Heritage Insurance reported strong third quarter 2026 results that significantly exceeded analyst expectations on both the top and bottom lines. Despite absorbing $15.8 million in pre-tax catastrophe losses from Hurricanes Lala and Lowell, the company maintained a stable combined ratio and grew its book value per share by nearly 43% year-over-year.
Key Highlights
- Diluted EPS of $1.72 beat the $0.91 consensus estimate by 89%, aided by favorable prior-year reserve development and a 4% reduction in shares outstanding.
- Total revenue grew 3.2% to $219.2 million, driven by a 5.4% increase in net premiums earned as improved reinsurance pricing offset a slight decline in gross written premiums.
- The net combined ratio remained stable at 73.0%, compared to 72.9% in the prior-year quarter, as lower expense ratios successfully offset the impact of higher weather-related losses.
- Book value per share reached $20.22, representing a 42.9% increase from the third quarter of 2025.