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- **Record Q3 Earnings**: Net income surges to $50.4 million, up 515% YoY, driven by 27.1pt improvement in net loss ratio to 38.3%.
- **New Business Explosion**: Q3 new business premium $36 million (+166% YoY), with 70% of geographies reopened to new business.
- **Policy Growth Path**: 2026 policy count growth expected, with Virginia, Hawaii, and New York leading expansion.
- **Share Buyback Restart**: $2.3 million in Q3, with $25 million authorization for further repurchases.
- **Capital Strength**: Book value per share $14.15 (49% YoY), statutory surplus $352 million (+34% YoY).

**【CEO Summary Section】**
- **Strong Q3 Results**: Net income of $50.4 million, up significantly from $8.2 million in Q3 2024, driven by reduced losses and cost control.
- **Policy Count Strategy**: Personal lines policy in-force (PIV) decreased by 6,800 in Q3 2025 (vs. 19,000 in Q3 2024), with PIV premium rising to $1.44 billion (from $1.1 billion in 2021). New business premium jumped 166% to $36 million (vs. $13.7 million in Q3 2024).
- **Growth Outlook**: Policy count growth expected in 2026 as 70% of geographies reopened to new business. Hawaii and Virginia show strong momentum, with New York (9% rate increase) and California (E&S basis) also expanding.
- **Share Repurchase**: Restarted buyback program, repurchasing 106,000 shares for $2.3 million in Q3, with Board authorization for additional $25 million.

**【CFO Financial Commentary】**
- **Financial Highlights**: Gross premiums earned $362 million (+2.2% YoY), net income $50.4 million ($1.63/diluted share), and net loss ratio improved 27.1pts to 38.3% (vs. 65.4% in Q3 2024).
- **Balance Sheet Strength**: Total assets $2.4 billion, shareholders' equity $437.3 million, and book value per share $14.15 (up 49% from Q4 2024). Statutory surplus $352.2 million (+$93.4 million YoY).
- **Capital Allocation**: Priorities include growth (ROE focus), stock buybacks (undervalued shares), and dividends. Surplus growth supports $225-250 million of net earned premium in 2026.

**【Q&A Key Highlights】**
- **Florida vs. Non-Florida Growth**: $17 million of Q3 new business in Florida (vs. $19 million outside), with Virginia, Hawaii, and New York leading non-Florida growth. Florida homeowners pricing cycle slower, but commercial lines remain profitable (CR 80%).
- **Pricing Environment**: Filed for low mid-single-digit rate decreases in 2026. Commercial property faces pressure, but 80% CR still profitable.
- **Ceded Premiums**: Q3 ceded premiums $167 million, with $4 million one-time reinstatement for Hurricane Ian. Q4 expected to normalize near $160 million.
- **Surplus Utilization**: $352 million statutory surplus supports $225-250 million net earned premium in 2026, with buybacks and dividends as secondary priorities.

Heritage Insurance Holdings, Inc. (HRTG) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

HRTG

HRTG fundamentals

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