Super-regional property and casualty insurance holding company, Heritage Insurance Holdings, Inc., has reported a net loss $30.8 million in Q122, compared to a loss of $5.1 million in the prior year quarter.
The YoY change stems from a larger underwriting loss driven by higher weather-related losses, partly offset by an increase in total revenue of $11.4 million over the prior year quarter.
At the same time, Heritage reported that gross written premiums (GWP) were $283.2 million, up 3.3% YoY reflecting a 4% exposure management related reduction in Florida that was offset by 11.4% growth in other states.
Gross premiums earned in the quarter were $287.4 million, a 6.3% rise from $270.4 million from Q121.
Meanwhile, premiums-in-force for the quarter were $1.2 billion, up 4.7% from last years quarter, while policies-in-force were down 5.5%, with the delta largely stemming from rate increases.
The company also reported a ceded premium ratio of 46.8% for the quarter, a slight movement from last years 47.4%.
However, net loss ratio was 91.6%, a major shift from 68.9% in the prior year quarter, which primarily stems from a higher current accident year weather net loss ratio and the impact of loss development, partly offset by a lower attritional loss ratio on new business.
Net expense ratio also showed slight movement at 37.9%, compared to 38.8% from last years quarter, while net combined ratio was 129.5%, compared to the prior year’s period of 107.7%.
Heritage CEO Ernie Garateix, commented: “Rate and form changes implemented throughout the book of business over the last 18 months, coupled with geographic diversification, as well as more restrictive underwriting for new and renewal business, have positively impacted our portfolio by improving the quality of our book of business.
“Our 2022 renewals for homeowners’ policies written in the voluntary market are averaging a 21% higher premium over the prior year, while our Florida TIV is down by 15% as we shift more personal lines business from the state to Heritage’s other growth markets. Our commercial residential program continues to be profitable.
“We continue to deselect business that is not performing and to seek rate increases to address higher loss costs. While we are pleased with this progress, work remains to be done and we are committed to accelerating the changes we believe are necessary to achieve our target returns.”
