Heritage Insurance Holdings, Inc., a super-regional property and casualty insurance holding company, reported net income of $51.1 million for the third quarter of 2026, up 1.4% from $50.4 million in the prior-year quarter, despite $15.8 million in pre-tax catastrophe losses, compared with none in the prior-year quarter.
For the quarter, gross premiums written decreased 3.1% to $322.8 million from $333.2 million in Q3 2025, primarily reflecting lower commercial residential premiums, partially offset by growth in personal lines.
Gross premiums earned declined 2.5% to $352.8 million from $362.0 million.
Net premiums earned increased 5.4% to $205.6 million from $195.1 million, driven by lower ceded premiums more than offsetting the decrease in gross premiums earned.
Total revenue amounted to $219.2 million, up 3.2% from $212.5 million, reflecting higher net premiums earned and increased investment income.
Heritage’s net combined ratio was relatively flat at 73.0% compared with 72.9%.
Net losses and loss adjustment expenses (LAE) were $81.4 million, up $6.6 million from $74.8 million. The net loss ratio increased 1.3 percentage points to 39.6% from 38.3%. Net weather and catastrophe losses for the current accident quarter were $33.6 million, compared with $13.8 million a year earlier, and included $9.1 million in hurricane losses and $6.7 million in other catastrophe losses. Net favourable prior-year loss development was $14.0 million, compared with $5.0 million.
Meanwhile, the net expense ratio improved 1.2 points to 33.4%, from 34.6%.
Net investment income rose 17.3% to $11.4 million from $9.7 million, driven by growth in invested assets.
Ernie Garateix, CEO of Heritage, commented, “Several years ago, we implemented a strategy of long-term sustainability which includes a focus on improving profitability, strengthening the balance sheet, and reducing volatility in our financial results. Today, we are generating record earnings, producing substantial capital and are positioned well to continue our momentum into the future. We believe Heritage has proven to be a stronger, better diversified and more resilient business, operating as a super-regional insurance carrier. We have the ability to opportunistically deploy capital across multiple geographies, products and distribution channels, which allows us to allocate capital to the most attractive risk-adjusted return opportunities while maintaining the underwriting discipline that has defined our transformation.
“Our third quarter results demonstrate our earnings resilience as we absorbed higher weather losses and still modestly grew earnings per share. Despite the significant progress that we have made transforming our business and building the sustainable earnings power of the Company, we believe our full value has yet to be realised. As a result, we have repurchased more than one million shares of our common stock year to date. Additionally, our expanding geographic reach and the capabilities we have built position Heritage to capitalise on selective growth opportunities across our markets while remaining selective in areas where competition has intensified.”
