Heritage Insurance Holdings, Inc. (NYSE: HRTG) reported its financial results for the third quarter of 2026 on October 28, 2026. The company, a super-regional property and casualty insurance holding company, announced net income of $51.1 million for the quarter, which was a slight increase from $50.4 million in the prior-year quarter. Earnings per share (EPS) rose to $1.72 per diluted share from $1.63 in the prior year, a 5.5% increase, aided by a 4.0% reduction in the number of diluted shares outstanding.
Despite absorbing $15.8 million in pre-tax catastrophe losses during the quarter—compared to no such losses in the prior year—the company maintained profitability. These losses included $9.1 million attributed to Hurricanes Lala and Lowell and $6.7 million from other weather events like a late September Nor'easter. The net loss ratio increased by 1.3 percentage points to 39.6%, while the net combined ratio remained relatively flat at 73.0%.
Revenue for the quarter increased 3.2% to $219.2 million. This growth was driven by a 5.4% increase in net premiums earned to $205.6 million and a 17.3% rise in net investment income to $11.4 million. The company also noted favorable prior-year reserve development of $14.0 million.
Heritage’s balance sheet showed significant strength. Stockholders' equity increased 37.0% year-over-year to $599.1 million, resulting in a book value per share of $20.22, which is up 23.4% from year-end 2025. The debt-to-capital ratio improved to 10.5% from 15.3% in the prior year. Additionally, the company repurchased 1,101,508 shares of common stock in 2026 at a cost of $27.9 million.
Regarding its operations, the company noted that premiums-in-force decreased 2.8% to $1.40 billion, primarily due to reductions in commercial residential premiums. However, a reduction in Florida personal lines in-force premiums was offset by growth in personal lines in other states. The company also highlighted that it entered the State of Texas on an excess and surplus lines basis and continues to focus on strategic initiatives including underwriting discipline and the use of data-driven analytics.
