Heritage Insurance Holdings, a US super-regional property and casualty insurance holding company, has reported improved underwriting performance and higher earnings for the second quarter of 2026, supported by a lower combined ratio, increased underwriting income and higher net investment income.
The company reported a net combined ratio of 64.9% for the second quarter, an improvement of 8.0 percentage points from 72.9% in the same period last year. The improvement reflected a lower net loss ratio, which fell to 30.4% from 38.5% a year earlier as weather-related losses declined and favourable prior-year reserve development increased.
Underwriting income improved as net losses and loss adjustment expenses fell to $61.1 million from $75.6 million in the prior-year quarter. The company’s net expense ratio was broadly unchanged at 34.5%, compared with 34.4% a year earlier.
Net premiums earned increased 2.4% year on year to $201.1 million from $196.3 million. Gross written premiums fell 5.5% to $388.4 million, reflecting lower commercial residential premiums, partly offset by growth in personal lines. Gross premiums earned decreased 0.7% to $351.2 million.
Premiums in force totalled $1.41 billion at the end of the quarter, down 1.4% from $1.43 billion a year earlier, primarily because of reduced commercial residential premiums amid competitive pricing pressure.
The company reported total revenue of $214.2 million, up 3.0% from $208 million in the second quarter of 2025. Net investment income increased 17.3% to $10.6 million from $9.0 million, which Heritage Insurance said reflected growth in invested assets.
Heritage Insurance reported net income of $61.7 million for the quarter, up 28.5% from $48 million a year earlier, while diluted earnings per share increased to $2.05 from $1.55.
Ernie Garateix, Heritage’s CEO, said: “Several years ago, our focus was on improving profitability, strengthening the balance sheet, and reducing volatility in our financial results. Today, we are generating record earnings, producing substantial excess capital and beginning to see encouraging signs that the foundation we have built can support future growth.
“We believe Heritage has evolved into a stronger, more diversified and more resilient business, operating as a super-regional insurance carrier with opportunities to deploy capital across multiple geographies, products and distribution channels. That flexibility allows us to dynamically allocate capital to the most attractive risk-adjusted return opportunities while maintaining the underwriting discipline that has defined our transformation.”
Garateix added: “Despite the significant progress we have made over the last several years, we do not believe our current valuation fully reflects the strength of our earnings profile, the durability of our results, or the growth opportunities ahead. As a result, we have repurchased more than one million shares of our common stock year to date because we believe our shares continue to trade below intrinsic value, while we are also still preserving substantial capacity to support future growth.
“Despite increased competition across many markets, our analytics, team and infrastructure position Heritage to grow prudently while sustaining profitability and underwriting discipline.”
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