Heritage Insurance Holdings reported higher earnings for the third quarter of 2026, despite increased catastrophe and weather losses. Revenue grew, investment income rose, and a lower share count helped lift earnings per share. The insurer also reported strong year-to-date results and announced a new share-repurchase program to follow its current authorization.
- Third-quarter earnings edged higher: Net income was $51.1 million, compared with $50.4 million a year earlier. Diluted earnings per share rose 5.5% to $1.72, with the company citing a 4% reduction in diluted shares outstanding as a contributor.
- Catastrophe losses were higher: Heritage recorded $15.8 million in pre-tax catastrophe losses in the quarter, versus none in the year-earlier period. The net loss ratio increased to 39.6% from 38.3%, reflecting higher catastrophe and weather losses; $14 million of favorable development on prior-year reserves partly offset the increase.
- Revenue and investment income grew: Total revenue rose 3.2% to $219.2 million. Net premiums earned increased 5.4%, while net investment income was up 17.3% from the prior-year quarter.
- Combined ratio was nearly unchanged: The net combined ratio was 73.0%, compared with 72.9% a year earlier. The net expense ratio improved to 33.4% from 34.6%.
- Year-to-date earnings increased: For the first nine months of 2026, net income rose 15.8% to $149.3 million, and diluted earnings per share increased 18.5% to $4.94.
- Capital and book value strengthened: Annualized return on equity was 35.1% for the quarter and 36.1% year to date. Stockholders’ equity was up 37% from a year earlier, and book value per share reached $20.22—up 23.4% from year-end 2025 and 42.9% from the prior-year quarter. The debt-to-capital ratio fell to 10.5% from 15.3% a year earlier.
- Repurchases continue, with a new authorization planned: Heritage bought back 100,000 shares for about $3.3 million in the third quarter. It had repurchased 1,101,508 shares for about $27.9 million during 2026 through the reported period, with $34.1 million remaining under its existing authorization at September 30. A new program, approved October 28, will begin after the current program expires on December 31, 2026, and permits up to $50 million of repurchases through December 31, 2027.
- Management reiterated its underwriting and growth priorities: Heritage says it is focusing on rate adequacy, selective underwriting, and allocating capital to products and locations it considers attractive. Its plans include using data analytics and technology, refining customer service and claims capabilities, expanding reinsurance relationships, and pursuing selective growth. The company cited its entry into Texas on an excess-and-surplus-lines basis as part of that expansion.
The quarter’s results show earnings growth alongside higher catastrophe losses, while the nearly flat combined ratio reflects the offsetting effects of reserve development and a lower expense ratio. The new buyback authorization gives the company capacity to continue repurchasing shares after its current program ends; it is authorization, not a commitment to spend the full amount.