HRTG

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 9:00 a.m. ET Chief Financial Officer - Kirk Lusk Chief Executive Officer - Ernesto Garateix Operator: Good morning, and welcome to the Heritage Insurance Holdings Second Quarter 2026 Earnings Conference Call. Please note today's event is being recorded. I would now like to turn the conference over to Kirk Lusk, Chief Financial Officer for the company. Sir, please go ahead. Kirk Lusk: Good morning, and thank you for joining us today. We invite you to visit the Investors section of our website, investors.heritagepci.com, where the earnings release and our earnings call will be archived. These materials are available for replay or review at your convenience. Today's call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon management's current expectations and subject to uncertainty and changes in circumstances. In our earnings press release and our SEC filings, we detail material risks that may cause our future results to differ from our expectations. Our statements are as of today, and we have no obligation to update any forward-looking statements we may make. For a description of the forward-looking statements and the risks that could cause our results to differ materially from those described in the forward-looking statements, please refer to our annual report on Form 10-K, earnings release, and other SEC filings. Our comments today will also include non-GAAP financial measures. The reconciliations of and other information regarding these measures can be found in our press release. With me on the call today is Ernie Garateix, our Chief Executive Officer. I will now turn the call over to Ernie. Ernesto Garateix: Thanks, Kirk, and good morning, everyone. Before discussing our second quarter results, I want to step back and frame where Heritage stands today and how meaningfully the business has evolved over the last several years. When we began executing our strategic initiatives, our objectives were clear: improve profitability, achieve rate adequacy, strengthen the balance sheet, reduce volatility, and position Heritage for sustainable long-term growth. Delivering on those objectives required difficult but necessary decisions. We re-underwrote portions of the portfolio, reduced exposure where returns did not justify the risk, implemented meaningful rate actions, strengthened our reserving position, and continued investing in technology and operating infrastructure. The results of those efforts are increasingly visible in our financial performance. In the second quarter, Heritage generated record net income of $61.7 million, record diluted earnings per share of $2.05, an annualized return on equity in excess of 45%, and substantial operating cash flow of $166.5 million. Importantly, these results were achieved while maintaining the underwriting discipline that has guided our strategy. We continue to believe long-term shareholder value is created through profitable underwriting and disciplined capital allocation, not by pursuing premium growth at any cost. We also believe the market continues to underappreciate the extent of our geographic diversification and the reduction in earnings volatility that has resulted from that diversification. Heritage has historically been viewed primarily as a Florida-focused property insurer. While Florida remains an important market for us, Heritage today operates as a super-regional insurance platform with business spread across multiple geographies, products, and distribution channels. That diversification improves both the quality and durability of our earnings. It gives us the flexibility to allocate capital towards markets and products where we see the strongest risk-adjusted returns, while reducing exposure in areas where competition is excessive or pricing does not support acceptable margins. As market conditions evolve, we can shift our focus and capital towards opportunities that we believe will create the best long-term returns for shareholders, while maintaining compliance with insurance regulatory requirements. We are seeing that flexibility play out today. While commercial residential pricing in portions of Florida has become highly competitive, we continue to see attractive opportunities across many of the personal residential markets throughout our footprint. This flexibility is important because it allows us to remain disciplined. We do not need to chase underpriced business or force growth in any single geography. Instead, we can allocate capital where underwriting conditions are most favorable and where we believe we can generate attractive long-term returns. As a result, Heritage's earning profile today is significantly more durable and resilient than it was just a few years ago. Over the last several years, policy count declines were largely the result of deliberate actions taken to improve profitability, achieve rate adequacy, and reposition the portfolio. Those actions have been successful, and we believe the vast majority of that work is now behind us. Today, nearly all of our territories are open for new business, our agency relationships remain strong, and production trends continue moving in the right direction. Most importantly, the pace of policy count decline continues to moderate. As a result, we believe our personal residential business is approaching an important inflection point. New business production continues to strengthen, retention remains healthy, and we are seeing encouraging trends across a number of our reopened territories. As those territories mature and production continues to build, we believe the foundation is in place for a return to policy count growth. Our transition back to growth has been temporarily slowed by the rollout of Guidewire. As the implementation creates a short-term learning curve for agents and can result in several months of slower production. Importantly, we have consistently seen activity improve meaningfully once agents become familiar with the platform. Agent feedback has been overwhelmingly positive. Agents consistently tell us that Guidewire is easier to use, more automated, and significantly more efficient than our legacy system. As implementation progresses across our footprint and the temporary transition effects begin to fade, we believe production will continue to improve, positioning us for a return to policy count growth in the coming quarters. Equally important is what we're hearing directly from our agent partners. Across reopened territories, agents continue to express a desire to place more business with Heritage. We worked hard to maintain these relationships during the years in which we prioritized profitability and portfolio repositioning. We communicated transparently about our strategy, the reasons behind our decisions, and our long-term intentions. As a result, agents have welcomed us back into markets where production was previously restricted and are actively looking to grow with us. We also wrote our first policy in Texas through our excess and surplus lines platform. While the initial contribution will be modest. Texas represents another attractive market where we can leverage our underwriting expertise and agency relationships. We view Texas as another step in the continued diversification of our business and another opportunity to allocate capital towards attractive long-term growth. We are also evaluating additional opportunities across both personal and commercial lines. Every opportunity must meet the same underwriting, profitability, and return standards that have guided the transformation of Heritage over the last several years. Growth remains important, but profitable growth remains the priority. The transformation of our business is also reflected in the support we continue to receive from our reinsurance partners, who remain willing to provide capacity to support our growth. During the second quarter, we successfully completed our 2026-2027 catastrophe excess of loss program, securing greater protection while reducing our overall reinsurance cost. We placed more than $2.2 billion of limit, expanded our use of multi-year coverage and catastrophe bonds, and generated approximately $63 million of annualized savings compared to the prior year program. We believe this outcome reflects both the strength of our franchise and the continued improvement in the underlying fundamentals of the Florida market as the positive impact of legislative reform becomes more evident. Litigation activity remains dramatically lower than it was before reform, and reinsurers now have the benefit of real-world claims experience following Hurricane Milton. As claims have developed, the results have continued to validate many of the reforms enacted in Florida and support a more favorable view of the market's long-term risk profile. Before turning the call back to Kirk, I want to spend a few moments on capital allocation. As I noted earlier, we generated significant operating cash flow during the quarter, further strengthening our balance sheet and enhancing our flexibility to invest in organic growth while also returning capital to shareholders. Year to date, we have repurchased more than 1 million shares of common stock at a cost of approximately $24.6 million, representing roughly 3% of shares outstanding. We believe these repurchases have been highly accretive and reflect our confidence in the current earnings power of the company and the opportunities ahead. Simply put, we do not believe our current valuation fully reflects the strength of our operating performance, the consistency of our earnings, or the durability of the business we have built. As long as that disconnect exists, share repurchases will remain an important part of our capital allocation toolkit. At the same time, we retain the flexibility to invest in attractive growth opportunities as they emerge. We believe this balanced approach best supports long-term value creation for shareholders. In closing, we believe Heritage is entering a new chapter in its evolution. We are generating record earnings, producing substantial excess capital, and prudently positioning the business for growth. The consistency and durability of our earnings profile are stronger than at any other point in our history as a public company, and we are excited about the opportunities ahead to create long-term value for shareholders. I want to thank our employees, agents, policyholders, reinsurers, and shareholders for their continued support and partnership. Kirk, I'll turn the call back over to you. Kirk Lusk: Thank you, Ernie, and good morning, everyone. Turning to our financial highlights, Heritage reported record second quarter net income of $61.7 million or $2.05 per diluted share compared to $48 million or $1.55 per diluted share in the prior year quarter. Through the first six months of 2026, we generated $98.2 million of net income, up 25% from the same period last year. These results demonstrate the continued strength of our underwriting platform, the benefits of our strategic initiatives, and the improved profitability of the business. We also generated $166.5 million of operating cash flow during the quarter, providing substantial financial flexibility as we continue to invest for growth while returning capital to shareholders. The increase in second quarter earnings was primarily driven by lower net losses and loss adjustment expenses, reflecting favorable prior period reserve development and lower weather-related losses, as well as higher net premiums earned and increased investment income. These benefits were partially offset by higher policy acquisition costs. Our strong profitability generated an annualized return on average equity of 45.4% during the quarter, while shareholders' equity increased 48.1% compared with the prior year period. Premiums in force totaled $1.41 billion at quarter end, down 1.4% from $1.43 billion in the prior year quarter. The decline was primarily driven by lower commercial residential premiums due to competitive pricing pressure, particularly in Florida. As Ernie noted, we remain disciplined and will not sacrifice profitability for volume. Encouragingly, personal residential premiums in force increased 1.2% year-over-year, reflecting improving trends in that business. Gross premiums earned were $351.2 million compared with $353.6 million in the prior year quarter. Net premiums earned increased 2.4% to $201.1 million compared to $196.3 million in the prior year quarter, reflecting lower ceded premiums and the continued benefits of actions we have taken to optimize our reinsurance program. Gross premiums written were $380.4 million, down 5.5% from the prior quarter, primarily reflecting the reduction in Florida commercial residential business. Underwriting performance remained exceptionally strong. The net loss ratio improved to 30.4% compared to 38.5% in the prior year quarter, while the combined ratio improved to 64.9% from 72.9%. The improvement was driven by favorable prior year reserve development, lower weather losses, and continued strong underlying claims performance. During the quarter, we recognized $23.4 million of favorable prior year reserve development compared with $2.3 million favorable in the prior year period. More importantly, we continue to see stable frequency trends, manageable severity trends, and favorable claims outcomes across the portfolio. We believe these results reflect the benefit of our underwriting, pricing, and claims management actions over the last several years, along with a positive impact on recent legislative reforms in Florida. The net expense ratio was 34.5%, essentially flat from the prior year quarter. Policy acquisition costs increased modestly quarter-over-quarter, primarily due to lower ceding commissions following the reduction of our Northeast Quota Share program at year-end 2025. This was partially offset by lower general and administrative expenses reflecting continued expense discipline across the organization. Net investment income increased 17.3% to $10.6 million from $9 million in the prior quarter, driven by growth in invested assets. We continue to maintain a conservatively positioned investment portfolio focused on high-quality fixed income securities with asset durations closely matched to our liabilities. The effective tax rate of the quarter was 24.9% compared to 23.8% in the prior year quarter. The increase was primarily driven by changes in pre-tax income and certain permanent tax items. As a reminder, our effective tax rate can fluctuate throughout the year as earnings levels change and estimates are refined. Turning to the balance sheet, we ended the quarter with total assets of $2.45 billion, including $1.39 billion of cash and invested assets, and shareholders' equity of $567.7 million. Book value per share increased to $19.09 as of June 30, 2026, up 16.5% from December 31, 2025, and up 54.5% from June 30, 2025. The increase from year-end 2025 was driven primarily by strong earnings generation, partially offset by a $4.9 million net of tax increase in unrealized losses within the fixed income portfolio and the repurchase of $24.6 million of common stock during the first six months of 2026. Despite these capital deployment activities, book value per share continues to grow meaningfully, reflecting the strength of our operating performance and capital generation. Non-regulated cash at quarter end was $47.8 million. Cash flow from operations was $166.5 million, and combined statutory surplus increased $47 million from year-end 2025 to $439.5 million. Importantly, our debt-to-capital ratio has continued to decline as the company's earnings power and cash generation have improved. At the end of the second quarter, our debt-to-capital ratio was 11%, reflecting the successful implementation of our strategic initiatives. Our significant non-regulated cash, strong operating cash flow, available leverage capacity, and increased statutory capital position us well to support growth as open territories continue to scale new business production. As the company's earnings power has increased, we have continued to build capital, which we are prioritizing for organic growth and other growth opportunities, along with opportunistic share repurchases when we believe our shares are undervalued relative to our financial performance and future earnings potential. Year to date, we have repurchased more than 1 million shares of common stock for $24.6 million. Of that amount, $12.6 million was repurchased under the Board-authorized $50 million share repurchase program announced in the first quarter and available through December 31, 2026, leaving $37.4 million of remaining authorization. As we enter the second half of the year, we believe Heritage is exceptionally well positioned. We are generating record earnings, producing substantial excess capital, and seeing encouraging signs of return to growth. Importantly, we see meaningful opportunities to profitably expand the business and continue developing long-term value for our shareholders, agents, and policyholders. Thank you for your time today. Operator, we're now ready to take questions. Operator: [Operator Instructions] The first question comes from Mark Hughes with Truist. Please go ahead. Mark Hughes: Ernie, Kirk, the rate expectations, when we think about Florida, obviously there's been really good benefits from reform, you're seeing in the loss ratio, what does that kind of translate into when you look at your rate filings over the next 6, 12 months, and same question for the book as a whole, including other states. Kirk Lusk: Yes. Well, I mean, we're evaluating that now simply from the standpoint of the reinsurance went down rather substantially. We think that is going to translate into rate reductions in Florida. Outside of Florida, I would say that we're probably going to see modest rate increases. From the standpoint, we're rate adequate almost across the board. So you're going to see rate increases comparable with claims inflation that kind of keep the margins flat with where they are. Mark Hughes: Yes. With the decline in reinsurance costs, what do you think it means for Florida? What's the range of potential outcomes? Ernesto Garateix: We're finalizing that, Mark, but if you take a look last year, we were down 3% to 5%. So I would say it'd be in that range once we finalize it. Mark Hughes: Okay. And, Kirk, what's a good ceded premium number for the third quarter with the new program? Kirk Lusk: Yes, well, I think that you can count on a ratio probably dropping, you know, 1 to 2 points, with the new reinsurance program. Mark Hughes: So it's been kind of 43-ish in the first half, so maybe 42-ish? Kirk Lusk: Yes, I'd say maybe even a little better than that. Mark Hughes: 41-ish? But it's in the ish. Kirk Lusk: Yes. Mark Hughes: Okay. The new production kind of starting to grow again in new states. Is that going to have a meaningful impact on the loss pick? Presumably that business is being written at a higher combined ratio. How should we think about that? Kirk Lusk: Yes, no, we're actually sticking to our underwriting guidelines and margins. I mean, I don't think it's going to have much detrimental impact to the loss ratios. Mark Hughes: Yes, okay. The cash from operations, the $166.5 million. If there's some quarterly dynamic that I'm not familiar with, let me know. But that seems like a really strong number. What's driving that? Kirk Lusk: Basically, a lot of it is just the net income that we've had over the last year, that type of stuff. So that's one of the big factors there. Mark Hughes: Yes, the $166.5 million is 2Q alone, is that correct? Or is that first half? Kirk Lusk: 2Q. Mark Hughes: Okay. Seems a lot stronger than your net income. But just good financials or is there some working cap or is something else going on in the cash flow? Kirk Lusk: Well, you know, we're working on our balance sheet. You know, have over the last several years as far as, you know, what our expenses, what our debt is, the investment income. So it's just a myriad of things we've been kind of working on, on the overall balance sheet also, which is starting to translate a little bit more into free cash flow. Mark Hughes: Yes. And then the $23.4 million, the favorable development, could you talk about that? Was that 2025 stuff, even older? What -- it seems like a nice number... Kirk Lusk: Yes, it's spread throughout a number of years. It also is spread through -- it's predominantly with HPCIC but also Narragansett Bay. And really, what it reflects, it's several positive trends that basically have come evident even more over the last several quarters. Key drivers are the stabilization of frequency, severity also being within a manageable range. I would say the late reported claims have leveled off and are really lower than what they have historically been. And that's just related to us closing claims lower than what we had expected. So it's accumulation. And what we did is we kind of held on to those for a while just to make sure that those trends were consistent and were stabilizing before we realized the development on. Mark Hughes: Okay. I might ask another one, the commercial residential, you talked about prices under pressure there. It's more competitive. Where do you think that stands in the cycle here? How close are we to the bottom? Is there any sign that those are stabilizing at all? How do you think about that? Ernesto Garateix: So as we look at that, Mark, right, we know there's more competition out there. We're sticking to our underwriting guidelines. We know there's new entrants into the market. There have been a number of accounts, just to be frank, that we walked away from because it's priced inadequate, but we see that leveling off. The good news is commercial has also expanded into other areas, including Hawaii, New York and New Jersey have increased for us as well. So that's kind of lessening in Florida. And again, we will be competitive, but we'll be responsibly competitive. Mark Hughes: Okay. So maybe some signs of a leveling off in Florida? Kirk Lusk: And Mark, also, by the way, one more thing is that the [Technical Difficulty] operation is for the first 6 months. Mark Hughes: For 6 months, okay -- even so, it's still quite a strong number. Kirk Lusk: Yes. Operator: The next question comes from Karol Chmiel of Citizens. Please go ahead. Karol Chmiel: Hi, yes, Mark just asked went into the prior period development that I was going to ask about. So that was great. I'll just follow up with just one other question. It's regarding your debt level, the fact that you're paying it off. Is it something you want to continue to pay off throughout the year and into next year? Kirk Lusk: No, not necessarily. We were pretty happy with the rate we had there. And what we did is we had a couple of other smaller loans. For example, we had a mortgage on a building last year that we sold. This year we actually did have a little bit of loan at Federal Home Loan Bank Des Moines for Zephyr, which we paid off simply from the standpoint the rate on that was higher than what we were getting from a return standpoint. So we'll prudently look at paying down this stuff, but right now we're pretty happy with the debt facility. And so therefore, we'll probably kind of maintain that. We also, at this point, still have $75 million left as a deferred term loan on that facility, in the event we wanted to use it. Karol Chmiel: Okay. And then just the last one here since I'm on the call already. You said the loss ratios could be stable, but if you were just to, break it apart into the components, accident year versus prior period. Are you thinking that on a net basis, it will be stable, but accident year might, rise over time with the lower rates in Florida, but then your prior period development would be favorable. And as a net, it would just be more of a flat loss ratio? Kirk Lusk: Yes, well, I'm saying, you know, flat excluding the development. We do think that we're definitely adequately reserved, but again, it's like that is more of a one-time item, so therefore backing that out would be the stabilization of the loss ratio. Operator: The next question comes from Cam Bianchi with Piper Sandler. Cameron Bianchi: Good morning. This is Cam on for Paul. My first question is on commercial residential. This grew 4.9%, but commercial premiums in force fell 12.7%. I'm just wondering if you could unpack the gap between policy count growth and premium contractions, more pure rate or pricing pressure, or is it also a mixed shift towards maybe smaller accounts? Kirk Lusk: Yes. It is competitive pressure on those accounts. What we had to do is we are walking away from some accounts simply due to the extent of the rate decreases. We are able to write some even with the rate decreases. New business, the policy count is up because we are writing some smaller commercial accounts from a new business perspective. So therefore, that is increasing our policy count. And again, that has a lot to do with where we see the pricing favorability on those accounts. We also have our dedicated commercial agents, which do an absolutely great job of evaluating the risks. And so therefore, from an underwriting standpoint and from a pricing standpoint, we're very comfortable writing the new business that we've been getting. Cameron Bianchi: Awesome. Got it. And then, just one more from me. You started writing in Texas, you mentioned. What's the underwriting appetite there and how quickly do we see that scale relative to maybe like the Florida commercial book? Ernesto Garateix: Yes. Yes, so we're really excited about Texas. Just launched it in July, so early stages, but very well received. We've got a couple policies already and meeting with several agents out there. So there is, you know, appetite for us. But as we said, it will be a small contribution this year, and we expect it to grow over the next two to three years. Operator: Ladies and gentlemen, this concludes our question and answer session. I'd like to turn the conference back over to Ernie Garateix for any final remarks. Ernesto Garateix: We'd like to thank everybody for joining the call and especially thank our employees for all their hard work. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in Heritage Insurance, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Heritage Insurance wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Heritage Insurance Holdings (HRTG) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Heritage Insurance Holdings, Inc.? Here are five stocks we like better. Record profitability: Heritage Insurance reported second-quarter net income of $61.7 million, or $2.05 per diluted share, up from $48 million a year earlier. The annualized return on average equity reached 45.4%. Underwriting performance strengthened: The net loss ratio improved to 30.4% and the combined ratio to 64.9%, aided by lower weather losses and $23.4 million in favorable reserve development. Net premiums earned rose 2.4%, although gross premiums written declined 5.5% due largely to Florida commercial-residential reductions. Capital and reinsurance improved: Heritage secured more than $2.2 billion of catastrophe reinsurance limit, expected to generate approximately $63 million in annualized savings. Book value per share rose 16.5% from year-end 2025, while the company repurchased over 1 million shares during the first half. Heritage Insurance (NYSE:HRTG) reported record second-quarter net income of $61.7 million, or $2.05 per diluted share, as lower weather-related losses, favorable reserve development, higher net premiums earned and increased investment income supported results. The insurer’s net income increased from $48 million, or $1.55 per diluted share, in the prior-year quarter. For the first six months of 2026, net income rose 25% year over year to $98.2 million. Chief Financial Officer Kirk Lusk said the company generated an annualized return on average equity of 45.4% in the quarter. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Chief Executive Officer Ernie Garateix said the results reflect years of portfolio re-underwriting, rate actions, exposure reductions in less attractive markets, strengthened reserves, and investments in technology and operations. “We continue to believe long-term shareholder value is created through profitable underwriting and disciplined capital allocation, not by pursuing premium growth at any cost,” Garateix said. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Heritage’s net loss ratio improved to 30.4% in the second quarter from 38.5% a year earlier, while its combined ratio improved to 64.9% from 72.9%. Lusk attributed the improvement to favorable prior-year reserve development, lower weather losses and continued claims performance. The company recognized $23.4 million of favorable prior-year reserve development, compared with $2.3 million in the prior-year period. Lusk said the development was spread across multiple accident years and was concentrated primarily at Heritage’s HBCIC unit, with contributions from Narragansett Bay. He cited stabilized claim frequency, manageable severity, lower late-reported claims and claims closing at amounts below expectations. → No Hangover: Revisiting Microsoft One Week After Earnings Lusk told analysts that the company expects underlying loss ratios to remain stable excluding reserve development, which he described as more of a one-time benefit. He also said new business production is being written within Heritage’s existing underwriting guidelines and margin standards. Net premiums earned rose 2.4% to $201.1 million, while gross premiums earned declined slightly to $351.2 million from $353.6 million. Gross premiums written fell 5.5% to $380.4 million, primarily due to reductions in Florida commercial residential business. Premiums in force totaled $1.41 billion at quarter-end, down 1.4% from a year earlier. Commercial residential premiums faced pricing pressure, particularly in Florida, while personal residential premiums in force increased 1.2% year over year. Garateix said Heritage now operates as a “super-regional” insurer across multiple geographies, products and distribution channels, rather than solely as a Florida-focused property insurer. The company said it can direct capital toward markets and products offering stronger risk-adjusted returns and reduce exposure where competition or pricing is less favorable. Nearly all of the company’s territories are open to new business, management said, and the pace of policy-count declines has continued to moderate. Heritage expects its personal residential business to approach an inflection point as new-business production improves and reopened territories mature. The rollout of Guidewire has temporarily slowed production in some markets because agents need time to adapt to the new platform, Garateix said. However, he said agent feedback has been positive and activity has historically improved after agents become familiar with the system. Heritage also wrote its first Texas policy through its excess and surplus lines platform in July. Garateix said the contribution will be small this year but that the company expects the operation to grow over the next two to three years. In Florida commercial residential, management said it has walked away from accounts where rate cuts would make pricing inadequate. Lusk said that while policy counts increased through new business, the company has been writing smaller commercial accounts, contributing to a gap between policy count growth and declining premiums. Garateix said the company has seen signs that competitive pressure may be leveling off, while commercial business in Hawaii, New York and New Jersey has increased. Regarding pricing, Lusk said lower reinsurance costs are expected to translate into Florida rate reductions. He indicated those reductions could be in a range similar to the 3% to 5% decreases taken last year, though the company was still finalizing its plans. Outside Florida, management expects modest rate increases broadly in line with claims inflation. Heritage completed its 2026-2027 catastrophe excess-of-loss reinsurance program during the second quarter. The company placed more than $2.2 billion of limit, expanded its use of multiyear coverage and catastrophe bonds, and expects approximately $63 million in annualized savings compared with the prior-year program. Lusk said the new program could reduce the ceded-premium ratio by roughly one to two percentage points beginning in the third quarter. Management linked the reinsurance outcome to improved company fundamentals and the impact of Florida legislative reforms, including lower litigation activity and claims experience following Hurricane Milton. Net investment income increased 17.3% to $10.6 million, driven by growth in invested assets. The company said its investment portfolio remains focused on high-quality fixed-income securities with durations closely aligned to liabilities. At June 30, Heritage reported total assets of $2.45 billion, including $1.39 billion of cash and invested assets, and shareholders’ equity of $567.7 million. Book value per share reached $19.09, up 16.5% from year-end 2025 and 54.5% from a year earlier. Its debt-to-capital ratio declined to 11%. The company repurchased more than 1 million shares for $24.6 million during the first half. Of that total, $12.6 million was repurchased under its board-authorized $50 million program, leaving $37.4 million available through Dec. 31, 2026. Heritage initially described operating cash flow as $166.5 million during the quarter in prepared remarks, but Garateix clarified during the analyst question-and-answer session that the figure represented cash flow from operations for the first six months of 2026. Heritage Insurance Holdings, Inc (NYSE: HRTG) is a property and casualty insurance holding company that offers homeowners insurance and related coverage products in the United States. Through its primary subsidiary, Heritage Property & Casualty Insurance Company, the firm underwrites standard and non-standard personal lines insurance, including homeowners, dwelling fire, flood, and condominium policies. Heritage leverages a network of independent insurance agents to distribute its products across select regional markets, with an emphasis on serving property owners in areas prone to severe weather events. Founded in 2011 and headquartered in Jupiter, Florida, Heritage Insurance has grown to become one of the leading providers of residential property insurance in the state. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Heritage Insurance Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Heritage Insurance Holdings, Inc. reported second-quarter 2026 results on August 5, 2026, with revenue of US$214.2 million and net income of US$61.71 million, alongside basic earnings per share from continuing operations of US$2.06, all higher than the same period a year earlier. For the first half of 2026, Heritage Insurance Holdings also increased revenue to US$426.85 million and net income to US$98.19 million, while completing a US$12.53 million buyback of 555,024 shares, which together point to stronger profitability and active capital management. We’ll now examine how Heritage’s stronger Q2 earnings and recently completed share repurchase program affect its existing investment narrative and risks. The latest GPUs need a type of rare earth metal called Neodymium and there are only 28 companies in the world exploring or producing it. Find the list for free. To own Heritage Insurance Holdings, you need to believe it can sustain disciplined underwriting and capital allocation in catastrophe exposed markets while managing earnings volatility from storms, regulation and reinsurance costs. The stronger Q2 2026 earnings and first half profitability support this thesis in the near term, but they do not eliminate the key short term risk of higher catastrophe losses if weather activity intensifies. The most relevant recent announcement here is the completed US$12.53 million repurchase of 555,024 shares, or 1.88% of the company, under the 2026 buyback program. Combined with higher earnings, this points to tighter share count and potentially enhanced earnings per share, which ties directly into the current catalyst of improved profitability and return on equity as investors reassess Heritage’s risk reward profile. Yet, despite the strong quarter, investors should pay close attention to Heritage’s continued concentration in weather exposed regions and the potential for more severe catastrophe seasons... Read the full narrative on Heritage Insurance Holdings (it's free!) Heritage Insurance Holdings' narrative projects $930.6 million revenue and $82.6 million earnings by 2029. This implies 3.1% yearly revenue growth and an earnings decrease of $119.0 million from $201.6 million today. Uncover how Heritage Insurance Holdings' forecasts yield a $31.50 fair value, a 11% downside to its current price. Before this Q2 beat, the most pessimistic analysts were assuming revenue of about US$937 million and earnings near US$88 million by 2029, highlighting how differently you might view Heritage’s exposure to shifting loss costs and reinsurance trends. Explore 4 other fair value estimates on Heritage Insurance Holdings - why the stock might be worth 12% less than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Heritage Insurance Holdings research is our analysis highlighting 2 key rewards that could impact your investment decision. Our free Heritage Insurance Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Heritage Insurance Holdings' overall financial health at a glance. Our daily scans reveal stocks with breakout potential. Don't miss this chance: Capitalize on the AI infrastructure supercycle with our selection of the 56 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. Uncover the next big thing with 20 elite penny stocks that balance risk and reward. The future of work is here. Discover the 36 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include HRTG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes record net income of $61.7 million to the successful execution of a multi-year strategy focused on rate adequacy, re-underwriting, and geographic diversification. The company has transitioned from a Florida-centric insurer to a super-regional platform, allowing capital allocation to shift toward markets with the strongest risk-adjusted returns. Policy count declines are moderating as the company believes the vast majority of its deliberate portfolio pruning and risk-reduction work is now complete. A return to policy count growth was temporarily slowed by the Guidewire implementation, which creates a short-term learning curve for agents before driving higher efficiency and production. Management emphasizes a 'profitability over volume' approach, specifically walking away from Florida commercial residential business where pricing has become excessively competitive. The 2026-2027 catastrophe reinsurance program was completed with $2.2 billion in limit, achieving approximately $63 million in annualized savings due to improved market fundamentals. Management anticipates the personal residential business is approaching an inflection point, with a return to policy count growth expected in the coming quarters. Reinsurance cost savings are expected to translate into Florida rate reductions in the range of 3% to 5% over the next 6 to 12 months. Outside of Florida, the company expects modest rate increases to remain comparable with claims inflation while keeping margins flat. The new Texas E&S platform is expected to provide a modest initial contribution with scaled growth projected over the next two to three years. The net ceded premium ratio is projected to drop by approximately 1 to 2 percentage points starting in the third quarter due to the optimized reinsurance program. The quarter included $23.4 million of favorable prior year reserve development, driven by stabilized claim frequency and severity trends that outperformed historical expectations. Share repurchases totaled more than 1 million shares year-to-date for $24.6 million, reflecting management's view that the current valuation does not reflect earnings durability. The debt-to-capital ratio declined to 11%, providing significant leverage capacity to support organic growth and other attractive growth opportunities. Commercial residential premiums in force fell 12.7% due to intentional discipline in the face of new market entrants and aggressive pricing in Florida. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects rate reductions in Florida to be in the 3% to 5% range once filings are finalized. Non-Florida territories will likely see modest increases to offset claims inflation and maintain margin stability. The $23.4 million benefit was spread across multiple years and primarily driven by the stabilization of claim frequency and lower-than-expected late reported claims. Management noted they held these reserves for several quarters to ensure trends were consistent before realizing the development. Management confirmed they are walking away from inadequate pricing driven by new market entrants. The company is offsetting Florida declines by expanding commercial lines into Hawaii, New York, and New Jersey. The company paid off smaller high-rate loans, including a mortgage and a Federal Home Loan Bank loan, to optimize the balance sheet. Management is satisfied with the current debt facility and retains $75 million in available capacity for future needs.

Heritage Insurance (HRTG) came out with quarterly earnings of $2.05 per share, beating the Zacks Consensus Estimate of $0.99 per share. This compares to earnings of $1.55 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +107.07%. A quarter ago, it was expected that this property and casualty insurance holding company would post earnings of $1.53 per share when it actually produced earnings of $1.19, delivering a surprise of -22.22%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Heritage Insurance, which belongs to the Zacks Insurance - Property and Casualty industry, posted revenues of $214.2 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.64%. This compares to year-ago revenues of $208.04 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Heritage Insurance shares have added about 1.9% since the beginning of the year versus the S&P 500's gain of 13%. While Heritage Insurance has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Heritage Insurance was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.62 on $220.08 million in revenues for the coming quarter and $4.33 on $866 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Property and Casualty is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Roadzen Inc. (RDZN), has yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of -20%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Roadzen Inc.'s revenues are expected to be $16.05 million, up 47.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Heritage Insurance Holdings, Inc. (HRTG) : Free Stock Analysis Report Roadzen Inc. (RDZN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

TAMPA, Fla., Aug. 5, 2026 /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 2026 financial results. Second Quarter 2026 Result Highlights Record second quarter net income of $61.7 million, an increase of 28.5% from net income of $48.0 million in the prior-year quarter. Earnings per share increased 32.3% to $2.05 per diluted share in the second quarter, as compared to $1.55 per diluted share in the prior-year quarter. Year-to-date net income of $98.2 million and earnings per share of $3.23 per diluted share, up from $78.5 million and $2.54 per diluted share for the six months ended June 30, 2025. Total revenue increased 3.0% to $214.2 million from $208.0 million in the prior-year quarter. Net loss ratio improved 8.1 percentage points to 30.4%, from 38.5% in the prior-year quarter. Net combined ratio improved by 8.0 percentage points to 64.9%, from 72.9% in the prior-year quarter. Annualized return on average equity of 45.4% for the second quarter with shareholders' equity up 48.1% year-over-year. Book value per share increased to $19.09 which is an increase of 16.5% from year end 2025 and was up 54.5% from the prior-year quarter. Second quarter cash flow from operations of $166.5 million, an increase of 277% as compared to the prior-year quarter. Repurchased 1,001,508 shares of common stock at a cost of $24.6 million in 2026. Started writing business in Texas on a surplus lines basis. Ernie Garateix, Heritage's CEO, commented, "Several years ago, our focus was on improving profitability, strengthening the balance sheet, and reducing volatility in our financial results. Today, we are generating record earnings, producing substantial excess capital and beginning to see encouraging signs that the foundation we have built can support future growth. We believe Heritage has evolved into a stronger, more diversified and more resilient business, operating as a super-regional insurance carrier with opportunities to deploy capital across multiple geographies, products and distribution channels. That flexibility allows us to dynamically allocate capital to the most attractive risk-adjusted return opportunities while maintaining the underwriting discipline that has defined our transformation." Mr. Garateix continued, "Despite the significant progress we have made over the last several years, we do not believe our current valuation fully reflects the strength of our earnings profile, the durability of our results, or the growth opportunities ahead. As a result, we have repurchased more than one million shares of our common stock year to date because we believe our shares continue to trade below intrinsic value, while we are also still preserving substantial capacity to support future growth. Despite increased competition across many markets, our analytics, team and infrastructure position Heritage to grow prudently while sustaining profitability and underwriting discipline." Strategic Profitability Initiatives These initiatives will remain in place while the Company also expands its strategy to include its 2026 initiatives: Generating underwriting profit through rate adequacy and continued selective underwriting. Allocating capital to products and geographies that maximize long-term returns. Targeting a balanced and diversified portfolio. To continue its progress, the Company expects to also focus on the following profitability initiatives in 2026: Target geographies for new business, while closely managing risk and exposure. Continue persistent underwriting discipline and focus on rate adequacy while driving prudent top line growth. Enhance data driven analytics using AI and other technology tools. Continue the refinement of customer service and claims capabilities. Leverage infrastructure and capabilities to foster future growth, which includes our entry to the State of Texas on an excess and surplus lines basis. Act as opportunities emerge which will continue our diversification and expansion over the next several years. Expand our relationship with reinsurance partners to expand capacity and manage volatility while pursuing growth. Capital Management The Board of Directors has continued the suspension of the Company's quarterly dividend as it prioritizes strategic growth opportunities and will reassess dividend distributions each quarter. On May 7, 2026, the Board authorized a new $50.0 million share repurchase program, replacing the prior authorization effective through December 31, 2026. During the second quarter of 2026, the Company repurchased in aggregate 631,024 shares for approximately $14.6 million under the share repurchase programs and has repurchased 1,001,508 shares for approximately $24.6 million in 2026. The company has $37.4 million remaining on the existing authorization. Results of Operations The following table summarizes results of operations for the three and six months ended June 30, 2026, and 2025 (amounts in thousands, except percentages and per share amounts): 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 100% generally reflects profitable underwriting results. Second Quarter 2026 Results: Second quarter 2026 net income increased to $61.7 million, or $2.05 per diluted share, compared with $48.0 million, or $1.55 per diluted share, in the prior-year quarter. The increase was primarily driven by lower losses and higher revenue. Revenue growth reflected lower ceded premiums, which increased net premiums earned, as well as higher investment income from a larger invested asset base. Net losses decreased primarily due to favorable prior-year loss development and lower weather-related losses. Premiums-in-force were $1.41 billion, down 1.4% from $1.43 billion in the second quarter of 2025, primarily due to commercial residential premium reductions resulting from competitive pricing pressure. Gross premiums written decreased 5.5% to $388.4 million from $411.0 million in the prior-year quarter, primarily reflecting lower commercial residential premiums, partially offset by growth in personal lines. The Florida commercial residential market remains highly competitive and management continues to emphasize underwriting discipline and adequate profitability by writing business that meets Heritage's pricing and risk standards. Commercial premiums are expected to level off in the second half of the year as we continue to grow business outside of Florida where business conditions are more favorable while leveraging our strong Florida agency network. Gross premiums earned were $351.2 million, compared with $353.6 million in the prior-year quarter, reflecting the decline in commercial residential business due to the competitive market conditions discussed above. Ceded premiums decreased 4.6% to $150.0 million from $157.3 million in the prior-year quarter. The reduction in ceded premiums reflected the decrease in the northeast net quota share program which was effective December 31, 2025 and one month of savings driven by the improved pricing of our June 2026 CAT XOL program. The CAT XOL placement generated treaty-year expense savings of $63.2 million, of which seven-twelfths will be recognized in 2026. In addition, Heritage successfully completed the placement of its catastrophe excess of loss reinsurance program with higher coverage levels than the prior-year while achieving a lower total and risk-adjusted cost. As operating and reinsurance costs improve, the Company expects policyholders to benefit through more competitive pricing while continuing to maintain appropriate underwriting margins. This should also favorably impact ceded premiums over the next four quarters. Net premiums earned increased 2.4% to $201.1 million from $196.3 million in the prior-year quarter, driven by lower ceded premiums more than offsetting the decrease in gross written premiums. Total revenue increased 3.0% to $214.2 million, reflecting higher net premiums earned and increased investment income. Net investment income rose 17.3% to $10.6 million in the second quarter of 2026 from $9.0 million in the prior-year quarter, driven by growth in invested assets. The investment portfolio remains conservatively positioned, emphasizing high-quality fixed-income investments with asset durations closely matched to liabilities. Net losses and LAE were $61.1 million, down $14.6 million from $75.6 million in the prior-year quarter. The net loss ratio improved 8.1 points to 30.4% from 38.5% in the same quarter last year. Net weather losses for the current accident quarter were $11.5 million, compared with $12.5 million in the prior-year quarter. Net favorable prior-year loss development was $23.4 million in the second quarter of 2026, compared with $2.3 million in the prior-year quarter. The net expense ratio was 34.5%, essentially flat compared with 34.4% in the prior-year quarter. Policy acquisition costs increased 5.5% year over year, primarily due to lower ceding commissions following a 2025 year end reduction in the net quota share reinsurance program. General and administrative expenses decreased 2.5%, reflecting lower regulatory costs and municipality tax expenses. The net combined ratio improved 8.0 points to 64.9% from 72.9% in the prior-year quarter, primarily driven by the lower net loss ratio discussed above. The effective tax rate was 24.9% compared to 23.8% in the prior-year quarter. We calculate the provision for income taxes during interim reporting periods by applying an estimate of the effective tax rate for the full year. The effective tax rate is 1.1 points higher than the prior-year quarter, with the variance driven by pre-tax income and permanent items. The effective tax rate can fluctuate throughout the year as income changes and estimates used in each quarterly tax provision are updated with additional information. Supplemental Information: Book Value Analysis: Book value per share was $19.09 at June 30, 2026, an increase of 16.5% from December 31, 2025 and an increase of 54.5% from June 30, 2025. The increase in stockholders' equity from December 31, 2025 was primarily driven by net income, partially offset by a $4.9 million net-of-tax increase in unrealized losses on the Company's fixed income securities portfolio and the $24.6 million paid to repurchase 1,001,508 shares of common stock in 2026. The decline in the number of shares outstanding was driven by the repurchase of common stock and shares surrendered which was partially offset by the issuance of restricted stock this quarter. The increase in average stockholders' equity of 52.9% over the prior-year quarter caused the ROAE for the prior-year quarter to be higher than the current year quarter, despite higher net income for the current year quarter. The unrealized losses are unrelated to credit risk but are instead attributable to rising interest rates, with the increase in unrealized losses driven by higher interest rates during the year. Heritage does not anticipate a need to sell investments in advance of their maturity. As such, the Company expects unrealized losses to continue to roll off the portfolio as investments mature. The average duration of the fixed income portfolio is 3.4 years as the Company has extended duration to take advantage of higher yields further out on the yield curve, while still maintaining a short duration, high credit quality portfolio. Conference Call Details:Thursday, August 6, 2026– 9:00 a.m. ETNorth American Dial-in Numbers Toll Free: 1-888-346-3095International Dial In: 1-412-902-4258 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. 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 $1.4 billion of gross personal and commercial residential premium across its multi-state footprint covering the northeast, southeast, Hawaii and California excess and surplus lines. Forward-Looking Statements Statements in this press release and on our earnings conference call 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 and our earnings conference call include forward-looking statements, including statements relating to our strategic initiatives for 2026 and our ability to profitably grow our business and deliver value to our shareholders either organically or through accretive business opportunities; our ability to take advantage of emerging opportunities; our positioning to deliver managed growth with rate adequacy in our markets and our intent not to write policies that we believe are underpriced or do not meet our underwriting standards; our expectations and plans regarding our margins and maintaining adequate margins; our expectations and plans regarding premiums, including premium growth and ceded premium outlook; our beliefs regarding commercial residential market competitiveness, generally, and pricing pressure in Florida, specifically; our expectations regarding our catastrophe excess of loss program; our capital allocation strategy, including our Board's evaluation of dividend distributions and share repurchases and our evaluation of the intrinsic value of our common stock; our new geography and product diversification and expansion strategy, including our plans relating to building relationships in any new market; our focus on underwriting discipline, exposure management and rate adequacy in existing and new geographies, leveraging our scale, continued enhancement of data and AI-driven analytics and our other strategic priorities for 2026; and our expectations regarding our financial results in 2026 and beyond and the drivers of such results. 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; inflation and other changes in economic conditions (including changes in interest rates and financial and real estate markets), including changes that may impact demand for our products and our operations; lack of effectiveness of exclusions and loss limitation methods in the insurance policies we assume or write; inherent uncertainty of our models and our reliance on artificial intelligence as a tool in creating and using such models; the impact of macroeconomic and geopolitical conditions, including the impact of interest rates, supply chain constraints, inflationary pressures, tariffs, labor availability and geopolitical conflicts; the impact of new federal and state regulations that affect the property and casualty insurance market and our failure to meet increased regulatory requirements, including minimum capital and surplus requirements; continued and increased impact of abusive and unwarranted claims; the cost 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, wildfires 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, 2025 filed with the Securities and Exchange Commission on March 12, 2026, 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 LuskChief Financial [email protected] View original content:https://www.prnewswire.com/news-releases/heritage-reports-second-quarter-2026-results-302844123.html

Palomar (PLMR) came out with quarterly earnings of $2.36 per share, beating the Zacks Consensus Estimate of $2.12 per share. This compares to earnings of $1.76 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +11.32%. A quarter ago, it was expected that this insurance holding company would post earnings of $2.17 per share when it actually produced earnings of $2.31, delivering a surprise of +6.45%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Palomar, which belongs to the Zacks Insurance - Property and Casualty industry, posted revenues of $307.67 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 7.37%. This compares to year-ago revenues of $195.01 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Palomar shares have added about 1.3% since the beginning of the year versus the S&P 500's gain of 11%. While Palomar has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Palomar was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.71 on $352.82 million in revenues for the coming quarter and $9.79 on $1.26 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Property and Casualty is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Heritage Insurance (HRTG), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This property and casualty insurance holding company is expected to post quarterly earnings of $0.99 per share in its upcoming report, which represents a year-over-year change of -36.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Heritage Insurance's revenues are expected to be $212.84 million, up 2.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Palomar Holdings, Inc. (PLMR) : Free Stock Analysis Report Heritage Insurance Holdings, Inc. (HRTG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Bowhead Specialty Holdings Inc. (BOW) came out with quarterly earnings of $0.48 per share, beating the Zacks Consensus Estimate of $0.47 per share. This compares to earnings of $0.37 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +2.13%. A quarter ago, it was expected that this company would post earnings of $0.42 per share when it actually produced earnings of $0.48, delivering a surprise of +14.29%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Bowhead Specialty Holdings Inc., which belongs to the Zacks Insurance - Property and Casualty industry, posted revenues of $163.86 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.26%. This compares to year-ago revenues of $133.26 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Bowhead Specialty Holdings Inc. shares have added about 7.2% since the beginning of the year versus the S&P 500's gain of 9.4%. While Bowhead Specialty Holdings Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Bowhead Specialty Holdings Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.51 on $172.5 million in revenues for the coming quarter and $1.96 on $671.98 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Property and Casualty is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Heritage Insurance (HRTG), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This property and casualty insurance holding company is expected to post quarterly earnings of $0.99 per share in its upcoming report, which represents a year-over-year change of -36.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Heritage Insurance's revenues are expected to be $212.84 million, up 2.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bowhead Specialty Holdings Inc. (BOW) : Free Stock Analysis Report Heritage Insurance Holdings, Inc. (HRTG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Universal Insurance Holdings (UVE) came out with quarterly earnings of $1.84 per share, beating the Zacks Consensus Estimate of $1.43 per share. This compares to earnings of $1.23 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +28.67%. A quarter ago, it was expected that this property and casualty insurance company would post earnings of $1.39 per share when it actually produced earnings of $2, delivering a surprise of +43.88%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Universal Insurance, which belongs to the Zacks Insurance - Property and Casualty industry, posted revenues of $427.03 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 11.91%. This compares to year-ago revenues of $400.14 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Universal Insurance shares have added about 11.8% since the beginning of the year versus the S&P 500's gain of 9.6%. While Universal Insurance has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Universal Insurance was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.01 on $383.29 million in revenues for the coming quarter and $4.63 on $1.54 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Property and Casualty is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Heritage Insurance (HRTG), has yet to report results for the quarter ended June 2026. This property and casualty insurance holding company is expected to post quarterly earnings of $0.99 per share in its upcoming report, which represents a year-over-year change of -36.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Heritage Insurance's revenues are expected to be $212.84 million, up 2.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report UNIVERSAL INSURANCE HOLDINGS INC (UVE) : Free Stock Analysis Report Heritage Insurance Holdings, Inc. (HRTG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research