Overview

* Heritage Insurance ( HRTG ) Q2 net income rises to $48 mln, driven by lower net loss ratio

* Revenue missed analyst expectations, despite strategic initiatives boosting profitability

* Co suspends quarterly dividend to prioritize strategic growth

Result Drivers

* UNDERWRITING DISCIPLINE - Improved net loss ratio attributed to disciplined underwriting and rate adequacy, per CEO Ernie Garateix

* EXPANSION - Reopening of profitable geographies led to 46.3% increase in new business premium compared to last year

* STRATEGIC INITIATIVES - Focus on rate adequacy and selective underwriting contributed to improved earnings trajectory

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $208.04 $212.10

Revenue mln mln (2

Analysts

)

Q2 EPS $1.55

Q2 72.9%

Combined

Ratio

Q2 34.4%

Expense

Ratio

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the property & casualty insurance peer group is "buy"

* Wall Street's median 12-month price target for Heritage Insurance Holdings Inc ( HRTG ) is $29.00, about 26.9% above its August 4 closing price of $21.21

* The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)