Financial Performance Overview
Heritage Insurance Holdings, Inc. has reported a net income of $61.539 million for 2024, up 35.8% from 2023, despite the impact of catastrophic weather resulting in retention events in the third and fourth quarters. Heritage’s total revenue in 2024 reached $816.985 million, an 11.1% increase from 2023. The firm also disclosed gross premiums written of $1.43 billion and net premiums earned of $767.86 million for 2024, both improvements over the previous year. At the same time, Heritage’s combined ratio for the year was 94.2%, a slight decrease from 2023. Similarly, the loss ratio declined to 58.2%.
Quarterly Performance
For Q4 2024 alone, net income was $20.3 million, despite the financial impact from Hurricane Milton of $57.0 million in the quarter. This compares to a net income of $30.9 million in Q4 2023, which did not have any major weather events. Meanwhile, gross premiums written in Q4 2024 stood at $338.7 million, up 3.7% from $326.7 million in Q4 2023, reflecting organic growth of Heritage’s commercial residential and surplus lines business and rate actions throughout the book of business. The firm’s catastrophe losses in Q4 2024 were $40 million compared to $3.1 million in Q4 2023. With this in mind, Heritage’s net combined ratio was 89.7% in Q4 2024, up 4.8 points from 84.9% in Q4 2023.
CEO Comments
Ernie Garateix, Heritage CEO, commented, “The year 2024 was marked by numerous destructive hurricanes affecting communities across the Southeastern United States and in 2025, we’ve seen devastating wildfires affect residents of California. I am very proud of the support that our employees have provided to our policyholders as they work to recover from these catastrophic events. We have had employees in the impacted communities working with our customers to ensure their claims were processed timely to provide our insureds with the resources they need during such a challenging time.”
Garateix continued, “Our financial foundation continues to strengthen and provides our customers with the confidence that we will stand behind them during the most difficult times. Our fourth quarter results clearly demonstrate our efforts over the last several years to attain rate adequacy, manage exposure, and enhance our underwriting discipline. One of our strategic goals is to achieve consistent long-term earnings and drive shareholder value and our 2024 results clearly demonstrate the successful achievement of this goal. Despite the impact of catastrophic weather resulting in retention events in each of the third and fourth quarters as well as reinstatement premium related to Hurricane Milton losses, we maintained our profitability due to the diversity of our book of business, our disciplined underwriting and exposure management, and the strides that we have made toward rate adequacy.”
Future Outlook
Garateix concluded, “As a result of our focused efforts, we are now positioned to strategically re-open territories for new personal lines business. We plan to continue to allocate capital to profitable geographies and products and apply our underwriting and pricing discipline as we strive to deliver profitable growth in 2025. We are beginning to see positive impacts from legislative actions taken in Florida to reduce abusive claims practices as well as stabilization of reinsurance pricing. These positive factors, coupled with our strategic initiatives, provides me with optimism that Heritage can deliver consistent long-term profitability. Additionally, I would like to thank our dedicated reinsurance partners who have supported our business throughout multiple catastrophic events over the last several years and look forward to their continued partnership as we work to expand the Company.”
