Heritage Insurance Holdings has reported sharply improved profitability for the full year 2025, with net income more than tripling on the back of stronger underwriting performance.
The Florida-based property insurer posted full-year net income of $195.6m for 2025, up a massive 217.8% from $61.5m in 2024, while total revenue for the year increased 3.7% to $847.3m.
As mentioned, the firm’s underwriting results improved significantly during 2025, with a combined ratio of 73.1%, down 21.1 percentage points from 94.2% in 2024.
The improvement was driven by a lower loss ratio of 39.4%, down from 58.2%, and an expense ratio of 33.6%, compared with 36% a year earlier.
Meanwhile, net premiums earned increased 3.4% year-on-year to $794.2m. Gross premiums written were broadly flat at $1.44bn, up 0.2% from the prior year.
For Q4 2025 alone, Heritage reported net income of $66.7m, up 228.5% from $20.3m in Q4 2024, and revenue rose 2.4% to $215.3m.
The insurer produced a particularly strong underwriting performance in Q4 2025, posting a combined ratio of 62%, compared with 89.7% in the same period of 2024.
Heritage’s gross premiums written of $336.2 million in Q4 2025 were down 0.7% from $338.7 million in the prior year quarter, reportedly driven by a moderate reduction in its commercial residential business due to competitive market conditions, which was partly offset by rate-driven growth in its personal lines business.
Net premiums earned in Q4 2025 were $202.7 million, up 1.7% from $199.3 million in Q4 2024.
Heritage CEO Ernie Garateix commented on the figures, “Our fourth quarter results benefited from the cumulative effect of the strategic initiatives launched several years ago and which have been continuously refined over the last two years.
“Our focus on rate adequacy, disciplined underwriting and high service levels to our agents and policyholders, coupled with favourable weather, resulted in record earnings this quarter and for the full year. Looking forward, we are well-positioned to deliver managed growth with rate adequacy in over 90% of our markets where we are open for new business.
“As a result, we have seen our new business premium production increase 60.4% in the quarter as 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 line in 2026. We appreciate our valued agents, agencies and reinsurance partners and recognise their influence on our success.”
