$HRTG

Heritage Insurance Holdings, LLC

CIK:0001598665|SEC Filings

Condensed Consolidated Statements of Operations and Other Comprehensive Income (Unaudited) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2026

Jun. 30, 2025

Jun. 30, 2026

Jun. 30, 2025

REVENUES:

Gross premiums written

$ 388,441

$ 410,968

$ 735,187

$ 766,965

Change in gross unearned premiums

(37,288)

(57,374)

(30,471)

(59,543)

Gross premiums earned

351,153

353,594

704,716

707,422

Ceded premiums

(150,029)

(157,278)

(303,899)

(311,072)

Net premiums earned

201,124

196,316

400,817

396,350

Net investment income

10,595

9,034

20,462

17,609

Net realized (losses) gains on debt securities and other investments

(37)

(21)

Other revenue

2,513

2,681

5,596

5,595

Total revenues

214,195

208,035

426,854

419,554

EXPENSES:

Losses and loss adjustment expenses

61,057

75,620

152,654

175,027

Policy acquisition costs, net of ceding commission income

^[1]

45,510

43,146

90,845

88,961

General and administrative expenses, net of ceding commission income

^[2]

23,778

24,399

48,687

48,260

Total expenses

130,345

143,165

292,186

312,248

Operating income

83,850

64,870

134,668

107,306

Interest expense, net

1,690

1,880

3,468

4,306

Income before income taxes

82,160

62,990

131,200

103,000

Income tax expense

20,450

14,966

33,006

24,502

Net income (loss)

61,710

48,024

98,194

78,498

OTHER COMPREHENSIVE INCOME

Change in net unrealized (losses) gains on investments

(1,947)

6,072

(6,438)

14,549

Reclassification adjustment for net realized investment losses

(4)

Income tax benefits (expense) related to items of other comprehensive income

452

(1,443)

1,526

(3,459)

Total comprehensive income

$ 60,252

$ 52,649

$ 93,303

$ 89,588

Weighted average shares outstanding

Basic (in shares)

30,017,180

31,004,218

30,349,056

30,851,022

Diluted (in shares)

30,076,443

31,063,481

30,408,347

30,910,285

Earnings per share

Basic (in dollars per share)

$ 2.06

$ 1.55

$ 3.24

$ 2.54

Diluted (in dollars per share)

$ 2.05

$ 1.55

$ 3.23

$ 2.54

[1]	Policy acquisition costs includes $11.4 million and $22.3 million of ceding commission income for the three and six months ended June 30, 2026 and $13.1 million and $24.8 million of ceding commission income for the three and six months ended June 30, 2025.
[2]	General and administration includes $3.7 million and $7.3 million of ceding commission income for the three and six months ended June 30, 2026 and $4.3 million and $8.2 million of ceding commission income for the three and six months ended June 30, 2025.

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
OPERATING ACTIVITIES
Net income	$ 98,194	$ 78,498
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Stock-based compensation	2,674	2,915
Bond amortization and accretion	(388)	(208)
Expected credit allowance on reinsurance	0	22
Amortization of original issuance discount on debt	235	140
Depreciation and amortization	6,054	5,856
Provision for credit losses	(196)	181
Net realized losses	(21)	0
Deferred income taxes	1,378	(939)
Gain on sale of fixed assets, net	0	(4)
Changes in operating assets and liabilities:
Accrued investment income	(951)	43
Premiums receivable, net	1,493	2,229
Prepaid reinsurance premiums	(153,655)	(220,483)
Reinsurance recoverable on paid and unpaid claims	13,413	216,137
Income tax receivable	0	(19,118)
Deferred policy acquisition costs	(4,377)	(7,736)
Right of use leased asset, net	16	1,849
Other assets	1,407	(14,539)
Unpaid losses and loss adjustment expenses	(97,480)	(329,504)
Unearned premiums	30,461	59,528
Reinsurance payable	268,232	275,220
Accrued interest	(7)	(125)
Accrued compensation	(2,226)	(2,543)
Advance premiums	7,471	3,420
Leased liabilities, net	(840)	(1,891)
Income tax payable	1,378	(846)
Other liabilities	(5,712)	(3,973)
Net cash provided by operating activities	166,553	44,129
INVESTING ACTIVITIES
Fixed maturity securities sales, maturities and paydowns	66,772	91,238
Fixed maturity securities purchases	(161,453)	(86,327)
Redemption of equity securities	0	893
Proceeds from sale of assets	0	16
Return on other investments	26	1,088
Equity securities reinvestments of dividends	248	(21)
Cost of property and equipment acquired, net of disposals	(2,473)	(3,631)
Net cash used in (provided by) investing activities	(96,880)	3,256
FINANCING ACTIVITIES
Principal payments on term loan facility	(1,876)	(4,750)
Purchase of treasury stock	(24,590)	0
Repayment of loan agreement	(5,500)	(19,200)
Tax withholding on share-based compensation awards	(8,909)	0
Mortgage loan payments	0	(148)
Net cash used in financing activities	(40,875)	(24,098)
Increase in cash, cash equivalents, and restricted cash	28,798	23,287
Cash, cash equivalents and restricted cash, beginning of period	572,581	463,645
Cash, cash equivalents and restricted cash, end of period	601,379	486,932
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest paid	2,926	3,940
Income taxes paid, net of refunds
Federal income taxes paid, net of refunds	24,300	40,800
State income taxes paid, net of refunds	5,951	4,672
Total income taxes paid, net of refunds	30,251	45,472
Florida
Income taxes paid, net of refunds
State income taxes paid, net of refunds	$ 5,500	$ 4,000

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
ASSETS
Fixed maturities, available-for-sale, at fair value (amortized cost of $821,858 and $726,774)	$ 801,910	$ 713,237
Equity securities, at fair value, (cost $816 and $1,064)	816	1,064
Other investments, net	1,259	1,285
Total investments	803,985	715,586
Cash and cash equivalents	587,597	559,274
Restricted cash	13,782	13,307
Accrued investment income	7,507	6,556
Premiums receivable, net	94,034	95,331
Reinsurance recoverable on paid and unpaid claims, net of allowance for credit losses of $175	305,175	318,588
Prepaid reinsurance premiums	460,694	307,039
Deferred income tax asset, net	6,003	5,855
Deferred policy acquisition costs, net	68,921	64,544
Property and equipment, net	27,715	28,254
Right-of-use lease asset, finance	11,374	12,598
Right-of-use lease asset, operating	6,086	4,878
Intangibles, net	27,147	30,189
Other assets	32,416	33,823
Total Assets	2,452,436	2,195,822
LIABILITIES AND STOCKHOLDERS' EQUITY
Unpaid losses and loss adjustment expenses	481,997	579,477
Unearned premiums	738,384	707,923
Reinsurance payable	501,033	232,801
Long-term debt, net	71,287	78,428
Advance premiums	26,635	19,164
Income taxes payable, net	5,660	4,282
Accrued compensation	6,618	8,844
Lease liability, finance	14,254	15,587
Lease liability, operating	6,293	5,800
Accounts payable and other liabilities	32,547	38,265
Total Liabilities	1,884,708	1,690,571
Commitments and contingencies (Note 17)
Stockholders’ Equity:
Common stock, $0.0001 par value, 50,000,000 shares authorized, 43,071,733 shares issued and 29,732,416 outstanding at June 30, 2026 and 43,171,585 shares issued and 30,833,776 outstanding at December 31, 2025	3	3
Additional paid-in capital	359,501	365,736
Accumulated other comprehensive loss, net of taxes	(15,446)	(10,555)
Treasury stock, at cost, 13,339,317 and 12,337,809 shares at June 30, 2026 and December 31, 2025, respectively	(157,773)	(133,183)
Retained earnings	381,443	283,250
Total Stockholders' Equity	567,728	505,251
Total Liabilities and Stockholders' Equity	$ 2,452,436	$ 2,195,822