TAMPA,
Fla., Jan. 29, 2025 /PRNewswire/ -- Heritage
Insurance Holdings, Inc. (NYSE: HRTG) ("Heritage" or the
"Company"), a super-regional property and casualty insurance
holding company, today provided an update on the Company's fourth
quarter 2024 financial results as well as an estimate of
catastrophe loss from the Southern
California wildfires expected to be incurred in the first
quarter 2025.
Fourth Quarter 2024 Update:
The Company expects to
deliver its best earnings quarter of the year in the fourth quarter
of 2024, exceeding the $18.9 million
of after-tax net income achieved in the second quarter of 2024.
This strong result includes an estimated $57.0 million impact from Hurricane Milton in the
fourth quarter of 2024, which includes retained catastrophe losses
of $40.0 million and a net
reinstatement premium of $17.0
million. Lower than anticipated non-catastrophe accident
year losses had a favorable impact on the quarter. As of
January 21, 2025, the Company had
settled over 9,000 2024 hurricane claims and has paid over
$140 million for those claims. The
Company has also closed approximately 90% of the hurricane claims
reported in 2024.
First Quarter 2025 Update:
The Company expects to
incur approximately $35.0 -
$40.0 million of pre-tax net current
accident quarter catastrophe losses stemming from the Southern California wildfires in the first
quarter of 2025. The Company is participating in insurance villages
in the State of California, which
are events where our personnel can meet directly with affected
policyholders to support our insureds' recovery.
Ernie Garateix, CEO of Heritage,
commented, "We want to express our deepest sympathies for all those
affected by the Southern
California wildfires. Heritage is deeply committed to
supporting our customers and communities as they begin the
difficult process of recovering from such a devastating event. We
are also proud of the continued work from our teams, who are
working tirelessly to process claims quickly and provide resources
to those in need."
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. As a catastrophe focused property insurer, our personnel
have devoted efforts to policyholders impacted by wildfires,
hurricanes, winter storms, and severe convective storms.
Forward-Looking Statements
The preliminary, unaudited
financial estimates for the quarter ended December 31, 2024 contained in this press release
are based on information available to management as of the date of
this press release, remain subject to the completion of normal
quarter-end accounting procedures and adjustments, and are subject
to change. The Company's independent registered public accounting
firm has not completed its review of the Company's results for the
quarter ended December 31, 2024.
During the course of the preparation of the Company's consolidated
financial statements and related notes, and completion of its
financial close and procedures for the three months ended
December 31, 2024, adjustments to the
preliminary estimates may be identified, and such adjustments may
be material. In addition, other developments may arise between now
and the time the financial statements for the three months ended
December 31, 2024 are finalized. The
Company undertakes no obligation to update the information in this
press release in the event facts or circumstances change after the
date of this press release.
Statements in this press release that are not historical facts
are forward-looking statements that are subject to certain risks
and uncertainties that could cause actual events and results to
differ materially from those discussed herein. Without limiting the
generality of the foregoing, words such as "may," "will," "expect,"
"believe," "anticipate," "intend," "could," "would," "estimate,"
"or "continue" or the other negative variations thereof or
comparable terminology are intended to identify forward-looking
statements. This release includes forward-looking statements
relating to management's estimates of certain fourth quarter 2024
financial results and the expected catastrophe losses stemming from
Hurricane Milton and the Southern
California wildfires. The risks and uncertainties that could
cause our actual results to differ from those expressed or implied
herein include, without limitation: more extensive losses from
Hurricane Milton the Southern
California wildfires and other catastrophes than
anticipated; 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 such models as a tool to evaluate risk; the impact of
macroeconomic and geopolitical conditions, including the impact of
supply chain constraints, inflationary pressures, labor
availability and conflicts between Russia and Ukraine and in the Middle East; 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 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, 2023
filed with the Securities and Exchange Commission on March 13, 2024, 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
Lusk
Chief Financial Officer
investors@heritagepci.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/heritage-provides-update-on-fourth-quarter-2024-financial-results-and-estimated-first-quarter-2025-catastrophe-losses-302363630.html
SOURCE Heritage Insurance Holdings, Inc.
