Heritage Insurance Holdings reported a significant improvement in full-year profitability in 2025, with net profit more than tripling on strong underwriting results.
The Florida-based property and casualty insurance company reported full-year net income of $195.6 million in 2025, a significant increase of 217.8% from $61.5 million in 2024, while total revenue for the year increased 3.7% to $847.3 million.
As mentioned earlier, the company’s underwriting performance improved significantly in 2025, with a combined ratio of 73.1%, down 21.1 percentage points from 94.2% in 2024.
The improvement was driven by a decrease in the loss ratio to 39.4% from 58.2% in the year-ago period and a decrease in the expense ratio to 33.6% from 36% in the year-ago period.
At the same time, net premium income increased 3.4% year-on-year to US$794.2 million. Gross premiums were essentially flat at US$1.44 billion, an increase of 0.2% over the previous year.
In the fourth quarter of 2025 alone, Heritage’s net profit reached $66.7 million, an increase of 228.5% from $20.3 million in the fourth quarter of 2024, and revenue increased by 2.4% to $215.3 million.
The insurer’s underwriting performance was particularly strong in the fourth quarter of 2025, with a combined ratio of 62%, compared with 89.7% in the same period of 2024.
Heritage’s gross written premiums for the fourth quarter of 2025 were $336.2 million, down 0.7% from $338.7 million in the year-ago period, reported as a result of moderately lower commercial residential business due to competitive market conditions, partially offset by rate-driven growth in the personal lines business.
Net premium income for the fourth quarter of 2025 was $202.7 million, an increase of 1.7% from $199.3 million for the fourth quarter of 2024.
Commenting on the figures, Heritage CEO Ernie Garateix said: “Our fourth quarter results benefit from the cumulative effect of strategic initiatives launched several years ago and refined over the past two years.
“Our focus on rate adequacy, disciplined underwriting and high service levels to agents and policyholders, combined with favorable weather, resulted in record earnings for the quarter and full year. Looking ahead, we are well-positioned to achieve managed growth in rate adequacy in more than 90% of the markets where we are open for new business.”
“As a result, our new business premium production increased 60.4% in the quarter compared to the fourth quarter of 2024.
“We believe we have the right agent relationships, reinsurer partnerships, management team and infrastructure to prudently grow our top lines in 2026. We are grateful to our valued agents, agencies and reinsurance partners and recognize their impact on our success.”
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