HRTG

EX-99.1

2 hrtg-ex99_1.htm

EX-99.1

EX-99.1

Exhibit 99.1

Heritage Reports Second Quarter 2026 Results

Tampa, FL – August 5, 2026: 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.

1

Exhibit 99.1

• 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

EX-99.1

2 hrtg-ex99_1.htm

EX-99.1

EX-99.1

Exhibit 99.1

Heritage Reports First Quarter 2026 Results

Tampa, FL – May 7, 2026: Heritage Insurance Holdings, Inc. (NYSE: HRTG) (“Heritage” or the “Company”), a super-regional property and casualty insurance holding company, today reported first quarter of 2026 financial results.

First Quarter 2026 Result Highlights

• Heritage reported record first quarter net income of $36.5 million, an increase of 19.7% from net income of $30.5 million in the prior year quarter; and earnings per share of $1.19 per diluted share, an increase of 20.2% from $0.99 per diluted share in the prior year quarter.

• Gross and Net premiums earned were consistent with the prior year quarter.

• Net loss ratio improved 3.8 percentage points to 45.9%, from 49.7% in the prior year quarter.

• Net combined ratio improved by 3.5 percentage points to 81.0%, from 84.5% in the prior year quarter.

• Return on average equity of 28.5% with average equity up 65.5% from the prior year quarter.

• Book value per share increased 4.6% from year end 2025 and was up 61.5% from the first quarter of 2025.

• First quarter cash flow from operations of $24.9 million.

• Through the date of this earnings release, repurchased 446,884 shares of common stock during 2026 at a cost of $12.0 million.

• On track to start writing business in Texas on a surplus lines basis.

• Four new products rolled out in Q1 with six additional products slated to launch in the second half of 2026.

Ernie Garateix, Heritage’s CEO, commented, “Our first quarter was the most profitable first quarter for the Company since becoming public in 2014. Our net loss ratio was also the lowest delivered in a first quarter since 2015 even with $37 million of weather related losses in the quarter. These results were derived from the consistent application of our strategic profitability initiatives established several years ago that focused on rate adequacy and underwriting discipline, allocating capital to products and geographies that maximize long-term returns, and targeting a balanced and diversified portfolio.”

Mr. Garateix, continued, “As our strategic initiatives have taken hold, we have re-opened over 90% of our geographies as they have become rate adequate and through our disciplined underwriting program, the quality of the book of business has greatly improved. This strategy is delivering results with new business written rising 62.7% from the first quarter of 2025 and over 30.0% from fourth quarter of 2025. We have expanded geographically, added products, enhanced our data analytics and demonstrated our ability to perform during adverse weather and challenging market conditions. We are also extremely well positioned to take advantage of any market disruptions or emerging opportunities. With our capabilities and financial strength, we will focus on evaluating and allocating capital to profitable products or geographies and we are positioned to expand organically or as accretive business opportunities arise.”

Strategic Profitability Initiatives

The Company has focused on three main strategic initiatives aimed at achieving consistent long-term quarterly earnings and driving shareholder value, which include:

• Generating underwriting profit through rate adequacy and more selective underwriting.

• Allocating capital to products and geographies that maximize long-term returns.

• Targeting a balanced and diversified portfolio.

These three initiatives will remain in place while we also expand our strategy to include our 2026 initiatives. To continue executing on these three strategic initiatives throughout 2026, the Company expects to focus on the following profitability initiatives:

• Target geographies open 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.

Exhibit 99.1

• Continue the refinement of customer service and claims capabilities.

• Leverage infrastructure and capabilities to foster future growth, which includes our plan to enter 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, manage volatility while pursuing growth.

Capital Management

Heritage's Board of Directors has decided to continue its suspension of the quarterly shareholder dividend to prioritize strategic growth. The Board of Directors will continue to evaluate dividend distributions on a quarterly basis. The Company repurchased 446,484 shares of common stock during 2026 through the current date, at a cost of $12.0 million under the Company's previously announced share repurchase authorization, which authorized the repurchase of up to an aggregate of $25.0 million of common sto

8-K

false 0001598665 0001598665 2025-03-09 2025-03-09

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): March 9, 2025

HERITAGE INSURANCE HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Delaware

001-36462

45-5338504

(State or other jurisdiction of incorporation)

(Commission File Number)

(I.R.S. Employer Identification No.)

1401 N. Westshore Blvd Tampa, Florida

33607

(Address of principal executive offices)

(Zip Code) Registrant’s telephone number, including area code: (727) 362-7202

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.0001 per share

HRTG

New York Stock Exchange Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Conditions.

On March 9, 2026, Heritage Insurance Holdings, Inc. (the “Company”) issued a press release announcing financial results for its fiscal quarter and full year ended December 31, 2025. A copy of the press release is attached hereto as Exhibit 99.1. The information furnished under this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits. The following exhibit is being furnished as part of this Current Report on Form 8-K.

No.

Exhibit

99.1

Press Release dated March 9, 2026.

104

Cover Page Interactive Data File (the cover page tags are embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

HERITAGE INSURANCE HOLDINGS, INC.

Date: March 9, 2026

By:

/s/ Kirk Lusk

Kirk Lusk Chief Financial Officer