EPS of $1.72 beat the $0.93 consensus by a wide margin, but the beat was partly driven by $14.0M of favorable prior-year reserve development and a 4.0% reduction in share count. The underlying combined ratio was flat despite elevated catastrophe losses, showing underwriting resilience. Watch the Q4 2026 earnings for the full-year impact of the June 2026 catastrophe excess of loss reinsurance savings and whether the new $50M buyback program signals management's view that the stock remains undervalued.
Price Chart
Executive Summary
Heritage Insurance reported Q3 2026 net income of $51.1M ($1.72 diluted EPS), up from $50.4M ($1.63) a year ago, despite $15.8M in pre-tax catastrophe losses. Total revenue grew 3.2% to $219.2M on higher net premiums earned and investment income. The net combined ratio was essentially flat at 73.0%, while book value per share rose 23.4% from year-end 2025 to $20.22. The Board authorized a new $50M share repurchase program for 2027.
Key Financial Metrics
Key Facts
- Q3 2026 net income $51.1M vs $50.4M in prior-year quarter, up 1.4%
- Diluted EPS $1.72 vs $1.63, up 5.5%, aided by 4.0% reduction in diluted shares
- Total revenue $219.2M, up 3.2% from $212.5M
- Net premiums earned $205.6M, up 5.4% from $195.1M
- Net loss ratio 39.6% vs 38.3%, up 1.3 points on $15.8M catastrophe losses
- Net combined ratio 73.0% vs 72.9%, essentially flat
- Net expense ratio improved to 33.4% from 34.6%
- Book value per share $20.22, up 23.4% from year-end 2025 and 42.9% YoY
- Debt-to-capital ratio improved to 10.5% from 15.3%
- Repurchased 1,101,508 shares for $27.9M in 2026; new $50M buyback authorization for 2027
- Year-to-date net income $149.3M, up 15.8% from $128.9M
Financial Impact
Q3 net income $51.1M, EPS $1.72 vs consensus $0.93; revenue $219.2M vs consensus $217.3M
Risk Factors
- Gross premiums written declined 3.1% YoY, reflecting competitive pressure in Florida commercial residential
- Premiums-in-force down 2.8% to $1.40B, with commercial residential premiums falling 16.1%
- Catastrophe losses of $15.8M in Q3 (including hurricanes) vs zero in prior-year quarter; weather volatility remains a risk
- Accumulated other comprehensive loss grew to $33.2M from $10.6M at year-end 2025 due to rising interest rates
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-436203 |
| Document: hrtg-20261028.htm | 0001193125-26-436203 |
| Document: 0001193125-26-436203-index-headers.html | 0001193125-26-436203 |
| Document: 0001193125-26-436203-index.html | 0001193125-26-436203 |
| Document: 0001193125-26-436203.txt | 0001193125-26-436203 |
| 8-K Data (Synthetic) | 0001193125-26-436203 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 28, 2026 2d ago | 8-K | No price | awaiting T+60 | awaiting T+60 | No price |
Oct 28, 2026 2d ago | Press Release | $36.14 | awaiting T+60 | awaiting T+60 | $35.64 (−1.38%) |
Oct 19, 2026 11d ago | 144 | $36.98 | awaiting T+60 | awaiting T+60 | $35.64 (−3.62%) |
Oct 19, 2026 11d ago | Press Release | $36.98 | awaiting T+60 | awaiting T+60 | $35.64 (−3.62%) |
Sep 25, 2026 5w ago | SC 13G/A | $33.26 | awaiting T+60 | awaiting T+60 | $35.64 (+7.16%) |
Sep 22, 2026 5w ago | Insider Cluster | $33.07 | awaiting T+60 | awaiting T+60 | $35.64 (+7.77%) |
Sep 18, 2026 6w ago | 144 | $34.15 | awaiting T+60 | awaiting T+60 | $35.64 (+4.36%) |
Sep 16, 2026 6w ago | Insider Cluster | $35.42 | awaiting T+60 | awaiting T+60 | $35.64 (−0.62%) |
Sep 11, 2026 6w ago | Insider Cluster | $35.09 | awaiting T+60 | awaiting T+60 | $35.64 (+1.57%) |
Sep 8, 2026 7w ago | Insider Cluster | $34.05 | awaiting T+60 | awaiting T+60 | $35.64 (−4.67%) |
US Market Status
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