Heritage Insurance Holdings Reports Estimated Catastrophe Losses and Financial Results

Heritage Insurance Holdings, Inc., headquartered in Tampa, Florida, recently filed an 8-K form with the Securities and Exchange Commission, detailing their estimated catastrophe losses and financial performance. The company’s report, dated January 29, 2025, shed light on the quarter ended December 31, 2024, and anticipated catastrophe losses linked to the Southern California wildfires projected for the first quarter of 2025.

In the filing, Heritage Insurance Holdings, Inc. announced that they expect to achieve their strongest earnings quarter of the year during the fourth quarter of 2024. This performance surpasses the after-tax net income of $18.9 million achieved in the second quarter of 2024. The report indicated an estimated impact of $57.0 million from Hurricane Milton in the fourth quarter of 2024, incorporating $40.0 million in retained catastrophe losses and a net reinstatement premium of $17.0 million. The company credited lower-than-expected non-catastrophe accident year losses for positively influencing the quarter. As of January 21, 2025, Heritage had settled over 9,000 2024 hurricane claims, disbursing over $140 million for those claims, and closed approximately 90% of the hurricane claims reported in 2024.

Looking forward to the first quarter of 2025, Heritage Insurance Holdings, Inc. anticipates incurring approximately $35.0 – $40.0 million of pre-tax net current accident quarter catastrophe losses due to the Southern California wildfires. The company is actively engaged in insurance villages in California, facilitating direct support for affected policyholders.

Ernie Garateix, CEO of Heritage, expressed condolences for those impacted by the Southern California wildfires and reiterated the company’s commitment to assisting customers and affected communities through the recovery process. Garateix lauded the diligence of the Heritage teams in processing claims promptly and providing essential resources to those in need.

Heritage Insurance Holdings, Inc. functions as a super-regional property and casualty insurance holding company. With insurance subsidiaries and an extensive network of agents, the company writes approximately $1.4 billion in gross personal and commercial residential premiums across various states. Specifically, Heritage operates in the northeast, southeast, Hawaii, and California’s excess and surplus lines, focusing on catastrophe-related property insurance.

The press release attached to the 8-K filing also contained forward-looking statements regarding Heritage’s financial estimates for the fourth quarter of 2024 and anticipated catastrophe losses from Hurricane Milton and the Southern California wildfires. The company highlighted risks and uncertainties that could impact actual results, including extensive losses from catastrophes, changes in economic conditions, regulatory factors, litigation outcomes, and weather-related events.

Investors seeking further information were directed to contact Heritage’s Chief Financial Officer, Kirk Lusk, via email at [email protected].

This comprehensive report provides insights into Heritage Insurance Holdings, Inc.’s financial performance and anticipated challenges amid ongoing catastrophic events.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Heritage Insurance’s 8K filing here.

Heritage Insurance Company Profile

Heritage Insurance Holdings, Inc, through its subsidiaries, provides personal and commercial residential insurance products. The company offers personal residential insurance in Alabama, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Rhode Island, South Carolina, and Virginia; commercial residential insurance for properties in Florida, New Jersey, and New York; and licensed in the state of Pennsylvania, as well as personal residential and wind-only property insurance.