Heritage Insurance (HRTG) Q4 2025 earnings summary

Executive summary

• Net income for 2025 reached $195.6 million ($6.32 per share), up from $61.5 million ($2.01 per share) in 2024, despite $31.8 million in wildfire losses; Q4 2025 net income was $66.7 million ($2.15 per share), up 228.6% year-over-year.

• Book value per share rose 72.5% to $16.39 at year-end 2025, driven by net income and reduced unrealized losses on fixed income securities.

• Strategic focus on underwriting discipline, capital allocation, rate adequacy, and portfolio diversification, with expansion into Texas E&S market and use of data analytics and AI for risk selection.

• Premiums in force remained stable at $1.43 billion, despite an 8.3% reduction in policy count, reflecting selective underwriting and higher average premiums.

• Resumed new personal lines business after market stabilization and legislative changes, maintaining disciplined risk management.

Financial highlights

• Q4 2025 net income was $66.7 million ($2.15 per share), up from $20.3 million ($0.66 per share) in Q4 2024.

• Net premiums earned in Q4 2025 rose 1.7% to $202.7 million; gross premiums earned up 0.4% to $361.7 million.

• Net investment income for Q4 2025 increased 15.9% to $9.8 million.

• Net loss ratio improved to 31.3% from 54.7%; net combined ratio dropped to 62.0% from 89.7%.

• Commercial residential segment premiums in force decreased 7.5% year-over-year due to competition.

Outlook and guidance

• Rate adequacy achieved in over 90% of open geographies; new business premium production up over 60% in Q4 year-over-year.

• Management expects managed growth in 2026, with policy count stabilization and renewed expansion, supported by rate increases and resumed new business.

• Plans to expand into Texas E&S market and continue geographic/product diversification.

• Revenue growth expected to accelerate through 2026 as new business ramps up.

• Reinsurance pricing anticipated to improve in 2026 due to favorable market and litigation trends.