, up$396.6 million 8.6% from in the prior year quarter.$365.3 million - Gross premiums earned of
, up$330.0 million 11.4% from in the prior year quarter.$296.2 million - Net loss ratio of
60.3% , an improvement of 3.8 points from64.1% in the prior year quarter. - Net expense ratio of
34.8% , an improvement of 0.5 points from35.3% in the prior year quarter. - Net combined ratio of
95.1% , an improvement of 4.3 points from99.4% in the prior year quarter. - Continued successful exposure management with
Florida personal lines policies-in-force intentionally declining by15.8% , as compared to the prior year period.
"This quarter marks the third consecutive quarter of profitability and a net combined ratio below
Strategic Profitability Initiatives
The following provides an update to the Company's strategic initiatives that are expected to enable Heritage to achieve consistent long-term quarterly earnings and drive shareholder value. The Supplemental Information table included in this earnings release demonstrates progress made compared to the second quarter 2022.
- Generate underwriting profit though rate adequacy and more selective underwriting.
- Continued significant rating actions throughout the book of business resulting in an increase in average premium per policy throughout the book of
24.3% compared to the second quarter of 2022 and6.8% from the first quarter of 2023. - Premiums-in-force of
were up$1.3 billion 10.5% from the prior year quarter, while policy count is down11.1% , resulting from continued underwriting efforts to manage exposure for personal residential business while selectively growing the Company's commercial residential business. - Continued focus on tightening underwriting criteria while also restricting new business for policies written in over-concentrated markets or products.
- Allocate capital to products and geographies that maximize long-term returns.
- Strategically increased
Florida commercial residential premiums-in-force by75.5% over the prior year quarter while total insured value ("TIV") for that product increased35.3% and policies in force increased by only12.7% . - Reduction of policy count for the
Florida personal lines product remains a key focus and will continue until the positive impact of recent legislation to reduce abusive claims practices is realized. Policies in force forFlorida personal lines business intentionally declined by15.8% as compared to the prior year period and3.9% from the first quarter of 2023. - This disciplined underwriting approach resulted in a policy count reduction from the prior year quarter of
11.1% in other states while generating a10.5% increase in premiums-in-force. - Maintain a balanced and diversified portfolio.
- Even with the substantial increase in commercial business, no state represents over
26.2% of the Company's TIV. - The top four states grew TIV by an average of
2.6% while the smallest five states grew TIV by27.3% . - As a result of diversification efforts, the top five personal lines states represented
71.6% of all TIV at second quarter 2023 compared to72.5% of all TIV at second quarter 2022. - Florida TIV increased
2.5% related to intentional growth of the Company's commercial residential product and the use of inflation guard which ensures appropriate replacement cost values for all business, partly offset by the decrease inFlorida personal lines policies over the prior year quarter. - TIV outside of
Florida represented73.8% of the entire portfolio, compared to74.4% as of the second quarter of 2022, driven by exposure management of personal lines business throughout the book and selective growth ofFlorida commercial lines business. - Provide coverage suitable to the market and return targets.
- Selective expansion of Excess & Surplus lines ("E&S") premium-in-force in
California andFlorida . - Introduce E&S products in
South Carolina in the third quarter of 2023. - Continue to evaluate other strategic states for E&S products.
Capital Management
Heritage's Board of Directors has decided to continue its temporary suspension of the quarterly dividend to shareholders. The Board of Directors will continue to evaluate dividend distribution and stock repurchases on a quarterly basis. No shares of common stock were repurchased during the quarter.
Results of Operations
The following table summarizes results of operations for the three and six months ended June 30, 2023 and 2022 (amounts in thousands, except percentages and per share amounts):
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||||
Total Revenue | $ | 185,313 | $ | 163,770 | 13.2 | % | $ | 362,234 | $ | 322,378 | 12.4 | % | ||||||||||||||
Net income (loss) | $ | 7,779 | $ | (87,866) | (108.9) | % | $ | 21,787 | $ | (118,625) | (118.4) | % | ||||||||||||||
Adjusted net income (loss) [1] | $ | 8,320 | $ | 2,908 | 186.1 | % | $ | 22,328 | $ | (27,851) | (180.2) | % | ||||||||||||||
Earnings (loss) per share | $ | 0.30 | $ | (3.32) | (109.1) | % | $ | 0.85 | $ | (4.46) | (119.1) | % | ||||||||||||||
Adjusted net income (loss) per share [1] | $ | 0.32 | $ | 0.11 | 190.9 | % | $ | 0.87 | $ | (1.05) | (182.9) | % | ||||||||||||||
Book value per share | $ | 6.27 | $ | 6.80 | (7.8) | % | $ | 6.27 | $ | 6.80 | (7.8) | % | ||||||||||||||
Adjusted book value per share [1] | $ | 8.09 | $ | 8.35 | (3.1) | % | $ | 8.09 | $ | 8.35 | (3.1) | % | ||||||||||||||
Return on equity [2] | 19.7 | % | (152.0) | % | 171.7 | pts | 29.9 | % | (90.6) | % | 120.5 | pts | ||||||||||||||
Adjusted return on equity [1][2] | 21.1 | % | 5.0 | % | 16.1 | pts | 30.6 | % | (21.3) | % | 51.9 | pts | ||||||||||||||
Underwriting summary | ||||||||||||||||||||||||||
Gross premiums written | $ | 396,559 | $ | 365,284 | 8.6 | % | $ | 706,868 | $ | 648,480 | 9.0 | % | ||||||||||||||
Gross premiums earned | $ | 330,015 | $ | 296,211 | 11.4 | % | $ | 647,037 | $ | 583,579 | 10.9 | % | ||||||||||||||
Ceded premiums earned | $ | (153,211) | $ | (137,940) | 11.1 | % | $ | (304,204) | $ | (272,379) | 11.7 | % | ||||||||||||||
Net premiums earned | $ | 176,804 | $ | 158,271 | 11.7 | % | $ | 342,833 | $ | 311,200 | 10.2 | % | ||||||||||||||
Ceded premium ratio | 46.4 | % | 46.6 | % | (0.2) | pts | 47.0 | % | 46.7 | % | 0.3 | pts | ||||||||||||||
Ratios to Net Premiums Earned: | ||||||||||||||||||||||||||
Loss ratio | 60.3 | % | 64.1 | % | (3.8) | pts | 59.5 | % | 77.6 | % | (18.1) | pts | ||||||||||||||
Expense ratio | 34.8 | % | 35.3 | % | (0.5) | pts | 35.3 | % | 36.6 | % | (1.3) | pts | ||||||||||||||
Combined ratio | 95.1 | % | 99.4 | % | (4.3) | pts | 94.8 | % | 114.2 | % | (19.4) | pts |
[1] Adjusted net income (loss), Adjusted net income (loss) per share, Adjusted book value per share, and Adjusted return on equity are non-GAAP financial measures. Information regarding these non-GAAP financial measures, including required reconciliations, is set forth below under the "Non-GAAP Financial Measures" section of this release. |
[2] 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. |
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 combined ratio under
Second Quarter 2023 Results
- Second quarter net income of
or$7.8 million per diluted share, compared to a net loss of$0.30 or ($87.9 million ) per diluted share in the prior year quarter. The improvement from the prior year quarter is due to growth in net premiums earned and net investment income partly offset by higher losses and operating expenses, primarily associated with the increase in gross premiums written over the prior year quarter, which resulted in a lower combined ratio than the prior year quarter. The second quarter of 2022 included a net$3.32 , non-cash goodwill impairment charge, which amounted to a$90.8 million loss per diluted share, resulting in no remaining goodwill on the balance sheet.$3.43 - Adjusted net income was
or$8.3 million per diluted share, up from adjusted net income of$0.32 or$2.9 million per diluted share in the prior year quarter. Adjusted net income growth primarily stemmed a lower combined ratio from the prior year quarter as described above.$0.11 - Premiums-in-force of
, represented a$1.3 billion 10.5% increase from second quarter 2022 due to continued proactive underwriting actions and rate increases across the entire portfolio, despite an intentional policy count reduction of approximately 61,000 policies. Premiums-in-force were also favorably impacted by strategic growth of the Company's commercial product and use of inflation guard across all books of business. - Gross premiums written were
, up$396.6 million 8.6% from in the prior year quarter, reflecting a strategic and substantial increase in$365.3 million Florida commercial lines business and a higher average premium per policy throughout the book of business, partly offset by intentional exposure management resulting in premium reductions on business outside ofFlorida . Gross premiums written forFlorida personal lines business increased3.0% due to rate increases, despite a16.6% reduction in policy count from the prior year quarter. - Gross premiums earned of
, up$330.0 million 11.4% from in the prior year quarter, reflecting higher gross premiums written over the last twelve months driven by a higher average premium per policy and organic growth of the commercial residential business.$296.2 million - Net premiums earned of
, up$176.8 million 11.7% from in the prior year quarter, reflecting higher gross premium earned outpacing the increase in ceded premiums for the quarter.$158.3 million - Ceded premium ratio of
46.4% , down 0.2 points from46.6% in the prior year quarter driven by higher gross premiums earned, partly offset by the higher cost each year of the catastrophe excess of loss program, which incepts in June. - Net loss ratio of
60.3% , down 3.8 points from64.1% in the prior year quarter, driven by higher net premiums earned, partly offset by higher net losses and LAE driven by higher attritional losses, net of lower weather losses. Net current accident year weather losses of , down from$33.8 million in the prior year quarter. There were no catastrophe losses in the quarter compared to catastrophe weather losses of$38.1 million in the prior year quarter. Other weather losses were$32.1 million , up from$33.8 million in the prior year quarter. The net loss ratio also benefited from favorable loss development of$6.0 million compared to unfavorable development in the second quarter of 2022 of$2.7 million .$82,000 - Net expense ratio was
34.8% in second quarter 2023, down 0.5 points from the prior year quarter amount of35.3% , as the benefit of higher net premiums earned over the prior year quarter more than offset higher policy acquisition costs and general and administrative costs. - Net combined ratio of
95.1% , improved 4.3 points from99.4% in the prior year quarter, driven by lower net loss and net expense ratios as described above. - Effective tax rate was
43.0% compared to (0.6% ) in the prior year quarter, driven by the impact of permanent differences in relation to the pre-tax income or loss each quarter. The effective tax rate in second quarter 2023 was impacted by a valuation allowance related to certain tax elections made by Osprey Re, the Company's captive reinsurer domiciled inBermuda . The Company increased its valuation allowance from first quarter 2023 by , adversely impacting the effective tax rate for the quarter. The effective tax rate in second quarter 2022 was impacted by the mostly non-deductible goodwill impairment charge described above.$2.5 million
Supplemental Information:
Policies-in-force: | Q2 2023 | Q2 2022 | % Change | ||||||||||
165,761 | 195,987 | (15.4) | % | ||||||||||
Other States | 323,629 | 354,534 | (8.7) | % | |||||||||
Total | 489,390 | 550,521 | (11.1) | % | |||||||||
Premiums-in-force: | |||||||||||||
$ | 665,169,364 | $ | 564,814,121 | 17.8 | % | ||||||||
Other States | 675,983,599 | 648,621,713 | 4.2 | % | |||||||||
Total | $ | 1,341,152,963 | $ | 1,213,435,834 | 10.5 | % | |||||||
Total Insured Value: | |||||||||||||
$ | 105,826,117,271 | $ | 103,200,520,845 | 2.5 | % | ||||||||
Other States | 297,901,382,470 | 299,177,714,835 | (0.4) | % | |||||||||
Total | $ | 403,727,499,741 | $ | 402,378,235,680 | 0.3 | % |
Book Value Analysis
Book value per share of
Book Value Per Share | As Of | |||||||||||
June 30, 2023 | December 31, 2022 | June 30, 2022 | ||||||||||
Numerator: | ||||||||||||
Common stockholders' equity | $ | 160,627 | $ | 131,039 | $ | 180,546 | ||||||
Denominator: | ||||||||||||
Total Shares Outstanding | $ | 25,622,495 | $ | 25,539,433 | $ | 26,544,096 | ||||||
Book Value Per Common Share | 6.27 | 5.13 | 6.80 | |||||||||
Adjusted Book Value Per Common Share | $ | 8.09 | $ | 7.23 | $ | 8.35 |
Conference Call Details:
Wednesday August 9, 2023 – 9:00 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.
HERITAGE INSURANCE HOLDINGS, INC. Condensed Consolidated Balance Sheets (Amounts in thousands, except share amounts) | ||||||||
June 30, 2023 | December 31, 2022 | |||||||
ASSETS | (unaudited) | |||||||
Fixed maturities, available-for-sale, at fair value | $ | 695,062 | $ | 635,572 | ||||
Equity securities, at fair value | 1,499 | 1,514 | ||||||
Other investments, net | 11,777 | 16,484 | ||||||
Total investments | 708,338 | 653,570 | ||||||
Cash and cash equivalents | 247,092 | 280,881 | ||||||
Restricted cash | 9,678 | 6,691 | ||||||
Accrued investment income | 3,572 | 3,817 | ||||||
Premiums receivable, net | 86,601 | 92,749 | ||||||
Reinsurance recoverable on paid and unpaid claims, net | 543,996 | 805,059 | ||||||
Prepaid reinsurance premiums | 509,206 | 306,977 | ||||||
Income tax receivable | 13,261 | 12,118 | ||||||
Deferred income tax asset, net | 10,912 | 16,841 | ||||||
Deferred policy acquisition costs, net | 106,736 | 99,617 | ||||||
Property and equipment, net | 30,716 | 25,729 | ||||||
Right-of-use lease asset, finance | 18,849 | 20,132 | ||||||
Right-of-use lease asset, operating | 7,390 | 7,335 | ||||||
Intangibles, net | 45,647 | 49,575 | ||||||
Other assets | 15,022 | 11,509 | ||||||
Total Assets | $ | 2,357,016 | $ | 2,392,600 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Unpaid losses and loss adjustment expenses | $ | 817,859 | $ | 1,131,807 | ||||
Unearned premiums | 716,378 | 656,641 | ||||||
Reinsurance payable | 387,598 | 199,803 | ||||||
Long-term debt, net | 124,376 | 128,943 | ||||||
Advance premiums | 38,939 | 26,516 | ||||||
Accrued compensation | 8,129 | 6,594 | ||||||
Lease liability, finance | 21,457 | 22,557 | ||||||
Lease liability, operating | 8,690 | 8,690 | ||||||
Accounts payable and other liabilities | 72,963 | 80,010 | ||||||
Total Liabilities | $ | 2,196,389 | $ | 2,261,561 | ||||
Stockholders' Equity: | ||||||||
Common stock, | 3 | 3 | ||||||
Additional paid-in capital | 335,501 | 334,711 | ||||||
Accumulated other comprehensive loss, net of taxes | (46,574) | (53,585) | ||||||
Treasury stock, at cost | (130,900) | (130,900) | ||||||
Retained earnings (deficit) | 2,597 | (19,190) | ||||||
Total Stockholders' Equity | 160,627 | 131,039 | ||||||
Total Liabilities and Stockholders' Equity | $ | 2,357,016 | $ | 2,392,600 |
HERITAGE INSURANCE HOLDINGS, INC. Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss) (Amounts in thousands, except share amounts) (Unaudited) | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
REVENUES: | ||||||||||||||||
Gross premiums written | $ | 396,559 | $ | 365,284 | $ | 706,868 | $ | 648,480 | ||||||||
Change in gross unearned premiums | (66,544) | (69,073) | (59,831) | (64,901) | ||||||||||||
Gross premiums earned | 330,015 | 296,211 | 647,037 | 583,579 | ||||||||||||
Ceded premiums | (153,211) | (137,940) | (304,204) | (272,379) | ||||||||||||
Net premiums earned | 176,804 | 158,271 | 342,833 | 311,200 | ||||||||||||
Net investment income | 6,599 | 2,163 | 12,181 | 4,163 | ||||||||||||
Net realized (losses) gains and impairment losses | (1,568) | (102) | 330 | (118) | ||||||||||||
Other revenue | 3,478 | 3,438 | 6,890 | 7,133 | ||||||||||||
Total revenues | 185,313 | 163,770 | 362,234 | 322,378 | ||||||||||||
EXPENSES: | ||||||||||||||||
Losses and loss adjustment expenses | 106,646 | 101,522 | 204,098 | 241,560 | ||||||||||||
Policy acquisition costs, net | 41,451 | 38,375 | 81,776 | 76,632 | ||||||||||||
General and administrative expenses, net | 20,058 | 17,466 | 39,111 | 37,190 | ||||||||||||
Goodwill and intangible asset impairment | 767 | 91,959 | 767 | 91,959 | ||||||||||||
Total expenses | 168,922 | 249,322 | 325,752 | 447,341 | ||||||||||||
Operating income (loss) | 16,391 | (85,552) | 36,482 | (124,963) | ||||||||||||
Interest expense, net | 2,740 | 1,751 | 5,621 | 3,723 | ||||||||||||
Income (loss) before income taxes | 13,651 | (87,303) | 30,861 | (128,686) | ||||||||||||
Provision (benefit) for income taxes | 5,872 | 563 | 9,074 | (10,061) | ||||||||||||
Net income (loss) | $ | 7,779 | $ | (87,866) | $ | 21,787 | $ | (118,625) | ||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||
Change in net unrealized (losses) gains on investments | (2,986) | (16,161) | 9,158 | (47,932) | ||||||||||||
Reclassification adjustment for net realized investment | 9 | 102 | 11 | 118 | ||||||||||||
Income tax benefit (expense) related to items of other | 698 | 3,759 | (2,158) | 11,193 | ||||||||||||
Total comprehensive income (loss) | $ | 5,500 | $ | (100,166) | $ | 28,798 | $ | (155,246) | ||||||||
Weighted average shares outstanding | ||||||||||||||||
Basic | 25,567,157 | 26,453,456 | 25,562,731 | 26,620,418 | ||||||||||||
Diluted | 25,626,420 | 26,453,456 | 25,621,994 | 26,620,418 | ||||||||||||
Earnings (loss) per share | ||||||||||||||||
Basic | $ | 0.30 | $ | (3.32) | $ | 0.85 | $ | (4.46) | ||||||||
Diluted | $ | 0.30 | $ | (3.32) | $ | 0.85 | $ | (4.46) |
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
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 the end of the 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
The following tables are reconciliations of adjusted net income, adjusted earnings per share and adjusted return on equity to the most directly comparable
Statement of Operations Non-GAAP Reconciliation | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||
Income Statement Data | (In thousands except per share data) | ||||||||||||||||||||||||||
Net income (loss) | $ | 7,779 | $ | (87,866) | (108.9) | % | $ | 21,787 | $ | (118,625) | $ | (118.4) | % | ||||||||||||||
Less: Goodwill and intangible impairment, net of tax | (541) | (90,774) | (99.4) | (541) | (90,774) | (99.4) | |||||||||||||||||||||
Non-GAAP adjusted net income (loss) | $ | 8,320 | $ | 2,908 | 186.1 | % | $ | 22,328 | $ | (27,851) | $ | (180.2) | % | ||||||||||||||
Diluted Earnings Per Share Data | |||||||||||||||||||||||||||
Net income (loss) | $ | 0.30 | $ | (3.32) | (109.0) | % | $ | 0.85 | $ | (4.46) | (119.1) | % | |||||||||||||||
Less: Goodwill and intangible impairment, net of tax | (0.02) | (3.43) | (99.4) | (0.02) | (3.41) | (99.4) | |||||||||||||||||||||
Non-GAAP adjusted net income (loss) | $ | 0.32 | $ | 0.11 | 190.9 | % | $ | 0.87 | $ | (1.05) | (182.9) | % | |||||||||||||||
Return on Equity Data | |||||||||||||||||||||||||||
Return on Equity | 19.7 | % | (152.0) | % | 171.7 | pts | 29.9 | % | (90.6) | % | 120.5 | pts | |||||||||||||||
Less: Goodwill and intangible impairment, net of tax | (1.4) | % | (157.1) | % | 155.7 | pts | (0.7) | % | (69.3) | % | 68.6 | pts | |||||||||||||||
Non-GAAP adjusted return on equity | 21.1 | % | 5.0 | % | 16.0 | pts | 30.6 | % | (21.3) | % | 51.9 | pts |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Return on Equity Non-GAAP Reconciliation | 2023 | 2022 | 2023 | 2022 | |||||||||||||
(In thousands except per share data) | |||||||||||||||||
Income Statement Data | |||||||||||||||||
Annualized net income (loss) | $ | 31,115 | $ | (351,464) | $ | 43,573 | $ | (237,250) | |||||||||
Annualized adjusted net income (loss) | $ | 33,281 | $ | 11,634 | $ | 44,656 | $ | (55,702) | |||||||||
Divided by Average Equity: | |||||||||||||||||
Shareholders' equity at the beginning of period | $ | 154,724 | $ | 281,766 | $ | 131,039 | $ | 343,051 | |||||||||
Shareholders' equity at the end of period | 160,627 | 180,546 | 160,627 | 180,546 | |||||||||||||
Average Shareholders' Equity | $ | 157,675 | $ | 231,156 | $ | 145,833 | $ | 261,798 | |||||||||
Return on Equity | 19.7 | % | (152.0) | % | 29.9 | % | (90.6) | % | |||||||||
Adjusted return on equity | 21.1 | % | 5.0 | % | 30.6 | % | (21.3) | % |
As Of | ||||||||||||||||
Stockholders' Equity to Adjusted Stockholders' | Jun 30, | Mar 31, | Dec 31, | Jun 30, | ||||||||||||
2023 | 2023 | 2022 | 2022 | |||||||||||||
Common stockholders' equity | $ | 160,627 | 154,724 | 131,039 | $ | 180,546 | ||||||||||
Add: Accumulated other comprehensive loss, net of tax | 46,574 | 44,295 | 53,585 | 41,194 | ||||||||||||
Non-GAAP adjusted common stockholders' equity | $ | 207,201 | $ | 199,019 | $ | 184,624 | $ | 221,740 | ||||||||
Weighted shares outstanding | 25,622 | 25,559 | 25,539 | 26,544 | ||||||||||||
Book value per common share | $ | 6.27 | $ | 6.05 | $ | 5.13 | $ | 6.80 | ||||||||
Non-GAAP adjusted book value per common share | $ | 8.09 | $ | 7.79 | $ | 7.23 | $ | 8.35 |
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 expected positive impact of our strategic initiatives on our future financial results, including focus on profitability, improved underwriting, exposure management and strategic reduction of policy count in certain geographies, rating actions and our selective growth of our commercial residential business; impact of rate increases, including the ability to mitigate the expected impact of increased reinsurance costs through rate adjustments; ability to achieve consistent long-term sustainable growth and long-term quarterly earnings and drive shareholder value; continued increase in average premium per policy; future dividend payments and stock repurchases; the impact of recent legislation to reduce abusive claims practices in
Investor
Investor Contact:
Kirk Lusk
Chief Financial Officer
klusk@heritagepci.com
investors@heritagepci.com
Mike
Lambert
HRTG@lambert.com
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SOURCE Heritage Insurance Holdings, Inc.