Heritage Insurance Holdings, Inc. reported significant financial improvements for the third quarter and the nine months ended September 30, 2024, compared to the same periods in 2023. The company achieved a net income of $8.2 million, or $0.27 per diluted share, reversing a net loss of $7.4 million, or $(0.28) per diluted share, in Q3 2023. For the nine months, net income rose to $41.2 million, or $1.35 per diluted share, from $14.4 million, or $0.55 per diluted share, in the prior year.

Total revenues for Q3 2024 increased by 13.7% to $211.8 million, driven by a 12.6% rise in net premiums earned, which reached $198.8 million, up from $176.6 million in Q3 2023. Gross premiums written also saw a modest increase of 1.1%, totaling $313.0 million. The company attributed these gains to higher average premiums per policy and effective rate actions, despite a reduction in policy count.

Operating income for the nine months ended September 30, 2024, was $62.1 million, a substantial increase from $27.0 million in the same period of 2023. The income before income taxes also improved significantly, rising to $53.7 million from $18.8 million. The net combined ratio improved to 100.6% in Q3 2024, down from 110.8% in Q3 2023, reflecting better underwriting performance and lower loss ratios.

The company’s total assets increased to $2.37 billion as of September 30, 2024, up from $2.15 billion at the end of 2023. Cash and cash equivalents rose to $520.9 million, compared to $473.3 million at the end of the previous year. Investments also grew to $680.4 million, up from $569.4 million.

Heritage Insurance has been proactive in managing its reinsurance strategy, entering into catastrophe excess of loss reinsurance agreements effective June 1, 2024, which provide substantial coverage for its subsidiaries. The company reported a significant increase in reinsurance payable, reflecting the new agreements.

Despite challenges such as increased weather-related losses, which totaled $63.0 million in Q3 2024, the company has maintained a strong focus on underwriting discipline and rate adequacy. The effective tax rate for Q3 2024 was 9.4%, a notable decrease from 38.3% in the prior year, contributing to the improved net income.

Overall, Heritage Insurance's strategic initiatives, including rate adjustments and a focus on profitable growth, have positioned the company favorably in a challenging market environment.