Heritage Insurance Holdings has reported a net income of $30.9 million for Q4 of 2023, up from $12.5 million in the same quarter of 2022, primarily driven by an increase in net premiums earned, higher net investment income, and lower net losses incurred.
Heritage also revealed that gross premiums written were up 1.5% in Q4 of 2023 to $326.7 million, while the firm’s gross premiums earned were up 7% to $339.6 million, and net premiums earned were up 6.9% to $177.7 million.
At the same time, Heritage’s net loss ratio in Q4 of 2023 was 51%, an improvement of 11.4 points from Q4 of 2022. Meanwhile, the firm’s net expense ratio in Q4 in 2023 was 33.9%, relatively flat compared with the 33.7% reported in 2022.
Heritage’s net combined ratio in Q4 of 2023 was 84.9%, marking an improvement of 11.2 points from 96.1% in the prior year quarter, reportedly driven by a lower net loss ratio and partly offset by a higher net expense ratio.
Net investment income, inclusive of realised investment losses and unrealised losses on equity securities, was $5.8 million in Q4 of 2023, up $1 million from the $4.8 million posted in the prior year quarter.
Heritage said this reflects strategic actions to align the investments with the yield curve and take advantage of higher short-term yields, which was partly offset by realised losses mostly related to other investments.
With all this in mind, Heritage’s net income for the full year totalled $45.3 million, much improved compared to a loss of $154.3 million in 2022.
Ernie Garateix, CEO of Heritage, “Our strategic focus on achieving rate adequacy across our portfolio and driving superior underwriting results has been steadfast.
Our deliberate efforts over the past two years resulted in a better quality and more diversified book of business, which more effectively manages reinsurance costs and drives lower claims-related losses.
Our commitment to enhanced and long-term relationships with our reinsurers, who are pivotal to our success, has also been a key aspect of our strategy.
“These actions, the subsequent results and our recent capital raise position us well for selective growth going forward. As we look ahead, I am confident in our ability to maintain this momentum across our sixteen-state platform, driven by our solid foundation, strategic clarity, and the dedication of our experienced workforce.”
