On this page of StockholderLetter.com we present the latest annual shareholder letter from Heritage Insurance Holdings, Inc. — ticker symbol HRTG. Reading current and past HRTG letters to shareholders can bring important insights into the investment thesis.
Heritage Insurance Holdings, Inc. 1401 N Westshore Blvd, Tampa, Florida 33607 April 25, 2025 Dear Shareholders, Before I provide commentary on our posi ve results for 2024, I must acknowledge the numerous destruc ve hurricanes that impacted communi es across the Southeastern United States and the devasta ng wild res a ec ng residents of California through the rst quarter of 2025. Our thoughts con nue to be with those impacted by these devas ng catastrophes that have resulted in signi cant damage and loss to residents. I would like to thank our employees, many of whom themselves were impacted by the hurricanes, for their incredible e ort during these challenging mes. The commitment that our employees provided to our policyholders has been remarkable and is a testament to the customer service culture at Heritage. I would also like to thank our shareholders for your con nued trust and belief in our long-term vision and strategy. As we re ect on the past year, I am also very proud of our nancial results, which clearly demonstrate the successful execu on of our strategic ini a ves that I laid out when I was appointed CEO of Heritage just over four years ago. Our ini a ves have been focused on achieving rate adequacy, strengthening our underwri ng discipline, and alloca ng capital to drive growth and returns. Importantly, this is the rst full year that we have seen clear, sustained results from our strategy that was designed to maintain pro tability while absorbing a full reten on loss. I am pleased to con rm that we have achieved this goal. During 2024, Heritage incurred $105.0 million of net catastrophe related costs on a pre-tax basis, while delivering earnings per diluted share of $2.01 and a return on equity of 24.1%. In fact, we absorbed a full reten on loss in both the third and fourth quarters while maintaining our pro tability in each period. This is a real valida on of the successful execu on of our strategic plan and provides op mism for the earnings power of the Company looking to the years ahead. While we have achieved both success and robust nancial results through 2024, we are not standing s ll. In the second quarter of last year, we reached an in ec on point in our business having achieved rate adequacy in more than approximately 90% of our geographies, which posi oned our team to selec vely resume wri ng new personal lines business. This is a pivot of our strategy to one of controlled growth anchored by a con nued focus on risk management and stringent underwri ng. This is an opportune me to grow, given the disrup on in many of our markets. Addi onally, we expect to leverage our exis ng sales and marke ng teams that have largely been in place and will not require incremental general and administra ve expense.
Recent legisla ve changes in Florida have also had a posi ve impact on the economics of wri ng new, pro table business in the state. In fact, we have seen a marked decline in frivolous lawsuits and believe the impact of this necessary legisla on will also be favorable to the consumer. Star ng in the third quarter of 2024, we started wri ng new personal lines business again and I am op mis c with the growth prospects that lie ahead. We also expect the reinsurance market will see the tangible bene ts of this legisla on as Hurricane Milton claims mature through this year and into next year, which may have a posi ve impact on reinsurance pricing looking to our renewal in 2026. Taken together, we are in an enviable posi on as the rate ac ons that we have taken over the last several years con nue to earn through our book of business in 2025, combined with a gradual return to new personal lines business growth that we expect to modestly pick up through the second half of the year and become more pronounced looking to 2026. While we return to growth, our focus remains steadfast on con nuing to execute on our strategic goals of genera ng underwri ng pro t across all opera onal geographies, maintaining rate adequacy, ensuring selec ve underwri ng, me culous but fair and compliant claims handling, as well as providing products the market needs and fostering deeper long-term reinsurance rela onships. Importantly, our reinsurance partners con nue to provide support to Heritage and have been encouraged by our improved nancial performance over the past year. Their support is cri cal to our long-term success, and I would like to thank them for their partnership as we work to pro tably grow our business. Looking to the future, I am lled with great op mism as we con nue to expand Heritage as a leading superregional insurance company. We have spent the last several years diligently building the founda on to support our expansion and are now in a posi on to execute the next phase of our strategic plan. I could not be more excited for the year ahead. Thank you for your support and we look forward to sharing our progress and achievements as we con nue this journey of growth and success. Sincerely yours, Ernie Garateix Chief Execu ve O cer
 • shareholder letter icon 4/25/2025 Letter Continued (Full PDF)
 • stockholder letter icon 4/28/2023 HRTG Stockholder Letter
 • stockholder letter icon 4/25/2024 HRTG Stockholder Letter
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HRTG Shareholder/Stockholder Letter Transcript:

Heritage Insurance Holdings, Inc.
1401 N Westshore Blvd,
Tampa, Florida 33607
April 25, 2025
Dear Shareholders,
Before I provide commentary on our posi  ve results for 2024, I must acknowledge the numerous
destruc  ve hurricanes that impacted communi  es across the Southeastern United States and the
devasta  ng wild   res a   ec  ng residents of California through the    rst quarter of 2025. Our thoughts
con  nue to be with those impacted by these devas  ng catastrophes that have resulted in signi   cant
damage and loss to residents. I would like to thank our employees, many of whom themselves were
impacted by the hurricanes, for their incredible e   ort during these challenging   mes. The commitment
that our employees provided to our policyholders has been remarkable and is a testament to the customer
service culture at Heritage. I would also like to thank our shareholders for your con  nued trust and belief
in our long-term vision and strategy.
As we re   ect on the past year, I am also very proud of our    nancial results, which clearly demonstrate the
successful execu  on of our strategic ini  a  ves that I laid out when I was appointed CEO of Heritage just
over four years ago. Our ini  a  ves have been focused on achieving rate adequacy, strengthening our
underwri  ng discipline, and alloca  ng capital to drive growth and returns. Importantly, this is the    rst full
year that we have seen clear, sustained results from our strategy that was designed to maintain
pro   tability while absorbing a full reten  on loss. I am pleased to con   rm that we have achieved this goal.
During 2024, Heritage incurred $105.0 million of net catastrophe related costs on a pre-tax basis, while
delivering earnings per diluted share of $2.01 and a return on equity of 24.1%. In fact, we absorbed a full
reten  on loss in both the third and fourth quarters while maintaining our pro   tability in each period. This
is a real valida  on of the successful execu  on of our strategic plan and provides op  mism for the earnings
power of the Company looking to the years ahead.
While we have achieved both success and robust    nancial results through 2024, we are not standing s  ll.
In the second quarter of last year, we reached an in   ec  on point in our business having achieved rate
adequacy in more than approximately 90% of our geographies, which posi  oned our team to selec  vely
resume wri  ng new personal lines business. This is a pivot of our strategy to one of controlled growth
anchored by a con  nued focus on risk management and stringent underwri  ng. This is an opportune   me
to grow, given the disrup  on in many of our markets. Addi  onally, we expect to leverage our exis  ng sales
and marke  ng teams that have largely been in place and will not require incremental general and
administra  ve expense.

Recent legisla  ve changes in Florida have also had a posi  ve impact on the economics of wri  ng new,
pro   table business in the state. In fact, we have seen a marked decline in frivolous lawsuits and believe
the impact of this necessary legisla  on will also be favorable to the consumer. Star  ng in the third quarter
of 2024, we started wri  ng new personal lines business again and I am op  mis  c with the growth
prospects that lie ahead. We also expect the reinsurance market will see the tangible bene   ts of this
legisla  on as Hurricane Milton claims mature through this year and into next year, which may have a
posi  ve impact on reinsurance pricing looking to our renewal in 2026.
Taken together, we are in an enviable posi  on as the rate ac  ons that we have taken over the last several
years con  nue to earn through our book of business in 2025, combined with a gradual return to new
personal lines business growth that we expect to modestly pick up through the second half of the year
and become more pronounced looking to 2026. While we return to growth, our focus remains steadfast
on con  nuing to execute on our strategic goals of genera  ng underwri  ng pro   t across all opera  onal
geographies, maintaining rate adequacy, ensuring selec  ve underwri  ng, me  culous but fair and
compliant claims handling, as well as providing products the market needs and fostering deeper long-term
reinsurance rela  onships.
Importantly, our reinsurance partners con  nue to provide support to Heritage and have been encouraged
by our improved    nancial performance over the past year. Their support is cri  cal to our long-term
success, and I would like to thank them for their partnership as we work to pro   tably grow our business.
Looking to the future, I am    lled with great op  mism as we con  nue to expand Heritage as a leading superregional insurance company. We have spent the last several years diligently building the founda  on to
support our expansion and are now in a posi  on to execute the next phase of our strategic plan. I could
not be more excited for the year ahead.
Thank you for your support and we look forward to sharing our progress and achievements as we con  nue
this journey of growth and success.
Sincerely yours,
Ernie Garateix
Chief Execu  ve O   cer



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